EUAA Submission: Powerlink Queensland Revenue Proposal 2022-2027

EUAA Submission: Powerlink Queensland Revenue Proposal 2022-2027

Emily Wood | May 26, 2021

‘…Powerlink’s Proposal provides an excellent perspective on the rapidly changing business and operating environment faced by electricity networks in the National Electricity Market.

While it presents the proposed revenue requirement for the 2022-27 period, this is seen in the context of what needs to be done in that period to ensure it meets stakeholders needs well beyond the end of the five-year reset period. What it is planning to do in the face of rapidly decreasing minimum demand, higher and shorter demand peaks, expansion in connection of large-scale distributed generation, development of renewable energy zones and declining delivered energy are all critical components of its forward looking plan. Powerlink’s Integrated Electricity Pathways work presented to the Consumer Panel provided confidence that Powerlink is actively researching how to understand and address the challenges ahead.

This submission:

• Complements Powerlink on their best practice consumer engagement
• Welcomes a Proposal that is not an ‘ambit claim’ with its focus on affordability (with the price falls for business customers) and efficiency – falling capex, opex productivity and a declining Regulated Asset Base (RAB)
• Suggests that, given the excellent consumer engagement, the Proposal should support a ‘lighter touch’ by the AER as it undertakes its review of the prudent and efficient level of expenditure
• Welcomes the 0.5% opex stretch productivity target but highlights the risks to consumers under the EBSS if the stretch target of 0.5% opex productivity improvement is not achieved, and
• Proposes an even greater focus on capital productivity…’

Please download attachment to read full submission.

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