At Huegin we have chosen to work with DNSPs in helping them to construct logical and defensible arguments to support their regulatory submissions. We have been successful in working with our clients in achieving more appropriate regulatory outcomes.
The regulated electricity industry in Australia
In Australia, the transmission and distribution of electricity is a naturally monopolistic sector. Most states operate within the National Electricity Market (NEM). The economic regulation for the NEM is undertaken by the Australian Electricity Regulator according to the National Electricity Rules (NER).
Effectively regulating players in this sector is a complex undertaking and requires significant analysis and investigation from both the AER and the distribution and transmission entities. For distribution and transmission entities the preparation of the regulatory proposal and all supporting documentation is both vitally important and resource intensive, taking many months.
Our view and experience
In our view, the regulatory process (from draft proposal through to final determination and possible merits review) must be managed in a similar way to the development of strategy. Importantly there must be a very clear and defensible story that underpins the regulatory response.
Beyond strategy and the ensuing story, the regulatory response must follow the rules of logic, ensuring that the evidence put forward is both defensible and supportive of the overall strategy.
Finally, the supporting material must be rigorously tested and be shown to truly support the regulatory strategy.
Huegin have significant experience in assisting DNSPs in managing their regulatory submission process. We have been involved in the most recent regulatory determinations in both Queensland and New South Wales and have provided advice to DNSPs in Victoria to assist in the preparation of their determinations.
We are currently on the regulatory support panels for a number of organisations and are preferred suppliers for the Asia Pacific Utilities Group (APUG).
Our specific capabilities
Support in managing the regulatory process
- Development of regulatory submissions
- Independent review of submissions
- Executive support in decision making
- Preparation for merits review
Specific skills in producing supporting evidence
- Cost Modelling
- Quantitative risk analysis
- Discrete event simulation