What is the difference between the AER's Draft Decision accepting and acknowledging Essential Energy's approach?

    The AER is responsible for reviewing Essential Energy's proposed expenditure over the next 5 years to determine how much revenue Essential Energy can recover. Their Draft Decision outlines what areas of expenditure it has accepted, and the AER has indicated it largely accepts Essential Energy's proposed expenditure. 

    In some areas, such as those covering off on general issues such as affordability, the AER may acknowledge whether our approach meets their expectations. The AER's Draft Decision acknowledged Essential Energy's approach balanced the need for affordability and other investment priorities to support the energy transition.

    How will Essential Energy's plans respond to changes to economic conditions?

    The AER considers the current and expected economic environment when making its draft decision and final determination about how much revenue Essential Energy is allowed to recover over the next 5 years. Essential Energy may make some minor adjustments in the network portion of the bill to reflect the changing economic conditions facing our business.