Review of the Effectiveness and Efficiency of Aurora Energy's Capital Expenditure, Maintenance and Operating Costs for Distribution Services

The maximum prices for the supply of electricity to tariff customers and for certain electrical services in Tasmania are currently set by the Regulator in a Determination made in December 2003. That Determination will expire on 31 December 2007. The draft Terms of Reference for the 2007 Investigation proposes that the next determination of distribution prices will have a term of four and a half years, that is, until 30 June 2012. To assist in understanding the financial impacts of any determination, Aurora Energy's capital expenditure and operating and maintenance costs will be considered in the context of its long-term asset management strategy. The Regulator is seeking proposals to undertake a consultancy to provide an opinion on whether the proposed capital, maintenance and operating programs of Aurora Energy are appropriate and adequate, and to recommend expenditure allowances for Aurora Energy.