Efficient pricing of network infrastructure

In recent years, demand growth on Australian networks has been high, requiring additional capital expenditure to maintain acceptable standards of supply. In EnergyAustralia´s case, capital expenditure over the 2004–2009 period of the current regulatory Determination is expected to increase three-fold over the previous Determination, with the major factor driving this increase being demand growth. There is thus increased emphasis by Networks on managing demand, and increasing encouragement by Australian Regulators for them to do so. Efficient infrastructure pricing serves to directly influence customer behaviour and forms a foundation for other demand management options.