The current electricity price determination, the Aurora Energy Pty Ltd 2016 Standing Offer Price Determination, expires on 30 June 2022 and the Regulator is required to make a new price determination which will cover the next regulatory period from 1 July 2022. Before making the new price determination, the Regulator is required to conduct a pricing investigation.

As part of this process, Aurora Energy provided its submission to the pricing investigation on 15 October 2021 and a copy of its cost-to-serve model on 11 November 2021. Aurora Energy’s cost-to-serve is a key cost component to be investigated.

After reviewing the information provided by Aurora Energy, it has become evident that Aurora Energy has applied a base-step-trend approach in developing its forecast of its cost-to-serve and that it is necessary to engage a consultant to review Aurora Energy’s application of this approach.