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Investor Presentaiton

INFRASTRUCTURE FOR THE FUTURE REGULATORY REVIEWS We will engage and advocate for outcomes that support returns required while delivering lower costs to customers Review Objective Support retailers in financial difficulty as a result of customers not paying bills due to COVID-19 Assess performance of inflation forecasting methodology and impact on returns ESB Converting the ISP into action (proposed rule changes) Streamline regulatory processes whilst retaining a rigorous cost/benefit assessment AEMO 2020 Integrated System Plan (ISP) Roadmap for Australia's power system that maximises market benefits AEMC Deferral of network charges AER Inflation Review AEMC Rules to integrate DER AEMC Regulatory Framework for stand alone power systems AER Rate of Return Instrument (RORI) AEMC AEMC ESB Rules to facilitate system stability Coordination of Generation and Transmission Investment (COGATI) Access and Charging (1) Post 2025 National Electricity Market (NEM) Design Allow two-way energy flows and charging for export Allow customers to benefit from new technology that lowers costs of providing regulated services Sets out approach to estimate rate of return: return on debt, return on equity and value of imputation credits Create new markets for synchronous services, reserve markets and ahead markets Better co-ordinate generation and transmission investment to improve the efficiency of dispatch and location of generators; provide certainty to support new investment and improve planning information Develop long-term, fit-for-purpose market framework to enable provision of full range of services to customers necessary to deliver a secure, reliable and lower emissions electricity system at least-cost (1) Now incorporated in to the ESB's post 2025 NEM Design program as Grid Access Spark Infrastructure I Investor Presentation | August 2020 Implementation 1 July 2020 July 2020 August 2020 End 2020 End 2020 End 2021 Dec 2022 Prior to 2025 2025 2025 24
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