Investor Presentaiton

REGULATORY ENVIRONMENT Other reviews Issue Limited Merits Review Productivity Commission Report Commentary Largely positive outcome which retains the ability to appeal specific items without opening up the entire decision - not 'de novo' ■ Australian Competition Tribunal (ACT) as the review body Appellants required to establish both error and a materially preferable outcome in applying for leave to appeal Main recommendations: Revenue cap should apply to all electricity distribution businesses ■ Consumer participation should be improved and funded Reliability standards should be relaxed " ◉ Smart meters should be rolled out on a widespread basis ■ State owned operators should be privatised Status Finalised Decision made in June 2013 by the Standing Council on Energy and Resources (SCER) Finalised - Final report into the Electricity Network Regulatory Framework released in June 2013 ◉ Solar panel subsidies should be removed AER Expenditure Incentive Guideline AER Shared Assets Guideline Benchmarking should be used as a diagnostic tool ■ The incentive framework for capex will now match that which exists for opex- penalty for overspending from 30% to 100% ■ Regulatory depreciation will be used to roll forward the RAB Benchmarking tools are greatly increased and intended to play a far more significant role in the setting of allowances ■ No negative impact on efficient businesses Applies where unregulated revenues from shared assets exceed 1% of total annual revenue ■ AER proposes to reduce regulated revenues by around 10% of the value of unregulated revenues from shared assets ■ No material effect on the revenue of either SA Power Networks or Victoria Power Networks Final Guideline expected by the end of November 2013 Final Guideline expected by the end of November 2013 SPARK INFRASTRUCTURE INVESTOR PRESENTATION - NOVEMBER 2013 12 sparkinfrastructure

View entire presentation