The AER has published its regulatory investment test for transmission (RIT-T) by 1 July 2010. The RIT-T has replaced the existing regulatory test for transmission investments and will commence on 1 August 2010. The regulatory test (version 3) continues to apply to projects which address a need on the distribution network.
The purpose of the RIT-T is to identify the transmission investment option which maximises net economic benefits and, where applicable, meets the relevant jurisdictional or Electricity Rule based reliability standards. The RIT-T provides a single framework for all transmission investments and removes the distinction in the regulatory test between reliability driven projects and projects motivated by the delivery of market benefits.
The AER has also published RIT-T application guidelines for the operation and application of the RIT-T (the application guidelines). The application guidelines are designed to provide guidance to businesses applying the RIT-T and enhance transparency and consistency in investment decision making.
Final RIT-T and application guidelines (29 June 2010)
On 29 June 2010, the AER published its final RIT-T, final application guidelines and a final decision setting out the AER’s reasons and responses to submissions received on the AER’s draft RIT-T and application guidelines.
Draft RIT-T and application guidelines (30 March 2010)
The AER has prepared a draft RIT-T, draft application guidelines and an explanatory statement setting out the AER’s reasons and responses to submissions received on the AER’s issues paper.
