On 23 January 2017, the Office of the Commissioner for Kangaroo Island and the Kangaroo Island Council lodged a written notice with the AER disputing the conclusions made in SA Power Networks’ final project assessment report (FPAR) for the Kangaroo Island Submarine Cable regulatory investment test for distribution (RIT-D). SA Power Network’s FPAR found that the installation of a second 33kV undersea cable by 2018 had the highest net economic benefit, making it the preferred option.
On 17 May 2017, in accordance with the requirements under clause 5.17.5 of the National Electricity Rules (Electricity Rules), the AER published a determination that found SA Power Networks did not apply the RIT-D in accordance with the Electricity Rules, but that it was not required to amend its FPAR.
Our determination concludes SA Power Networks’ application of the RIT-D for the Kangaroo Island Submarine Cable. However, in accordance with the Electricity Rules, if there is a material change in circumstances whereby the 33kV option is no longer the preferred option, SA Power Networks may be required to reapply the RIT-D.