Kangaroo Island Submarine Cable RIT-D dispute

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.

Determination

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.

AER Determination - Kangaroo Island submarine cable RIT-D dispute ( DOCX 259.13 KB | PDF 304.7 KB )

Background documentation

HoustonKemp - External review of Kangaroo Island submarine cable RIT-D dispute ( PDF 713.55 KB )

AER information request - additional information from SA Power Networks ( PDF 65.97 KB )

SA Power Networks' response to AER information request ( PDF 2.99 MB )

Letter to the AER from Office of the Commissioner for Kangaroo Island & Kangaroo Island Council - Dispute notice for the Kangaroo Island submarine cable RIT-D ( PDF 1.19 MB )