Clearer guidance on contingent project applications, staging of projects and ex-post measures are the latest measures from the Australian Energy Regulator (AER) designed to increase confidence in the cost forecasts and efficient delivery of large transmission projects so consumers pay no more than necessary for these assets.
The AER’s guidance will support the efficient and timely delivery of large transmission projects, identified as ‘actionable’ in AEMO’s Integrated System Plans (ISPs).
The guidance has been developed in consultation with stakeholders to improve the predictability and transparency of how the AER will assess the costs sought by transmission businesses for delivering these large projects.
Alongside the guidance note, the AER has published a letter that summarises the issues raised by stakeholders during consultation, our responses to those issues, and an explanation of how we have amended the guidance note in light of stakeholder feedback. It also discusses those issues raised by stakeholders that we were not able to address through this guidance note.
Our letter also sets out that we intend to progress our thinking on potential other reform areas we identified in our November 2020 work program letter by contributing to the review recently announced by the AEMC. This will minimise duplication of effort and ensure a coordinated work program across market bodies to streamline stakeholder consultation processes.