AER publishes compliance bulletin to clarify when RIT-D applies to replacement expenditure

The Australian Energy Regulator (AER) has published a new compliance bulletin to support distribution network service providers (DNSPs) in understanding when a regulatory investment test for distribution (RIT-D) is required for replacement capital expenditure (repex) investment decisions.

DNSPs are encouraged to view Compliance Bulletin No. 10, Determining whether proposed replacement expenditure constitutes a RIT-D project, to clarify the Australian Energy Market Commission’s rule to extend the RIT-D to include repex decisions.

This compliance bulletin confirms that the RIT-D applies to all repex investments, except where an exemption applies under clause 5.17.3(a) of the Rules.

Completing a RIT-D for these projects will ensure that DSNPs select the best investment option to deliver the most efficient outcome in the long-term interest of consumers.

Issued date: 
25 November 2021
AER reference: 
AC 183/21
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