AER publishes determination on Humelink RIT-T dispute

The Australia Energy Regulator (AER) has today published its determination of a dispute raised about TransGrid’s Regulatory Investment Test – Transmission (RIT-T) for major transmission infrastructure project Humelink.

After considering the dispute by Wunelli Pty Ltd, we will now require TransGrid to amend its Project Assessment Conclusions Report (PACR) as part of the RIT-T. This follows a rigorous and careful assessment through which we determined that TransGrid did not reasonably consider all credible options that would deliver the transmission project and therefore did not apply the RIT-T correctly.

In amending the PACR, we require TransGrid to include analysis of a full double circuit configuration option between Maragle and Bannaby in the PACR and to test the robustness of this option using differing assumptions.

In relation to additional grounds raised in the dispute notice, the AER is satisfied that TransGrid applied the Humelink RIT-T PACR in accordance with the National Electricity Rules and RIT-T requirements.

Transparency is an important principle underpinning the RIT-T process and helps ensure stakeholders can have confidence in major projects. Amending the Humelink PACR is an important step in this regard and TransGrid must amend the PACR to progress through the regulatory approval process for the Humelink project.

We have taken a practical approach in requiring TransGrid to comply with this dispute determination by 23 December 2021, to ensure the process is completed expeditiously.

Our full determination is set out in the decision report

Issued date: 
24 November 2021
AER reference: 
AC 182/21
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