Draft amendments to the RIT application guidelines released for consultation

The Australian Energy Regulator (AER) today released for consultation draft amendments to the AER’s regulatory investment test for transmission (RIT-T) and regulatory investment test for distribution (RIT-D) application guidelines. This is in response to the Australian Energy Market Commission’s (AEMC) final rule determination on our rule change proposal regarding the replacement expenditure planning arrangements rule change (“repex rule change”). The transitional arrangements require the AER to amend and publish RIT documentation to take into account the amending rule by no later than 18 September 2017.

In accordance with the rule requirements, our amendments are limited to those necessary to address the amending rule. We have examined the RIT-T, the RIT-D and the associated guidelines with a view to addressing the amending rule. Our examination revealed that neither the RIT-T nor the RIT-D requires amendment and that only minor amendments to the RIT-T and RIT-D application guidelines are necessary. Marked up extracts of the guideline amendments are available on our website using the links appearing below.

Consistent with the recommendations of the Council of Australian Governments (COAG) Energy Council’s RIT-T review, published on 6 February 2017, we intend to commence an additional, larger scale review of the RIT-T and RIT-D application guidelines before the end of 2017. Our large scale review will capture issues identified within the COAG Energy Council’s RIT-T review, any issues arising from the repex rule change determination that are yet to be addressed and other provisions in the guidelines that require amendment.

Invitation for submissions

Interested parties are invited to make written submissions on the draft amendments to the guidelines by close of business, 25 August 2017. Late submissions may not be taken into account.

Submissions should be sent electronically to: AERInquiry@aer.gov.au with the subject line “Amendments to the RIT-T and RIT-D application guidelines".

Alternatively, written submissions can also be sent to:

Mr. Peter Adams
General Manager—Wholesale Markets Branch
Australian Energy Regulator
GPO Box 520
Melbourne VIC 3001

Please note that submissions provided by email do not need to be provided separately by mail.

The AER prefers that all submissions be sent in an electronic format in Microsoft Word or other text readable document form and publicly available, to facilitate an informed, transparent and robust consultation process. Accordingly, submissions will be treated as public documents and posted on the AER's website, unless prior arrangements are made with the AER to treat the submission, or portions of it, as confidential. Those wishing to submit confidential information are requested to:

  • clearly identify the information that is the subject of the confidentiality claim; and
  • provide a non-confidential version of the submission.
Issued date: 
11 August 2017
AER reference: 
AC 104/17