Regulatory investment test for transmission

The AER has published its regulatory investment test for transmission (RIT-T). The RIT-T has replaced the existing regulatory test for transmission investments and will commence on 1 August 2010. The regulatory test (version three) continues to apply to projects which address a need on the distribution network.

The purpose of the RIT-T is to identify the transmission investment option which maximises net economic benefits and, where applicable, meets the relevant jurisdictional or Electricity Rule based reliability standards. The RIT-T provides a single framework for all transmission investments and removes the distinction in the regulatory test between reliability driven projects and projects motivated by the delivery of market benefits.

The AER has also published RIT-T application guidelines for the operation and application of the RIT-T (the application guidelines). The application guidelines are designed to provide guidance to businesses applying the RIT-T and enhance transparency and consistency in investment decision making.

A copy of the RIT-T, application guidelines and a final decision document setting out the AER's reasons and responses to submissions can be found on the AER's website.

Issued date: 
29 June 2010
AER reference: 
AC 312/10