SA Energy Transformation update: AER to release decision on SA-NSW interconnector RIT-T in 2020

The Australian Energy Regulator (AER) is finalising its decision on whether ElectraNet’s SA Energy Transformation satisfies the requirements of the Regulatory Investment Test for Transmission (RIT-T) cost-benefit analysis.

The AER is undertaking a comprehensive review of the RIT-T to ensure the project is in the best interests of consumers. During the process, the AER requested additional information from ElectraNet and AEMO to inform our decision. Our consideration of this information and the complexity of the project means that we now expect to release our decision in early 2020.

We thank our stakeholders for their assistance in working with us to reach a decision


On 5 June 2019, we commenced the formal process under the National Electricity Rules (NER) to determine whether the interconnector satisfies the RIT-T cost-benefit analysis.

The formal process commenced after we finalised a dispute on whether ElectraNet’s RIT-T had inadequately considered the consequences of system security risks. We found that ElectraNet’s RIT-T was compliant specifically on the matters raised in the dispute notice, but the next step would be to consider whether interconnector met the broader requirements of the RIT-T cost-benefit analysis.

Under the NER, the AER has no more than 120 business days to make a determination, subject to requests for further information.

Issued date: 
20 December 2019
AER reference: 
AC 199/19
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