AER - Explanatory Statement - TET & revenue determination guideline for non-contestable network infrastructure projects (final amendments) - July 2024

On 25 July 2024, the AER published the final revenue determination guideline for NSW non-contestable projects (Guideline) and accompanying explanatory statement. This replaces the first version of the Guideline (dated April 2023). 

The major change under the amended Guideline is the introduction of a preliminary position paper instead of a draft decision. We consider that this change will lead to an improved, streamlined process that more efficiently uses the 126 business day timeframe for a non-contestable revenue determination. 

There are a range of other changes in the amended Guideline. Some are in response to recent changes in the legislative framework, including to reflect new financeability and concessional finance provisions in the National Electricity Rules (NER). We have also clarified some points around pre-engagement expectations.

The Guideline includes a set of rules, known as ‘EII Chapter 6A’, which is applied to NSW Renewable Energy Zone projects. EII Chapter 6A is based on, but differs from, the standard NER Chapter 6A. While this is an appendix to the Guideline, for ease of stakeholder access we have provided it as a separate document below. 

The accompanying explanatory statement sets out our response to the seven stakeholder submissions we received, including how our consideration of these submissions led to further changes between the draft and final versions of the Guideline.