On 3 October 2025, Transgrid submitted an application seeking an AER determination on whether the expenditure for proposed system security network support (SSNS) payments, and methodologies for such payments, as set out in a draft contract will likely be prudent and efficient.
Transgrid’s application set out the terms for system strength services to be procured by Transgrid from Snowy Hydro, and provided information to justify the prudency and efficiency of these terms against the AER’s assessment criteria set out in the AER’s System security network support payment guideline.
Transgrid’s application included redactions of confidential information on the terms of the contract, and on the commercial negotiations between Transgrid and Snowy Hydro Ltd.
We published Transgrid’s confidentiality claim for these redactions.
We invited energy consumers and other interested parties to make submissions on Transgrid’s system security contract review application by close of business 10 November 2025.
We received one submission.
On 28 November 2025, the AER determined that these payment terms will likely result in expenditure that is prudent and efficient, meaning they are consistent with the opex objectives, criteria and factors, and relevant network support pass through factors.