Updated timeline
The Australian Energy Regulator (AER) is seeking further information from stakeholders, to ensure the final decision is informed by the best available information.
Consequently, we now expect to release a final decision on conversion for Basslink in June 2025.
Should the final decision be to convert Basslink’s services to regulated services, the AER would then consult on a Commencement and Process Paper setting out the process and timeline for a revenue determination.
A revenue determination is only required in the event Basslink coverts to regulated transmission services.
Draft decision
On 17 December 2024, we published our draft decision on the application from APA Group to convert the services of the Basslink interconnector from a market network service to a prescribed transmission service.
Stakeholder submissions on our draft decision closed on 31 January 2025 and are available on our website.
Recent milestones
Updated Regulatory Proposal
In October 2024 APA Group provided a revised proposed opening regulatory asset base value and revised cost allocation methodology, available on our website.
On 30 August 2024, we released a Consultation Paper in respect to APA Group's application to convert the Basslink interconnector from a market network service to a prescribed transmission service.
The Consultation Paper is supported by ACIL Allen's modelling report, available on our website.
Concurrently, we released a revised Commencement and Process Paper that sets out the updated time frame and process that will apply to Basslink.
On 10 November 2023, we released an Issues Paper for the Basslink interconnector conversion application and revenue determination. Submissions in response to the Issues Paper are available on our website.
Background
Basslink is a 500 MW undersea transmission cable which links Loy Yang in Victoria to George Town in Tasmania. In 2022, APA Group acquired Basslink Pty Ltd, the owner and operator of Basslink.
In December 2022, the Australian Energy Market Commission (AEMC) implemented a rule change which allows us to make a transmission determination for a network service provider that has applied to us seeking to convert its network services to prescribed transmission services.
On 19 May 2023, APA Group lodged an application:
- to convert Basslink’s network services from market network services to prescribed transmission services
- requesting us to commence, and determine, the process of making a transmission determination for Basslink.
Lodging the request to convert means that Basslink is an ‘Intending TNSP’ under rule 6A.9 of the National Electricity Rules (NER). An Intending TNSP may ask us to commence the process of making a transmission determination.
On 14 July 2023, the AER published its decision to commence a transmission determination process for Basslink and the Commencement and Process Paper outlining the process that will apply for this determination.