Overview

Initiation
Proposal
Preliminary position paper
Accepting submissions
Type
Determinations
Sector
Electricity
Segment
Distribution
REZ
Transmission
Region
New South Wales
Status
Open
Commencement date
Effective date
Regulatory period
-
AER reference
AER24009593
Contacts
General enquiries - REZ

Overview

On 16 May 2025, we received a revenue proposal from Ausgrid for the Hunter-Central Coast Renewable Energy Zone Network Infrastructure Project (HCC Project). On 4 July 2025, we received an updated revenue proposal from Ausgrid to correct an error in its forecast capital expenditure.

On 7 August 2025, we published our Preliminary position paper which provides an early indication of our assessment of Ausgrid’s revenue proposal. It identifies the key areas of focus which we consider require most stakeholder attention in making our final decision.

On 21 August 2025, we published a Supplementary appendix to the Preliminary position paper which includes further detail on our assessment of adjustment mechanisms. It also discusses matters related to confidentiality and provides newly-public details on some of the proposed adjustment mechanisms.

 

We expect to publish the final revenue determination in November 2025, which will set out the revenues that can be recovered by Ausgrid for the HCC Project for the 2026–31 regulatory period.

Background

We have a role in making revenue determinations for Network Operators who are authorised or directed to undertake network infrastructure projects. We are undertaking this role as Regulator under the NSW Electricity Infrastructure Investment Act 2020 (EII Act).

In making the revenue determination, we must consult with the Infrastructure Planner (EnergyCo) and the Consumer Trustee (AusEnergy Services Ltd). Fundamentally, we are required to evaluate if the proposed costs are prudent, efficient and reasonable.

On 17 April 2025, the Consumer Trustee authorised Ausgrid as the Network Operator to develop, construct, own, control and operate the HCC Project. Ausgrid’s upgrades to its existing network infrastructure are required to provide an additional one gigawatt of new network transfer capacity by 2028 to support renewable energy generation and storage within the HCC REZ region.

We are required to make our determination in accordance with the EII Act, the EII Regulation and the AER’s Revenue determination guideline for NSW non-contestable network projects.