Remade determination - June 2025

On 4 April 2025, the main CWO REZ network project (Project) reached financial close. On 7 May 2025, ACEREZ submitted a revenue adjustment proposal to reflect the finalised contractual arrangements for the project. The proposal included: 

• changes to the wording of some adjustment mechanisms to reflect updated processes for calculating adjustment amounts, and
• an update of the amount payable to ACEREZ to reflect adjustments applied at financial close and the resolution of Net Financial Impact Events. 

On 27 June 2025, the AER decided to review and remake the revenue determination for the Project. This was on the basis that:

• the proposed adjustments were made in accordance with the approval process set out in the contractual arrangements and the revenue determination, and
• the contractual arrangements remain consistent with the outcome of the competitive assessment process. 

Under our Revenue determination guideline for NSW contestable network projects, we endeavour to make a decision within 42 business days of receiving an adjustment proposal. We are required to accept an adjustment proposal if it reflects the outcomes of a ‘genuine and appropriate’ competitive assessment process.

Clause 53(1) of the Electricity Infrastructure Investment Regulation 2021 (NSW) requires us to publish a summary of the determination. The summary must include our reasons for making the determination, and the NER‑equivalent capital cost, calculated by EnergyCo, based on our determined development and construction capital cost. The NER-equivalent capital cost is an amount, in the opinion of the Infrastructure Planner (EnergyCo), that is equivalent to the amount that would be calculated and published as the capital cost of a project under the National Electricity Rules (NER). Broadly, the NER-equivalent costs reflect the costs to be funded by NSW electricity customers to develop and construct the project. It excludes costs funded through access fees from connecting generators and also excludes capitalised interest during construction and finance fees. 

We have published a summary report on our remade determination to address the above requirements.