Overview

Type
Sector
Electricity
Segment
Distribution
REZ
Transmission
Region
New South Wales
Status
Current
Date initiated
Effective date

The AER has released its final guideline that sets out how we will make revenue determinations for network operators authorised or directed to carry out non-contestable network projects under the NSW Electricity Infrastructure Roadmap.

We have been appointed to undertake this role under the NSW Electricity Infrastructure Investment Act 2020 (EII Act). Our final guideline substantially reflects the approach to economic regulation for transmission businesses under the National Electricity Rules. We will apply our guideline to determine the amounts to be paid to Network Operators for constructing and maintaining these network infrastructure projects are efficient, prudent and reasonable, as these amounts will ultimately be recovered from NSW electricity consumers through their retail bills.

The AER has also developed a guideline for our approach to contestable network infrastructure projects under the EII Act. It focuses on us assessing whether the competitive assessment process is genuine and appropriate. If we are satisfied with the process, we may adopt the outcome of the process in our determination rather than undertaking a detailed review of components of a revenue proposal.

2024 review of the guideline

We are currently reviewing the revenue determination guideline for NSW non-contestable infrastructure projects, to improve the efficiency of the non-contestable revenue determination process and to reflect recent changes to the EII regulations and Chapter 6A of the NER.