Contribution determination guideline under NSW electricity roadmap

  • Accepting submissions
Sector: 
Category: 
Jurisdictional scheme
Status: 
Date initiated: 
31 May 2022
Contact: 
General enquiries - REZ, General enquiries - REZ REZ@aer.gov.au

Overview

The Australian Energy Regulator (AER) has published a draft contribution determination guideline about cost recovery under the NSW Electricity Infrastructure Roadmap (Roadmap).  

Under the NSW Electricity Infrastructure Investment Act 2020 (EII Act) we are required to make an annual contribution determination to confirm the costs of implementing the Roadmap. The Roadmap’s independent Scheme Financial Vehicle recovers these costs from the NSW distribution network service providers who are then required to pass the costs through to NSW electricity consumers on their retail bills. In the National Electricity Rules context, the Roadmap’s contribution determination is a jurisdictional scheme, and meets the eligibility criteria in the NER as assessed by the AER. 

The contribution determination process allows the Roadmap’s Scheme Financial Vehicle to have sufficient funds to meet its liabilities, for example to cover the costs of underwriting new renewable generation or storage investment, network investment and the administration costs of Roadmap entities.

To give effect to our regulatory functions under the EII Act, our draft guideline sets out our process and method for how we intend to make a contribution determination. Our method will be operationalised through an Excel-based template called the contribution determination template.

Our draft guideline implements the EII Act and Regulations developed by the OECC. The OECC published its policy intent on exemptions from Roadmap costs for emissions-intensive trade-exposed entities and green hydrogen producers and its proposed process for administering exemptions. This document should be read in conjunction with our draft guideline.


Have your say

We are seeking submissions from interested stakeholders on the draft guideline by 29 July 2022.