The Contribution determination guideline (the Guideline) addresses cost recovery under the NSW Electricity Infrastructure Roadmap (the 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. 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 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, the Guideline sets out our process and method for making a contribution determination. Our method will be operationalised through the contribution determination template.
The Guideline implements the EII Act and Regulations developed by the NSW Office of Energy and Climate Change (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 which should be read in conjunction with this Guideline.