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 (NER). 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 updated and released a new version of the Revenue determination guideline for NSW non-contestable infrastructure projects in July 2024. This version incorporates changes following a review of the Guideline to improve the efficiency of the non-contestable revenue determination process and to reflect changes to the Electricity Infrastructure Investment Regulation 2021 (NSW) and Chapter 6A of the NER.
2025 review of the guideline
We updated and released a new version of the Revenue determination guideline for NSW non-contestable infrastructure projects in December 2025. This version incorporates changes following a review of the guideline to reflect changes the NSW Government made in 2024 to the Electricity Infrastructure Investment Regulation 2021 (NSW) (EII Regulation) to make revenue determinations for network infrastructure projects that combine both contestable and non-contestable components. We refer to these as hybrid revenue determinations.
2026 review of the guideline
The AEMC's Improving the cost recovery arrangements for transmission non-network options Rule (ICRA Rule) came into effect on 13 March 2025. To incorporate the ICRA Rule under the NSW Electricity Infrastructure Investment (EII) framework, we have commenced a targeted review of our revenue determination guideline for NSW non-contestable infrastructure projects (Non-contestable Guideline).
As applied to the EII framework, the ICRA Rule will improve cost recovery arrangements for network operators seeking to implement a network infrastructure project which consists of one or more non-network option (NNO) components.
The proposed updates will provide network operators with greater certainty and timing flexibility in seeking determinations from the AER for NNO components. Further information about our review can be found here.
Where reasonably practicable, the updates to our Non-contestable Guideline are consistent with our network alternative support payment guideline (NER Guideline) developed under the national regulatory framework.
Our final NER Guideline, developed in response to the ICRA Rule, was published on 13 March 2026.