Issue date
AER reference
AC 172/21

The Australian Energy Regulator (AER) will be the regulator for the New South Wales government’s Renewable Energy Zones (REZs), following its appointment today under the Electricity Infrastructure Investment Act 2020 (NSW).

The AER’s role will centre on Part 5 of the Act where it will be required to make five-year revenue determinations for network infrastructure projects authorised by the independent Consumer Trustee for each REZ.

The AER’s determination will include the calculation of the prudent, efficient and reasonable capital costs of these projects.

Other AER regulatory functions include:

  • making annual contribution determinations in relation to the Electricity Infrastructure Fund (Part 7 of the Act)
  • approving a risk management framework developed by the Consumer Trustee (Part 6 of the Act); and
  • reviewing tender rules in relation to long-term energy service agreements (Part 6 of the Act).

The AER welcomes the appointment and has been working closely with the NSW Department of Planning, Industry and Environment on those aspects of the REZ framework relevant to our roles.