Type
Sector
Electricity
Segment
Transmission
Issue date
AER reference
AER25010742

On 13 February 2026, Transgrid applied to the AER to revoke and substitute its transmission revenue determination for the 2023–28 regulatory control period

Reviews of the submission, including confidentiality checks, have been undertaken prior to publishing to ensure that the application is suitable for consultation.

Transgrid is seeking to recover an additional $1,142 million ($2022–23) in capital expenditure from its customers. This is in addition to the $2,121 million ($2022–23) forecast for the NSW component of PEC in our April 2023 final decision.

This would result in a proposed increase of $173 million in revenue to be recovered from consumers in 2027–28, the final year of Transgrid’s current regulatory period. Transgrid estimates that this would increase residential customer bills by $18 in 2027–28.

The additional capital cost would also have longer term bill implications for customers over future regulatory periods as the total cost would be incorporated into Transgrid’s regulated asset base. 

Under the National Electricity Rules, we are required to make a decision within 40 business days of receiving the application. However, there are extension provisions that can be applied, subject to the complexity of the proposal and whether further information is required to assess the application.

 

Background

The AER made its final decision on Transgrid’s 2023–28 electricity transmission determination in April 2023. Transgrid has applied to reopen its 2023–28 revenue determination for PEC under clause 6A.7.1 of the National Electricity Rules.

Clause 6A.7.1 of the National Electricity Laws allows transmission network service providers to apply for revocation and substitution of their determinations to adjust approved capital expenditure where certain criteria are met. This includes, but not limited to, an event that is not reasonably foreseeable and where failure to rectify the event would adversely affect the reliability and security of the network. Our role is to determine whether Transgrid has satisfied these criteria under the National Electricity Laws, and if so, what adjustments to its approved capital expenditure—and any resultant change in revenue recovered from customers—are appropriate.