AER publishes 2026–27 revenue adjustment proposals for NSW non-contestable REZ network projects

The Australian Energy Regulator has received annual revenue adjustment proposals from Transgrid and Ausgrid relating to their revenue determinations for NSW Renewable Energy Zone (REZ) non-contestable network projects.

The revenue adjustment proposals seek adjustments for:

Transgrid

• Waratah Super Battery – Network augmentation and SIPS control system – proposed increase of $11.7 million (11.1%) relative to the previous determination of $106.1 million.
• Enabling Central-West Orana REZ Network Infrastructure Project – proposed increase of $3.7 million (2.8%) relative to the previous determination of $128.9 million.

Ausgrid

• Hunter-Central Coast REZ Network Infrastructure Project – proposed increase of $14.5 million (7.6%) relative to the previous determination of $189.6 million.

We received Ausgrid’s proposal on 27 March 2026 and Transgrid’s on 31 March 2026 and we will endeavour to make our decision on the proposals within 42 business days consistent with our non-contestable guideline. 

Following our decision, we will publish a statement of reasons, updated quarterly service payments and revenue model for each determination.

The AER makes non-contestable revenue determinations under the Electricity Infrastructure Investment Act 2020 (NSW) (EII Act) and the Electricity Infrastructure Investment Regulation 2021 (NSW) (EII Regulation). Under this framework, a revenue determination may include provision for the adjustment of any amount included in the revenue determination (adjustment mechanism).

Our revenue determinations approved the inclusion of several adjustment mechanisms that are intended to account for risks that are outside a Network Operator’s control and cannot be efficiently mitigated through other means. The adjustment mechanisms set out what must occur for the adjustment to be triggered, our expectations on what information should be provided to support the proposal, and how any adjustment is calculated and applied.

The proposals include several routine adjustments to replace placeholder financial inputs with actual financial inputs. The proposals also include non-routine adjustments for expenditure. For these non-routine adjustments, we will assess whether the trigger for the adjustment occurred, and whether the proposed costs are prudent, efficient and reasonable.