The Australian Energy Regulator (AER) has published its decision on Transgrid’s draft system security network support (SSNS) contract with Snowy Hydro.
The AER has determined that the payment terms in the proposed contract for Snowy Hydro’s provision of system strength services over the next two years are likely to result in prudent and efficient expenditures for electricity consumers.
Following the AEMC’s Improving Security Frameworks for the Energy Transition rule change, transmission network service providers can now, before signing a contract, seek AER review of the proposed payment terms in a draft contract between the TNSP and SSNS provider (such as a generator or battery).
The AER’s role is to determine whether expenditure based on the payment terms will likely be prudent and efficient.
Transgrid’s application for this review was the first received by the AER under the new rule.
We assessed the application for consistency against the operating expenditure objectives and criteria in the National Electricity Rules (NER), in accordance with our SSNS payment guideline.