The Australian Energy Regulator (AER) has published a commencement and process paper outlining both the conversion application and transmission determination processes for the Basslink interconnector.
The paper adopts a process whereby the AER will run two concurrent processes: an assessment of converting the asset and a revenue determination for the asset should it be converted.
The decision to progress both processes concurrently will allow the AER to consult with stakeholders on both decisions with consideration to overlapping issues.
If the asset does not convert the AER will not publish a revenue determination.
The proposal will be submitted in September 2023, and we expect to make a decision on the conversion application and revenue determination, should the asset convert, by December 2024.
On 19 May 2023, the AER received an application from APA Group to commence a conversion application and revenue determination process for the Basslink interconnector under rule 6A.9 of the National Energy Rules.
Basslink is a 500 MW undersea transmission cable which links Loy Yang in Victoria to George Town in Tasmania. It was built in 2006 and was subsequently acquired by APA Group in October 2022.