We have released a draft transmission determination that will apply to AusNet Services (AusNet) over the 2027–32 regulatory period.
Regulated electricity transmission service providers must periodically apply to us to determine the maximum allowed revenue they can recover from consumers for using their networks. On 31 October 2025, we received AusNet Services’ regulatory proposal for the period 1 April 2027 to 31 March 2032.
Our draft decision provides for total revenue of $4,754.4 million over the 2027–32 period. This is $58.5 million (1.2%) higher than AusNet’s revenue proposal, driven primarily by increases in interest rates.
While we recognise the need for increased expenditure to maintain the safety and reliability of Victoria’s shared transmission network, we are not satisfied that AusNet’s proposal reflects the efficient costs of a prudent operator.
Our draft decision therefore makes targeted reductions to capital and operating expenditure. This includes a 29.8% (or $726.2 million) reduction to forecast capital expenditure to better balance the need for investment and affordability and to ultimately deliver transmission services at least cost to consumers. Even after these reductions, our draft decision, reflects a substantial step up in capital expenditure (up 53% or $592.2 million) in real terms compared with expenditure over the current 2022–27 period.
We recognise the work AusNet has undertaken to engage with stakeholders. We have considered the engagement outcomes, as well as the stakeholder submissions in making our draft decision. In doing so, our role is to test whether proposed expenditure reasonably reflects the costs of a prudent operator acting efficiently. We have made targeted reductions where we have found costs can be reduced.
AusNet has an opportunity to submit a revised proposal in response to this draft decision. Under the Rules, any revisions must be directed to incorporating the substance of changes required by, or addressing matters raised in, the draft decision.
AusNet’s revised proposal is due by 1 September 2026. Our final determination will be made by 29 January 2027.
