The Australian Energy Regulator (AER) has released an updated version of its Transmission Efficiency Test and revenue determination guideline for NSW non-contestable network infrastructure projects.
View the guideline review process
In 2024 the NSW Government made changes to the Electricity Infrastructure Investment Regulation 2021 (NSW) (EII Regulation) to provide flexibility in the way NSW Roadmap infrastructure projects can be delivered. The changes allow the AER to make revenue determinations for network infrastructure projects that combine both contestable and non-contestable components. These are referred to as hybrid revenue determinations.
Updates to the Guideline reflect the recent amendments to the EII Regulation which place obligations on the AER and require certain information to be included in our Guidelines in relation to how we assess the contestable and non-contestable components of a hybrid revenue determination. The updates also provide guidance on the approach we will take in making hybrid revenue determinations.
The amendments also include minor and administrative changes such as updated references to the regulatory framework. In making this guideline we considered all submissions received and we thank those stakeholders for their engagement with the process.
The AER has decided to commence a further review of the Guideline in early 2026. The 2026 review will be targeted to reflect the March 2025 AEMC Rule Change Determination - National Electricity Amendment (Improving the cost recovery arrangements for transmission non-network options) Rule. It is expected that public consultation for the 2026 targeted review will commence in March 2026.
Background
On 12 November 2021 we were appointed as a Regulator under the NSW Electricity Infrastructure Investment Act 2020 (EII Act) which has enabled the NSW Electricity Infrastructure Roadmap.
Our role as a Regulator is to scrutinise the cost of projects in Renewable Energy Zones within NSW that are proposed by the Infrastructure Planner (EnergyCo) and approved by AusEnergy Services Limited as the Consumer Trustee (and occasionally the Minister). We ensure energy consumers pay no more than necessary now and in the future.
We provide information to stakeholders on how we carry out our role through the Guidelines we develop under the EII Regulation, and we amend these Guidelines from time to time as required.