Issue date
AER reference
AC 122/21

The Australian Energy Regulator (AER) has initiated a review of the cost thresholds associated with the regulatory investment test for transmission (RIT-T) and regulatory investment test for distribution (RIT-D). These are cost-benefit tests that network businesses must perform and consult on before making major investments in their networks. The tests apply to only transmission and distribution investments above certain cost thresholds set out in the National Electricity Rules (the Rules).

The Rules require the AER to review the cost thresholds every three years, to allow for changes to input costs.

The AER will soon consult on a draft determination that will outline whether changes to the cost thresholds will be proposed. Stakeholders will be advised when the draft determination is published and will be invited to provide written submissions.

A final determination will be published once we have considered all written submissions received.