AER - CBA and RIT Guidelines review - explanatory statement - 28 July 2023

On 28 July 2023, the AER published draft amendments to the Cost Benefit Analysis guidelines and the Regulatory Investment Test (RIT) application guidelines.

These draft amendments have been initiated following the Australian Energy Market Commission’s material change in network infrastructure project costs (MCC) rule determination and to provide guidance on an issue set out by the AEMC in its transmission planning and investment (TPI) review Stage 2 final report. The accompanying explanatory statement details the AER approach and reasoning regarding the draft amendments and seeks stakeholder submissions on these draft amendments.