On 16 May 2025, we received a revenue proposal from Ausgrid for the Hunter-Central Coast Renewable Energy Zone Network Infrastructure Project (HCC Project). On 4 July 2025, we received an updated revenue proposal from Ausgrid to correct an error in its forecast capital expenditure.
On 7 August 2025, we published our Preliminary position paper which provides an early indication of our assessment of Ausgrid’s revenue proposal. It identifies the key areas of focus which we consider require most stakeholder attention in making our final decision.
On 21 August 2025, we published a Supplementary appendix to the Preliminary position paper which includes further detail on our assessment of adjustment mechanisms. It also discusses matters related to confidentiality and provides newly-public details on some of the proposed adjustment mechanisms.
On 12 November 2025, we made our final decision for the HCC Project. Consistent with the requirements of clause 53(4) of the EII Regulations, we have published the final decision as soon as reasonably practicable, following EnergyCo (as the Infrastructure Planner) notifying us on 17 December 2025 that financial close has been achieved.
Our decision sets out the amounts to be paid to Ausgrid for the HCC Project on a quarterly basis from 1 July 2026 to 30 June 2031. These amounts are based upon our assessment of the prudent, efficient and reasonable costs for the project and may be amended annually through approved adjustment mechanisms.
Under the EII Act, Ausgrid is required to be paid by the Scheme Financial Vehicle (SFV) in accordance with our determination. The SFV recovers these costs (and other NSW Roadmap costs) from NSW electricity distributors, who in turn recover these costs from NSW electricity customers via their retail bills.
We have a role in making revenue determinations for Network Operators who are authorised or directed to undertake network infrastructure projects. We are undertaking this role as Regulator under the NSW Electricity Infrastructure Investment Act 2020 (EII Act).
On 9 December 2022, the NSW Minister for Energy declared the Hunter-Central Coast (HCC) REZ and was subsequently amended on 2 December 2024. The HCC Project involves the construction and operation of network infrastructure to enable the connection of new renewable energy generation and storage projects in the HCC REZ. It will provide an additional 1 GW of network transfer capacity and will consist of three portions:
Upper Hunter secondary systems modernisation (providing 350MW additional network capacity).
Muswellbrook network rearrangement, Singleton to Kurri 132kV link, and installation of a communications link across the Hawkesbury River (providing a cumulative total of 630 MW additional network capacity).
Construction of a new Antiene 132kV switching station and Antiene to Singleton 132kV link (providing a cumulative total of 1 GW of additional network capacity).
On 17 April 2025, the Consumer Trustee authorised Ausgrid as the Network Operator to develop, construct, own, control and operate the HCC Project. We have made our determination in accordance with the EII Act, the EII Regulation and the AER’s Revenue determination guideline for NSW non-contestable network projects.