The AER has today published the final transmission pricing methodology guidelines and information templates following a rule change in October 2024 for 'Providing flexibility in the allocation of interconnector costs'. The final rule provides an alternative mechanism which enables the allocation of interconnector costs between regions in the National Electricity Market as specified in agreements between Ministers.
The final pricing methodology guidelines include amendments that set out the information we require to assess whether electricity transmission networks’ pricing methodologies are consistent with the requirements of the final rule. These amendments will assist electricity transmission networks facilitate the allocation of interconnector costs, as specified in agreements between Ministers, through their pricing methodologies.
We will collect information related to the final rule through additional data requirements in the Annual Information Orders for electricity transmission networks. Consequently, we updated the information templates to reflect the information we will require annually on these interconnector cost allocations.
These amendments to the final pricing methodology guidelines and information templates were informed by stakeholder input. Our explanatory statement outlines the reasoning behind the limited changes made and our consideration of stakeholder feedback.
Our final decision will come into effect on 3 July 2025. This will enable any agreements on allocating interconnector costs made between Ministers to be incorporated into electricity transmission prices from 1 July 2026.