Today, the Australian Energy Regulator has published a Preliminary position paper for Ausgrid’s Hunter-Central Coast REZ network infrastructure project (HCC Project) revenue determination for the 2026–31 regulatory period.
The Preliminary position paper provides an overview of our current assessment of Ausgrid’s revenue proposal. Our preliminary positions are informed by initial stakeholder submissions on the revenue proposal and where we think we can make the greatest impact on outcomes for consumers.
Before we reach our final decision we will continue to review all components of Ausgrid’s proposal but we intend to undertake a detailed review of several proposed adjustment mechanisms relating to procurement cost uncertainty.
We are currently restricted in our ability to discuss these adjustment mechanisms in the Preliminary position paper as they are subject to confidentiality claims. We are considering how much of this material (if any) would be appropriate to disclose and are consulting with affected parties. We intend to release a supplementary appendix to the Preliminary position paper clarifying our position on these adjustment mechanisms.
The release of the Preliminary position paper follows the completion of our first round of consultation on Ausgrid’s revenue proposal.
We are taking a staged approach in making a determination for this proposal in accordance with the Revenue determination guideline for NSW non-contestable projects. We are currently in the second and final round of consultation.
We expect to make our final decision on the HCC Project in November 2025.
