The AER has published a decision to amend TasNetworks’ transmission determination for the 2024-29 regulatory control period to account for a concessional finance agreement between TasNetworks and the Clean Energy Finance Corporation (CEFC) for the North West Transmission Development.
The determination amendment adds a concessional finance adjustment factor to the maximum allowed revenue (MAR) formula on page 5 in Attachment 1. As a result of this concessional finance adjustment, the maximum allowed revenue that TasNetworks can recover from consumers in the 2026-27 financial year will be reduced by $6.9 million (or approximately 4%). We expect that this sharing arrangement will result in a typical residential customer bill being estimated to be $6 lower than forecast in our 2024-29 final determination for TasNetworks.
Background
In March 2024 the Australian Energy Market Commission (AEMC) finalised its Sharing concessional finance benefits with consumers rule change.
The amendments allow the benefits of low-cost financing provided by governments to be shared with consumers. It allows the network service provider (NSP) and government funding body (GFB) to form an agreement to:
- pass through an agreed amount to transmission or distribution network users over an agreed period, or
- reduce the value of specified assets in the regulatory asset base, or
- a combination of both.
On 19 February 2026, TasNetworks notified the AER that its concessional finance agreement with the CEFC satisfied the conditions required under the National Electricity Rules.
The AER then had 40 business days to make the adjustment following notification of the conditions being satisfied.