On 1 May 2026, Transgrid submitted its contingent project application to us, seeking an increase to its revenue to deliver its System Security Roadmap Operational Technology project, in accordance with clause 6A.8.2 of the National Electricity Rules (NER).
We invite stakeholders to provide submissions on Transgrid's contingent project application by COB Friday 5 June 2026. Written submissions should be emailed to contingentprojects
aer [dot] gov [dot] au (contingentprojects[at]aer[dot]gov[dot]au).
Background
The AER accepted the System Security Roadmap Operational Technology project as a contingent project as part of Transgrid's 2023-28 regulatory determination.
On 8 October 2025, Transgrid published a project assessment conclusions report, finalising the completion of the regulatory investment test for transmission process. The preferred option identified includes upgrades to its operational technology and tools for use in Transgrid's control rooms and corporate offices. These upgrades are to provide Transgrid with both reactive and proactive capabilities to plan for, and respond to, operational issues.
These upgrades aim to ensure that Transgrid can operate the network safely as the electricity system becomes more complex to operate through the current system transition from more predictable large thermal generators with stable output to smaller, widely distributed generators with more variable output.
Transgrid proposed total capital expenditure of $163.5 million (nominal) to deliver the project.
Funding for a contingent project is permitted under clause 6A.8.2 of the NER through an adjustment to the maximum allowed revenue under Transgrid's 2023-28 revenue determination. Network revenue determinations set out the revenue that we allow network businesses to collect from electricity consumers through charges within a defined period.
Our role is to review the prudency and efficiency of the proposed costs within the application to ensure consumers pay no more than necessary. We have 40 business days from receiving the application or responses to information requests to make our decision. We expect to make a decision on the application in the coming months.