Background
The NSW Electricity Infrastructure Fund Contribution Determination Guideline and associated Contribution Determination Model set out how the AER makes annual contribution determinations under the Electricity Infrastructure Investment Act 2020 (NSW).
We first published the Guideline in 2022. Since then, the AER has applied the framework in several annual contribution determinations and made targeted updates to the Guideline in three separate consultation processes, to support its operation.
We commenced this targeted review of the Guideline to ensure the framework remains fit for purpose and to provide stakeholders with greater clarity about how key aspects of the contribution determination process will be applied in future years.
Scope of the review
Our 2026 targeted review of the Guideline focuses on improving the operation, transparency and predictability of the contribution determination framework, rather than undertaking a full redesign.
The proposed updates will provide stakeholders with greater clarity on the methodologies and processes the AER proposes to apply when making future contribution determinations.
By setting out these matters more clearly in the Guideline, the proposed updates are intended to improve stakeholder understanding of the framework, increase transparency around the methodologies the AER proposes to apply, and preserve sufficient flexibility to respond to changes in Roadmap costs, risks and implementation arrangements over time.
The intention of the review is to:
- set out key methodologies the AER proposes to apply as standard practice;
- improve transparency around the roles and responsibilities of scheme entities, and the process and information requirements for annual contribution determinations; and
- clarify how non-disclosure claims relating to contribution determinations will be handled.
Proposed amendments
The proposed amendments focus on targeted changes to clarify key aspects of the existing framework.
We propose to amend the Guideline to set out the methodology for calculating the minimum prudent cash balance for the Electricity Infrastructure Fund. This methodology is intended to support the Fund’s ability to meet expected liabilities as they fall due, while maintaining an appropriate buffer against reasonably foreseeable liquidity risks.
We also propose to amend the Guideline to set out the methodology for calculating the percentage of a contribution determination that relates to generation long-term energy service agreements under clause 36 of the Electricity Infrastructure Investment Regulation 2021. This percentage informs the operation of the exemptions framework for eligible emissions-intensive trade-exposed entities.
In addition, we are proposing targeted process and administrative amendments, including to:
- include additional process steps to support Consumer Trustee engagement on the Scheme Financial Vehicle's minimum prudent cash balance proposal;
- clarify the roles and responsibilities of scheme entities in providing information for contribution determinations;
- clarify the process for handling non-disclosure claims relating to contribution determinations; and
- make minor administrative updates to improve clarity and reflect legislative amendments.
Consultation
We invite interested stakeholders to raise any issues or concerns about the draft NSW Contribution Determination Guideline in submissions made to us by 19 August 2026.
We are proposing to finalise the NSW Contribution Determination Guideline in September 2026.