The AER has today published a consultation paper setting out its preliminary position on Transgrid’s application to reopen its 2023–28 transmission revenue determination for Project EnergyConnect (PEC).
On 13 February 2026, Transgrid applied to the AER to revoke and substitute its transmission revenue determination for the 2023–28 regulatory control period.
Transgrid is seeking to recover an additional $1.2 billion ($2022–23) in capital expenditure from customers. This is in addition to the $2.1 billion ($2022–23) forecast for the New South Wales Component of PEC in our April 2023 final decision.
Reopening the determination may only occur if all 7 of the criteria in clause 6A.7.1(a) of the National Electricity Rules are met. Our preliminary position is that Transgrid has not met all the criteria. Based on the information before us, we are currently not satisfied that Transgrid has met clauses 6A.7.1(a)(1) and 6A.7.1(a)(6) of the National Electricity Rules.
Our preliminary position, if made final, would not prevent Transgrid from recovering prudent and efficient PEC expenditure. The outcome of this reopener assessment will have an impact on the extent of the PEC overspend amount. All overspent capital expenditure will then be subject to the ex-post review process as part of Transgrid’s upcoming 2028–33 revenue determination. Through that process, we can decide whether the overspend amount, or a portion of the overspend amount, should be included in the regulatory asset base. Transgrid may also propose to reduce any capital expenditure sharing scheme penalty for PEC under our new capital expenditure incentive guidelines.
We invite submissions on our preliminary views about Transgrid’s application. Our preliminary positions are based on the information currently available, including Transgrid’s application and stakeholder submissions received to date. We will consider further information and submissions from stakeholders, including Transgrid, as part of our reopener assessment.
