We have released a draft transmission determination that will apply to Powerlink Queensland over the 2027–32 regulatory period.
Regulated electricity transmission service providers must periodically apply to us to determine the maximum allowed revenue they can recover from consumers for using their networks. On 30 January 2026, we received Powerlink Queensland’s (Powerlink) regulatory proposal for the period 1 July 2027 to 30 June 2032.
Our draft decision will allow Powerlink to recover $5,694.1 million over the 2027–32 period. This is $16.1 million (0.3%) lower than Powerlink’s revenue proposal, with our reductions to proposed expenditure largely offset by increases in interest rates.
While we recognise the need for expenditure to maintain a secure and reliable transmission network, we are not satisfied that Powerlink’s proposal reflects the efficient costs of a prudent operator. Powerlink proposed a 66% increase in capital expenditure compared with actual expenditure for the 2022–27 regulatory period. We have closely scrutinised the need, timing and efficiency of the proposed expenditure and have identified significant information and analytical gaps.
Our draft decision therefore makes targeted reductions to capital and operating expenditure where there is insufficient evidence to substantiate the proposed expenditure. This includes a $1,359.5 million (or 54.4%) reduction to forecast capital expenditure. Our draft decision identifies the areas where further analysis is required, and Powerlink has an opportunity to respond in its revised proposal.
We recognise the work Powerlink has undertaken to engage with stakeholders. We have considered engagement outcomes and stakeholder submissions in making our draft decision. In doing so, our role is to test whether Powerlink’s proposed expenditure reasonably reflects the costs of a prudent operator acting efficiently. We have made reductions where we found there was insufficient evidence to support the prudency and efficiency of proposed expenditure.
Next steps
Powerlink has an opportunity to submit a revised proposal in response to this draft decision. Under the Rules, any revisions must be directed to incorporating the substance of changes required by, or addressing matters raised in, the draft decision.
Powerlink’s revised proposal is due by 2 December 2026. Our final determination will be made by 30 April 2027.
