Type
Compliance reports
Sector
Electricity
Segment
Distribution
Categories
Compliance review
Release date

On 4 July 2025, we published our assessment of Ergon Energy's request to not reapply the regulatory investment test for distribution (RIT-D) in relation to a project to replace a static var compensator in its substation in Charleville, Queensland.

Following our assessment of Ergon Energy's request, we confirm that Ergon Energy is required to reapply the RIT-D for its Charleville project. We consider the reapplication of the RIT-D will provide an opportunity to identify the most efficient solution in the long-term interest of consumers.

Regulatory investment tests are a cost benefit analysis test which network businesses must apply before making major investment in their networks to address an identified need.

Background

Ergon is responsible for electricity supply to the Charleville, Quilpie and Cunnamulla area in South West Queensland.

Between January 2018 and May 2019, Ergon applied the RIT-D to address an identified need of replacing the static var compensator at Charleville substation in the electrical network which supplies Charleville, Quilpie and Cunnamulla areas.

On 4 February 2025, Ergon wrote to the AER, advising that, in its opinion, there had been a material change in circumstances which meant that the preferred option identified in the Charleville RIT-D final project assessment report had changed. Ergon requested that the AER determine that a reapplication of the Charleville RIT-D is not required in accordance with clause 5.17.4(t) of the NER. 

Documents

Reapplication of Charleville RIT-D by Ergon Energy - AER assessment

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