On 17 May 2017, in accordance with the requirements under clause 5.17.5 of the National Electricity Rules (Electricity Rules), the AER published a determination that found SA Power Networks did not apply the RIT-D in accordance with the Electricity Rules, but that it was not required to amend its FPAR.

With respect to the consideration of option value for the 66kV cable option, based on additional analysis we have concluded that the inclusion of a 'high demand' scenario would not in practice change the outcome of this RIT-D assessment. Accordingly, we determine that SA Power Networks is not required to amend its FPAR.

Our determination concludes SA Power Networks’ application of the RIT-D for the Kangaroo Island Submarine Cable. However, in accordance with the Electricity Rules, if there is a material change in circumstances whereby the 33kV option is no longer the preferred option, SA Power Networks may be required to reapply the RIT-D.