The AER is required to make revenue determinations for network operators who are authorised or directed to undertake network infrastructure projects. We undertake this role as a Regulator under the NSW Electricity Infrastructure Investment Act 2020 (EII Act).
Throughout 2022 and 2023, NSW Energy Corporation (EnergyCo), as the Infrastructure Planner for the Central-West Orana Renewable Energy Zone (CWO REZ), undertook a competitive assessment process to select a network operator for the main CWO REZ network project (Project). ACEREZ Partnership (ACEREZ) was the successful tenderer.
On 4 June 2024, AEMO Services Limited (the NSW Consumer Trustee) under s. 31(1)(b) of the EII Act authorised ACEREZ as the network operator to develop, construct, own, control and operate the Project.
On 24 October 2024, ACEREZ submitted a revenue proposal to the AER seeking to recover the costs established through the competitive assessment process for the Project.
As the revenue proposal was submitted under the contestable framework, we had 42 business days from the date the revenue proposal was submitted to make a revenue determination.
We made a determination for the Project on 13 December 2024. Prior to publishing the determination, we are required to consult with the Infrastructure Planner. This process is currently underway. We may decide not to publish part of a revenue determination if we are satisfied it is not appropriate, taking into account criteria in the Electricity Infrastructure Investment Regulation 2021 (EII Regulation). Once finalised, we will publish a public version of our revenue determination on our website that includes the amounts required to be paid to ACEREZ for the first 5 years of the Project term. We expect to publish the determination in early 2025.
Under the EII Act, ACEREZ is required to be paid by the Scheme Financial Vehicle (SFV) in accordance with our determination. The SFV recovers these costs (and other NSW Roadmap costs) from NSW electricity distributors, who in turn recover these costs from NSW electricity customers via their retail bills.