In line with our final decision on TransGrid’s electricity transmission network, we have updated TransGrid’s return on debt for 2016–17 under NER cl 6A.6.2(l).

As a result of this update, the return on debt for 2016–17 is 6.38 per cent. This results in an X-factor for 2016–17 of 3.70 per cent. Holding other things constant, a positive X-factor implies a real revenue decrease and a negative X-factor implies a real revenue increase.

The revised PTRM shows the updated X-factor.

In line with our final decision on TransGrid’s electricity transmission network, we have updated TransGrid’s return on debt for 2017–18 under NER cl 6A.6.2(l).

As a result of this update, the return on debt for 2017–18 is 6.20 per cent. This results in an X-factor for 2017–18 of 3.94 per cent. Holding other things constant, a positive X-factor implies a real revenue decrease and a negative X-factor implies a real revenue increase.

The revised PTRM shows the updated X-factor.

On 15 December 2017 the AER wrote to TransGrid setting out how it proposed to correct a mathematical error in the inflation calculation in its 3 July 2015 decision.

Subject to considering submissions on our proposed correction, the AER is proposing to revoke the 3 July 2015 determination and substitute it with a new determination to correct the identified error under clause 6A.15 of the NER.

On 16 May 2018 the AER wrote to TransGrid advising that it revoked its determination for TransGrid for the regulatory control period 1 July 2014 to 30 June 2018, published on 3 July 2015. This was to correct an error identified by the Australian Competition Tribunal regarding how the AER calculates inflation.

The letter and updated inflation calculation are provided below.