The AER has released its final decision on the revenue NSW and ACT electricity transmission network service provider, Transgrid, can recover from consumers in the period 1 July 2023 to 30 June 2028.
Our decision allows Transgrid to recover total revenue of $4,851.3 million from its consumers over the next 5 years.
The revenue Transgrid will recover through transmission network tariffs makes up between 7% (ACT) and 9% (NSW) of a typical bill for residential and small business consumers. We estimate that by 2027–28, this final decision will increase the average annual electricity bill by $19 (1.1%) and $16 (0.9%) for residential consumers in NSW and the ACT, respectively. For small business consumers, the impact would be an increase of $46 (1.1%) and $24 (0.9%), respectively.
We accept that transmission networks, such as Transgrid, will continue to play an important role in the energy market transition. We support this transition and are committed to enabling prudent and efficient investments based on sound business cases that advances the long term interests of consumers. In support of this, our final decision has scrutinised and made reductions to Transgrid’s 2023–28 proposed expenditure forecasts where certain projects have not been substantiated. We are committed to making network determinations that reflect the input of consumers and support efficient investments in the future of energy networks, but do so at the least possible costs to consumers.