The AER has today published a draft determination on the 2024 cost threshold review for the regulatory investment test for transmission (RIT-T) and the regulatory investment test for distribution (RIT-D).
Every 3 years the AER must undertake a review of the regulatory investment test cost thresholds to ensure they remain appropriate. In doing so, we must review changes in input costs associated with these projects and determine whether the cost thresholds need to be changed to reflect any changes in these input costs since the date of the previous review. The input costs for these projects may include costs such as labour and materials.
Our draft determination is that if the estimated capital cost of the investment option:
- Exceeds $8 million, a RIT-T applies
- Exceeds $7 million, a RIT-D applies
- Falls below $54 million, a RIT-T proponent can skip the ‘project assessment draft report’ consultation step
- Falls below $14 million, a RIT-D proponent can skip the ‘draft project assessment report’ consultation step
- Falls below $28 million, a RIT-D proponent can include its ‘final project assessment report’ as part of its ‘distribution annual planning report’
- Exceeds $300,000, a network business can combine information in its annual planning report for assets it expects to retire or de-rate
- Exceeds $3 million, a distribution network business is required to include, in its distribution annual planning report, committed investments that address an urgent or unforeseen network issue.
All of the thresholds are an increase on the existing thresholds, reflecting an increase in input costs associated with transmission and distribution projects.
Invitation for submissions
We are requesting written submissions by the close of business on 8 October 2024. Submissions can be sent electronically to RITguidelines
aer [dot] gov [dot] au (RITguidelines[at]aer[dot]gov[dot]au).
We prefer all submissions be publicly available to facilitate an informed and transparent consultation process. We will therefore treat submissions as public documents unless otherwise requested.
We request parties wishing to submit confidential information to:
- Clearly identify the information that is subject of the confidentiality claim; and
- Provide a non-confidential version of the submission, in addition to the confidential one.
We will place all non-confidential submissions on our website. For further information regarding our use and disclosure of information provided to us, see the ACCC/AER Information Policy.