The AER has today published proposed transmission pricing methodology guidelines and information templates for stakeholder feedback following a rule change in October 2024.
The proposed pricing methodology guidelines include amendments that set out the information we require to assess whether electricity transmission networks’ pricing methodologies are consistent with the requirements of the final rule. In particular, these amendments would assist electricity transmission networks facilitate the allocation of interconnector costs, as specified in agreements between Ministers, through their pricing methodologies.
The AER is required to make its final decision by 3 July 2025 under the timeframes specified in the National Electricity Rules. Our final decision will also come into effect on 3 July 2025. This would enable any agreements on allocating interconnector costs made between Ministers to be incorporated into electricity transmission prices from 1 July 2026.
Invitation for submissions
We welcome stakeholder submissions in response to the questions raised in the explanatory statements by 20 May 2025. Submissions, including request for alternative ways to provide input, should be made to AERPricing
aer [dot] gov [dot] au (AERPricing[at]aer[dot]gov[dot]au).
Background
On 3 October 2024, the Australian Energy Market Commission (AEMC) made the final rule for Providing flexibility in the allocation of interconnector costs. The final rule provides an alternative mechanism which enables the allocation of interconnector costs between regions in the National Electricity Market as specified in agreements between Ministers.
We are required by the final rule to review, and if necessary, amend the pricing methodology guidelines and information guidelines for electricity transmission networks, to take into account the final rule.
