The AER has today released a consultation paper in respect to APA Group’s application to convert the Basslink interconnector from a market network service operated by a Market Network Service Provider (MNSP) to a prescribed transmission service operated by a Transmission Network Service Provider (TNSP).
The Consultation Paper sets out factors the AER will consider in reviewing APA Group’s application, including the modelling scenarios where Basslink is converted to a prescribed transmission service and others where it is not.
The potential benefits of conversion as outlined in the modelling are balanced against additional transmission charges consumers will be required to pay should Basslink be converted. The modelled benefits of conversion are highly sensitive to the input assumptions. We are seeking stakeholder views and evidence to further support our consideration of the costs and benefits relating to the conversion of Basslink.
Concurrently, we have released a revised Commencement and Process Paper that sets out the updated timeframe and process that will apply to Basslink.
Invitation for submissions
Interested stakeholders are invited to send submissions and evidence to support our consideration of Basslink’s conversion by 20 September 2024. Submissions and requests to make a submission via alternative methods should be sent to ResetCoord
aer [dot] gov [dot] au (ResetCoord[at]aer[dot]gov[dot]au).
Background
On 19 May 2023, the AER received an application from APA Group to commence a process to assess an application to convert the Basslink interconnector from a market network service to a prescribed transmission service and revenue determination under rule 6A.9 of the National Energy Rules.
On 14 July 2023, we published a Commencement and Process Paper that established the process for assessing APA Group’s conversion application and revenue determination. On 17 May 2024, we released a Consultation Paper seeking stakeholder views on proposed amendments to the Basslink Commencement and Process Paper.
Basslink is a 500 MW undersea transmission cable which links Loy Yang in Victoria to George Town in Tasmania. It was built in 2006 and was subsequently acquired by APA Group in October 2022