The Australian Energy Regulator (AER) has released its draft guideline that sets out how we will make revenue determinations for network operators authorised or directed to carry out non-contestable network projects under the NSW Electricity Infrastructure Roadmap.
We’ve been appointed to undertake this role under the NSW Electricity Infrastructure Investment Act 2020 (EII Act). Our draft guideline substantially reflects the approach to economic regulation for transmission businesses under the National Electricity Rules. In this way, we can determine that the amounts paid to Network Operators for constructing and maintaining these network infrastructure projects are efficient, prudent and reasonable, as these amounts will ultimately be recovered from NSW electricity consumers through their retail bills.
The AER has also developed a guideline for our approach to contestable network infrastructure projects under the EII Act. It focuses on us assessing whether the competitive assessment process is genuine and appropriate. If we are satisfied with the process, we may adopt the outcome of the process in our determination rather than undertaking a detailed review of components of a revenue proposal.
Consultation
We invite stakeholders to make submissions on our draft guideline for non-contestable network projects in NSW by COB on 13 January 2023.
We will host a public forum from 11am to 12pm (AEDT) on 13 December 2022. To register your interest in the public forum, please email REZ
aer [dot] gov [dot] au (REZ[at]aer[dot]gov[dot]au) by close of business on 12 December 2022.
Background
The AER exists to ensure energy consumers are better off, now and in the future. We are the economic regulator for electricity and gas networks in every state and territory in Australia except Western Australia. We regulate electricity networks under the National Electricity Law and National Electricity Rules. We also regulate natural gas pipelines under the National Gas Law and the National Gas Rules.
On 12 November 2021 we were appointed as a Regulator under the NSW Electricity Infrastructure Investment Act 2020.