The AER has published proposed amendments to the cost benefit analysis (CBA) guidelines and regulatory investment tests (RIT-T & RIT-D) application guidelines. The CBA and RIT guidelines provide guidance to proponents conducting a RIT, which is a cost-benefit test that network businesses must undertake before building electricity network infrastructure.
The release of our amendments to the guidelines follows the completion of our first round of consultation on the major topics outlined in our consultation paper. The feedback we received from written submissions and from the public forums we held influenced how the amendments were integrated into the guidelines. More information can be found in the explanatory note accompanying the draft amendments.
Our amendments addressed:
- the implementation of changes in emissions as a market benefit in the CBA and RIT process
- sharing concessional finance benefits with consumers
- necessary amendments to action improving the workability of the feedback loop
- addressing early works contingent project applications before the completion of the RIT process
- changes to social licence, and
- other administrative changes and updates to the guidelines.
We welcome stakeholder views and feedback on the amendments as well as any broader comments and suggestions on the content of the guidelines.
We will be hosting topic-specific information and discussion sessions to provide an overview of the proposed amendments and gather feedback, including:
- how we have taken into account stakeholder submissions received in response to the consultation paper including feedback heard at the public forums in May and June 2024, and
- to assist with any questions you may have in relation to the drafting of your submission.
Stakeholder forums
During August 2024, the AER will hold a series of virtual forums on the topics of the draft amendments. The purpose of these sessions is to provide a summary of the main changes for each topic in the guidelines and seek stakeholder discussion and feedback on the content of the amendments.
Stakeholder consultation is a key part of our process, and we encourage interested parties to attend these sessions so we can listen and respond to stakeholder feedback. It may also assist stakeholders in developing written submissions.
| Details | Topic | AER Virtual Public Forum date |
Industry experts: this session will assume a reasonable understanding of the network planning framework and focus on addressing queries to assist stakeholders in developing their written submissions. We expect consumer advocates, peak bodies and transmission businesses are more likely to attend the expert forum. | Valuing emissions reduction, Concessional Finance, Feedback Loop and Early Works | 26 August 2024 |
| Social Licence | 28 August 2024 | |
Broader stakeholders: This session will spend more time explaining the planning framework amendments and will consider stakeholder feedback with the expectation that they won’t make a written submission. We expect local council representatives, community and environmental groups, and community members will attend the broader stakeholder forum. | Social Licence | 29 August 2024 |
Invitation for submissions
Interested stakeholders are invited to send submissions in response to the questions and topics raised in this consultation paper by 20 September 2024.
Submissions or enquiries about this draft determination should be sent to RITguidelines
aer [dot] gov [dot] au (RITguidelines[at]aer[dot]gov[dot]au). Alternative contact methods are available and are described in the draft determination.