Under the National Electricity Rules, the AER must publish the regulatory investment test for transmission (RIT-T) by 1 July 2010. The RIT-T will replace the existing regulatory test for electricity transmission investments and will commence on 1 August 2010. The existing regulatory test will continue to apply to projects which address a need on the distribution network.
The purpose of the RIT-T is to identify the transmission investment option which maximises net economic benefits and, where applicable, meets the relevant jurisdictional or National Electricity Rule based reliability standards. The RIT-T will provide a single framework for all transmission investments and remove the distinction in the regulatory test between reliability driven projects and projects motivated by the delivery of market benefits.
In conjunction with the RIT-T, the AER must develop and publish RIT-T application guidelines for the operation and application of the RIT-T (the application guidelines). The application guidelines are designed to provide guidance to businesses applying the RIT-T and enhance transparency and consistency in investment decision making.
The AER has prepared a draft RIT-T and application guideline as well as an explanatory statement. These documents are available on the AER's website. Interested parties are invited to review the draft RIT-T and application guidelines and provide written submissions.
Submissions
Any submissions must be received by close of business 14 May 2010.
Written submissions can be sent electronically to: AERInquiry
aer [dot] gov [dot] au (AERInquiry[at]aer[dot]gov[dot]au)
Alternatively, submissions can be mailed to:
Mr Tom LeunerGeneral Manager
Markets
Australian Energy Regulator
GPO Box 520
MELBOURNE VIC 3001
The AER prefers that all submissions be publicly available to facilitate an informed and transparent consultative process. Submissions will therefore be treated as public documents unless otherwise requested. Parties wishing to submit confidential information are requested to:
- clearly identify the information that is subject of the confidentiality claim
- provide a non-confidential version of the submission, in addition to a confidential one.
All non-confidential submissions will be placed on the AER's website. The AER does not generally accept blanket claims for confidentiality over the entirety of the information provided and such claims should not be made unless all information is truly regarded as confidential. The identified information should genuinely be of a confidential nature and not otherwise publicly available. In addition to this, parties must identify the specific documents or relevant parts of those documents which contain confidential information. The AER does not accept documents or parts of documents which are redacted or 'blacked-out'.
For further information regarding the AER's use and disclosure of information see the ACCC/AER Information Policy, October 2008. A free electronic copy is available at the ACCC website.