The Australian Energy Regulator (AER) has today published a Guidance Note regarding the Regulatory Investment Test for Transmission (RIT-T) for the Queensland-NSW Interconnector (QNI). The note is intended to help guide stakeholder engagement through the RIT-T consultation, as well as provide regulatory predictability when the AER’s post-RIT processes occur. A timeline of the stakeholder engagement process has also been published.
This RIT-T, which is currently being undertaken by Transgrid and Powerlink, contains options relating to both a minor upgrade of the QNI and also a medium upgrade. The minor upgrade is identified by Australian Energy Market Operator’s Integrated System Plan as providing benefits when Liddell retires in 2022. The AER supports the RIT-T focussing on the minor upgrade.
Background
The RIT–T is a cost‒benefit analysis that transmission businesses apply before making network investments in excess of $6 million. The purpose of the RIT–T is to identify the network or non-network investment option with the highest net economic benefits across the National Electricity Market. This promotes efficient investment decisions and helps ensure that consumers pay no more than necessary for electricity network infrastructure.
Indicative timetable
| Milestone | Responsible Party | Indicative Date |
|---|---|---|
| Publish RIT draft report (PADR) | Transgrid/Powerlink | End September 2019 |
| Submissions close on PADR (6 weeks submission period) | Stakeholders | Mid November 2019 |
| Publish RIT final report (PACR) | Transgrid/Powerlink | Mid December 2019 |
| Submit RIT assessment (5.16.6) application and revenue (contingent project) application to the AER | Transgrid/Powerlink | Mid December 2019 |
| AER publishes revenue application and request for submissions | AER | Pre-Christmas 2019 |
| Close of period for raising a dispute on RIT | Stakeholders | Late January 2020 |
| Close of submissions on revenue application | Stakeholders | Late January 2020 |
| AER makes RIT assessment determination and revenue approval determination | AER | End March 2020* |
*This timing assumes no dispute is received.