The Australian Energy Regulator (AER) has published a new compliance bulletin to support distribution network service providers (DNSPs) in understanding when a regulatory investment test for distribution (RIT-D) is required for replacement capital expenditure (repex) investment decisions.
DNSPs are encouraged to view Compliance Bulletin No. 10, Determining whether proposed replacement expenditure constitutes a RIT-D project, to clarify the Australian Energy Market Commission’s rule to extend the RIT-D to include repex decisions.
This compliance bulletin confirms that the RIT-D applies to all repex investments, except where an exemption applies under clause 5.17.3(a) of the Rules.
Completing a RIT-D for these projects will ensure that DSNPs select the best investment option to deliver the most efficient outcome in the long-term interest of consumers.