On 15 February 2021, the AEMC received a rule change request from Energy Users Association of Australia (EUAA), Delta Electricity, Major Energy Users, Inc, ERM Power Limited (now Shell Energy Operations Pty Ltd) and AGL Energy Limited to amend the National Electricity Rules. The request proposed that, unless granted an exemption by the AER, a proponent must reapply a regulatory investment test (RIT) if, following completion of the RIT, the estimated cost of the relevant transmission or distribution project materially increases.
Consultation paper
On 19 August 2021, the AEMC published a consultation paper for the Transmission Planning and Investment Review (Review). Consultation on this rule change request commenced as part of the Review, as both involve managing uncertainty in transmission project planning and investment.
Draft determination
On 7 July 2022, the AEMC published its draft determination and a more preferable draft rule, which aimed to clarify the process for determining whether a material change in circumstances has occurred for a RIT. The draft rule also sought to improve cost estimate accuracy by clarifying the rules governing the guidelines for RITs.
The AER provided its submission to the draft determination on 1 September 2022.
AER submission - Material change in network infrastructure project costs draft rule - September 2022