The Australian Energy Regulator (AER) has today released an Issues Paper for the Basslink interconnector conversion application and revenue determination.
This Issues Paper sets out the keys issues relating to APA Group’s application to convert the Basslink interconnector from a Market Network Service Provider (MNSP) to a regulated Transmission Network Service Provider (TNSP).
We are seeking stakeholder input on these issues, including:
- consumer interests in the operation of Basslink and the impact of consumer
engagement by APA Group in developing the regulatory proposal - the costs and benefits of conversion to a regulated TNSP, including consideration of
the most plausible counterfactuals to regulation - the opening Regulated Asset Base (RAB) for Basslink, including the proposed value
and methodology applied to calculate - how costs should be allocated between consumers in Tasmania and Victoria should
Basslink convert to regulated asset - the prudency and efficiency of proposed expenditure should Basslink convert to a
regulated asset
Feedback from stakeholders will inform the AER’s assessment of APA Group’s regulatory proposal.
Invitation for submissions
In making our assessment of APA’s conversion application and revenue determination we value stakeholder input to strengthen our decision making. We therefore invite submissions with a particular focus on articulating consumer preferences, addressing issues in the proposal, and providing evidence and analysis.
You can contribute to our assessment by:
- Making a written submission to Basslink’s proposal to ResetCoord
aer [dot] gov [dot] au (ResetCoord[at]aer[dot]gov[dot]au) by
16 February 2024. - Joining us and Basslink at an online public forum on 22 November 2023. Details of
how to register for this forum are available on the Eventbrite (external link) website.
Background
On 19 May 2023, the AER received an application from APA Group to commence a process to assess an application to convert the Basslink interconnector from a MNSP to a regulated TNSP and revenue determination under rule 6A.9 of the National Energy Rules.
On 14 July 2023, we published a Commencement and Process Paper that established the process for assessing APA Group’s conversion application and revenue determination.
Basslink is a 500 MW undersea transmission cable which links Loy Yang in Victoria to
George Town in Tasmania. It was built in 2006 and was subsequently acquired by APA
Group in October 2022.