2024 Review of the cost benefit analysis and regulatory investment test guidelines

On 24 April 2024, we commenced a review of the Cost Benefit Analysis guidelines, as well as the application guidelines and instruments for the RIT-T & RIT-D. The RITs are cost–benefit analyses that network businesses must perform and consult on before making major investments in their networks. When undertaking RITs, network businesses must give due consideration to what options are out there, before identifying the best way to address needs on their networks.

This review considered changes to the guidelines that are: 

• relevant to our guidance on valuing emissions reduction
• raised in the AER's directions paper on social license for electricity transmission projects
• required by recent changes to the NER:
  • Improving the workability of the feedback loop;
  • Sharing concessional finance benefits with consumers;
  • Enhancing community engagement in transmission building;
  • Improving the workability of the feedback loop; and
  • Bringing forward early works to improve transmission planning. 

On 24 April 2024, we published a consultation paper on the topics covered by the guidelines review and sought feedback on our positions through public forums and written submissions. 

On 9 August 2024 we published proposed draft amendments to the CBA guidelines and RIT-T & RIT-D application guidelines and instrument documents for consultation.

These amendments addressed the topics from the consultation paper and incorporated feedback received from written submissions and the public forums.

Following the release of the draft amendments we held further stakeholder forums.