Transgrid submitted a ring-fencing waiver application under clause 5.2 of the Electricity Transmission Ring-fencing Guideline. The waiver application was made to allow Transgrid to continue to own and operate generation assets for back-up supply to Broken Hill. The application sought a waiver for a period of five years.
In assessing this application, we gave weight to Transgrid having consulted on options to replace the current generation assets through a regulatory investment test (RIT-T) process. The RIT-T process provided information about the costs and benefits of a waiver. We also noted that Transgrid uses this generation to meet a key condition of its operating licence.
On 13 February 2024, the AER granted the waiver to Transgrid for a period of five years.