On 26 June 2023, the AER received a notice of dispute from Moorabool and Central Highlands Power Alliance (MCHPA), representing electricity consumers in Western and North-western Victoria, disputing the conclusions of the VNI West Project Assessment Conclusions Report (PACR).
The disputing party has raised the dispute on 9 grounds which can be broadly divided in two categories:
- Grounds of the dispute set out in paragraphs 1 to 5 that relate to the application of Regulatory Investment Test for Transmission (RIT-T) and the RIT-T process. These include claims in relation to failure to identify all credible options and the preferred option and failure to consult all parties as part of the Project Assessment Draft Report and PACR process in the RIT-T in accordance with the National Electricity Rules.
- Grounds of the dispute set out in paragraphs 6-9 that relate to matters outside the RIT-T process. These matters include concerns regarding the application of ‘Integrated System Plan (ISP) feedback loop’ on the VNI West RIT-T, the Australian Energy Market Operator’s (AEMO) failure to undertake an ISP Update, and matters related to the future contingent project process related to VNI-West project for the Transgrid component of the project.
Determination
On 16 October 2023, following a review of the dispute, the AER determined:
- the grounds of dispute raised in paragraphs 1 – 5 do not provide a basis to require AVP and Transgrid to amend their VNI West RIT-T PACR, and
- the grounds of dispute raised in paragraphs 6 – 9 do not relate to the application of the RIT-T, or fall under other categories of dispute which may be raised. Accordingly, the AER is required to reject these grounds of dispute on the basis that they are misconceived or lacking in substance.
Accordingly, AVP and Transgrid are not required to amend the VNI West RIT-T PACR.