On 17 April 2024, the Australian Energy Market Commission (AEMC) received a rule change request from Transgrid requesting amendments to the National Electricity Rules (NER) to improve the cost recovery arrangements for transmission non-network options (NNOs).
Consultation paper
On 22 August 2024, AEMC published a consultation paper for improving the cost recovery arrangements for NNOs rule change proposed by Transgrid. This consultation paper sought stakeholder feedback on the issue of the timing and certainty of initial and ongoing cost recovery of non-network options expenditure.
The AER made a submission to the consultation paper on 24 September 2024.
Draft determination
On 28 November 2024, the AEMC released a draft determination to make a more preferable draft rule in response to the rule change request. The purpose of the draft rule is to reduce barriers to NNO projects by creating more flexibility and certainty within the cost recovery framework.
The AER made a submission on the draft determination on 4 February 2025.