On 24 October 2024, the AER received a revenue proposal from ACEREZ for the main CWO REZ network project. The revenue proposal sets out a schedule of quarterly payments that are proposed to be paid to ACEREZ as the network operator for the project. It also sets out mechanisms to adjust revenues over the term of the project. 

We are required to make our determination in accordance with the EII Act, the EII Regulation and the AER’s Revenue determination guideline for NSW contestable network projects. Under clause 50 of the EII Regulation, for revenue proposals submitted under the contestable framework we have 42 business days to make a determination (that is, by 23 December 2024). 

If we find a competitive assessment process to be ‘genuine and appropriate’ then we must adopt the outcome of the process in our revenue determination. 

Prior to publishing the determination, we must consult with the Infrastructure Planner. We may decide not to publish part of a revenue determination if we are satisfied it is not appropriate, taking into account criteria in the Electricity Infrastructure Investment Regulation 2021 (EII Regulation). We expect to publish our determination in early 2025 that sets out the revenues permitted to be recovered by ACEREZ for the following five years.  

The EII Regulation does not provide a function for the AER to publish a revenue proposal from a Network Operator for contestable network projects.