Australian Energy Regulator (AER), Media Release, 8 August 2023
The Australian Energy Regulator (AER) has extended the timeframe for making a decision on the dispute raised by Moorabool and Central Highlands Power Alliance Inc. (MCHPA) in relation to AEMO Victoria Planning (AVP) and TransGrid’s Joint Victoria NSW Interconnector West (VNI-West) regulatory investment test for transmission (RIT-T).
The AER has decided that additional time is required to make a determination on the dispute due to the complexity of the issues which have been raised and has decided to extend by up to 60 days. Following the extension, the AER is now due to make a determination no later than 4 October 2023. However, the AER is endeavouring to determine the dispute as soon as possible.
The AER is currently assessing the grounds raised in the dispute notice.
The AER has not formed any views on the grounds of dispute raised in the dispute notice.
Background
On 26 June 2023, the AER received a dispute notice from Moorabool Central Highlands Power Alliance Inc. (MCHPA) in relation to AEMO Victoria Planning and Transgrid’s Joint Victoria NSW Interconnector West (VNI West) regulatory investment test for transmission (RIT-T).
Among other grounds raised in its dispute notice, MCHPA considers AVP and Transgrid did not comply with NER provisions concerning the identification of credible options and selection of preferred option in the VNI-West PACR.
The RIT–T is a cost‒benefit analysis that transmission businesses apply before making network investments in excess of $7 million. The purpose of the RIT–T is to identify the network or non-network investment option with the highest net economic benefits across the National Electricity Market. This promotes efficient investment decisions and helps ensure that consumers pay no more than necessary for electricity network infrastructure.
Our role in the dispute resolution process is to assess the transmission business’s compliance with the RIT-T and NER rather than to undertake a full merits review. Where instances of non-compliance are identified, the AER may, as part of its determination, direct the RIT-T proponent to amend its final report to ensure the RIT-T is applied in accordance with the requirements of the NER.
In accordance with 5.16B(d) of the National Electricity Rules (NER), the AER is required to either reject the dispute or make and publish a determination on the dispute within 40 calendar days of receiving the dispute notice. This can be extended by up to 60 days. An automatic extension of time is also provided to account for the time taken for the RIT-T proponent or disputing party to provide information requested by the AER.
