The Australian Energy Regulator (AER) has indicated its preliminary position to reject Transgrid’s application to recover an additional $1.2 billion in Project Energy Connect (PEC) cost overruns from consumers. PEC is the construction of a high voltage interconnector between South Australia and New South Wales which is over 95% complete.
This preliminary position aligns with many of the arguments made in our original submission, detailing why Transgrid’s application to recover these costs from consumers under the Reopener rule is fundamentally invalid and should be rejected.
That’s why our response to the Transgrid’s Reopener Application for Project EnergyConnect (PEC) consultation paper strongly supports the AER’s preliminary position.
We provide further argument supporting a rejection of the proposal and recommend they confirm this outcome in the final determination. Any approval risks undermining the intent of the rules to protect consumers.
What’s next?
The AER will deliver its final determination in the coming months. If the application is rejected, Transgrid can eventually apply to recoup some of the additional project costs under other rules which were intended for that purpose.
