The Framework & Approach (F&A) is the first stage of the determination process setting out how the Australian Energy Regulator (AER) will assess revenue determinations for Network Service Providers (NSPs). They play a critical role in determining how networks invest, how they handle risk and how costs will be recovered from consumers, setting robust guardrails that protect consumers from unreasonable and inefficient costs and risks.
That’s why our submission in response to the AER’s Framework & Approach for TransGrid transmission determination 2028-33 preliminary position paper recommends that the regulator:
- Ensure the relevant F&A settings are at worst “Net Present Value neutral”;
- limits consumers potential exposure to unintended risks;
- rejects Transgrid’s proposal to change its approach to the Capital Expenditure Sharing Scheme (CESS), and;
- not suspend the market impact component of Service Target Performance Incentive Scheme (STPIS).
What’s next?
We’ll continue to represent NSW households in processes involving the development of Transgrid’s revenue proposal, as well as engage directly in other processes to ensure Transgrid is not shifting unfair risks and inefficient costs onto NSW consumers.
