Submission to AEMC Rule Change Proposal: Flexibility in the Allocation of Interconnector Costs

Publication date:
11 April 2024
Resource type:
Submission

The Justice and Equity Centre made a submission on the rule change proposal from the Energy Ministers Bowen, D’Ambrosio and Duigan which seeks to allow the AER to approve cost allocation agreements struck by energy ministers for transmission interconnectors spanning two or more jurisdictions.

The JEC does not support the rule change. We have submitted our own rule change proposal for cost allocation of ISP interconnectors that more transparently and robustly allocates cost on the basis of where the benefits of a given infrastructure investment fall.

While we appreciate the need to accelerate the build out of new infrastructure in order to hasten Australia’s transition to a clean energy basis, this should not occur at the expense of consumers, hwo are left to foot the bill when good regulatory practice is suspended.

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