On 3 November 2011, the Commission published a Decision Report (the report) which outlines its decision not to exercise the LRPP in 2011. The report describes the matters that the Commission considered in coming to this decision.

The Commission's considerations included the responses of the various jurisdictional planning bodies (JPBs) to high level transmission projects identified by AEMO. The Commission found that all of the JPBs are progressing projects which actively respond to AEMO's identified projects.

Having considered these matters, the Commission is satisfied that there is no clear gap in the planning process which would require the exercise of the LRPP in 2011.

The AEMC's publication of the report and supporting analysis from Intelligent Energy Systems represents the conclusion of the AEMC's investigation into the exercise of the LRPP for 2011.

Background

The LRPP is conferred on the AEMC under the National Electricity Rules. Its purpose is to ensure timely and efficient inter-regional transmission investment for the long term interests of consumers of electricity.

The LRPP allows the AEMC to direct registered participants to apply the Regulatory Investment Test for Transmission (RIT-T) to potential transmission projects, where the AEMC considers that the project is likely, if constructed, to relieve forecast constraints in respect of national transmission flow paths between regional reference nodes.

The LRPP is intended to be utilised only in those circumstances where there is a clear indication that the existing planning mechanisms are unlikely to deliver efficient inter-regional transmission investment. Before the AEMC can exercise the LRPP, it must identify that a problem exists, be satisfied that the problem will have material impact, and that it will not be addressed unless the LRPP is exercised.