A new rule starts this week that will enable more competition in the provision of transmission connections to help keep costs down.

The national electricity market is evolving as Australia transitions to a low carbon economy. An estimated 50 new large scale generators, including wind and solar, as well as major energy users, are expected to connect to the transmission network by 2020.

Increasing competition in building new transmission lines and substations that are needed to support these future connections can lead to significant costs savings, ultimately minimising the long term costs of electricity for consumers.

The new rule provides more choice, control and certainty for any parties connecting to the transmission network, while at the same time making it clear that the incumbent transmission businesses are unambiguously accountable for providing a safe, reliable and secure transmission network – even if some parts of it are built and owned by other parties.

The AEMC made the rule last year, with a transition period to enable businesses to prepare. The rule change was submitted by the COAG Energy Council and largely based on recommendations made by the AEMC in its Transmission Frameworks Review. 

The changes do not apply in Victoria, where the regulatory regime for transmission connections is overseen by the Australian Energy Market Operator and is outside the scope of the rule change request.

See infographic about the rule.

Media: Prudence Anderson, Communications Director, 0404 821 935 or (02) 8296 7817