Rule Change: Completed
Overview
On 13 March 2025, the AEMC made a more preferable final rule in response to a rule change request from Transgrid to improve the cost recovery arrangements for transmission non-network options (NNOs).
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On 13 March 2025, the AEMC made a more preferable final rule in response to a rule change request from Transgrid to improve the cost recovery arrangements for transmission non-network options (NNOs).
NNOs, such as batteries, are ways of meeting network requirements without building 'poles and wires' solutions. NNOs are expected to play an important role in the transition to net zero in ensuring transmission system needs are met at lowest cost to consumers.
The final rule improves cost recovery certainty and timing flexibility for Transmission Network Service Providers (TNSPs) when they implement a NNO project by amending the processes by which TNSPs seek cost recovery approval from the Australian Energy Regulator (AER). It does this by:
- Creating a new ex ante process where a TNSP can apply to the AER to adjust their network support payment allowance to account for significant new or changed NNO projects mid regulatory control period.
- Enabling a TNSP to seek AER ex ante approval of a ‘methodology’ for how services are expected to be used and costs adjusted over time under an agreement between a TNSP and NNO provider.
- The final rule provides for immediate implementation.
Documentation
Final
Draft
Initiation
Pending