On 3 October 2024, the Australian Energy Market Commission (AEMC) published a final determination and more preferable final rule (final rule) that would allow jurisdictions to agree on the cost allocation for new regulated interconnectors and provide a pathway for an interconnector cost allocation agreement (agreement) to be implemented.

The final rule will promote timely investment in and delivery of new interconnectors by providing a mechanism to address barriers that may otherwise prevent the progress of net beneficial interconnectors.

Our final rule will:

• provide flexibility for two or more Ministers to make an agreement
• require an agreement to satisfy a minimum set of implementation criteria
• set out the roles and processes relating to agreements, providing clarity for governments, market bodies and Transmission Network Service Providers, and
• require the Australian Energy Regulator to publish agreements, providing transparency.

Following stakeholder feedback, we have made changes to the final rule to clarify implementation requirements, ensuring the final rule can operate as intended. This includes bringing forward the commencement date to 3 July 2025.  

Consumers will benefit from the timely delivery of required transmission infrastructure, which is a critical enabler of new low-cost generation and for the transition to net zero. Delayed or cancelled investment in transmission infrastructure required for the transition to net zero will be costly to consumers.

Extension of time on this rule change

The Commission extended the final determination deadline by three weeks to 3 October 2024 for this rule change under section 107 of the National Electricity Law (NEL), allowing further time to address stakeholder feedback.

Online public forum

The Commission held a stakeholder meeting on 4 July 2024. The forum provided an overview of the draft determination and give stakeholders an opportunity to ask questions.

The slides are available to view below.

Rule change request

On 8 December 2023, the AEMC received a rule change request from The Honourable Chris Bowen MP, Minister for Climate Change and Energy, The Honourable Lily D’Ambrosio MP, Victorian Minister for Energy and Resources, and The Honourable Nick Duigan MLC, Tasmanian Minister for Energy and Renewables to amend the National Electricity Rules.