The National Electricity Amendment (Regulatory Investment Test for Transmission) Rule 2009 No.15 commences operation on 1 July 2009. The Rule was made by the Commission in response to a Rule change proposed by the Ministerial Council on Energy. The main impacts of the Rule are that it amalgamates the reliability and market benefits limbs of the existing Regulatory Test, provides greater prescription on how market benefits and costs should be assessed and increases and brings forward consultation on transmission investment options. The main benefits of the Rule are that it is likely to optimise the decision making process in relation to transmission planning as well as  improve the consistency and transparency across transmission investment assessment.

Background

 On 19 February 2009, the Commission received a Rule Change proposal from the Ministerial Council on Energy (MCE).

The Rule change proposal sought to implement a new regulatory investment test for transmission (RIT-T).

On 26 February 2009, the Commission published a notice under sections 95 and 96A of the National Electricity Law (NEL) commencing the Rule change process and advising of its intention to fast track the Rule change process on the grounds that the issue of RIT-T was consulted on as part of the National Transmission Planning Arrangements Review.

On 2 April 2009, the Commission gave notice under section 99 of the NEL of the making of the draft Rule determination and draft Rule for the MCE's Rule change proposal relating to the RIT-T.

The Commission invited interested parties to provide submissions on the draft Rule Determination and draft Rule by 15 May 2009. Five submissions were received.

In accordance with section 101 of the NEL, any interested person or body may have requested that the Commission hold a pre-determination hearing in relation to the draft Rule Determination and draft Rule. Such requests had to be received in writing by no later than 10 April 2009. No such requests were received.

On 25 June 2009, the Commission gave notice under sections 102 and 103 of the NEL of the making of the National Electricity Amendment (Regulatory Investment Test for Transmission) Rule 2009 No. 15 and the corresponding Rule determination.

The Rule as Made implements a new regulatory investment test for transmission. The Rule as Made commences on 1 July 2009.