PIAC responded to the Australian Energy Regulator’s (AER) Regulatory Investment Test for Transmission (RIT-T) for the Broken Hill supply consultation.
We support the credible options that TransGrid has identified in the PSCR and look forward to their more detailed costing and the overall cost-benefit analyses. We also look forward to further discussion on how the options involving gas turbines or grid-scale storage may be treated with respect to the transmission ring-fencing guidelines, especially if all or a portion of these assets’ values would enter TransGrid’s Regulated Asset Base.
We note that, since TransGrid published the PSCR in November 2019, the AER has published its final Value of Customer Reliability estimates. We look forward to TransGrid reassessing the identified need in light of these updated numbers.