Draft guidance note on the regulation of Actionable ISP projects

PIAC made a submission to the Australian Energy Regulator (AER) on its draft guidance note on how it intends to regulate Actionable Integrated System Plan (ISP) projects.

PIAC supports the draft guidance note and the need to provide transparency and predictability in delivering these projects. ISP projects are significantly different to the business-as-usual transmission projects the existing planning and regulatory frameworks were designed for and the guidance note will help engender confidence in how ISP projects are delivered.

While PIAC agrees with the AER’s proposed purpose for the guidance note, achieving the long-term interests of consumers goes beyond only minimising cost. PIAC recommends amending the purpose of the guidance note to reflect the need to consider both the cost proposed and the net benefits to consumers in determining whether a project represents a good return on investment and whether it would contribute to achieving the National Electricity Objective.

While we support the need for transmission businesses to conduct pre-lodgement engagement in developing Contingent Project Applications, we recommend the AER also require businesses to demonstrate how their proposal meets consumer preferences.