A consumer perspective on Transgrid’s reopener Application for Project EnergyConnect

Transgrid’s Application to the AER to reopen the 2023-28 revenue determination seeking additional capex for the very large PEC overspend requires big thinking, a collective and thoughtful response and ultimately change from all parties. Transgrid’s reopener and the foreshadowed ex post review may result in the AER approving significant additional capex for PEC. If that happens NSW electricity consumers will pay more for PEC for a very long time and will forgo other investments they could have made with that money to deliver similar outcomes for themselves at a lower cost, as there have been significant advancements in consumer energy resources (CER) which were unforeseen when AEMO originally approved PEC as an actionable project.

Structure

Our reflections are divided into 4 Parts:

Part 1: How did we get here?

• The NEO must remain paramount during the rapid change of the energy transition
• PEC is a frontier transmission project
  • AEMO’s role
  • The AER’s role
  • Transgrid’s role

Part 2: The AER’s decision will have long lasting and significant implications

Part 3: How to get the best for customers from this difficult situation

Part 4: Some specific observations on the reopener Application

Read the full submission here