Energy (Infrastructure Facilitation) Regulation 2024

This section applies if, in accordance with a requirement included in the primary PTI allowance direction under section 18(4)(c), Powerlink includes in the application the forecast capital expenditure or forecast operating expenditure for the second period.

Without limiting the matters the AER must publish for a draft decision under the National Electricity Rules, clause 6A.12.2, the AER must publish the amounts of the forecast capital expenditure and forecast operating expenditure that are attributable to the priority transmission investment to be accounted for in the revenue determination for the second period.

The AER must, in relation to Powerlink’s revenue proposal for the second period—

for the forecast capital expenditure included in the application under a requirement made under section 18(4)(c)—

ensure the expenditure is adjusted, under the post-tax revenue model and, if necessary, other economic regulatory models, to ensure the AER’s treatment of the expenditure is, to the extent practicable, consistent with the AER’s treatment of other amounts of forecast capital expenditure for the revenue proposal for the second period; and

accept the expenditure, as adjusted under subparagraph (i) and by any first period adjustment accepted under section 23, in its final decision for Powerlink’s transmission determination; and

include the expenditure in the capital expenditure in the revenue determination for Powerlink for the second period; and

for the forecast operating expenditure included in the application under a requirement made under section 18(4)(c)—

ensure the expenditure is adjusted, under the post-tax revenue model and, if necessary, other economic regulatory models, to ensure the AER’s treatment of the expenditure is, to the extent practicable, consistent with the AER’s treatment of other amounts of forecast operating expenditure for the revenue proposal for the second period; and

accept the expenditure, as adjusted under subparagraph (i), in its final decision for Powerlink’s transmission determination; and

include the expenditure in the operating expenditure in the revenue determination for Powerlink for the second period.

Each adjustment of forecast capital expenditure and forecast operating expenditure made under subsection (3)(a)(i) and (b)(i) must have regard to the requirements of any regulatory information instrument for a regulatory control period applying to Powerlink.

The forecast operating expenditure mentioned in subsection (3)(b)(iii) is taken to be included as part of a building block in Powerlink’s annual building block revenue requirement for the second period, as if it had been accepted by the AER as mentioned in the National Electricity Rules, clause 6A.5.4(b)(6).