Energy (Infrastructure Facilitation) Regulation 2024

This section applies if Powerlink applies to the AER under a regulatory asset base allocation direction in relation to a regulatory control period (the relevant period), other than a regulatory control period in relation to which section 35 applies.

The AER must adjust the value of Powerlink’s regulatory asset base at the beginning of each regulatory year in the relevant period to include the lesser of the following amounts—

the total of the directed forecast capital expenditure mentioned in section 34(2)(a) or part of that expenditure for the priority investment stated in the application to be included in Powerlink’s regulatory asset base for a regulatory year in the relevant period;

the total actual capital expenditure incurred or, if that amount is not known, the capital expenditure estimated to have been incurred, for the priority transmission investment as at the end of the regulatory control period (the preceding period) immediately preceding the relevant period, less any amount of capital expenditure for which an adjustment of Powerlink’s regulatory asset base has already been made under this section or section 35.

If, when the adjustment under subsection (2) is made, the total actual capital expenditure incurred for the preceding period is not known, the AER must adjust the value of Powerlink’s regulatory asset base at the beginning of the first year of the regulatory control period immediately following the relevant period to include the lesser of following amounts—

the total of the directed forecast capital expenditure mentioned in section 34(2)(a) or part of that expenditure for the priority transmission investment stated in the application to be included in Powerlink’s regulatory asset base as at the end of the relevant period;

the total actual capital expenditure for the priority transmission investment as at the end of the relevant period.

The adjustment of the value of Powerlink’s regulatory asset base for a regulatory year under subsection (2) or (3)—

must be calculated under the roll forward model in the same way as the value of other assets used to provide prescribed transmission services are rolled forward for the regulatory year; and

must have regard to the requirements of any regulatory information instrument for a regulatory control period applying to Powerlink; and

must have regard to the value or values applied for under section 34(2)(c) in calculating depreciation of the value of the assets included in the regulatory asset base under the National Electricity Rules, clause 6A.6.3(a)(2)(i).