The Australian Energy Regulator (AER) has commenced the first contribution determination process for cost recovery under the NSW Electricity Infrastructure Roadmap, in accordance with the NSW Electricity Infrastructure Investment Act 2020 (EII Act).
Under the EII Act, the AER is required to make annual contribution determinations to confirm the costs of implementing the Roadmap.
AER must announce its contribution determination by 28 February 2023, upon which several steps must be undertaken by the NSW Distribution Network Service providers to:
- Finalise exemption amounts to be applied to emissions intensive trade entities and green hydrogen producers in line with the OECC’s exemptions framework
- Apportion their respective contribution amounts according to their respective tariff structure statements
The Roadmap’s independent Scheme Financial Vehicle will recover these costs from the New South Wales Distribution Network Service Providers, who are then required to pass the costs through to New South Wales electricity consumers on their retail bills.
This information is needed to determine bill impacts on the state’s electricity consumers and once these steps are completed, bill impacts can be calculated.
The AER expects to have more information as part of the New South Wales Distribution Network Service Providers’ annual pricing proposals. Upon receipt of these – by April 2023 – the AER will publish these pricing proposals on its website.
