Transgrid submits Revenue Proposal for 2023-28

If approved, the proposal will deliver annual savings on the transmission component of electricity bills of almost $20 for households and $73 for small businesses.

CEO Brett Redman said the business was focused on keeping downward pressure on electricity prices at a time when Australia’s energy market faces its most challenging period.

“The 2023–28 regulatory period will be one of profound change in the Australian energy market. The energy transition will be monumental in its impact across all sectors of our economy and community.

“As Australia’s largest electricity transmission network, our infrastructure is vital to Australia’s successful energy transition and achieving the Australian, NSW and ACT Governments’ goals of net zero emissions by 2050, or sooner.

We are strongly focused on delivering the full benefits of the energy transition to customers, including by providing greater access to low-cost renewable energy”, Mr Redman said.

Transgrid is currently delivering vital upgrades and expansions to NSW’s interconnectors to Queensland, Victoria and South Australia, which will enable low-cost renewables to enter the market, delivering both environmental benefits and savings to our customers. Subject to regulatory approvals, we will also deliver the Victoria to New South Wales Interconnector (VNI) West, HumeLink, other ISP projects and the NSW Renewable Energy Zones (REZs).

Our proposal delivers on five key priority areas which were identified during consultation with our customers and other stakeholders:

• Affordability – based on our proposal we expect to deliver transmission cost savings of $19.55 per annum for residential customers and $73.05 per annum for small business customers, which in both cases is a 13.4 per cent reduction over this period. Delivering these savings will depend on the outcome of this revenue determination process.
• Safety, security and reliability - we will continue to invest to maintain the long-term condition of our network. We will also strengthen network resilience, where it is efficient to do so, and enhance our cyber and physical security capability to meet the Australian and NSW Governments’ new obligations
• Serving rapid localised demand growth - we will upgrade our network to address high load growth in parts of our network and enable compliance with mandated voltage stability, thermal limits and reliability standards
• Supporting the transition - we will continue to support the transition to a low carbon future through our investments in the projects identified in Australian Energy Market Operator’s (AEMO) Integrated System Plan, and NSW Government’s Electricity Infrastructure Roadmap. These projects will involve extensive public consultation and require approval from AEMO, the AER and the NSW Government to proceed.
• Supporting technology and innovation - we will continue to innovate and collaborate with our partners to accelerate the identification and development of new technologies.

We are grateful to members of our Transgrid Advisory Council, customers and other stakeholders for their valuable contributions to the preparation of our Revenue Proposal for the 2023-28 period.

“We believe our proposal demonstrates we are an efficient and customer orientated electricity network provider that will drive the outcomes needed to support Australia’s energy transition”, Mr Redman said.

We look forward to feedback from, and further engagement with, customers and other stakeholders as we develop our final proposal during 2022.

Read Transgrid’s full 2023-28 Revenue Proposal.