Regulated Revenue Determination

Transmission Revenue Reset Process

We are the only provider of prescribed transmission services in our service area. 

The prices that we charge as a transmission network service provider (TNSP) are therefore regulated by the by the Australian Energy Regulator (AER) under the National Electricity Rules (NER). This ensures that the revenue we can recover from our customers for providing our transmission services is efficient.

TransGrid is required to lodge a Revenue Proposal with the AER every five years to allow it to set the revenue we can recover from our customers for providing transmission services. The AER’s determination approves the levels of capital investment, operating cost and overall funding required to complete our program of work.

TransGrid’s Revenue Proposal for our next regulatory control period, 1 July 2023 to 30 June 2028 is due to the AER by 31 January 2022. This will set out our proposed revenues and investment plans for the five-year regulatory period commencing 1 July 2023. 

The process for setting revenue is referred to as the Transmission Revenue Reset.

Our 2023-28 Revenue Proposal

A. Pre-lodgement milestones

31 Oct 2020
Request Framework and Approach (F&A)
Completed
Link
31 Dec 2020
AER notice on need for F&A
Issued
Link
30 Jun 2021
TransGrid submits Expenditure Forecasting Methodology to AER
Submitted
Link
31 Jul 2021
AER publishes final F&A paper
Published 
Link
Oct 2021
AER publishes final Reset RIN

B. Stakeholder Engagement

Engagement is integral to our business. Ongoing dialogue with our customers and other stakeholders is essential to ensure we continue to provide services tailored to suit our customer and other stakeholders’ needs in a rapidly changing energy system.

Input from our customers and other stakeholders is critical to the development of our revenue proposal.

We have developed a Stakeholder Engagement Plan that provides a high-level overview of our proposed consultation approach on our 2023-28 Revenue Proposal including the proposed engagement channels. These include the TransGrid Advisory Council (TAC) (including deep dives on specific topics), as well as customer research and Stakeholder perception survey.

TransGrid Advisory Council 

The TransGrid Advisory Council (TAC) is a primary channel for our reset engagement. Members of the TAC represent customer groups, business, finance, academia as well as the energy industry:

  • Australian Industry Group 
  • City of Sydney Council
  • Energy Consumer Australia
  • Energy Users Association of Australia
  • Ethnic Communities Council NSW
  • Goldwind  
  • Public Interest Advocacy Centre
  • Snowy Hydro Ltd.
  • St Vincent de Paul Society
  • Tesla
  • Tomago Aluminium Co.

New members in 2021:
  • AEMO
  • ERM Advisory
  • Clean Energy Council
  • Australian National University
  • Commonwealth Bank of Australia

Our scheduled TAC meetings, deep dives and discussion topics are:

Date (2021)
Discussion Topics
Meeting Minutes
17 Jun
Network Vision  - including future scenarios to information long-term network development and energy transformation

Revenue Reset - confirm stakeholder expectations and priorities and agree on reset consultation approach 
Agenda 
Presentation 
Summary
22 Jul
Overview and seek feedback on the key drivers for our 2023-28  expenditure forecasts
Agenda
Presentation
Summary
19 Aug
Discuss matters identified by TAC as areas of interest (i.e. managing uncertainty and risk, allowed rate of return, cost development)
Agenda
Presentation
Summary
5 Oct
Deep dive workshop:
Seek feedback on draft proposals and positions on key elements of our Revenue Proposal including opex and capex forecasts.  
3 Nov
Overview how we have / propose to update our draft expenditure forecasts and other key positions to reflect stakeholder feedback seeking further input and feedback
2 Dec
Deep dive workshop:
Overview final expenditure forecasts and positions and explain how we have reflected stakeholder feedback into our Revenue Proposal  

Customer research

TransGrid has partnered with Forethought to undertake research to confirm customers’ priorities and preferences. Our research is designed to uncover key customer concerns and priorities today as well as customer’s preferences for the future of Australia’s energy system.

Understanding the energy future our customers want will help us make the right choices to facilitate the changes taking place in Australia’s energy market.   

Our research program:

  • Phase 1 – Explore customer needs, expectations and attitudes to identify key areas to focus the research 
  • Phase 2 – Prioritise customer’s concerns and identify issues most relevant to transmission networks
  • Phase 3 – Test parts of TransGrid’s reset proposal with customers directly and get feedback on areas for refinement

Timetable:

July
Phase 1 - Explore what consumers key energy issues are using an on-line discussion forum. This will help us focus the next phases of our research
Link
August
Phase 2 – Identify customer preferences and priorities using on-line survey with more than 1400 business and residential customers
September
Phase 3 – Test survey findings and specific programs within the regulatory proposal through focus groups
October
Report research findings


Stakeholder perception survey

TransGrid undertakes a stakeholder perception survey each year which is used to shape our ongoing engagement and identify areas for further work.

The stakeholder perception surveys have helped shape our engagement approach for the regulatory reset.


Get in touch

We would like to hear from you. 

You can contact us and have your say by emailing revenue.reset@transgrid.com.au


C. Lodgement and AER Decision milestones

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