NSW REZ Revenue Adjustment Proposals Published
Summary
The Australian Energy Regulator has received annual revenue adjustment proposals from Transgrid and Ausgrid for NSW Renewable Energy Zone non-contestable network projects. The proposals seek a combined increase of approximately $29.9 million across three projects: Waratah Super Battery ($11.7M increase, 11.1%), Central-West Orana REZ ($3.7M increase, 2.8%), and Hunter-Central Coast REZ ($14.5M increase, 7.6%). The AER will issue its decision within 42 business days, following which it will publish a statement of reasons and updated quarterly service payments.
“We received Ausgrid's proposal on 27 March 2026 and Transgrid's on 31 March 2026 and we will endeavour to make our decision on the proposals within 42 business days consistent with our non-contestable guideline.”
Network Operators subject to revenue determinations under the EII Act framework should note that the AER treats revenue adjustments as either routine (replacing placeholder inputs) or non-routine (expenditure adjustments requiring demonstrated prudence, efficiency, and reasonableness). For non-routine adjustments, operators bear the burden of showing costs meet this standard. Any entity currently managing REZ non-contestable network projects should review their cost documentation and adjustment triggers ahead of future proposal cycles.
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GovPing monitors Australia AER News for new energy regulatory changes. Every update since tracking began is archived, classified, and available as free RSS or email alerts — 3 changes logged to date.
What changed
The AER has published revenue adjustment proposals received from Transgrid and Ausgrid under the Electricity Infrastructure Investment Act 2020 (NSW) framework. The proposals seek adjustments to approved revenue determinations for three REZ network projects, with proposed increases ranging from 2.8% to 11.1% relative to prior determinations. The AER will assess whether triggers for adjustment occurred and whether proposed costs are prudent, efficient, and reasonable.
Network Operators under this framework should note that the AER distinguishes between routine adjustments (replacing placeholder financial inputs) and non-routine adjustments (expenditure items). For non-routine adjustments, the burden is on the operator to demonstrate prudence, efficiency, and reasonableness of costs. Parties with interests in these determinations may monitor the AER's upcoming decisions and resulting revenue models.
Archived snapshot
Apr 23, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
AER publishes 2026–27 revenue adjustment proposals for NSW non-contestable REZ network projects
Type Communications Sector Electricity Segment REZ Transmission Issue date
22 April 2026
AER reference AER26012456 Contacts General enquiries - REZ The Australian Energy Regulator has received annual revenue adjustment proposals from Transgrid and Ausgrid relating to their revenue determinations for NSW Renewable Energy Zone (REZ) non-contestable network projects.
The revenue adjustment proposals seek adjustments for:
Transgrid
- Waratah Super Battery – Network augmentation and SIPS control system – proposed increase of $11.7 million (11.1%) relative to the previous determination of $106.1 million.
Enabling Central-West Orana REZ Network Infrastructure Project – proposed increase of $3.7 million (2.8%) relative to the previous determination of $128.9 million.
AusgridHunter-Central Coast REZ Network Infrastructure Project – proposed increase of $14.5 million (7.6%) relative to the previous determination of $189.6 million.
We received Ausgrid’s proposal on 27 March 2026 and Transgrid’s on 31 March 2026 and we will endeavour to make our decision on the proposals within 42 business days consistent with our non-contestable guideline.
Following our decision, we will publish a statement of reasons, updated quarterly service payments and revenue model for each determination.
Background
The AER makes non-contestable revenue determinations under the Electricity Infrastructure Investment Act 2020 (NSW) (EII Act) and the Electricity Infrastructure Investment Regulation 2021 (NSW) (EII Regulation). Under this framework, a revenue determination may include provision for the adjustment of any amount included in the revenue determination (adjustment mechanism).
Our revenue determinations approved the inclusion of several adjustment mechanisms that are intended to account for risks that are outside a Network Operator’s control and cannot be efficiently mitigated through other means. The adjustment mechanisms set out what must occur for the adjustment to be triggered, our expectations on what information should be provided to support the proposal, and how any adjustment is calculated and applied.
The proposals include several routine adjustments to replace placeholder financial inputs with actual financial inputs. The proposals also include non-routine adjustments for expenditure. For these non-routine adjustments, we will assess whether the trigger for the adjustment occurred, and whether the proposed costs are prudent, efficient and reasonable.
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