EUAA Submission: Transgrid 2023-2028 Revenue Determination
Emily Wood | January 20, 2023
‘….As we highlighted in our previous submission, the most striking aspect of the engagement to date, including recent engagement, was not what was included but what was not included in the engagement process, with many ISP and REZ contingent projects seemingly “out of scope”. While technically this can be justified, a very strong desire was expressed by many TAC members that significant improvement is required in this area if we are to achieve even a mild level of comfort in the proposed future capex requirements and revenue proposals.
AER DRAFT DETERMINATION AND TRANSGRID RESPONSE
We are pleased to see that Transgrid have accepted many of the recommendations made by the AER in their draft determination. Some AER recommendations such as debt raising costs and forecast inflation result in an increase in allowable revenue and represent the reality of an increasingly high cost environment. These areas will continue to be of great concern to stakeholders given the enormous capex requirements of future ISP and REZ development that will impact the Transgrid RAB in years to come.
Given the likely increase in the number and value of contingent projects and the general trajectory of costs, the forecast RAB (below) is likely to be higher than anticipated….’
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