Frequently asked questions
What is the Regulatory Investment Test for Transmission (RIT-T)?
What is the Regulatory Test?
Why does Powerlink need to go through the RIT-T or Regulatory Test process?
Does the RIT-T and Regulatory Test involve consultation with industry participants?
Who are Registered Participants?
Who are Interested Parties?
What consultation does Powerlink undertake as part of the Regulatory Investment Test for Transmission (RIT-T)?
What consultation does Powerlink undertake as part of the Regulatory Test?
What is the Regulatory Investment Test for Transmission (RIT-T)?
The RIT-T is the cost-benefit analysis that Powerlink carries out to ensure electricity solutions are delivered at the highest net benefit to the electricity market, or at the lowest long run cost to consumers. This is applicable to transmission investment consultations initiated from 1 August 2010 onwards.
What is the Regulatory Test?
The Regulatory Test is the cost-benefit analysis that Powerlink carries out to ensure electricity solutions are delivered at the lowest long run cost to consumers. This is applicable to transmission investment consultations where transmission investment is required to address distribution network needs or for consultations which were initiated before 1 August 2010.
Why does Powerlink need to go through the RIT-T or Regulatory Test process?
As a regulated monopoly business, Powerlink is obligated (under the Electricity Act 1994, National Electricity Law and the National Electricity Rules) to ensure its high-voltage electricity transmission network can reliably and economically meet growing electricity demand.
The application of the RIT-T or Regulatory Test ensures the recommended solution is the most economic option to meet mandated reliability standards as the demand for electricity grows.
Does the RIT-T and Regulatory Test involve consultation with industry participants?
Under the National Electricity Rules, if the most expensive technically and economically feasible option to address the identified transmission network need is more than a certain threshold (currently $5 million), Powerlink is required to consult with registered participants, AEMO and interested parties regarding the application of the RIT-T.
Under the National Electricity Rules, where transmission investment is required to address distribution network needs, Powerlink and the relevant Distribution Network Service Provider are required to consult with registered participants, AEMO and interested parties regarding the application of the Regulatory Test.
Who are Registered Participants?
Registered Participants include electricity generators, major customers, and electricity distributors. In order to participate in the National Electricity Market, organisations must register with the Australia Energy Market Operator (AEMO) as a Registered Participant. View a current list of Registered Participants.
Who are Interested Parties?
Interested Parties are individuals or representatives who AEMO determines have an interest in network planning and development activities. For example, a large industrial customer may be able to help provide a solution such as reducing electricity use during times of peak demand. Such a solution may defer the need to build a network augmentation, and still ensure the network continues to have the capability to deliver a reliable supply of electricity.
What consultation does Powerlink undertake as part of the Regulatory Investment Test for Transmission (RIT-T)?
Where the most expensive technically and economically feasible option to address the identified transmission network need is more than a certain threshold (currently $5 million), Powerlink is obligated to undertake a three-stage consultation process involving a Project Specification Consultation Report, a Project Assessment Draft Report, and a Project Assessment Conclusions Report.
What consultation does Powerlink undertake as part of the Regulatory Test?
Powerlink and the relevant Distribution Network Service Provider are obligated to undertake a two-stage consultation process involving an Application Notice and a Final Report. However, as Powerlink is committed to open and early consultation with stakeholders, we often include a preliminary consultation stage, known as the Request for Information.