Material change in circumstances

What is a material change in circumstances?

A MCC occurs when material changes, such as changes to the identified need for the investment or the preferred option, arise that could affect the outcome of the original RIT-T assessment. 

For RIT-T projects with an estimated capital cost over $103 million, reopening triggers must also be included in the RIT-T. These triggers describe specific events or changes where Powerlink considers that, should they occur, reassessment of the preferred option may be required. For projects with an estimated capital cost below $103 million, Powerlink must still notify the AER of a material change to the identified need or preferred option.  

Why is this process important?

The MCC process provides a transparent framework to reassess whether the  preferred option in the RIT-T remains valid. It ensures the RIT-T assessment is robust, and that its conclusion remains sound and consistent with the RIT-T framework. 

How the process works

Stage 1 – Material change identified

If Powerlink identifies a material change in circumstances, it must notify the AER. The notification outlines: 

• the nature of the material change 
• the actions Powerlink proposes to take 
• the reasons supporting those actions 
• the proposed timeframe for completing them. 

Stage 2 - AER determination

The AER assesses the information provided and determines what actions Powerlink must take. In making its determination, the AER considers factors including: 

• the information provided to understand the nature of the material change 
• whether reapplying all or part of the RIT-T is justified 
• the costs and delays associated with alternative courses of action 
• potential impacts on the reliability and security of the electricity network. 

The AER must publish its determination within 40 business days, although this period may be extended if additional information is required. The AER may approve, reject or amend the actions proposed by Powerlink in the MCC notification.  

Stage 3 – further assessment (if required)

If directed by the AER, Powerlink will undertake further assessment to confirm the preferred option. This may include reapplying all (as a last resort) or part of the RIT-T process and seeking additional stakeholder input where required.  

Powerlink must publish a statement together with supporting information to identify that the preferred option remains the preferred option or, if identifying a new preferred option, provide the supporting information and reasons to support that assessment. 

Further information

For information about how transmission investments are assessed and consulted on, visit our RIT-T consultation process page.

See also the Material Change in Network Infrastructure Project Costs rule change page on the Australian Energy Market Commission’s website.