Regulatory Investment Test

Regulatory Investment Test

This Network sub-section of our website explains the process surrounding National Electricity Market (NEM) consultation on ElectraNet’s regulated electricity transmission network developments (ie investment solutions) which are valued at more than $5 million.

And we have created a targeted regulatory search function for your convenience, to easily locate the associated Regulatory Test documents and RIT-T Reports which relate to both open and closed market consultations for regulated electricity transmission network developments within South Australia.

As a regulated Transmission Network Service Provider (TNSP) in the National Electricity Market (NEM), ElectraNet complies with the National Electricity Rules (NER).

The NER, the National Electricity Law (NEL) and the Electricity Act 1996 all require ElectraNet to deliver an electricity transmission network that meets mandated reliability standards and to deliver market benefits – in order to meet the needs of the South Australian community as well as our direct-connect customers. And this must be done by applying the most fit-for-purpose and cost-effective investment solutions, to meet the growing demand for high-voltage power in South Australia.

Prior to 1 August 2010, a Regulatory Test was applied to identify the most efficient solutions to meet emerging limitations on the network, and to facilitate market consultation. This process involved the publication of an Application Notice and a Final Report for public consultation.

That Regulatory Test process has now been superseded by a Regulatory Investment Test for Transmission (RIT-T).

The RIT-T process ensures that the recommended solutions for regulated electricity transmission network developments in the NEM are the most economic options that will also deliver broader benefits to the market while meeting mandated reliability standards and growing electricity demand.

The RIT-T facilitates a three-stage market consultation process, which applies to developments with credible solutions valued at more than $5 million. The RIT-T also requires an assessment of the costs of identified solution options as well as the benefits to the NEM. The RIT-T involves the publication of the following reports:

1. Project Specification Consultation Report
2. Project Assessment Draft Report (if required)
3. Project Assessment Conclusions Report

These RIT-T reports provide a thorough basis for TNSPs (eg ElectraNet) to consult with registered participants in the NEM, the Australian Energy Market Operator (AEMO) and other interested parties.

The potential market benefits in investments under the RIT-T, enables solutions to be identified which may involve additional works, but which also bring about greater net benefits to the market – for example in alleviating congestion and constraints on South Australia’s electricity transmission network. These benefits may take the form of reduced electricity losses, network and generation investment deferral, generation fuel cost-savings, avoided loss of supply for customers, and increased competition in the NEM.

To find out more, please visit Frequently Asked Questions