Eyre Peninsula Electricity Supply Options

Our assessment of the line condition indicates that components of the line are nearing the end of their life and require replacement in the next few years.

To enable this work, the Australian Energy Regulator (AER) approved a capital allowance for the replacement of major transmission line components on the Eyre Peninsula in our 2018-19 to 2022-23 revenue determination.

However, we have identified that full replacement of the line is more cost effective and will deliver greater benefits to Eyre Peninsula customers, improving supply reliability and capturing other market benefits.

This has been determined by undertaking the Regulatory Investment Test for Transmission (RIT-T), to assess the costs and benefits of alternative network and non-network solutions.

Current status

In October 2018 we released the Project Assessment Conclusions Report (PACR), which is the third and final step in the RIT-T process.

The PACR identifies the preferred electricity supply option that delivers the greatest benefits to customers and will ensure the Eyre Peninsula has a safe, reliable and secure electricity supply into the future.

The preferred option involves the construction of a new double-circuit 132 kV transmission line from Cultana to Port Lincoln, via Yadnarie, with the ability to upgrade the Cultana to Yadnarie section to 275 kV at a later date.

This option will have a negligible cost impact on customer bills that is estimated to be around ten cents per annum.

This option differs from the preferred option presented in the November 2017 Project Assessment Draft Report (PADR), due to additional work undertaken and feedback received through our stakeholder engagement. The final preferred option provides greater flexibility than the earlier option presented in the PADR and can be delivered with a lower upfront cost.

Subject to receiving all necessary approvals the project is planned to be completed by the end of 2021 and cost approximately $240 million. The AER has already approved $80 million to reconduct the existing line as part of our revenue determination.

The preferred option will now be presented to the Australian Energy Regulator to make a final determination, which we anticipate will be received by early 2019.

We would like to thank all of the project stakeholders for their views and feedback throughout the entire RIT-T process.

* Submissions made as part of the RIT-T consultation process can be viewed via the RIT-T tab