The Energy Reform Implementation Group (ERIG) conducted a review of the operation of Australia’s energy sector and found that the investment decision-making criteria in the Regulatory Test were appropriate and should be retained. However, the ERIG recommended that the reliability and market benefits sections of the Test should be amalgamated.
Consultations were conducted on the framework and the outcome was that the new RIT-T process would remove the distinction between reliability-driven projects and projects motivated by the delivery of market benefits. Proposed electricity transmission projects are now assessed against both local reliability standards and their ability to deliver broader benefits to the market.
The RIT-T provides a single framework for all electricity transmission investments and removes the previous distinction in the Regulatory Test between reliability-driven projects and projects motivated by the delivery of market benefits.