TIS 131 450Find out what the 2023-2028 Revenue Proposal means, how it was developed and the Australian Energy Regulator’s final decision.
Transmission Revenue Reset Process
We are the only provider of prescribed transmission services in our service area.
The prices that we charge as a transmission network service provider (TNSP) are therefore regulated by the Australian Energy Regulator (AER) under the National Electricity Rules (NER). This ensures that the revenue we can recover from our customers for providing our transmission services is efficient.
We are required to lodge a Revenue Proposal with the AER every five years so that it can set the revenue we can recover from our customers for providing transmission services. The AER’s determination approves the levels of capital investment, operating cost and overall funding required to complete our program of work.
Our 2023-28 Revised Revenue Proposal
On 2 December 2022, we submitted our Revised Revenue Proposal to the AER for the next regulatory period, which commenced on 1 July 2023 and ends on 30 June 2028 (2023-28 period). This responds to the September 2022 Draft Decision by the AER on our initial Revenue Proposal and supporting documentation, which we submitted on 31 January 2022.
This Revised Revenue Proposal reflected the valuable feedback received from our customers and other stakeholders since submitting our initial Revenue Proposal. We continued to engage actively with our customer representatives through the Phase 2 (post-lodgement) period.
The 2023–28 regulatory period has been one of profound change in the Australian energy market. The energy transition is impacting all sectors of our economy and community.
As Australia’s largest electricity transmission network, our infrastructure is vital to Australia’s successful energy transition and achieving the NSW and ACT Governments’ goals of net zero emissions by 2050, or sooner. We are strongly focused on delivering the full benefits of the energy transition to customers, including by providing greater access to low-cost renewable energy.
We are delivering vital upgrades and expansions to NSW’s interconnectors to Queensland, Victoria and South Australia, which will enable greater access to renewable energy across the market, delivering both environmental benefits and savings to our customers. Subject to regulatory approvals, we will also progress the Victoria to New South Wales Interconnector (VNI) West, HumeLink, other Integrated System Plan projects and the NSW Renewable Energy Zones (REZs).
Our initial Revenue Proposal identified five customer priorities through our extensive consultation and engagement with our customers and the Transgrid Advisory Council (TAC), now known at the Consumer Advisory Group (CAG). New customer research conducted for this revised proposal confirmed the five priority customer outcomes identified in our initial Revenue Proposal remain valid for the 2023-28 period:
- Affordability – Since our initial Revenue Proposal, we identified further capex and opex savings over the 2023-28 period of more than $1,560 million through efficiencies, technology and innovation
- Safety, security and reliability - All three are being challenged by the operational complexity of the rapid energy transformation and the growing threat of cyber risks. In response, our proposal largely maintains our initial expenditure forecasts and provides additional evidence to their prudence and necessity.
- Serving rapid localised demand growth - We are committed to meeting residential and business customers’ needs as new development across Sydney and regional NSW drives demand growth. Our revised proposal included new projects to meet load growth and address major constraints while managing system security and reliability.
- Supporting the energy transition - We are delivering projects in accordance with the Australian Energy Market Operator’s Integrated System Plan and the NSW Electricity Infrastructure Roadmap. This proposal includes new projects to facilitate the energy transition and lower emissions.
- Supporting technology and innovation - Where possible, this revised proposal made use of non-network components that harnessed innovative technologies to either replace or defer network investment and drive down costs to customers, further supporting affordability.
We are grateful to the former TAC, customers, and other stakeholders actively participated in this Revised Revenue Proposal.
We believe our revised forecast revenue and price path was a prudent response that met our customers’ needs and maintained the reliability, security and safety of our transmission network, while supporting the energy transition.
AER decision milestones
Preliminary Revenue Proposal
On 5 October 2021, we published our Preliminary Revenue Proposal, which set out our draft positions and proposals and invited feedback from our customers and other stakeholders to inform our Revenue Proposal.
We met with the TAC on 5 October 2021 to discuss our Preliminary Revenue Proposal and then again on 2 November 2021 to receive members’ considered views and positions. We also received feedback on our Preliminary Revenue Proposal through our customer engagement program led by Forethought, which occurred in late October and early November 2021.
Pre-lodgement milestones
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Request Framework and Approach - Completed
31 October 2020 -
AER notice on need for F&A - Completed
31 December 2020 -
Transgrid submits Expenditure Forecasting Methodology to AER - Completed
30 June 2021 -
AER publishes final F&A paper - Completed
31 July 2021
The documents referred to above can be found on the AER website:
Stakeholder engagement
Engagement is integral to our business. Ongoing dialogue with our customers and other stakeholders is essential to ensure we continue to provide services tailored to suit our customers and other stakeholders’ needs in a rapidly changing energy system.
Input from our customers and other stakeholders was critical to the development of our Revenue Proposal. We developed a Stakeholder Engagement Plan that provided a high-level overview of our proposed consultation approach on our 2023-28 Revenue Proposal including the proposed engagement channels. These included the Transgrid Advisory Council (TAC) (including deep dives on specific topics), as well as customer research and a stakeholder perception survey.
Consumer Advisory Group
Established in March 2026, the Consumer Advisory Group (CAG) is Transgrid’s primary forum for consumer input on a range of key issues across the energy sector, including our regulatory proposals and energy policy positions.
Our engagement with the CAG supports decision-making that is shaped by consumer priorities, is transparent, evidence based and focused on the long-term interests of energy consumers across the National Electricity Market (NEM).
The CAG replaces the Transgrid Advisory Council (TAC), which operated from 2018 to 2026 as our principal stakeholder engagement forum.
Customer research
In partnership with Forethought, we carried out research to confirm customer priorities and preferences. Our research was designed to uncover key customer concerns and priorities as well as customer preferences for the future of Australia’s energy system.
Understanding the energy future our customers want helps us to make the right choices to facilitate the changes taking place in Australia’s energy market.
Stakeholder perception survey
We carry out a stakeholder perception survey each year which is used to shape our ongoing engagement and identify areas for further work.
The stakeholder perception surveys have helped to shape our engagement approach for the regulatory reset.
Contact us
We would like to hear from you. Contact us and have your say by emailing revenue.reset@transgrid.com.au