TransGrid Managing Director Mr Peter McIntyre has presented a response to the Australian Energy Regulator's Draft Determination on TransGrid's Revenue Proposal.
Click here to view the AER's Draft Determination
In his response to the AER Public Forum, held on Monday 8 December 2014, Mr McIntyre expressed concerns that cuts proposed in the AER Draft Determination threaten engagement, innovation and long term reliability.
TransGrid has adapted to the changing demand and is committed to future proofing the electricity supply in NSW. In response to the changing market, we have:
- Deferred $600 million of capital expenditure
- Proposed a dramatic reduction in augmentation
- Removed the Powering Sydney's Future Project from the proposal
- Proposed revenue growth no more than CPI
TransGrid does not believe the AER has struck the right balance in meeting the National Electricity Objective to 'promote efficient investment in, and efficient operation and use of, electricity services for the long term interests of consumers of electricity with respect to –
- Price, quality, safety and security of supply of electricity
- The reliability, safety and security of the national electricity system.
While TransGrid understands the impact of our decisions on consumer bills, we believe safety and reliability are major priorities. TransGrid's proposed replacement expenditure is sensible. The AER has proposed a reduction of over 30% in proposed replacement safety and compliance capital expenditure on the grounds of historical trend and an assertion our asset management governance is lacking. However, the AER has not made any assessment of the safety or reliability impacts of their proposed cuts. TransGrid is certified to ISO55001, the leading international standard in asset management.
We encourage you to get involved in the conversation and share your views. Click here to view a copy of Peter's presentation.
TransGrid Revenue Proposal 2014-2019