We own and operate Victoria’s electricity transmission network – these are the high voltage lines that take electricity from where it’s made to where it’s needed, such as homes and businesses, and into lower-voltage electricity distribution networks. We look after transmission for the whole of Victoria and own and operate one of five electricity distribution networks.
The transmission network covers approximately 227,600 square kilometres and serves over six million people from more than three million Victorian homes and businesses.
The Victorian network is central to Australia’s southern and eastern states. It provides important connections between South Australia, New South Wales and Tasmania.
Regulations
As a regulated business, we’re required to lodge a Revenue Proposal with the AER through a process known as the Transmission Revenue Reset (TRR). The proposal sets out revenue and investment plans for a five-year regulatory period, the most recent one being 1 April 2022 to 31 March 2027.
The process for setting revenue and prices begins with us undertaking extensive engagement with our internal and external stakeholders to understand the needs of the network, our customers, stakeholders, and other factors that impact how we operate and spend money on our network. Based on this, we develop plans for our network (our regulatory proposal) and submit them to the AER for assessment. Our regulatory proposals include details of our spending plans, which focus on efficiently maintaining the reliability and safety of the network and delivering valued services for customers. Our customers, their representatives and other interested parties are encouraged to provide feedback and submissions.
The outcome
We submitted our final plans for the 2022-27 period in October 2020. In January 2022, the AER released its final decision, approving all material aspects of our plans, including our forecast operating and capital expenditure. This decision means the AER approved the expenditure needed to maintain the affordable, safe, reliable, and secure energy supply customers expect, whilst meeting our regulatory obligations and supporting the renewable energy transition.
In its final decision, the AER highlighted the extensive customer and stakeholder engagement that we undertook while preparing our plans. We established a Transmission Customer Advisory Panel (TCAP) as part of our engagement program. The TCAP played a key role in helping shape our proposal. It has since transitioned to a standing AusNet forum.
Our submission
More information about our revenue proposal: