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Regulatory Investment Test (RIT)

 

AusNet Services, in its capacity as a transmission network service provider (TNSP), is responsible for operating, maintaining and replacing the shared transmission network, and for providing connection services. Additionally, in its capacity as a distribution network service provider (DNSP), it is responsible for operating, maintaining and replacing its distribution network and planning and directing augmentation to its distribution network and the transmission connection assets that supply its distribution network.

From 18 September 2017, changes to the National Electricity Rules widened the scope of the regulatory investment test for transmission (RIT-T) and the regulatory investment test for distribution (RIT-D) to include replacement projects. AusNet Services is required to undertake the RIT-T, for transmission replacement projects and transmission connection asset augmentation projects with a credible option valued at or above $6 million, and the RIT-D for distribution replacement and augmentation projects with a credible option valued at or above $6 million. 

The purpose of the RIT, as set out at clauses 5.15, 5.16 and 5.17 of the National Electricity Rules, is to identify the credible option that maximises the present value of net economic benefit to all those who produce, consume and transport electricity in the national electricity market (NEM).

AusNet Services is applying the RIT to the projects listed in the table below.

 
Project Status Current report Consultation closes Submissions
RIT-T East Rowville Terminal Station Closed East Rowville Terminal Station PSCR 24 March 2020
RIT-T Templestowe Terminal Station Closed Templestowe Terminal Station PSCR 24 March 2020
PSCR Horsham Static Var Compensator Open Horsham Terminal Station Static Var Compensator PSCR 3 September 2020
RIT-T Cranbourne Terminal Station Electricity Supply Capacity Open Cranbourne Terminal Station Electricity Supply Capacity RIT-T PSCR 25 September 2020

To find out more information on the RIT-T replacement projects, please contact AusNet Services via rittconsultations@ausnetservices.com.au.

The regulatory investment test is a cost benefit analysis overseen by the Australian Energy Regulator (AER). It assesses the economic and technical impact of, and preferred timing for, major network investments in the NEM. The RIT process ensures regulated transmission and distribution investment decisions are in the long term interests of customers.

For more information, see the Energy Networks Australia RIT-T handbook