15 April 2024

Submission to the Australian Energy Market Commission (AEMC) on Flexibility in the allocation of interconnector costs

The current rules that allocate costs for large transmission projects that span multiple states – i.e. interconnectors – are broken. To solve this, the AEMC should consider two rule change proposals concurrently. Read our submission.
Energy Consumers Australia

Building the needed interconnectors and fairly allocating the costs of those interconnectors is key to delivering an affordable energy transition for residential and small business energy consumers.

But the current rules that allocate costs for large transmission projects that span multiple states – i.e.
interconnectors – are broken. The current rules allocate and recover costs based on the physical location of infrastructure, rather than recovering costs from those who most benefit from that new infrastructure.

Read our submission (PDF, 150.51KB)

Our recommendation is that the Australian Energy Market Commission (AEMC) consider the rule change proposal from Ministers Bowen, Duigan, and D’Ambrosio concurrently with the rule change proposal from the Public Interest Advocacy Centre (PIAC), because it is the most efficient and effective solution to the underlying challenge and the fairest way to treat disparate stakeholders.

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