Australian Energy Regulator’s Post

We've made our final decision on the dollar amounts above which transmission and distribution businesses must apply the Regulatory Investment Test (RIT) to proposed capital works projects.   These new amounts are outlined in our 2024 Cost Thresholds Review document, published today.    The RIT is a cost-benefit analysis that the businesses undertake themselves to determine if the long-term benefits to consumers of the project outweighs the costs of doing it and by how much for the different project options.   We set the guidelines for how the RIT is applied and do compliance checks on behalf of consumers to make sure it is being applied correctly.   And every 3 years it’s our job to review the cost thresholds for the RIT-T (for transmission) and the RIT-D (for distribution) to reflect changes in the input costs, such as labour and materials, associated with these large-scale investments.   As industry views are critical to our work as a regulator, we carefully considered stakeholder submissions in our final determination, which you can read here: https://lnkd.in/ghgtVZMK   #Electricity #Transmission #Distribution

Top stories today ⚡ A plan for 2030 cannot simply be an acceleration of the 2035 plan https://buff.ly/4bTXmnt Decarbonising the grid by 2030 will not be achieved by accelerating the existing 2035 plan alone, a new report by the National Engineering Policy Centre concludes. Instead, the report outlines 43 urgent actions for government which include: a rapid assessment of the transmission network; immediately changing the budget for AR6; and making strategic decisions on the decarbonisation of heat as quickly as possible. 💧 Unexpected mechanisms could add to Southern Water bills https://buff.ly/4bU4Tm3 Southern Water customers could face far steeper bill increases by 2030 than Ofwat has set out in its draft determination due to the implementation of unexpected delivery mechanisms. The company, which the regulator called out for producing an “inadequate” business plan, will be subject to a series of delivery mechanisms over the five year period. These will relate to programmes of work that Southern said it was not confident it could deliver in the period. 🔋 Capacity Market rules amended to support batteries and mothballed plant https://buff.ly/4ddB8hm The government has announced changes to Capacity Market rules to support participation of batteries and mothballed plant in upcoming T-1 and T-4 auctions. Energy secretary Ed Miliband has also set a target capacity of 6.5GW for the T-1 auction for 2025/26 and 45GW for the upcoming T-4 auction.

CRU Proposed Changes to PSO Levy from October 2024: What Does It Mean for Your Business? The Commission for Regulation of Utilities (CRU) has announced new changes to PSO Levy from 1 October 2024. These levy include: • Domestic Customers: €2.98/month • Small Businesses: €11.10/month • Medium/Large Businesses: €1.37/kVA How Will This Affect Your Business? This new proposal can significantly increase operational costs for many businesses. Now more than ever, it's crucial to optimise energy consumption and reduce unnecessary expenses. Digren Energy Services for Businesses 🏢 To help businesses navigate these changes, we offer a range of specialised services: ✔ Meter Profiling: The transmission and distribution costs are dictated by ESB Networks and Eirgrid. In many cases the Maximum Import Capacity (MIC) is not suitable for the premises. It is your responsibility to ensure you have the correct MIC. Digren Energy Management reviews your bills over the past 12 months and analyses the usage. We then break this down for you and make recommendations to change your MIC if required. ✔ Tariff Analysis: Using your Meter Registration System Operator (MRSO) Actual Quantity (AQ) data Digren will make a recommendation for an electricity tariff best suited to your organisation. ✔ Capacity Adjustments (MIC): We will handle all the paperwork, including submission of connection agreement forms to ESB Networks, and we can monitor your new charges for the year ahead and benchmark them against the previous 12 month period. ✔ Meter Upgrades: If Meter changes are required we will handle all the paperwork and we can monitor your new charges for the year ahead and benchmark them against the previous 12 month period. Let’s Prepare Together for a More Efficient and Sustainable Energy Future 🌿 From Digren Energy we can help your business to mitigate the impact of the new levy proposal, reduce costs, improve energy efficiency and move towards sustainability. Contact us for more information. Read the full article here: https://lnkd.in/gvZ6Pcsn #Energy #Businesses #EnergyEfficiency #Sustainability #CRU #ElectricityRates #SustainableBusiness #EnergySavings

The threshold for SANS 10400-XA assessments is lower than you might expect, and these assessments are not only a requirement for new buildings. Any construction or refurbishment project large or complex enough to require the submission of plans for approval, will also trigger a SANS 10400-XA obligation. This need not be a cause for alarm or project delays – when you choose Q-Mech Consulting Engineers as your energy modelling partner, you can count on a swift, professional and completely accurate response that will satisfy all regulatory requirements, and ensure that your project achieves full compliance. This will also reassure your clients and potential future tenants, making a SANS 10400-XA assessment money well-spent. To learn more about how we can help, visit https://lnkd.in/gJQMimW Image credit: Bruno Thethe  

For businesses that want to switch to solar but are unable to host solar onsite due to logistical limitations, a virtual power purchase agreement (VPPA) can be a fantastic option. VPPAs allow companies to claim credit for contributing to the broader economic and environmental impacts associated with clean energy, including supporting clean energy jobs, reducing air and water pollution, and of course fighting climate change. Check out our video linked below to learn more about the differences between an onsite PPA and VPPA for your business. https://hubs.li/Q02vNX5y0

A question - Do you think utility companies have a financial incentive to grow rate base? DPU 23-150 is the National Grid Electric Base Distribution Rate Case. It was filed with the DPU on November 16th 2023 , National Grid would like Approval for a General Increase in Base Distribution Rate for Electric Service & Other Proposals. My Interest = Equity.

Your electric bill is split into 3 parts: generation, transmission and distribution. The costs of building transmission infrastructure (aka those tall metal towers) can be reflected on your bill. Learn more about these costs and where they come from in this month's News Bureau from the PUCO: https://lnkd.in/gzetmueW

PPA’s, aka Power Purchase Agreements are the talk of the town. 😉 Have you ever wondered.... "how do they work?" 🤔 👉 Let's dive into it below and learn about the different types of PPA’s and how we use them! #PowerPurchaseAgreement #RenewableEnergy #EnergyContracts #PPA

On March 27th the AER released an update to Manual 012: Energy Development Applications; Procedures and Schedules. While the updates seem minimal, they will have an impact on existing pipeline licenses as well as future projects for pipelines that transport Hydrogen and/or CO2. If you are unsure how this change impacts current assets or upcoming projects, feel free to reach out! https://lnkd.in/g83WPsDX

Electric rate stabilization? That sounds interesting. Find out why setting aside current revenues for future recognition is a good strategy. https://lnkd.in/dMmWd2yC #electrification #power #utility #electric #publicpower #accounting #gasb #fasb