Arabic version: الجهة التنظيمية ترفض طلب «ترانسغريد» لاسترداد تكاليف مشروع «إنرجي كونيكت»
According to ABC News, the Australian Energy Regulator has rejected, in a preliminary position, Transgrid’s bid to pass on a major cost blowout from its part of Project Energy Connect to consumers.
Project Energy Connect is a $3.6 billion transmission line linking South Australia and New South Wales. When the spending plan was approved, the project was expected to cost about $2.3 billion, including almost $1.9 billion for Transgrid and $457 million for ElectraNet. Transgrid’s share is now estimated to cost more than $3 billion.
Transgrid had sought to reopen its 2023–2028 revenue deal after setbacks including the failure of its contract with Clough and Spanish engineering giant Elecnor. The company said flooding, COVID-19 and extreme inflation were outside its control, and warned delays could jeopardise national electricity system security.
The regulator said it was not satisfied that the cost blowout was unforeseeable. It also said Transgrid had not demonstrated that failing to deliver, or materially delaying, Project Energy Connect would be likely to materially harm the reliability or security of the relevant transmission system.
Justice and Equity Centre consumer advocate Craig Memery welcomed the decision, saying it addressed whether companies or consumers should carry the risks of project mistakes. The AER said Transgrid could still seek recovery of additional spending in its next revenue deal from 2028. Transgrid said it would consider the regulator’s comments and that the announcement was not the final determination on whether prudent and efficient costs could be recovered.
