Contingent Project Application submitted to the AER

TasNetworks has submitted the Contingent Project Application (CPA) to the Australian Energy Regulator (AER) to obtain the revenue allowances necessary to undertake early works associated with Stage 1 of the North West Transmission Developments (NWTD).

Undertaking early works activities provide confidence to customers that they will pay no more than the efficient cost of delivering Stage 1 of the NWTD.

TasNetworks has chosen to stage the cost recovery process by submitting multiple CPAs for the first stage of the NWTD. The first CPA (CPA 1) seeks to recover early works costs and the second CPA (CPA 2) will be for construction costs. CPAs are necessary for large investments that are made outside of TasNetworks’ standard business as usual expenditure.

The total capital expenditure associated with early works is $151.92M (net of Australian Government grant funding).

Although the CPA includes indicative revenue and price impacts, these do not reflect the benefits of the concessional financing that TasNetworks is pursuing with the Clean Energy Finance Corporation. These benefits will be passed onto customers once TasNetworks has a concessional financing agreement in place.

The AER now has up to 100 business days to make their determination on the efficiency and prudency of our costs.

See TasNetworks’ CPA submission here.