AER: review of cost thresholds for the regulatory investment tests

“We have initiated a review of the cost thresholds associated with the regulatory investment test for transmission (RIT–T) and regulatory investment test for distribution (RIT–D). The RIT–T and RIT–D are cost–benefit tests that network businesses must apply to identify the most efficient option to address a need on its network. The test applies for only transmission and distribution investments above certain cost thresholds set out in the National Electricity Rules (the Rules).

The Rules require we review the RIT cost thresholds every three years, in light of changes to input costs.”

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