Queensland Consolidated Regulations

ENERGY (RENEWABLE TRANSFORMATION AND JOBS) REGULATION 2024 - REG 31

31 Obligations of AER for second period if s 29 applies

(1) This section applies if, under section 29 , Powerlink includes directed forecast capital expenditure or directed forecast operating expenditure in a revenue proposal given to the AER for the second period.

(2) Without limiting the matters the AER must publish for a draft decision under the National Electricity Rules, clause 6A.12.2, the AER must publish the directed forecast capital expenditure and directed forecast operating expenditure to be accounted for in the revenue determination for Powerlink for the second period.

(3) The AER must, in relation to Powerlink’s revenue proposal—

(a) for directed forecast capital expenditure—

(i) ensure the expenditure is adjusted, under the post-tax revenue model and, if necessary, other economic regulatory models, to ensure the AER’s treatment of the expenditure is, to the extent practicable, consistent with the AER’s treatment of other amounts of forecast capital expenditure for the revenue proposal for the second period; and

(ii) accept the expenditure, as adjusted under subparagraph (i) and by the first period adjustment accepted under section 33 , in its final decision for Powerlink’s transmission determination; and

(iii) include the expenditure in the capital expenditure within the revenue determination for Powerlink for the second period; and

(b) for directed forecast operating expenditure—

(i) ensure the expenditure is adjusted, under the post-tax revenue model and, if necessary, other economic regulatory models, to ensure the AER’s treatment of the expenditure is, to the extent practicable, consistent with the AER’s treatment of other amounts of forecast operating expenditure for the revenue proposal for the second period; and

(ii) accept the expenditure, as adjusted under subparagraph (i) , in its final decision for Powerlink’s transmission determination; and

(iii) include the expenditure in the operating expenditure in the revenue determination for Powerlink for the second period.

(4) For the purposes of the National Electricity Rules, the forecast operating expenditure mentioned in subsection (3) (b) (iii) is taken to be included as part of a building block in Powerlink’s annual building block revenue requirement for the second period, as if it had been accepted by the AER as mentioned in the National Electricity Rules, clause 6A.5.4(b)(6).

(5) In this section—

"directed forecast capital expenditure" see section 29 (1) (a) .

"directed forecast operating expenditure" see section 29 (1) (b) .