Regulator "not satisfied" with Transgrid's plan to recover transmission cost blowouts, but doesn't rule it out

Transgrid’s bid to recover an more than $1 billion in transmission cost blowouts it claims were “entirely” out of its control have stumbled at the first hurdle, with the regulator this week suggesting that it will not allow a re-do on the New South Wales network giant’s revenue determination.

Transgrid in February applied to the Australian Energy Regulator (AER) to resubmit its 2023-28 revenue determination to recover $1.2 billion of an extra $1.5 billion in costs incurred through the delivery of Project EnergyConnect.

Project EnergyConnect is a 900 km transmission link connecting South Australia and NSW and Victoria that is considered “nation-critical” for its role unlocking up to 3.5 gigawatts of new renewables capacity in south-west NSW, and to help South Australia get to 100 per cent net renewables by 2027.

The 206 km portion of the project in South Australia was completed in December 2023, by ElectraNet, on time and on budget.

But, the NSW side – a 700 km line from the border to Wagga Wagga and two new substations at Buronga and Dinawan – has faced a series of issues that have blown out total project costs from $1.8 billion to $3.6 billion and delayed delivery.