AER publishes determination on VNI West RIT-T dispute

The Australia Energy Regulator (AER) has today published its determination of a dispute raised in relation to Victoria Planning (AVP) and Transgrid's joint regulatory investment test for transmission () for the Victoria to NSW Interconnector West (VNI West) project.

After considering the dispute by Moorabool and Central Highlands Power Alliance Inc (MCHPA), the AER's determination is that the grounds raised do not provide a basis to require AVP and Transgrid to amend their VNI West RIT-T PACR.

Our full determination is set out in the decision report.

AVP and Transgrid undertook the VNI West RIT-T between December 2019 and May 2023 investigating options to assess the viability of increasing interconnector capacity between Victoria and New South Wales.

The project has been identified as an actionable project in AEMO's most recent Integrated System Plan 2022.

The VNI West Project Assessment Conclusions Report (PACR) published on 27 May 2023, identified Option 5A as the preferred option which involves a corridor that connects it to Western Renewables Link (WRL) at a new terminal station at Bulgana and crossing the Murray River north of Kerang. The cost is estimated to be $3.4B and is expected to deliver approximately $1.3B in net benefits over the assessment period.

On 26 June 2023, the AER received a notice of dispute from Moorabool and Central Highlands Power Alliance (MCHPA), representing electricity consumers in Western and North-western Victoria, disputing the conclusions of the VNI West PACR.