Submission to the AEMC on SENE Proposal
AGL has provided a detailed submission to the proposed rule change by the Australian Energy Market Commission to support scale efficient network extensions (SENEs). Essentially, the rule change is looking at ways of centrally planning large scale transmission network extensions to new generation zones (e.g. remote new geothermal generators connecting to the existing transmission network). AGL’s submission strongly opposes the draft rule because it seeks to apportion the risk of the network not being used to customers rather than the transmission network service provider or the proposed generators.
Put simply, the proposal will privatise profits for generation proponents and the transmission network service providers and socialise the losses. If the investment is utilised efficiently, then the economic returns will flow to the generators and transmission companies. If the investment is not utilised efficiently, then customer transmission charges will increase to pay for the stranded investment. AGL believes this is not an outcome which could be supported for any reason.
To learn more about the proposal, click here.
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