Basslink ideas detailed
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The AER is weighing the future of Basslink.
The Australian Energy Regulator (AER) has released a consultation paper regarding the potential conversion of the Basslink interconnector, a key infrastructure link between Victoria and Tasmania.
The APA Group, which acquired Basslink in 2022, has proposed converting it from a market network service operated by a Market Network Service Provider (MNSP) to a prescribed transmission service operated by a Transmission Network Service Provider (TNSP).
This change could impact electricity transmission charges and the broader energy market.
Basslink, a 500 MW undersea cable, has been operational since 2006, connecting Loy Yang in Victoria to George Town in Tasmania.
As a market network service, Basslink currently operates under a different financial and regulatory framework compared to prescribed transmission services, which are subject to more direct regulation and cost recovery mechanisms.
The AER’s consultation paper outlines several scenarios under which the conversion might take place, as well as scenarios where it does not.
The potential benefits of conversion, according to the AER’s modelling, are juxtaposed with the additional transmission charges that consumers might face.
Notably, the AER highlights that the benefits are “highly sensitive to the input assumptions” used in the modelling, indicating that small changes in these assumptions could significantly alter the outcomes.
The consultation paper is a step in a broader review process that began when the AER received APA Group’s application on 19 May 2023.
Following the release of a Commencement and Process Paper in July 2023, the AER is now seeking input from stakeholders to assess the full implications of the proposed conversion. Interested parties are invited to This email address is being protected from spambots. You need JavaScript enabled to view it. their views and evidence by 20 September 2024.