There are two types of interconnectors in the NEM: regulated and unregulated.
A regulated interconnector is an interconnector that has passed the AER-devised regulatory test. TNSPs that own these interconnectors receive a fixed annual revenue based on the value of the asset as set by the AER, regardless of actual usage. The revenue is collected as part of the network charges included in the accounts of electricity end-users.
All but one interconnector operating in the NEM are regulated. They are:
- QNI - connecting Queensland and New South Wales
- Terranora - connecting Queensland and New South Wales
- VIC-NSW - connecting Victoria and New South Wales
- VIC-SA - connecting Victoria and South Australia
- Murraylink - connecting Victoria and South Australia.
An unregulated (or market) interconnector derives revenue by trading on the spot market. They do this by purchasing energy in a lower priced region and selling it to a higher priced region, or by selling the rights to revenue traded across the interconnector. Unregulated interconnectors are not required to undergo the regulatory test evaluation.
The only unregulated interconnector currently operating in the NEM is Basslink connecting Tasmania and Victoria.
Interconnector Quarterly Performance Report
Clause 3.13.3(p) of the National Electricity Rules introduces the requirement for AEMO to publish, on each day of the preceding quarter for all interconnectors, details of:
- interconnector transfer capability; and
- the discrepancy between interconnector transfer capability and the capacity of the relevant interconnector in the absence of outages on the relevant interconnector only.
This information must be published on a quarterly basis.
For further information on this document, please contact: Sujeewa Rajapakse, Manager Operations Planning
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