The Regulatory Investment Test for Transmission (RIT-T) is the process that networks must follow when planning large capital investments. It seeks to ensure that networks consider all viable options, in consultation with stakeholders, before building more poles and wires (for example, demand management alternatives).
A mechanism for ensuring networks examine all available options before undertaking major capital projects is a vital part of a regime that ensures consumers pay no more than is necessary for the transportation of their electricity. Following the recent South Australian blackout, it is vital that such checks are not diluted or sidelined in an effort to “build a solution” to such challenges as quickly as possible. Rather, the process must be allowed to run its designed course and fulfil its intended function, to ensure consumers pay no more than is necessary for a reliable, safe and secure supply of quality electricity.
Energy Consumers Australia is also conscious that this review is running in parallel to the independent review of the National Electricity Market being led by Dr Alan Finkel, and ahead of the review of emissions reductions policies in 2017. It is important that the RIT-T process reflects the decisions taken about the strategic direction of the NEM under a broader post-2017 policy framework.
You can read the full submission here.