The Australian Energy Regulator has released a draft decision to deny APA Group form converting #Basslink into a Transmission Network Service Provider (TNSP) from a contracted Market Network Service Provider (MNSP). The regulator said that its draft decision presents its assessment as to whether conversion is likely to support the achievement of the National Electricity Objective. In doing so the AER said it has considered the potential outcomes of conversion in a range of potential future states and counterfactual scenarios. If the final decision diverges from the draft and supports conversion, the AER would need to consult on the revenue Basslink would be entitled to earn as a regulated transmission service. If the final decision confirms the draft decision, APA Group said it would progress its plan to trade Basslink as a non-contracted MNSP, with the systems already in place to bid the asset, as required under the current Hydro Tasmania contract. APA Group CEO and Managing Director, Adam Watson, said, if the draft decision by the AER is confirmed as final, APA Group will seek to maximise the value of the asset, in the best interest of APA Group’s investors, by progressing its plans to trade Basslink capacity in the spot market, in line with market rules, once the Hydro Tasmania contract expires on 30 June 2025. “We will be able to leverage the existing systems and capabilities in place across APA.” Mr Watson said.
