Estimates Replies

Heywood Interconnector

In reply to Mr VAN HOLST PELLEKAAN (Stuart) (28 July 2016). (Estimates Committee A)

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy): The Heywood Interconnector is currently being upgraded to increase the bi-directional flow capacity from 460 megawatts (MW) to 650 MW with testing and commissioning due to be fully completed by March 2017.

The Australian Energy Regulator approved the upgrade contingent project for ElectraNet in March 2014. The Australian Energy Regulator determined a cost of $47 million (nominal) for the South Australian component.

The $47 million (nominal) will be recovered through electricity bills paid for by all South Australian electricity consumers.

The Australian Energy Regulator advised that on average transmission tariffs will increase by around 1 per cent. The Australian Energy Regulator also indicates that on average the overall effect of these costs on residential retail bills will be very small, less than a 0.1 per cent increase, because transmission network tariffs typically account for about 9 per cent of residential retail bills in South Australia.