APA Group has welcomed the Australian Energy Regulator’s (AER) final decision on its Basslink revenue proposal. The final decision provides total revenue of $459.5 million for a four-year period from 1 July 2026 to 30 June 2030.
This outcome now enables APA to take steps to cease trading Basslink as a Market Services Network Provider on 30 June 2026, with the asset to operate as a regulated Transmission Network Services Provider on 1 July 2026.
Basslink is currently the only ‘unregulated’ interconnector in the NEM. This means the asset generates revenue by trading electricity in the spot market, taking advantage of price differences between regions of the NEM.
This contrasts with regulated interconnectors, which operate as ‘open links’ and generate revenue through prices approved by the AER. Operation as an ‘open link’ means energy flows on Basslink are determined by the most efficient outcome, rather than being determined by the bidding strategy of Basslink.
“We are pleased with today’s outcome, which provides long-term certainty for energy consumers and APA investors,” APA CEO and Managing Director Adam Watson said.
“Basslink remains the only electricity interconnector between Tasmania and Victoria and will continue to play a central role supporting energy security across both states.
“We look forward to transitioning the asset to a regulated Transmission Network Services Provider on 1 July 2026.”