The Australian Energy Regulator has released its final decision to convert the Basslink interconnector into a regulated Transmission Network Service Provider.
Basslink is a two-way electricity interconnector between Victoria and Tasmania. The interconnector is 370km long and includes 290km of subsea power cable.
The asset was not previously subject to economic regulation but had a revenue contract in place with Hydro Tasmania, which expired 30 June 2025.
According to the AER, a fully regulated Basslink will ensure that the interconnector operates as an open link, enabling the market and consumers to benefit from generation in both the Tasmanian and mainland regions of the National Electricity Market (NEM).
“While regulation is not right for every asset, we believe this decision will ensure Basslink can operate sustainably for the benefit of Tasmanian and Victorian households and businesses over the long-term,” APA CEO Adam Watson said.
“Basslink supports energy security in both Victoria and Tasmania. A regulated Basslink will also provide greater certainty for consumers, ensuring prices will remain stable and not subject to daily movements in the electricity spot market.”
APA expects Basslink will operate as a regulated asset from July 2026. In the interim, the asset will trade Basslink on the electricity spot market from the expiration of the Hydro Tasmania contract.
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