Independent regulator approves Marinus ‘early works’ spend
The Australian Energy Regulator (AER) has approved Marinus Link’s first revenue proposal, marking the project’s ‘early works’ spending as prudent and efficient.
The approval of early works expenditure, or ‘revenue determination’, enables Marinus Link to recover the costs for designing and planning Marinus Link through to a Final Investment Decision (FID).
Marinus Link CEO Caroline Wykamp said the AER had thoroughly examined spending from early 2021 and forecasts to FID and had given the green light to make Marinus Link a reality.
“The revenue determination guarantees the project can only recover costs in line with customers’ best interests,” she said.
“The determination forms part of a rigorous process with the independent regulator to ensure cost recovery for Marinus Link is in the long-term interests of energy consumers.”
The AER is an independent body overseeing Australia’s regulated energy markets to ensure consumers pay no more than necessary for energy to their homes and businesses.
“Today’s determination shows that Marinus Link is not spending more than what is necessary to plan the project,” Ms Wykamp said.
“Thanks to grant funding from the Australian and Tasmanian governments, the cost to consumers will be even further reduced.
“Importantly, until Marinus Link is commissioned, costs will not be recovered from consumers.”
Marinus Link will submit a second proposal to the AER early next year for ‘construction costs’. A determination on the proposal is expected in late 2024, marking one of the project’s final milestones before FID.