APA Group's Basslink regulatory update

APA Group (ASX:APA) has responded to the Australian Energy Regulator's (AER) draft decision regarding Basslink. The AER has decided not to convert Basslink into a regulated Transmission Network Service Provider (TNSP). APA had applied for this conversion in September 2023. Basslink is set to remain a contracted Market Network Service Provider (MNSP) until June 2025, with potential operations as a non-contracted MNSP thereafter.

Future outlook for APA Group and Basslink

APA Group is actively working on the regulatory status of Basslink, following the AER's draft decision. The company has systems in place to manage Basslink as a non-contracted Market Network Service Provider after the current contract with Hydro Tasmania ends in June 2025. APA plans to maximize Basslink's value by trading its capacity in the spot market, adhering to market rules. While the AER's draft decision is not final, further consultation will determine the regulatory future of Basslink. APA remains committed to engaging with stakeholders and ensuring safe, reliable operations. The company continues to leverage its extensive energy infrastructure portfolio to play a significant role in Australia's energy landscape.

Executive insights on Basslink decision

The AER's draft decision is subject to further consultation and submissions from APA and other stakeholders. APA is prepared to operate Basslink in the spot market if the draft decision is finalized.