AGL supports efficient network connection and cost recovery arrangements for data centres

AGL has submitted to the NSW Government’s consultation on electricity network connection and cost recovery arrangements for data centres.

We support targeted measures that help genuine projects connect efficiently, while protecting electricity customers from the costs and risks of rapid, concentrated and uncertain growth in large electricity loads.

AGL also supports data centres paying the fair and efficient network costs they cause. Our submission recommends improving efficiency by combining clear obligations with incentives for data centres to provide demand response, locate away from congested areas or bring forward firmed renewable supply.

This could lower costs for participating data centres while improving network utilisation, reliability and affordability for NSW customers. We also recommend recognising efficient reuse of existing high-capacity connections, which could reduce the need for new network investment, lower costs passed through to customers and preserve network capacity for other users.

Decisions on bond forfeiture and compliance with non-network obligations should sit with government or an independent body, allowing network businesses to focus on technical evidence, connection requirements and implementation.

AGL has also recommended that these accelerated reforms remain specific to data centres unless separate evidence and consultation support their extension to other large loads. A fixed seven-year sunset and formal review would ensure the arrangements remain proportionate and aligned with emerging national reforms.

Transparent, coordinated charging would further help data centres understand the costs they are being asked to pay, avoid overlap between different mechanisms and ensure the framework delivers durable benefits for all electricity customers.

Read the full submission (PDF).