APA Group is reviewing a draft decision from the Australian Energy Regulator (AER) that significantly reduces the proposed revenues and valuation for its recently acquired Basslink power cable. The AER’s draft ruling proposes a regulated asset value of $720.5 million for the cable linking Victoria and Tasmania. This figure is more than $32 million below APA’s initial proposal of $752.8 million. APA Group is an Australian energy infrastructure business. They own and operate Australia’s largest gas pipeline network.
In addition to the valuation adjustment, the AER’s draft decision also lowers the forecast revenue for Basslink over the five years leading up to 2030. The regulator has proposed a revenue of $428.8 million, which is approximately $14 million less than the $442.8 million that APA had projected. The AER stated that the draft ruling aims to protect consumers by ensuring they only pay what is necessary for prudent and efficient investment in the energy network. The decision reflects cuts to Basslink’s forecast capital and operating expenditure.
APA Group’s chief executive, Adam Watson, has indicated that the company will carefully assess the AER’s determination. He stated that APA intends to continue engaging constructively with the regulator. The goal is to ensure that the final determination supports the ongoing reliability of Basslink’s operations.
The AER is scheduled to release its final ruling regarding Basslink’s revenues and valuation in February 2026. APA Group’s response and the final ruling will be closely watched by investors and industry stakeholders alike.
