The AER has commenced a review of ring-fencing arrangements that apply to distribution businesses across the National Electricity Market. The review draws on our experience enforcing compliance with the Electricity Distribution Ring-fencing Guideline (the Guideline) following its commencement on 1 January 2018.
In March 2019 we reported on various compliance issues that we have identified so far in the Annual Ring-fencing Compliance Report 2017-18. We will shortly publish consultation slides on our website and invite stakeholders to make submissions on this review.
Upcoming stakeholder workshops
We will also hold stakeholder workshops in Sydney and Melbourne on 28 and 29 August 2019. Interested parties should register for a workshop with your preferred location by COB Friday 23 August 2019.
The Electricity Distribution Ring-fencing Guideline requires DNSPs to separate their regulated business activities, costs and revenues from other unregulated services. This helps to promote competition and consumer choice in contestable markets for electricity services, and it aims to ensure efficient costs in the delivery of regulated network services by DNSPs.
The Guideline was first published on 30 November 2016 and subsequently updated in October 2017.