AER publishes electricity distribution ring-fencing annual compliance reports

The AER has published annual compliance reports and independent assessors reports submitted to the AER by Victorian distribution network service providers (DNSPs) in compliance with the Electricity Distribution Ring-fencing Guideline. The reports cover ring-fencing compliance by Victorian DNSPs for the 2017 regulatory year.

The reports, submitted by AusNet Services, Jemena Electricity Networks, CitiPower/Powercor, and United Energy, have provided confidence to the AER that the DNSPs have established a set of compliance controls that meet their obligations under the Guideline. Some DNSP reports and independent assessor’s reports also identified opportunities to strengthen compliance measures. CitiPower/Powercor reported several non-material breaches of the Guideline in their annual report. Any queries or questions on these reports can be directed to the AER at or to specific DNSPs.


The Ring-fencing Guideline requires DNSPs to separate their regulated business activities, costs and revenues from other unregulated services. In doing so, the Ring-fencing Guideline aims 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 Ring-fencing Guideline was published on 30 November 2016. All DNSPs were required to comply with obligations in the Ring-fencing Guideline by 1 January 2018.

Issued date: 
12 July 2018
AER reference: 
AC 90/18
General inquiries - Ring-fencing