The AER has today published annual compliance reports and independent assessor reports submitted by Victorian distribution network service providers (DNSPs) under the Electricity Distribution Ring-fencing Guideline. The reports cover ring-fencing compliance for the 2018 regulatory year.
The findings of the reports indicate that AusNet Services, Jemena Electricity Networks, CitiPower/Powercor, and United Energy largely complied with the Guideline in 2018. CitiPower/Powercor reported several breaches of the Guideline in their annual report, as ‘non-material’ breaches. The AER is currently assessing a limited number of these breaches to determine their materiality.
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. The Guideline came into effect on 1 January 2018.