AER recommences review of the transmission ring-fencing guideline

The Australian Energy Regulator (AER) is recommencing its review of the Ring-fencing guideline (Electricity transmission) to ensure the guideline reflects the context of the current market. The review, which commenced in 2019, has been on hold during the COVID-19 pandemic.

As part of this review, the AER recently identified that when the National Electricity Rules (NER) were amended in 2006 to introduce Chapter 6A covering economic regulation of transmission services, transition provisions for the transmission ring-fencing guideline were omitted. The likely consequence is the guideline does not currently have legal force.

To address this, the AER proposes to re-issue the guideline (interim guideline) under clause 6A.21 of the NER in substantively the same form but now linking the guideline to the Chapter 6A provisions. The interim guideline is intended to be in force while the AER undertakes the full review of the guideline. This will provide regulatory certainty during the full review of the guideline.

The AER is consulting on the interim guideline review. Submissions close on 31 May 2022.

Issued date: 
14 April 2022
AER reference: 
AC 65/22
General enquiries - Ring-fencing