In April 2022, the Australian Energy Regulator (AER) recommenced its review of the Ring-fencing guideline (Electricity transmission) (the Guideline) to ensure the Guideline reflects the context of the current market and the energy transition that is underway. The review, which commenced in 2019, was on hold during the COVID-19 pandemic.
The AER has published an issues paper continuing its review of the Guideline. The issues paper seeks stakeholder feedback on:
- The services that TNSPs should be able to provide, including via technologies such as batteries that can be used to provide multiple services.
- The impacts on consumers, the market and TNSPs of strengthening the functional separation requirements, such as separation of offices, branding and staff, between regulated and contestable services.
- Amending the current guideline to strengthen reporting and compliance requirements.
- Aligning the distribution and transmission ring-fencing guidelines where appropriate.
Stakeholders are invited to join a virtual public information session hosted by the AER on 15 June 2022 from 9:30 to 10:30 am AEST. Please register your interest to join by emailing your name, organisation and email address to AERringfencing@aer.gov.au by close of business 10 June 2022.
Submissions on the issues paper are invited from interested stakeholders by Friday, 22 July 2022.
Ring-fencing supports competition in markets for electricity services and the efficiency of regulated network services provided to consumers on a monopoly basis. It does this by requiring a network service provider to separate parts of its business that provide regulated services from the parts of its business that provide unregulated services.