The AER has released its final decision to approve Ergon Energy's application for a waiver of obligations under section 1(b) of the (Queensland) Electricity Distribution Ring-Fencing Guidelines. This decision confirms our draft decision of 7 March 2014.
The waiver allows Ergon Energy to own and operate a 1MVA grid-connected generation unit to provide network support in the Mount Isa region. This decision therefore facilitates the adoption of a non-network solution, and avoids administrative costs associated with Ergon Energy’s ring-fencing obligations that would otherwise be passed on to consumers. Similarly, by enabling this non-network solution, it also avoids costly network upgrades in this region that would lead to higher network charges.