AER - Draft explanatory statement - Electricity distribution ring-fencing guideline (version 4)

On 9 December 2024, the AER published a draft explanatory statement and also a draft of a proposed Ring-fencing guideline (electricity distribution) version 4.  

We proposed to:

• Remove the maximum length of waivers and provide the AER with discretion to determine the duration of waivers (extending the approach already used for waivers related to energy storage and stand-alone power systems).
• Require distribution network businesses to have annual ring-fencing compliance reports accompanied by a letter signed by the most senior executive, in-line with best practice. 

We invited stakeholders to provide submission on the draft explanatory statement and the draft guideline by 28 January 2025.

During consultation we received 13 submissions and engaged with a wide range of stakeholders.

Submissions have now closed.

On 9 December 2024, the AER published a draft explanatory statement and also a draft of a proposed updated Ring-fencing guideline (electricity distribution) (the guideline).  The proposed updates will make limited changes to the current guideline to include negotiated transmission services, in line with the AEMC’s amendment to rule 6A.21.2 of the National Electricity Rules (NER).

The proposed changes are to: 

• Remove the limit on the maximum term of waivers from the guideline
• Make a minor update to annual reporting on compliance monitoring

We invite stakeholders to provide submission on the draft explanatory statement and the draft updated guideline by 28 January 2025.

Submissions and requests to make submissions via alternate methods should be emailed to aerringfencingaer [dot] gov [dot] au (aerringfencing[at]aer[dot]gov[dot]au)