Electricity Network Service Provider Registration Exemption - draft revised guideline (marked-up version) - January 2013

On 31 January 2013, the AER published a draft version of its revised Network Service Provider Registration Exemption Guideline for consultation. The final version of this guideline will replace the current Network Exemption Guideline published in December 2011.

Concurrently, we are also proposing revisions to the network Guideline. These revisions are intended to clarify certain network exemption classes and, more importantly, to mirror the changes being made by the AER to the Exempt Selling Guideline.

In particular, the proposed changes to the network Guideline are:

Alignment of network exemption classes with the Exempt Selling Guideline classes

We have proposed amendments to the Exempt Selling Guideline to revise some of the exempt selling categories and to simplify the guideline. Our approach is to align the deemed and registrable exemption classes under both the network and selling guidelines.

The proposed revisions to the network Guideline are contained in the following tables of the network Guideline, which reflect the changes in the Exempt Selling Guideline:

Table 1 – Deemed classesof exemption – energy selling

Table 3 – Registrable classes of exemption – energy selling

Unmetered supply

We do not generally approve of the unmetered supply of electricity except in unique or exceptional circumstances. However, we have been made aware of legacy arrangements in a small number of commercial or retail situations where unmetered supply is occurring. To align with the Exempt Selling Guideline, a new registrable exemption class (NR7) has been created. This exemption will be available to arrangements that were in place before the Retail Law and Rules commenced in each jurisdiction. After the applicable date, the unmetered energy seller must either install sub-meters at the site and obtain NR1 exemption, or apply for individual exemption.

We have also received inquiries on whether a meter is required in situations where electricity is supplied at no charge to a co-tenant. We agree that in these circumstances unmetered supply can be permitted. We have proposed a revision to condition 5.2 in the network Guideline accordingly.

Note that under existing class ND6, unmetered supply in Queensland is already permitted.

Minor wording amendments to add clarity

Class NDO1 – an explicit reference is made to solar panel purchase agreements. This is to clarify that these arrangements will fall within this class.
Class NDO2 – fixed-line telecommunications sites are included. This anticipates future situations such as the National Broadband Network which, similar to mobile network sites, may require installation of a local power supply.