On 2 July 2025, Ausgrid submitted an application for a waiver from clause 4.2.1, 4.2.2 and 4.2.3 of the Electricity Distribution Ring-fencing Guideline ('the guideline').
The waiver was requested for the purposes of allowing Ausgrid to provide network services in the Hunter Central Coast Renewable Energy Zone (HCC REZ) alongside its existing regulated network services.
Ausgrid has applied for a waiver because HCC REZ network services will fall outside of the
definition of ‘direct control services’ under the National Electricity Law (NEL). This is because these services will be regulated under the EII Act, instead of the NEL and National Electricity Rules (NER). Therefore, despite Ausgrid being a monopoly provider of the HCC REZ network services, the services will be deemed to be ‘contestable electricity services’ for the purposes of the guideline. Without a waiver, various functional separation obligations under the guideline apply to Ausgrid’s delivery of these ‘contestable’ services.
On 29 September 2025, the AER decided to grant a waiver to Ausgrid from their obligation to comply with clause 4.2.1, 4.2.2 and 4.2.3 of the Guideline. As a condition of the waiver, Ausgrid must notify us of any legislative change (which may be earlier than the change coming into effect) that would affect the scope of this waiver.