On 21 May 2025, the AER granted a waiver to Ergon Energy from clauses 4.2.3 of the Ring-fencing Guideline (electricity distribution) to enable Ergon Energy to provide a connection from its mainland network to Hayman Island via an undersea cable connection under the Ergon Energy brand name.  We considered the waiver application to be supportive of the NEO and to have a negligible impact to market competition. We considered that Ergon Energy has sufficiently addressed risks of cross-subsidisation in their cost allocation method, and that ultimately there is little to no benefit to consumers in requiring Ergon Energy to comply with clause 4.2.3.

This waiver will expire on 30 June 2040, unless varied or revoked sooner.