On 4 March 2025, Ergon Energy Corporation Limited (Ergon Energy) applied to the AER for a new waiver to replace a similar, existing waiver that the AER granted on 18 December 2017 and expired on 30 June 2025. Ergon Energy is seeking a waiver from clauses 3.1(b) and 4.2 of the Ring-fencing Guideline (Electricity distribution) (the guideline).
This waiver would allow Ergon Energy to continue providing distribution and generation services in non-NEM connected isolated communities, in remote areas of Queensland. These services are provided by 33 isolated power stations, currently predominantly diesel-fired, which support 39 communities. Ergon Energy also has 35 stand-alone networks that provide distribution services for isolated communities. Ergon Energy has provided a complete list of isolated networks in its application.
On 30 June 2025, the AER granted an interim waiver until 30 November 2025 from the obligations in clauses 3.1(b) and 4.2 of the guideline to Ergon Energy, to continue providing distribution and generation services in the isolated systems located in remote Queensland.
Following consultation on potential waiver conditions, the AER granted Ergon Energy a waiver from obligations under clauses 3.1(b) and 4.2 of the guideline, with 3 conditions imposed. These conditions aim to improve clarity and certainty for third-party renewable generation providers, while avoiding undue regulatory burden for Ergon Energy.
The waiver is valid until 30 June 2030, or until Ergon Energy ceases to have a role in providing electricity generation and distribution services in isolated networks, whichever occurs sooner.