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.

The AER publicly consulted on this application from 16 April  to 12 May 2025. We received one submission, from the First Nations Clean Energy Network (FNCEN) which raised concerns about the potential for this waiver to form a barrier for third-party renewable generation providers to enter the market in isolated networks. We have also heard concerns from other parties about challenges in connecting their renewable energy projects to Ergon Energy’s isolated system. For this reason, the AER is granting an interim waiver while we consider this waiver further. Our considerations include appropriate waiver conditions to provide assurance and support for third parties seeking to connect their renewable generation projects to Ergon Energy’s distribution network.