Overview

Sector
Electricity
Segment
Distribution
Region
Australian Capital Territory
Entities
Status
Current
Commencement date
Effective date

On 17 August 2023 Evoenergy submitted a ring-fencing waiver application under clause 5.2 of the Electricity Distribution Ring-fencing Guideline. The waiver application was made to re-make an existing waiver granted in December 2017 for Evoenergy to own and operate two natural gas distribution pipelines – the ACT Gas Network and the Nowra Gas Network.

The ACT Gas network is a regulated or scheme gas distribution pipeline. The Nowra Gas Network is an unregulated or non-scheme gas distribution pipeline. It serves a small number of residential customers with low levels of gas consumption and low revenues.

The AER has previously explained that we may accept a waiver from legal separation in relation to a non-distribution service in certain circumstances, including where there are adequate protections for competition and from cross-subsidisation. Evoenergy submitted that the operation of the gas pipelines continues to be outsourced to third parties, providing effective contractual and financial separation from Evoenergy’s regulated electricity service which is further supported by Evoenergy’s Cost Allocation Method.

On 3 November 2023 the AER granted a waiver for both the ACT Gas Network and the Nowra Gas Network and this will be reviewed prior to the next determination in 2029.