The Australian Energy Regulator (AER) has released draft supporting guidelines and a guidance note that support the regulation of network infrastructure projects under the NSW Electricity Infrastructure Roadmap:
- Confidentiality guideline - Electricity Infrastructure Investment Act - Draft
- Cost allocation guideline - Electricity Infrastructure Investment Act - Draft
- Legal and functional separation guideline - Electricity Infrastructure Investment Act - Draft
- Incentive schemes for non-contestable network projects in NSW: Guidance note - Draft
We've been appointed as a Regulator under the NSW Electricity Infrastructure Investment Act 2020 (EII Act). One of our responsibilities is to make and issue guidelines that support our functions under the Act.
The Confidentiality guideline outlines how entities under the EII Act and the NSW Roadmap may submit confidential information to the AER so we may perform our functions, how they may claim confidentiality over it, and how we will consider these claims.
The Cost allocation guideline requires Network Operators to identify and separate the costs of performing different activities or delivering different services and report it to the AER. This addresses the risk that Network Operators could use revenue from providing monopoly services to subsidise services offered in contestable markets.
The Legal and functional separation guideline describes the different separation requirements (legal, staff and information) for a Network Operator delivering different activities or services. This guideline addresses the risk that a Network Operator may use its position as a provider of monopoly services to gain an unfair advantage for itself or affiliates in contestable markets.
The Incentives guidance note outlines how we will apply our incentive schemes in non-contestable revenue determinations under the EII framework to promote economic efficiency.
Update on Guidelines
Delay to finalising NSW Supporting Guidelines and Guidance Note
As part of our role under the NSW framework (the Electricity Infrastructure Investment Act and Regulation), we work with the NSW Office of Energy and Climate Change to develop and refine the framework to ensure it meets the needs of the transition and consumers. This work may influence the action and relevance of these guidelines. Consequently, we are delaying the finalisation of the NSW supporting guidelines and guidance note until after this work is completed. We expect this to occur in the first half of 2024. We will keep stakeholders informed on the progress of these guidelines.
Any queries can be submitted to REZaer [dot] gov [dot] au (REZ[at]aer[dot]gov[dot]au).