Explanatory Note - Ring-fencing interaction with distributor-led stand-alone power systems

Guidance note
Release date: 
10 June 2020
Event date: 
10 June 2020


On 19 December 2019 the AER published an Explanatory Note regarding the interaction between the Electricity Distribution Ring-fencing Guideline and the AEMC's Updating the Regulatory Framework for Stand-Alone Power Systems review and proposed rule changes.

On 10 June 2020 The AER published the Second Explanatory Note to provide further guidance on the interaction of the AEMC’s framework for Distribution Network Service Provider (distributor) -led Stand-alone Power Systems (SAPS) with our Electricity Distribution Ring-fencing Guideline. The second Explanatory Note provides guidance to stakeholders on the regulatory treatment of a regulated SAPS and options for distributors to obtain waivers (or meet the conditions of an exemption) where needed. Stakeholder consultation on these options will be sought as part of the review of our Ring-fencing Guideline later this year.