Connection Charge Guideline review 2022

Sector: 
Segment: 
Status: 
Date initiated: 
16 August 2022
Effective date: 
30 November 2022
Contact: 
Connection Charge Guideline Review, Connection Charge Guideline Review ConnectionChargeGuidelineReview@aer.gov.au

Overview

As required by changes made to the National Electricity Rules in August 2021, we are reviewing our Connection Charge Guideline to describe the circumstances (or how to determine the circumstances) under which a Distribution Network Service Provider (distributor) may offer a static zero export limit (static zero limit) to a micro embedded generator seeking to connect to the network.


Have your say

The AER is inviting feedback on its issues paper as it reviews the Connection Charge Guideline. Submission close 9 September 2022.


On 12 August 2021, the AEMC published its Access, pricing and incentive arrangements for distributed energy resources (DER) final determination (rule change). The determination changes the energy rules with the aim of getting more small-scale solar into the grid, while supporting growth of batteries and electric vehicles.

In addition, on 24 February 2022, the Australian Energy Market Commission published new rules allowing distributors to provide stand-alone power systems (SAPS) to existing customers, and to offer to connect new customers to existing distributor-operated SAPS (also called regulated SAPS) where it is more economically efficient than connection to the interconnected national electricity system.

As a result of these changes, the AER is required to review and, if necessary, amend the Connection Charge Guideline by 1 July 2022.

SAPS-related changes 

On 1 August 2022, we released an update to the Connection charge guideline to give effect to the new rules allowing distributors to provide SAPS to existing customers, and to offer to connect new customers to existing distributor-operated SAPS (also called regulated SAPS) where it is more economically efficient than connection to the interconnected national electricity system.

DER-related changes 

An important outcome of the DER rule change is that a DNSP will not be able to offer a static zero export limit to a small customer who is seeking to connect DER to the network, unless it is requested by the customer, or it satisfies an exception listed in the AER’s connection charge guidelines.

Given the complexity and importance of the issues involved, we consider it important to give full and careful consideration to the issues and have therefore decided to finalise our decision on this matter in November after an extensive consultation process, including stakeholder workshops.