On 15 November 2019 the AER released a discussion paper to commence a review of ring-fencing arrangements for transmission network service providers (TNSPs). This paper requested input from stakeholders to inform the development of an updated Electricity Transmission Ring-fencing Guideline (guideline).
Due to the COVID-19 pandemic, this project was paused. We expect to resume this review in early 2022.
We invited interested parties to make submissions on our discussion paper by 31 January 2020. We received nine submissions in total.
The purpose of ring-fencing is to prevent regulated businesses from:
- discriminating in favour of their related parties to disadvantage competitors operating in these markets
- not use revenue earned from regulated services to cross-subsidise unregulated or contestable services.