Electricity Transmission Ring-fencing Guideline Review

Ring fencing guideline
Date initiated: 
2 April 2019
General inquiries - Ring-fencing ringfencing@aer.gov.au


Our Transmission Network Ring-fencing Guideline was published in 2002 and underwent a minor update in 2005. With the review and implementation of ring-fencing arrangements for electricity distribution completed in 2018, we intend to review the existing transmission ring-fencing guideline.

The purpose of ring fencing is to separate the competitive and regulated parts of network businesses to protect the long term interests of consumers. That is, ring-fencing supports the development of competitive markets for energy services and efficient investment in network and customer services. For consumers, ring-fencing helps the development of competitive markets to improve outcomes for consumers.

Energy Networks Australia has requested that we delay the timing of this review given the many other regulatory changes and reviews currently underway impacting on the regulation of transmission networks. This includes the Australian Energy Market Commission's review of the Coordination of Generation and Transmission Investment and the Energy Security Board's work on actioning the Integrated System Plan.

The AER had intended to complete this review by December 2019. If we decide to delay the timing of this review, we expect that we would review the Guideline during 2020.

Invitation for submissions

The AER is interested in understanding the impact of delaying this review and a later commencement of a revised transmission ring-fencing guideline. Interested stakeholders are invited to provide their views by emailing ringfencing@aer.gov.au by Thursday 18 April 2019.

Alternatively, written submissions can be directed to:
Ms Angela Bourke 
General Manager Consumer and Markets Branch
Australian Energy Regulator
GPO Box 520
Melbourne, VIC, 3001

The AER prefers that all submissions be sent in an electronic format in Microsoft Word or other text readable document form and that they be publicly available, to facilitate an informed, transparent and robust consultation process. Accordingly, submissions will be treated as public documents and posted on the AER's website, unless prior arrangements are made with the AER to treat the submission, or portions of it, as confidential. Those wishing to submit confidential information are requested to:

  • clearly identify the information that is the subject of the confidentiality claim; and
  • provide a non-confidential version of the submission if possible.