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 seeks input from stakeholders to inform the development of an updated Electricity Transmission Ring-fencing Guideline.
We welcome stakeholder feedback on all aspects of transmission ring-fencing. The transmission ring-fencing discussion paper:
- provides an overview of services that can be provided by TNSPs
- raises potential harms and benefits from TNSP participation in competitive markets for electricity services, and
- provides examples of ring-fencing arrangements that could be adapted to an updated transmission ring-fencing guideline.
We consider that a review of transmission ring-fencing arrangements is timely. The current Transmission Ring-fencing Guideline was first developed in 2002 and underwent minor updates in 2005. The discussion paper considers changes in markets for contestable electricity services since the initial development of the Guidelines, and the AER's recently developed national approach to ring-fencing of distribution networks.