On 28 February 2018, the Australian Energy Regulator (AER) released version 6 of the Network Service Provider Registration Exemption Guideline (Network Exemption Guideline). Version 6 of the Network Exemption Guideline is effective 1 March 2018 and replaces the previous version released 1 December 2016.
The Network Exemption Guideline relates to a privately-owned embedded or exempt network. An exempt network is any network supplying electrical energy to a third party, but not a transmission or distribution network registered with AEMO. An exempt network includes dedicated connection assets which have not been registered with AEMO by a market participant.
Persons involved in the on-selling of electricity may, depending on their circumstances, need to conform to both the Network Guideline and our guideline for retail exemptions, the Retail Exempt Selling Guideline (Retail Exemption Guideline).
We issue the Network Exemption Guideline in accordance with clause 2.5.1 of the National Electricity Rules (NER). Under the National Electricity Law and the NER a party that engages in an electricity distribution activity must either be registered with AEMO as an electricity distributor or gain an exemption from the AER from the requirement to be a registered network service provider.
Version 6 of the Network Exemption Guideline introduces two new exemption classes for small and large Dedicated Connection Assets as required by the Transmission Connection and Planning Arrangements rule change. Version 6 also address associated issues related to the connection of generation assets to exempt networks. Other amendments harmonise the Network Exemption Guideline's dispute resolution and ombudsman access provisions with those proposed for the Retail Exempt Selling Guideline. A comprehensive list of amendments can be found in the Reasons for Decision document at the bottom of this page.
Consultation on the proposed amendments began with the publication of an Issues Paper and Draft Guideline on 17 November 2017. This was followed by a stakeholder forum on 14 December 2017 and a call for submissions by 15 January 2018.