NSW REZ supporting guidelines

The Australian Energy Regulator (AER) has released draft supporting guidelines and a guidance note that support the regulation of network infrastructure projects under the NSW Electricity Infrastructure Roadmap:

• Confidentiality guideline - Electricity Infrastructure Investment Act - Draft
• Cost allocation guideline - Electricity Infrastructure Investment Act - Draft
• Legal and functional separation guideline - Electricity Infrastructure Investment Act - Draft
• Incentive schemes for non-contestable network projects in NSW: Guidance note - Draft

We've been appointed as a Regulator under the NSW Electricity Infrastructure Investment Act 2020 (EII Act). One of our responsibilities is to make and issue guidelines that support our functions under the Act.

The Confidentiality guideline outlines how entities under the EII Act and the NSW Roadmap may submit confidential information to the AER so we may perform our functions, how they may claim confidentiality over it, and how we will consider these claims.

The Cost allocation guideline requires Network Operators to identify and separate the costs of performing different activities or delivering different services and report it to the AER. This addresses the risk that Network Operators could use revenue from providing monopoly services to subsidise services offered in contestable markets.

The Legal and functional separation guideline describes the different separation requirements (legal, staff and information) for a Network Operator delivering different activities or services. This guideline addresses the risk that a Network Operator may use its position as a provider of monopoly services to gain an unfair advantage for itself or affiliates in contestable markets.

The Incentives guidance note outlines how we will apply our incentive schemes in non-contestable revenue determinations under the EII framework to promote economic efficiency.