The Australian Energy Regulator (AER) has commenced a joint review of the Ring-fencing Guideline (electricity distribution) v4 and the Shared Asset Guideline v2. The review will consider whether the guidelines appropriately manage the risks of cross-subsidisation, discrimination and unfair competitive advantage, while ensuring consumers receive appropriate benefits where regulated assets are used for other purposes.
We have published a call for input, which explains why we are undertaking this review now and sets out the proposed scope and approach for the review. We are asking stakeholders for their views to help us refine the review’s scope, identify priority issues and develop draft changes to the guidelines.
The AER will hold stakeholder workshops in July to discuss the issues outlined in the call for input, and for stakeholders to share evidence and operational insights. Stakeholders who are interested in attending a workshop or getting updates on the review should register your interest.
Register for a stakeholder workshop
Consultation on the call for input will close on Wednesday 6 August 2026. Stakeholders are encouraged to provide their feedback via the call for input submission form. Stakeholders may provide their views via this form at any point during the consultation period.
We recognise that there are other, related reform processes underway, including the Australian Energy Market Commission’s Electricity Network Regulation Review and related rule change proposals that would change what services DNSPs are allowed to provide. The AER is considering carefully how to align the scope and timing of our review with these processes.
Where issues can be addressed through changes to the guidelines, we propose to progress them through this review; where issues are better addressed through rules, service classification or other broader regulatory settings, we will seek to complement and support those external processes.
Background
Ring-fencing is about keeping a DNSP’s regulated network services separate from services that are, or could be, provided in competitive markets. The Ring-fencing Guideline (electricity distribution) sets obligations to manage the risks that regulated network businesses could use their monopoly position, regulated assets or information to advantage their own related businesses or disadvantage competitors.
Shared assets are assets used to provide both regulated services and unregulated services. The Shared Asset Guideline sets out how the AER may reduce regulated network revenues, so consumers share in the benefits when assets they help pay for are also used to earn unregulated revenue. The guideline applies to both distribution and transmission network businesses.
Together, these guidelines help manage the risks that can arise when network service providers use regulated assets, information, systems and capabilities to provide, or support the provision of services outside their core regulated network role.
Distribution networks and the broader energy system have changed significantly since the guidelines were introduced. The growth of consumer energy resources, batteries, electric vehicle charging, flexible demand and new business models is changing the services networks provide, how regulated assets and capabilities are used, and the interaction between regulated network functions and contestable markets. The review will consider whether the guidelines remain clear, effective and proportionate in this changing environment.