The AER has today released a decision to grant a ring-fencing waiver to CitiPower, Powercor and United Energy (CPU) to provide hot water switching and pole leasing services.
CPU submitted its ring-fencing application on 10 August 2026 for the provision of hot water switching services (HWSS) and distribution asset rental services for electric vehicle charging infrastructure (EVCI). The application sought waivers from obligations in the Ring-fencing guideline (electricity distribution) ('the guideline') for office separation and restrictions on branding and cross promotion. The AER notes this is unrelated to CPU’s existing EVCI ring-fencing waiver which enabled CPU to directly own, install and lease kerbside EVCI as a trial in Victoria until mid-2031.
As part of the Victorian distribution determinations for 2026–31, the AER classified both HWSS and the rental of distribution assets for EVCI (and associated facilitation services) as negotiated distribution services. Under the guideline, negotiated distribution services are subject to functional separation requirements, including office separation and restrictions on branding and cross-promotion.
On 26 October 2026, the AER decided to grant the waiver, allowing CPU to provide the HWSS and distribution asset rental services for EVCI without separating its offices and branding. This is subject to a strict non-discrimination condition which explicitly requires CPU to process negotiated service applications in the order received, and with no favour to a related party or to CPU in the exercise of its EVCI trial.
The AER considers that granting this waiver aligns with the National Electricity Objective by facilitating efficient deployment of EVCI on distribution poles by contestable providers and HWSS that manage hot water flexibility, avoiding duplicative costs in providing the services that would be ultimately borne by customers.
The waiver is valid until 30 June 2031, aligning with CPU’s current regulatory control period.