On 4 March 2025, the Australian Energy Regulator (AER) received a ring-fencing waiver application from Ergon Energy Corporation Limited (Ergon Energy), to enable Ergon Energy to continue its distribution and generation services in their isolated systems. On 30 June 2025, we granted Ergon Energy an interim waiver from obligations under clauses 3.1(b) and 4.2 of the Ring-fencing guideline (Electricity distribution) (‘the guideline’) until 30 November 2025, while we considered appropriate conditions and duration for this waiver.
Following consultation on potential waiver conditions, we have decided to grant Ergon Energy a waiver from obligations under clauses 3.1(b) and 4.2 of the guideline, with 3 conditions imposed. These conditions aim to improve clarity and certainty for third-party renewable generation providers, while avoiding undue regulatory burden for Ergon Energy. This waiver will allow Ergon Energy to continue providing distribution and generation services in the isolated systems located in remote Queensland.
The waiver is valid until 30 June 2030, or until Ergon Energy ceases to have a role in providing electricity generation and distribution services in isolated networks, whichever occurs sooner.
The AER considers granting this waiver aligns with the principles of the NEO, as it contributes to ensuring a reliable, safe, secure supply of electricity for the customers in the isolated networks. Granting this waiver also enables Ergon Energy to deliver on Queensland Government’s policy for supplying electricity to customers in isolated networks, and ensures those customers will continue to receive reliable and uninterrupted supply of electricity. The waiver conditions, which are designed to support third-party renewable generation projects that are emerging in the isolated networks, ensure renewable generation alternatives have the potential to form part of the energy solution in remote Queensland.