The Australian Energy Regulator has today released a decision to grant a ring-fencing waiver to Ergon Energy, from clause 4.2.3 of the Ring-fencing guideline (Electricity distribution). This waiver replaces an existing waiver that is due to expire on 30 June 2025. The new waiver will allow Ergon Energy to continue to use the Ergon Energy brand when providing connection service to Hayman Island as an unregulated distribution service until 30 June 2040.
We have assessed the waiver application and consider that it satisfies the required evidence for granting a waiver as the level of viable competition (that is, alternative service providers) is limited in the remote islands where the customer is located.
We consider the duration of the waiver is appropriate as it provides stability and assurance of continued connectivity of supply for the customer on Hayman Island. This decision therefore aligns with the National Electricity Objectives.