The Australian Energy Regulator (AER) has published an information paper exploring the future of electricity network regulation as Australia’s electricity system undergoes significant change.
With new technologies, services and consumer expectations are reshaping the energy landscape. We consider it timely to examine the current regulatory environment for electricity networks and whether this framework has the right structures and tools in place for the evolving electricity system.
The information paper looks at the historical context for the current framework and asks whether what and how we regulate continues to align with why we regulate as the system changes. It aims to assist stakeholders in understanding the breadth of AER’s network regulation, the current regulatory instruments the AER has available to influence the energy system and provides context for assessing whether this current framework will remain resilient as the system evolves.
We also provide initial observations on how the electricity system and regulatory framework are changing in response to decentralisation and digitisation. The role network service providers play is also changing as they are increasingly expected to act as platforms to enable and coordinate new energy services.
The questions and issues explored in the paper are intended to support informed engagement between the AER and stakeholders as we progress related AER reviews and decisions. The paper will also support our engagement with broader reform initiatives, including the AEMC’s Electricity Network Regulation Review and relevant rule change processes.
The AER is committed to adapting the regulatory framework for electricity networks so that it continues to act in consumers’ long-term interests as technologies, service models and economic conditions change.
Learn more about the AEMC's Electricity Network Regulation Review