The Australian Energy Regulator (AER) has today published changes to the Shared Asset Guidelines, along with an accompanying explanatory statement. The updates give effect to the National Electricity Amendment (Regulated stand-alone power systems) Rule 2022 which amended Chapter 6 of the National Electricity Rules (NER) to classify regulated stand alone power system (SAPS) as standard control services.
Consequently, regulated SAPS form part of the regulated asset base, while also providing a non-distribution service, specifically a generation service. Where an asset in the regulatory asset base is providing two services, one of which is not a distribution service, the provisions related to shared assets in the NER apply.
The rule change required us to review and update our Shared Asset Guidelines to consider how net positive payments from the Australian Energy Market Operator for SAPS generation should be deducted from distribution businesses revenues.
This update follows draft amendments released on 14 March 2025 for consultation. We have developed our updated Guidelines in response to stakeholder input received through this consultation. The explanatory statement outlines how we took stakeholder submissions into consideration and notes the changes between the draft and final amendments.
We recognise that the Shared Asset Guidelines have not been updated since 2013 and may necessitate a broader review. We appreciate the submissions we have received on broader issues. We will keep stakeholders informed of any developments via the AER website.