The Australian Energy Regulator (AER) has today published proposed changes to the Shared Asset Guidelines, along with an accompanying explanatory statement. The statement seeks stakeholder feedback on proposed updates to the Shared Asset Guidelines. The proposed updates give effect to the National Electricity Amendment (Regulated stand-alone power systems) Rule 2022.
In February 2022, the Australian Energy Market Commission published the National Electricity Amendment (Regulated stand-alone power systems) Rule 2022 removing existing barriers to distributed network service providers (DNSPs) providing stand-alone power systems (SAPS) to customers. It allows for DNSPs to provide SAPS to existing customers, and to offer to connect new customers to existing regulated SAPS where it is more economically efficient than connection to the interconnected national electricity system.
In particular, the rule change amended Chapter 6 of the National Electricity Rules (NER) to classify regulated 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.
Therefore, the rule change requires 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 DNSP revenues.
Invitation for submissions
We invite stakeholders to provide written submissions on our proposed changes by 30 April 2025. Submissions and requests to make a submission via alternative methods should be emailed to aerinquiry
aer [dot] gov [dot] au (subject: Submission%20to%20the%20AER, apos, s%20Draft%20Shared%20Asset%20Guidelines%20March%202025) (aerinquiry[at]aer[dot]gov[dot]au).
Submissions will inform our decision on the final Shared Asset Guidelines, in accordance with the distribution consultation procedures in the National Electricity Rules.