On 30 June 2025, the AER granted an interim waiver from the obligations in clauses 3.1(b) and 4.2 of the Ring-fencing Guideline (Electricity distribution) (the guideline) to Ergon Energy Corporation Limited (Ergon Energy), to enable it to continue providing distribution and generation services in the isolated networks located in remote Queensland. While the interim waiver is in place the AER is considering the duration and appropriate conditions to attach to this waiver, if granted. The interim waiver will expire on 30 November 2025, by which time the AER aims to have made a final decision on the waiver application.
Granting the interim waiver allowed the AER to consider and consult on the appropriate waiver conditions (if the waiver is granted) to address concerns we have heard from stakeholders. These concerns relate primarily to barriers in Ergon Energy’s processes which hinder the development of alternate, renewable generation sources in its isolated networks. These includes a lack of transparency over third-party connection requirements, performance reporting, and available hosting capacity.
The AER is opening consultation on a range of potential conditions for this waiver to manage the issues raised by stakeholders. The conditions, and associated benefits and risks, are explained in the consultation paper. These proposed conditions are subject to consultation feedback and may change. We are not seeking to impose all the conditions listed in the consultation paper, but are consulting on the suitability of these conditions to consider how best to support alternative renewable generation in these isolated networks. In determining the appropriateness of the waiver conditions in addressing the stakeholder concerns, we will also have regard to whether these conditions support a waiver duration of a longer or shorter period, if granted.
Stakeholders are invited to provide written submissions in response to the consultation paper to AERringfencing
aer [dot] gov [dot] au (AERringfencing[at]aer[dot]gov[dot]au) by Thursday 18 September 2025.