AER - Ring-fencing guideline (electricity transmission) - Discussion paper - 15 November 2019

On 15 November 2019, the AER released a discussion paper to commence a review of ring-fencing arrangements for transmission network service providers (TNSPs). This paper sought input from stakeholders to inform the development of an updated Electricity Transmission Ring-fencing Guideline (guideline).

The transmission ring-fencing discussion paper:

• provided an overview of services that can be provided by TNSPs
• raised potential harms and benefits from TNSP participation in competitive markets for electricity services, and
• provided examples of ring-fencing arrangements that could be adapted to an updated transmission ring-fencing guideline.

We consider that a review of transmission ring-fencing arrangements is timely. The current guideline was first developed in 2002 and underwent minor updates in 2005. The discussion paper considered changes in markets for contestable electricity services since the initial guideline, and the AER's recently developed national approach to ring-fencing of electricity distribution networks.