On 30 June 2025, the Australian Energy Regulator (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 continue providing distribution and generation services in the isolated systems located in remote Queensland. While the interim waiver is in place the AER is considering appropriate conditions to attach to this waiver.
The interim waiver will expire on 30 November 2025, by which time the AER will make a final decision on the waiver application.
The AER publicly consulted on this application from 16 April to 12 May 2025. We received one submission, from the First Nations Clean Energy Network (FNCEN) which raised concerns about the potential for this waiver to form a barrier for third-party renewable generation providers to enter the market in isolated networks. We have also heard concerns from other parties about challenges in connecting their renewable energy projects to Ergon Energy’s isolated system. For this reason, the AER is granting an interim waiver while we consider this waiver further. Our considerations include appropriate waiver conditions to provide assurance and support for third parties seeking to connect their renewable generation projects to Ergon Energy’s distribution network.