The AER has published the revised Network Exemptions Guideline and Retail Exempt Selling Guideline (versions 7), alongside the final decision for our Review of the exemptions framework for embedded networks.
We commenced our review to better understand the benefits, harms and risks embedded network customers may be facing and whether any action is needed, including whether the AER should restrict the growth of residential embedded networks via our Network Exemptions Guideline. We released an issues paper in November 2023, and our draft decision in March 2025.
The guidelines published today include several new conditions or measures to address the issues we identified through the review. These include:
- new requirements for all exempt entities to keep key registration details up to date – effective immediately
- measures to increase our oversight of smaller embedded networks, by closing the deemed exemption classes to new embedded network configurations (in effect, requiring most new networks to register an exemption) – effective 1 January 2026
- strengthened consumer protections, including introducing new family violence protections for residential and small business customers – effective 1 January 2026
- requirements for some exempt sellers to publish their customer tariffs – effective 1 July 2026
- new obligations for some exempt sellers to include ombudsman scheme contact details on customer bills – effective 1 July 2026.
Our final decision acknowledges that all energy customers should have a comparable level of consumer protections, to the extent possible, regardless of their energy supplier. However, to achieve this, jurisdictional governments will need to act, to address consumer protection gaps outside the scope of the AER’s regulatory powers. This includes the lack of Retailer of Last Resort legislation for embedded network customers and introducing legislated price cap protections for embedded network customers serviced by authorised retailers.
The Australian Government has recently commenced consultation on reform to close these gaps through the Better Energy Customer Experiences and the Default Market Offer review processes. We welcome these as key opportunities to better align the protections for embedded network customers with those of grid-connected customers. We encourage our stakeholders to continue engaging with these processes.