The Australian Energy Regulator has granted a ring-fencing waiver to Ausgrid from clauses 4.2.1, 4.2.2, and 4.2.3 of the Ring-fencing guideline (Electricity distribution).
The waiver, valid until 30 June 2035, allows Ausgrid to provide network services in the Hunter Central Coast Renewable Energy Zone (HCC REZ) alongside its existing regulated network services without separating staff, offices and branding.
As a condition of the waiver, Ausgrid must notify us of any legislative change (which may be earlier than the change coming into effect) that would affect the scope of this waiver.
Background
Ausgrid applied for a waiver because HCC REZ network services will fall outside of the definition of ‘direct control services’.
This is because these services will be regulated under the Electricity Infrastructure Investment Act, instead of the National Electricity Law and National Electricity Rules.
Therefore, despite Ausgrid being a monopoly provider of the HCC REZ network services, the services will be deemed to be ‘contestable electricity services’ for the purposes of the guideline.
Without a waiver, Ausgrid would be required to separate their staff, offices and branding to deliver these services.