The AER has today released a decision to grant Essential Energy a waiver from clauses 3.1(b), 4.2.1, 4.2.2 and 4.2.3 of the of the Ring-fencing guideline (Electricity distribution). The waiver, valid until 30 June 2034, allows Essential Energy to establish a training academy and offer specific training courses from its purpose-built training facility in Tamworth with training hubs in at Parkes, Grafton, Orange, Wagga Wagga and Goulburn.
We consider that the training academy will provide accredited training to a broader range of electricity sector participants in regional NSW, help build workforce capability in regional NSW and offer programs also relevant to evolving industry needs.
The waiver is granted with conditions that will help in providing transparency of academy’s operations and ensure other training providers are not disadvantaged due to Essential Energy’s presence in the vocational training market. Essential Energy is required to report information on enrolments for each course and locations of the training, including the split of internal and external demand for courses. Essential Energy is also required to submit independent audit reports for compliance with the cost allocation methodology to ensure cross subsidy risks are adequately mitigated.
Where Essential Energy considers the academy should offer additional training courses or at new locations, it will need to apply to the AER for a waiver variation. However, the AER will endeavour to expedite assessment of a waiver variation application where Essential Energy can demonstrate that it has undertaken adequate public consultation and market testing and can provide evidence that options to collaborate with existing training providers have been explored.