On 4 June 2026, we published our consultation paper as part of the first step in developing the network resilience guidelines. Submissions close on 10 July 2026.
This consultation paper provides background on the AEMC rule change that requires the AER to develop guidelines about its assessment approach to network resilience expenditure.
The feedback we receive in response to this consultation paper will inform our draft guidelines, which we expect to release in the coming months.
Background
On 23 August 2024, the Victorian Minister for Energy and Resources submitted a rule change request to the AEMC seeking to improve how distribution network service providers (DNSPs) and the AER account for distribution network resilience. This followed the Victorian Government’s 2 expert reviews into electricity network resilience following widespread power outages caused by severe weather events in Victoria.
In response to the Victorian Minister’s rule change request, on 8 May 2025, the AEMC made a final rule to explicitly recognise distribution network resilience in the NER. The rule also establishes a formal framework for how resilience expenditure is to be considered under the economic regulatory framework through the following 3 changes:
- DNSPs and the AER must have regard to new network resilience expenditure factors when proposing and assessing resilience capital and operating expenditure.
- The AER must develop, publish and maintain formal network resilience guidelines in accordance with a set of requirements. These guidelines are non-binding and may be stand-alone guidelines or included as part of another guideline.
- New distribution annual planning and reporting requirements for resilience.