The AER has released network service providers’ (NSPs) 2025 Annual Ring-fencing Compliance Reports (ACRs), to promote visibility and accountability.
The Ring-fencing Guideline (electricity distribution) and Ring-fencing Guideline (electricity transmission) (the Guidelines) require network service providers (NSPs) to submit an annual ring-fencing compliance report (ACR) on 30 April each year for the previous calendar year.
In their ACRs, NSPs must identify and describe a list of matters prescribed in the Guidelines and be accompanied by an independent assessment of compliance.
Matters to be included in the ACRs:
- the measures the NSP has taken to ensure compliance with its functional and legal separation obligations;
- the measures the NSP has taken to ensure compliance with information sharing protocols;
- active waivers for the NSP, including class waivers, and any information required to be submitted under any waiver conditions;
- any breaches of the Guideline; and
- the purpose of all transactions between the NSP and its affiliated entity.
The Guidelines provide that the AER may publish reports about NSPs' compliance with the Guidelines. In this regard, the AER has published the ACRs to increase transparency on NSPs’ operations and compliance with the Guidelines.
The AER will assess these reports for compliance perspective and raise any matters of non-compliance with relevant NSPs.