On 16 September 2004, NECA granted Melbourne Water an exemption from the operation of Chapter 5 of the National Electricity Code. The exemption was granted under clause 2.5.1 of the National Electricity Code in accordance with NECA's NSP Registration Exemption Guidelines, and is subject to the following conditions:
- Melbourne Water must register with NEMMCO as a network service provider in respect of the embedded generation facility at that site;
- there being no material variation to the occupancy arrangements for the site as they exist at the date of this approval without the further approval of NECA;
- the network being maintained at least to the standards specified in the connection arrangements with the local distributor; and
- Melbourne Water at all times remaining compliant with the relevant requirements of the Victorian jurisdiction for the licencing or exemption from licencing of the network.