On 1 March 2018, this version of the Guideline was revoked and replaced by version 6.
Background
On 1 December 2016, the Australian Energy Regulator (AER) released version 5 of the Network Service Provider Registration Exemption Guideline (Network Exemption Guideline). Version 5 of the Network Exemption Guideline is effective immediately and replaces the previous version released August 2013.
The Network Exemption Guideline relates to a privately-owned embedded or exempt network (private network). A private network is any network supplying electrical energy to a third party, but not a transmission or distribution network registered with AEMO.
Persons involved in the on-selling of electricity may, depending on their circumstances, need to conform to both the Network Guideline and our guideline for retail exemptions, the Retail Exempt Selling Guideline (Retail Guideline).
We issue the Network Exemption Guideline in accordance with clause 2.5.1 of the National Electricity Rules (NER). Under the National Electricity Law and the NER a party that engages in an electricity distribution activity must either be registered with AEMO as an electricity distributor or gain an exemption from the AER from the requirement to be a registered network service provider.
Version 5 of the Network Exemption Guideline builds upon the previous version by including conditions relating to the appointment and cost recovery for the Embedded Network Manager accredited service provider. The Embedded Network Manager was introduced by a rule change to the NER, which takes effect 1 December 2017 and aims to remove barriers limiting retail competition in embedded networks. Version 5 also addresses a number of associated issues raised during the course of the AEMC's Embedded Network rule change determination process.
The effective date for version 5 of the Network Exemption Guideline is 1 December 2016.