To provide guidance to interested parties we have provided an explanatory statement that:

• explains what stand-alone power systems (SAPS) are and the advantages they have over a connected network
• describes the SAPS rule changes coming into effect 1 August 2022, including how the changes integrate the principles of value for money and consumer protections
• outlines the amendments we propose to make to six guidelines, and the reasons why.

Most of our proposed amendments are mechanical in that we are updating definitions to reflect the rule changes. In the Distribution Reliability Measures Guideline we propose to add a new “SAPS feeder” classification to SAIDI and SAIFI to reflect the unique characteristics of SAPS. We give reasons for this in our explanatory statement.

On 24 February 2022, the Australian Energy Market Commission published new rules allowing distributors to provide SAPS to existing customers, and to offer to connect new customers to existing distributor-operated SAPS (also called regulated SAPS) where it is more economically efficient than connection to the interconnected national electricity system.

Ahead of the implementation of the rule change on 1 August 2022, we are required to review, and where necessary amend and publish relevant guidelines. This is to ensure that our guidelines are consistent with the national arrangements for regulated SAPS, before the rule change takes effect.

We have completed this review and propose to amend and publish six documents. We have attached these documents below, with draft amendments marked up.

We invited written submissions on the draft amended documents and explanatory statement. Submissions closed on 30 June 2022.