The Australian Energy Regulator (AER) has today published proposed changes to the Ring-fencing guideline (electricity transmission), along with an accompanying explanatory statement. We seek stakeholder feedback on proposed changes to the Ring-fencing guideline (Electricity transmission) (the transmission guideline) in regard to negotiated transmission services.
The AEMC’s amendment to rule 6A.21.2 of the National Electricity Rules (NER) empowers the AER to update the guideline to introduce new ring-fencing protections where appropriate. This is focused on the functional separation of prescribed transmission services and negotiated transmission services by Transmission Network Service Providers (TNSPs) from the provision of contestable (i.e. non-regulated) electricity services by them, or by their related entities.
On 23 October 2024, we published an issues paper seeking feedback on potential changes and their costs and benefits. We used submissions on the issues paper to inform our proposed changes to the guideline.
We are now seeking views from stakeholders about our proposed changes to the guideline. The draft explanatory statement details our policy proposals on a range of issues, including:
- whether all, some, or no negotiated services should be ring-fenced, and the manner in which ring-fencing should occur
- whether to expand the anti-discrimination clause
- whether to expand the definition of ‘ring-fenced information’
- whether to require additional reporting on the delivery of services
- whether to expand current obligations, in regard to marketing staff separation, to provision of negotiated services, and
- whether to introduce restrictions on cross-branding and promotions.
We are interested in feedback on our proposals for change to the guideline. These are also set out in the draft updated guideline, This feedback can include further views or evidence about benefits and costs of the detailed proposal changes as well as any unforeseen impacts
Next Steps
We invite stakeholders to provide written submissions by 28 January. Submissions and requests to make a submission via alternative methods should be emailed to AERringfencing
aer [dot] gov [dot] au (AERringfencing[at]aer[dot]gov[dot]au).
Submissions will inform our development of changes to the guideline, in accordance with the transmission consultation procedures in the National Electricity Rules.