On 22 August 2024, the AER granted a ring-fencing waiver (with conditions) to Ergon Energy, from clauses 3.1(b), 4.2.1(a), 4.2.2(a) and 4.2.3(a) of the Ring-fencing guideline (Electricity distribution). Ergon Energy made an application for the waiver on 25 October 2023.
Granting this waiver allows Ergon Energy to install, own, operate, and maintain consumer energy resources behind participating customers’ meters, in isolated networks in Queensland. Ergon Energy provided a complete list of these isolated networks in an addendum to its application.
We called for submissions on Ergon Energy’s application in February 2024, and received four submissions in total. We considered each of these submissions in reaching a decision.
We consider that the waiver will enable Ergon Energy to reduce its reliance on diesel-fuelled generation in the isolated networks. This supports the National Electricity Objective.
It will contribute to delivering Queensland Government policy to decarbonise the supply of electricity, including for customers living in the isolated networks.
The waiver includes conditions requiring Ergon Energy to report on how it will engage with other providers of behind the meter assets. We also note Ergon Energy's commitment to consult with First Nations residents supplied by the isolated networks in line with its Isolated Networks Strategy.
The waiver will expire on 30 June 2030. Our final decision outlines the reasons for granting the waiver.