On 4 April 2023, the AER released a communications statement which expands the scope of the streamlined assessment process for low risk battery distribution ring-fencing waivers to include consideration of waivers from functional separation requirements.
Background
On 3 November 2021, the AER published its final Guideline and explanatory statement which created a new streamlined assessment process for battery waivers which meet certain requirements. The process was developed to enable streamlined assessment of applications for Distribution Network Service Providers (DNSPs) to lease spare battery capacity to other parties including in relation to community batteries.
The AER has updated the streamlined assessment process for eligible battery waivers to now allow applications for a waiver from clauses 4.2.1 and 4.2.2 of the Electricity Distribution Ringfencing Guideline (the Guideline) to be considered through this process. Prior to this update, the AER could only consider waiver applications from clause 3.1 under the streamlined assessment process, while applications for a waiver of clauses 4.2.1 and 4.2.2 required a full consultation process.
This expansion does not have the effect of granting any additional waivers to DNSPs, accordingly it does not apply to existing waivers in retrospect. It enables the AER to consider waiver applications from two additional clauses using the streamlined assessment process rather than using a full waiver process. Each application under the streamlined process will be individually assessed to ensure that the risks of discrimination and cross-subsidisation are mitigated. Where applications under the streamlined process are identified as not being low risk, they can be considered through a full waiver process.