The Australian Energy Regulator (AER) has released an Electricity Network Service Provider Registration Exemption Guideline (network Guideline) and accompanying Final Decision.
Under the National Electricity Rules, any party that owns or operates a private electricity network must either be registered with the Australian Energy Market Operator (AEMO as a network service provider, or be exempted by the AER from this requirement. The network Guideline outlines classes of electricity transmission or distribution activities which will be exempt from the obligation to be registered as a network service provider with AEMO, subject to the conditions set out in the Guideline being met.
The network Guideline replaces and updates the existing network exemption guidelines which were originally made by the National Electricity Code Administrator and which, since 2005, have been administered by the AER.
On 17 October, the AER released a draft network Guideline and accompanying Draft Decision. This Final Decision reflects the AER’s consideration of submissions received on the Draft Decision and, where relevant, consequential amendments to the network Guideline.
The network Guideline will come into effect on 1 January 2012. Over the first six months, the AER’s compliance approach will focus on monitoring and educating participants on their obligations under the Guideline.