The Australian Energy Regulator (AER) has released draft guidelines and a guidance note to support the regulation of network infrastructure projects under the NSW Electricity Roadmap.
We are seeking stakeholder feedback on the following draft guidelines:
- Draft Confidentiality guideline - Electricity Infrastructure Investment Act
- Draft Cost allocation guideline - Electricity Infrastructure Investment Act
- Draft Legal and functional separation guideline - Electricity Infrastructure Investment Act
- Draft Guidance note - Incentive schemes for non-contestable network projects in NSW
These guidelines have been drafted to support our regulatory functions under the NSW Electricity Infrastructure Investment Act 2020 (EII Act).
About the draft Guidelines
The Confidentiality guideline outlines how entities under the EII Act may submit and claim confidential information to the AER, and how we will consider these claims.
The Cost allocation guideline requires Network Operators to identify and separate the costs of performing different activities or services and to report it to the AER. This addresses the risk that Network Operators could use revenue from providing monopoly services to subsidise services offered in contestable markets.
The Legal and functional separation guideline also intends to address the risk that a Network Operator may use its position as a provider of monopoly services to gain an unfair advantage for itself or affiliates in contestable markets. To mitigate this, the draft Guideline describes Network Operators separation requirements (legal, staff, and information) for delivering different activities or services.
The Incentives guidance note outlines how we will apply our incentive schemes in non-contestable revenue determinations under the EII framework to promote economic efficiency.
Consultation
We invite stakeholders to make submissions on all or some of our draft guidelines and guidance note by close of business 23 August 2023.
We will host a public online forum from 10 am to 11 am (AEST) on 14 August 2023. To register your interest in the forum, please email REZ
aer [dot] gov [dot] au (REZ[at]aer[dot]gov[dot]au) by close of business on 11 August 2023.
Background
On 12 November 2021 we were appointed as a Regulator under the NSW Electricity Infrastructure Investment Act 2020. The AER works with the other Roadmap entities to support the objectives of the EII Act, including to ensure the long-term interests of NSW consumers are promoted. The EII Act outlines key functions required of the AER.