The AER has released version 4 of the Electricity distribution ring-fencing guideline (the Guideline), accompanied by an explanatory statement.
The amendments seek to ensure the guidelines remain fit for purpose in a changing regulatory landscape and electricity market by:
- Removing the maximum length of waivers and providing the AER with discretion to determine the duration of waivers (extending the approach already used for waivers related to energy storage and stand-alone power systems).
- Requiring distribution network businesses to have annual ring-fencing compliance reports accompanied by a letter signed by a director or most senior executive, in-line with best practice.
Today’s release follows a review initiated by the AER in December 2024. During consultation we received 13 submissions and engaged with a wide range of stakeholders. Stakeholder feedback informed our development of the updated Guideline. An overview of submissions received on the Guideline is set out in the explanatory statement.
Version 4 of the guideline applies to distribution network businesses from 27 February 2025.