In February 2022, the Australian Energy Market Commission published the National Electricity Amendment (Regulated stand-alone power systems) Rule 2022 removing existing barriers to distributed network service providers (DNSPs) providing stand-alone power systems (SAPS) to customers. It allows for DNSPs to provide SAPS to existing customers, and to offer to connect new customers to existing regulated SAPS where it is more economically efficient than connection to the interconnected national electricity system.

In particular, the rule change amended Chapter 6 of the National Electricity Rules (NER) to classify regulated SAPS as standard control services. Consequently, regulated SAPS form part of the regulated asset base, while also providing a non-distribution service, specifically a generation service. Where an asset in the regulatory asset base is providing two services, one of which is not a distribution service, the provisions related to shared assets in the NER apply.

Therefore, the rule change requires us to review and update our Shared Asset Guidelines to consider how net positive payments from Australian Energy Market Operator for SAPS generation should be deducted from DNSP revenues.