As the energy system evolves, distribution networks are becoming more involved in activities associated with emerging technologies including consumer energy resources, network batteries, EV charging infrastructure and flexible export services. This raises important questions on the role of regulated networks and how appropriate boundaries should be set to promote the best outcomes for consumers.
That’s why our response to Australian Energy Regulator’s (AER) Review of ring-fencing and shared asset guideline highlights a growing gap between the intent of the framework and its implementation in practice. We recommend that the review focus on:
- Whether changes are required to principles and formal provisions of the guidelines, and;
- How assessment, monitoring, transparency and enforcement can be strengthened to ensure good outcomes for consumers.
Assessing DNSPs role in efficiently delivering the outcomes that consumers want and value must remain the primary consideration in the assessment of both ring-fencing obligations and waiver applications.
What’s next?
The AER will review submissions to help refine the review’s scope, identify priority issues and develop draft changes to the guidelines. We will continue consulting throughout this process, to ensure the focus remains on providing good outcomes for consumers.
