PIAC responded to the Australian Energy Market Commission’s (AEMC) consultation on draft rules for distributor-led Stand-Alone Power Systems (SAPS).
As noted in earlier submissions to the AEMC, PIAC supports Distribution Network Service Providers (DNSPs) being able to transfer existing customers onto SAPS supply where it is a more efficient and preferable option to retaining traditional grid-connected supply. While we support the intent of this package of reforms, we consider some issues need further consideration to ensure that the option to transfer to SAPS-supply is used whenever it is efficient to do so and the customers’ quality of service remains appropriate.
PIAC supports the use of appropriate ring-fencing obligations for distributor-led SAPS. However, the use of ring-fencing must be proportionate to the potential consumer harm possible.
PIAC recommends that the AER consults with stakeholders to examine opportunities to streamline the need for waivers (and review existing waivers) to maintain an appropriate balance in the case of distributor-led SAPS installations.
PIAC considers it important that a framework exist for SAPS services to be provided, or continue to be provided, where there is no viable competitive provider available.
