PIAC responded to the AER’s request for comment on ring-fencing waiver applications from the Distribution Network Service Providers. PIAC reinforces the importance of legal separation requirements to encourage new entrants to enter the market and ultimately to protect consumers’ long-term interests. PIAC does not oppose the waiver applications from Endeavour Energy, Essential Energy, or two of the waivers applications from Ausgrid, but does question Ausgrid’s request for a 6-month waiver from legal separation.
PIAC recommends Ausgrids waiver should only be granted in the case that its inability to set up and resource the Affiliated Entity is not the result of its own inefficiencies or poor decisions in implementing its compliance obligations. If the AER is satisfied that the inability to comply within the required timeframe has been, and continues to be, beyond Ausgrid’s reasonable control, PIAC does not oppose the waiver being granted.
