Time to understand “Ring-fencing”

Time to understand “Ring-fencing”

AU Energy Compliance
On 3 November 2021, The Australian Energy Regulator (AER)  concluded and published a revision of the Ring-fencing Guideline. Parties are expected to be fully compliant with the updated Guideline (version 3) by 3 February 2022. The Ring-fencing Guideline was revised to establish a framework and controls for a competitive market for deploying community-scale batteries and Stand-Alone Power Systems (SAPS). By separating monopoly network services and avoiding cross-subsidisation of large Distributed Network Service Provider (DNSP), the AER seeks to make energy services more competitive and beneficial for customers. What is Ring-fencing? Ring-fencing describes the division of regulated services (eg. installation/maintenance of poles and wires) and contestable services (eg. installation of smart meters) provided by DNSPs. Thus, the Ring-fencing Guideline regulates to what extent the DNSPs can provide regulated services and when…
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Standardised Models for Regulated Metering Services

Standardised Models for Regulated Metering Services

AU Energy Compliance
The Australian Energy Regulator (AER) is developing a standardised metering services model to use in the future across all jurisdictions. The AER intends to standardise the presentation of distributors’ metering expenditure for the AER’s assessment. The outcomes sought are: Better and more transparent presentation for consumers;Unified understanding amongst distributors; andMore time-efficient processing of proposals by the AER. Currently, the AER assesses each distributors proposal for metering models individually, including their CAPEX, OPEX, revenue and pricing models. The absence of a unified collation and presentation structure results in complexities for the AER, retailers and customers. Different models with varying levels of complexity and information content are a significant barrier for retailers and consumers who engage with distributors’ proposals. A unified model is sought to provide for greater engagement of consumers and…
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