AEMC rule and law changes for embedded networks

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As noted in previous posts the Australian Energy Markets Commission (AEMC) is working on rule and law changes for the regulation of embedded networks.

We now have a new draft timeline- as provided by the AEMC today and set out below:

On the draft report, submissions were received from the Australian Energy Regulator (AER), the Public Interest Advocacy Centre (PIAC), and retailers among others. The AER requested that the AEMC consider retaining individual exemptions as part of the retail framework to ensure that there remains flexibility in the regulation of embedded networks. Retailers were, unsurprisingly, supportive of measures to ensure that customers within embedded networks had power of choice.

Individual exemptions

In retaining individual exemptions, the AEMC proposes to restrict the power of the AER to specify varying conditions on off-market retailers- ensuring that the flexibility is within the individual exemption category and not within the retail authorisation category.

The AEMC is proposing that there be a public consultation process for individual exemption applications whereby anyone can lodge a submission and the AER can make an assessment on the basis of the consumer impact and cost of the proposed selling activity.

Timeline

Above you will see that there is a new timeline for the implementation of the rule and law changes. This process includes rule and law changes passing the SA parliament and AEMO system changes.

In terms of transition, the AEMC proposes to review the size and establishment date (the meaning of which is unclear) in determining when an embedded network needs to transition to the new framework.

The proposed timelines are set out below and you will note that the 2013 date relates to the implementation of new metering requirements- on the assumption that meters installed since are compliant.

 

If you have any questions on the above please get in touch.

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