Electricity Archives

Nov242021 by Cedric von DueringNo Comments

Time to understand “Ring-fencing”

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…

Sep212021 by Cedric von DueringNo Comments

ESC Review of the Payment Difficulty Framework

AU Energy Compliance

In January 2019, the payment difficulty framework commenced in Victoria to ensure that disconnection for non-payment is a last resort and that vulnerable customers are supported to pay for their energy usage. After two years of operation, the payment difficulty framework remains the most stringent customer protection framework in the country and has been considered a success by the Essential Services Commission (ESC). Now the ESC has commenced a review to evaluate and assess the operation of the framework in meeting its objective. The ESC does not intend for the review to result in significant reforms to code obligations or to revisit the underlying rationale of the framework. Rather, the ESC seeks to provide more actionable guidance on the framework. The aim of the review is to: Identify issues with…

Mar222018 by Connor JamesNo Comments

New energy zones identified in New South Wales

AU Energy Compliance

By Anne Wardell, Compliance Quarter. The New South Wales Government (government) has lodged a submission with the Australian Energy Market Operator (AEMO) in relation to AEMO's Integrated System Plan (ISP). The ISP was recommended by the Independent Review into the Future Security of the NEM (Finkel Review). The first ISP is expected to be delivered in June 2018 and AEMO has indicated that it will, 'deliver a strategic infrastructure development plan, based on sound engineering and economics, which can facilitate an orderly energy system transition under a range of scenarios. This ISP will particularly consider: What makes a successful renewable energy zone (REZ) and, if REZs are identified, how to develop them. Transmission development options'. (Source: AEMO ISP page) The government submission was released in March 2018 and it is important…

Feb212018 by Connor JamesNo Comments

Service Classification, Asset Exemption, Revenue Proposals and RIT Applications: AER seeks feedback

AU Energy Compliance

In today’s update, we provide a whirlwind summary of three issues (Service Classification, Asset Exemption, Revenue Proposals and RIT Applications) that the Australian Energy Regulator (AER) has recently sought stakeholder feedback on. To read the issues papers, questions and proposals in full, go to the AER pages linked to in the article. [caption id="attachment_3152" align="aligncenter" width="640"] Photo by Alex Jones on Unsplash[/caption] By Dr Drew Donnelly, Compliance Quarter. 1. Issues paper: Service classification and asset exemption guidelines AER has released an issues paper initiating consultation on new guidelines for service classification and for asset exemption for electricity distribution network service providers (DNSPs). Service classification is when the AER determines how or whether a service offered by a DNSP will be regulated. For example, currently service classified as ‘standard control…

Dec12017 by Connor JamesNo Comments

Taking the Axe to Embedded Network Exemptions

AU Energy Compliance

Yesterday we spoke about the final Australian Energy Market Commission (AEMC) report on the regulation of embedded networks. Recommendations from the report will be considered by COAG and are likely to be implemented mid-to-late next year. Today, we answer Five Key Questions for existing embedded network operators. [caption id="attachment_2700" align="aligncenter" width="640"] Photo by Malte Wingen on Unsplash[/caption] By Anne Wardell and Connor James, Compliance Quarter. If implemented, the AEMC recommendations will effectively take an axe to the existing regulation of embedded networks, redefining a sector of the energy market that is growing in importance and prevalence. The changes discussed in this article are focused on NECF jurisdictions (NSW, QLD, SA, ACT and Tas). In an article to follow we will consider similarly significant changes to be implemented in Victoria following…

Nov62017 by Steven FindleyNo Comments

Innovative demand response programs being trialled for the upcoming summer

AU Energy Compliance, Uncategorized

On 11 October, the Australian Renewable Energy Agency (ARENA) and the Australian Energy Market Operator (AEMO) jointly announced that 10 pilot projects have been awarded funding under the new ‘demand response initiative’. This is an initiative designed to manage electricity supply during times of intense pressure on the system. [caption id="attachment_2541" align="alignnone" width="640"] Demand Response Initiative[/caption] Today we take a look at some of the innovative and varied response programs that are being trialled through this initiative including programs offered being provided by energy distributors, retailers and customers. Background to the demand response initiative The Independent Review into the Future Security of the National Electricity Market (the ‘Finkel Report’), released earlier this year, emphasised that the continuing retirement of older energy generators will place increasing pressure on the National Energy…

Oct202017 by Connor JamesNo Comments

The National Energy Guarantee (NEG)—what we know so far

AU Energy Compliance

On 17 October, the Commonwealth Government announced that it intends to introduce a ‘National Energy Guarantee' (NEG) scheme.[1] The scheme would introduce reliability and emissions obligations for energy retailers with the goal of delivering more reliable and lower emissions generation, each year. By Dr Drew Donnelly, Compliance Quarter. In today’s piece we describe the new policy and how it may be operationalised. Note, at this stage the National Energy Guarantee is Commonwealth Government policy, but it is not law and there are several steps that need to be taken before it could be finalised (we explore this in the final section of the article). The National Energy Guarantee The reliability obligation would be set by the Australian Energy Market Commission (AEMC) and Australian Energy Market Operator (AEMO) and would set…