Transitional Compliance for Embedded Network Managers (ENM): The Key Facts

Share on twitter
Share on linkedin
Share on facebook

The Australian Energy Regulator (AER) has just announced that a transitional compliance approach to the new embedded network manager (ENM) obligations that are coming into force on 1 December (

ENM Embedded Network Manager
Photo by Khara Woods on Unsplash
By Dr Drew Donnelly, Compliance Quarter

Below we set out some key things you need to know.

The ENM role

The ENM is a new role that has been created to support customers in embedded networks transferring from ‘off-market’ to ‘on-market’ and vice versa: That is, embedded network customers switching between electricity supply from an exempt ‘on-seller’ and an authorised retailer.

Key components of the ENM role include (but are not limited to):

  • registering a child NMI (National Metering Identifier) to customers in embedded networks, and;
  • creating and updating NMI standing data in the Market Settlement and Transfer Solutions (MSATS) system.

In order for embedded network operators to adjust to the new requirement to become or to appoint an ENM, the AER will allow an initial transitional period from 1 December 2017 to 31 March 2018

Through that transitional period, if an embedded network operator can demonstrate they are taking active steps to appoint or become an ENM, the AER will “focus on education and not actively pursue enforcement of compliance issues in respect to the NER [National Electricity Rule] requirement”.

Does this mean implementation of the new rules have been delayed?

No. The new requirement to appoint or become an ENM still comes into force through the National Electricity Amendment (Embedded Networks) Rule 2015 No. 15 on 1 December 2017.

The AER are indicating that they will take a pragmatic approach to enforcement of that new requirement, recognising that some embedded networks will not have ENMs as required to do so by 1 December 2017.

Note, however, that from 1 December 2017, the AER will need to see evidence that all relevant embedded network operators have attempted to secure or become an ENM and have been unsuccessful or, are currently engaged in the process of securing an ENM (see the Notice of Transitional Arrangements, p2[1]).

What should you tell embedded network customers?

From 1 December 2017, only an ENM can register NMIs in embedded networks and create and update standing data for customers in embedded networks in the MSATS system.

In light of this, if an ENM has not been appointed, you will need to inform customers of the delay and give them an indication of when you intend to be in compliance with the requirement.

What about the other changes being introduced on 1 December?

The ‘Power of Choice’ reforms required a suite of changes to the National Electricity Rules and National Energy Retail Rules, which all come fully into effect on 1 December 2017. Other rule changes include:

  • the Expanding Competition in Metering & Related Services Rule Change.

This rule change will open up competition in metering (introducing the new role of the ‘metering coordinator’), and support a market-led deployment of advanced meters (

  • the Meter Replacement Processes Rule Change

This rule change clarifies the rights and obligations of parties at a connection point in respect of replacing a meter during the retail transfer process (

  • the Updating the Electricity B2B Framework Rule Change

This rule change updates the electricity ‘business-to-business’ (B2B) framework which provides for a standard form of communications between businesses for certain services related to small customer meters (see

Full compliance with these rule changes will be expected from 1 December 2017.

If you think we could be of any assistance in supporting your process to appoint or become an ENM, please get in contact with us.




More to explorer

Window lights in multistorey house at night, Kuala Lumpur

A Guide to the Role of the Metering Coordinator

In the complex landscape of the electricity market, the role of the Metering Coordinator (MC) is crucial for ensuring the accurate measurement and efficient coordination of metering services. With the National Electricity Rules (NER) as the guiding framework, AEMO has published a guide to the role of a metering coordinator and this article serves as a summary of that role drawing on the guide. Understanding the Purpose and Scope: The Guide to the Role of the Metering Coordinator is specifically

Digital electric meters in a row measuring power use. Electricity consumption concept.

Roles and Functions in Electricity Metering: A Short Guide

Electricity metering is a complex process that requires the collaboration of various entities to ensure accurate measurement and efficient energy management. Understanding the roles and responsibilities of these entities is crucial for maintaining compliance and facilitating the smooth functioning of the electricity market. In this article, we will explore in detail the key roles in electricity metering, including Financially Responsible Market Participants (FRMPs), Metering Coordinators (MCs), Metering Providers (MPs), and Metering Data Providers (MDPs), as outlined in Chapter 7 of

Preparing to Apply for a Retailer Authorisation: A Comprehensive Guide

The Australian Energy Regulator (AER) oversees the authorisation process for energy retailers in Australia. If you’re considering joining this market, it’s crucial to understand the AER’s guidelines and requirements. This article will outline the preparatory steps your business needs to take before applying for a retailer authorisation.

One Comment

    BCC member #1


    I mean to ask : Are there any consequences for us residents if our electricity on-seller is not aN enm?


Leave a Reply

Your email address will not be published. Required fields are marked *