The Australian Energy Regulator (AER) has published its Ring-fencing Guideline for electricity distribution, which applies across the National Electricity Market.

The aim of the Guideline is to reduce the risk of anti-competitive behaviour by requiring electricity distributors to functionally and / or legally separate areas of their businesses that deliver contestable services from areas that deliver regulated electricity services.

The Guideline and explanatory statement can be found on the AER’s website.

Compliance Approach

Essential Energy is committed to compliance with the AER’s Ring-fencing Guideline which aims to provide a level playing field for competitors in the contestable electricity services market. Essential Energy maintains compliance with its ring-fencing obligations through only providing distribution and transmission services, and not providing other, or contestable, services except where:

• a functional competitive market is absent in regional, rural or remote communities; or
• a specific waiver has been granted by the AER; or
• a class waiver has been granted by the AER.

The Electricity Supply Act 1995 requires that service providers who undertake customer-funded contestable network connection works must be accredited under the Accredited Service Providers (ASP) Scheme, administered by the NSW Department of Climate Change, Energy, the Environment and Water.

Connections and Connection Alterations

Under the Ring-fencing Guideline, you will need an Accredited Service Provider when you want to:

• connect your home, business or other premises to the electricity distribution network
• draw more electricity from the distribution network than is currently available; or
• extend the network to reach your premises.

The Electricity Supply Act 1995 requires that service providers who undertake customer-funded contestable network connection works must be accredited by the NSW Department of Planning and Environment.

Finding an Accredited Service Provider

An Accredited Service Provider is an individual or an entity accredited in accordance with the Electricity Supply Act 1995 and the Electricity Supply (Safety and Network Management) Regulation 2014.

A list of Accredited Service Providers is maintained by the NSW Department of Climate Change, Energy, the Environment and Water. This list, along with information about the ASP Scheme, is available on their ASP Scheme website.