On 25 June 2026, the Australian Energy Market Commission (AEMC) commenced package 1 of the Electricity Network Regulation Review (ENRR) that will examine the future of electricity network regulation. This package focuses on the service classification and ring fencing framework.

The Review will consider the important role of electricity network regulation in providing consumers with a low cost, reliable supply of electricity as the NEM transitions to a net-zero system.  

The Commission will conduct the Review across two work packages

• Package 1 (this package) focuses on the service classification and ring fencing framework. It will examine what services should network service providers (NSPs) provide in a regulated capacity, where the boundary of regulation should sit, and if NSPs engage in the delivery of contestable services, what market power mitigants should apply? This will include consideration of service classification, ring-fencing,  cost allocation and shared asset frameworks. The Review has been planned as a six-month sprint to determine key policy principles, concluding at the end of 2026.
• Package 2 will examine how the framework can best support efficient service delivery, whether it provides for appropriate risk allocation between NSPs and consumers, and appropriately compensates NSPs for the risk they take, and whether regulatory processes are efficient and support positive consumer outcomes. You can find information about package 2 here.  

The consultation paper also covers two related rule change requests

The AEMC has received two rule change requests related to service classification for EVCI and ring-fencing. These two rule change requests also raise important questions about the role of networks and the boundaries of network regulation. Considering these rule change requests alongside the review will allow the Commission to assess them against a consistent set of policy principles and in the broader context of the evolving regulatory framework. Read the fact sheet: The Electricity Network Regulation Review and related rule change requests here for more information.  

The two rule change requests are:

• Clarifying distribution ringfencing in emerging energy markets (ERC0437), from Nexa Advisory which seeks to strengthen the ringfencing framework. Click here for project page.
• Enabling DNSP led electric vehicle charging infrastructure (ERC0435), from Energy Networks Australia (ENA) which seeks to enable distribution network service providers to roll out kerbside electric vehicle charging infrastructure (EVCI) as a regulated service. Click here for project page.

We will be accepting submissions in response to the consultation paper until 23 July 2026.  

We will hold an in person public forum in August

The AEMC will hold an in person public forum in Sydney in August 2026.  

The public forum will cover Package 1 and Package 2 of the ENRR, plus the two related rule change requests. Further information will be available on the project page and via our newsletter in the coming weeks.  

Next steps for the review are as follows:

• Stakeholder consultation period until 23 July 2026.  
• The AEMC will host a public forum in August 2026.
• The AEMC will host a second public forum in October 2026.
• Following consultation, a final report will be published on 17 December 2026.

We value stakeholder feedback and input and there will be future options and opportunities to provide feedback through the review process. Please use the contact project leader link on this page if you wish to contact the project team directly.