Market Review: Open

Overview

The AEMC is developing a package of law and rule changes for governments to update the regulatory frameworks that apply to embedded networks. This will result in better protections and access to more competitive retail offers for consumers in embedded networks. 

Embedded networks are private electricity networks that serve multiple customers and are connected to another distribution or transmission system in the national grid through a parent connection point. 

Prompted by the significant uptake of embedded networks in recent years and concerns in relation to poor consumer experiences, the Commission assessed the current regulatory arrangements through its 2017 Review of regulatory arrangements for embedded networks. We identified a number of issues in relation to accessing retail market competition, consumer protections and monitoring and enforcement regimes.

To address these issues, the AEMC recommended new regulatory arrangements, as outlined in the review’s Final report

Implementing these recommendations will require a package of law and rule changes, which is the focus of this current review. The changes will:

  • improve access to retail market competition in legacy and new embedded networks, principally by requiring more embedded network customers to be registered in AEMO’s market systems and by standardising metering and network billing arrangements 
  • elevate new embedded networks into the national regulatory frameworks, including through the registration of embedded network service providers with AEMO and the authorisation of on-selling retailers by the AER
  • improve consumer protections in legacy and new embedded networks by addressing regulatory gaps for retail customers in embedded networks and improved information provision, and better monitoring and enforcement. 

The Commission is concurrently undertaking a review of the regulatory framework for stand-alone power systems , which will consider a number of related issues, particularly with regards to consumer protections.

Workshop

The AEMC held a workshop in Sydney on 23 October 2018. The slides from the workshop can be found in the documents below. A recording of the webcast is available here.

Milestones

The Commission plans to publish:

  • a draft report in late 2018
  • a final report by mid 2019.

The Commission may also publish additional consultation papers if needed.

Consultation

In developing its advice, we will consult widely with a range of stakeholders through a public consultation process. Stakeholders will be advised through this project page and the AEMC newsletter of papers and reports being published for consultation and stakeholder workshops.  
 

Documentation