Rule Change: Completed

Overview

On 12 December 2017 the AEMC published a final rule and final determination on the Contestability of energy services rule change requests.
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<p>
On 12 December 2017 the AEMC published a final rule and final determination on the Contestability of energy services rule change requests.</p>
<p>
<strong>Overview of the final rule</strong></p>
<p>
The final rule, which is a more preferable rule, has the following key features:</p>
<ul>
<li>
restrictions on DNSPs earning a regulated return on assets located &lsquo;behind the meter&rsquo;</li>
<li>
provisions that improve the distribution service classification framework&rsquo;s ability to respond to technology changes</li>
<li>
a requirement for the AER to develop and publish guidelines that set out the AER&rsquo;s approach to classifying distribution services.</li>
</ul>
<p>
<strong>Background</strong></p>
<p>
Technology, and the increased choices it offers consumers, is changing the energy sector. In particular, technologies such as battery storage &ndash; which can provide multiple services &ndash; make it more difficult to draw the line between what is economically regulated and what is provided by contestable markets.</p>
<p>
Against this backdrop of change, the Council of Australian Governments (COAG) Energy Council and the Australian Energy Council &ndash; an industry body representing generators and retailers &ndash; submitted rule change requests seeking to facilitate competition in the emerging energy services market as well as improving clarity and transparency of the distribution service classification framework.</p>

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Documentation

INITIATION AEC

Proposal documents

INITIATION COAG EC

Proposal documents