Market Reviews: Open

Review of regulatory arrangements for embedded networks

Reference:
RPR0006
Reviewed by:
AEMC
Initiated by:
COAG Energy Council
Date initiated:
26-Jan-2017
Project Leader:
Kate Reid
Overview

On 12 September 2017, the AEMC published a draft report on its review of regulatory arrangements for embedded networks. Submissions on the draft report are due on 17 October 2017.

Overview

On 12 September 2017, the AEMC published a draft report on its review of regulatory arrangements for embedded networks.  Submissions on the draft report are due on 17 October 2017. 

The purpose of the review is to identify and assess any issues for embedded network customers under the National Energy Retail Law (NERL) and National Energy Retail Rules (NERR) and recommend appropriate solutions. The review also considers broader issues for embedded network customers.

The draft report finds that the current regulatory arrangements for embedded networks are no longer fit for purpose, given the growth in the number of embedded networks and businesses providing services in this sector.  The Commission has made draft recommendations that would provide embedded network customers appropriate levels of access to retail competition and consumer protections.

The draft report recommends the COAG Energy Council request the AEMC to provide further advice on the implementation of the proposed changes, including law and rule changes.

Background

This review is being held under terms of reference from the COAG Energy Council received in December 2016. The request to the AEMC to undertake this review arose out of the Embedded networks rule change, completed in December 2015.

A number of substantial retail market issues were raised during the AEMC’s work on the rule change. Due to the limited scope of the rule change request, the Commission did not have the power to make changes to the NERR. The Commission also considered that further analysis and consultation was required on the retail market issues raised by embedded networks, including potential NERL changes.

In the Final Rule Determination, the AEMC recommended that the COAG Energy Council request the Commission to undertake a review of the NERL and NERR to identify and assess the issues regarding the arrangements for embedded network customers. The Commission also recommended that the COAG Energy Council consider whether this review should consider broader embedded network issues.

 

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