Australian Energy Regulator

Roll on 2030 …   This week the Australian Energy Market Commission (AEMC) made its final rule determination to accelerate the rollout of smart meters across the National Electricity Market by 2030, under an improved metering framework.   We welcome the strengthened consumer protections that come with this decision to give customers more control and choice over energy pricing that are designed to protect from bill shock.   The final rules will also enable a more efficient, lower-cost, and lower-emissions energy system through the opportunities that having more smart meters in operation will bring to the market.   Where do we come in? It is the core role of the AER to ensure there is compliance with the energy rules so we will be monitoring the market in relation to these new rules, providing guidance, and taking action if necessary to protect consumers.

Every 5 years, distribution gas networks have to submit access arrangement proposals to us, outlining the services they will provide, the costs for those services and other terms and conditions on which the services will be provided to their customers. Today we published our draft decision on Jemena Gas Networks (JGN) NSW 2025-30 gas access arrangement, setting out the amount that they are allowed to recover from consumers over this time frame. Our draft decision looks to balance the uncertainty of gas demand, with an affordable access arrangement that provides for a safe, reliable and secure service for an ageing network in the long-term interest of consumers. 📆 We are holding a public forum on 11 December 2024 📝 JGN will provide a revised proposal by 15 January 2025 ✍️We are accepting submissions by 14 February 2025 Find out more: https://lnkd.in/gbjcgS3T #Gas #Distribution #Consultation #Stakeholders

Our role in electricity networks 💡 Electricity networks in Queensland, New South Wales, Victoria, South Australia, Tasmania and the Australian Capital Territory create an interconnected grid forming the National Electricity Market (NEM). As the economic regulator of this market, we set the maximum amount of revenue that the monopoly electricity transmission and distribution network service providers can earn, so that consumers pay no more than necessary. It’s a big part of what we do at the AER, and no small feat given the NEM operates across 6 interconnected states and territories, and is made up of almost 800,000 km of overhead lines and underground cables. To find out more about our work and how we act in the best interests of energy consumers, visit our website: https://lnkd.in/gJ-bKbic #Electricity #Education #Regulation #Consumers

As part of the clean energy transition, more and more Australians are making the switch to electric vehicles (EVs) to reduce their carbon emissions. 💡 That's why our Chair Clare Savage joined a panel discussion hosted by the National Regulators Community of Practice and ANZSOG - The Australia and New Zealand School of Government to explore these critical issues with an energy regulation lens. Moderated by our General Manager of Compliance & Enforcement and Chair of the Queensland Chapter of NRCoP, Rowena Park, the conversation delved into regulatory hurdles and innovative solutions as EVs grow in popularity. Rowena summed it up perfectly: "It was a great discussion unpacking the regulatory challenges we must address as EV adoption accelerates in Australia - and the regulatory tools we're using the tackle them." We will continue to keep consumers front of mind throughout the energy transition and beyond. #EnergyTransition #ElectricVehicles #Regulation

What is a stand-alone power system (SAPS)? 💡 It's an electricity system that generates and distributes electricity, and isn't physically connected to the national electricity system. Our Energy Innovation Toolkit, a space designed to help you test new ideas in a real-world setting, shares a number of case studies and regulatory explainers to help innovators explore possibilities. We receive many enquiries about SAPS, so we published a handy article that sets out a basic summary that energy innovators can read when planning a new energy project. If you are considering a SAPS, it lists a few topics that you should think about, like the AER's expectations, consumer protections, and specific requirements in New South Wales and Victoria. Find out more: https://lnkd.in/gKRimXPY Australian Energy Market Operator (AEMO) Australian Energy Market Commission (AEMC) Essential Services Commission Australian Renewable Energy Agency (ARENA) #EnergyInnovationToolkit #Innovation

We keep a close eye on electricity networks to ensure that they are acting in the long-term interests of consumers. Our annual electricity transmission and distribution benchmarking reports - released today - support this work, tracking network service providers' productivity over time, against other networks and the economy, using a variety of benchmarking techniques. We use these results to understand the drivers of trends in electricity network efficiency over time and changes in these trends. And there's a lot that network service providers can unpack from the reports as well, in terms of how their productivity stacks up and its drivers. Download the reports from our website: https://lnkd.in/gadWej4K #Electricity #Networks #Transmission #Distribution

As a regulator we must remain flexible and adapt our guidance for network businesses in line with industry and government changes.   That's why we updated our cost benefit analysis (CBA) and regulatory investment test (RIT) guidelines and instruments, to reflect recent rule changes and including new guidance on social licence and on valuing emissions reductions. 💡 These updates are important to network businesses that are planning network investments.   Stakeholder input is critical to our work, so we carefully considered all 12 submissions to our draft amendments as well as feedback from public forums in our final updates.   Find out more on our website: https://lnkd.in/g7VpmuXH   #Consultation #Industry #Update #Energy #Distribution #Transmission

Innovation in regulation 💡 At the AER we know that innovation drives the energy transition - and regulation isn't a barrier to encouraging new thinking. That's why we created the Energy Innovation Toolkit, a space designed to help you test new ideas, products and services in a real-world setting.   And it doesn't stop there - on the Energy Innovation Toolkit's website we share a number of case studies and regulatory explainers to help innovators explore possibilities.   We recently shared a resource on battery systems in the National Electricity Market. Since we receive many enquiries about batteries, we've provided a basic overview that innovators should consider when planning a new energy project that includes a battery system.   Dive into the detail: https://lnkd.in/g_HM72kh   Australian Energy Market Operator (AEMO) Australian Energy Market Commission (AEMC) Essential Services Commission Australian Renewable Energy Agency (ARENA) #EnergyInnovationToolkit #Innovation

We've made our final decision on the dollar amounts above which transmission and distribution businesses must apply the Regulatory Investment Test (RIT) to proposed capital works projects.   These new amounts are outlined in our 2024 Cost Thresholds Review document, published today.    The RIT is a cost-benefit analysis that the businesses undertake themselves to determine if the long-term benefits to consumers of the project outweighs the costs of doing it and by how much for the different project options.   We set the guidelines for how the RIT is applied and do compliance checks on behalf of consumers to make sure it is being applied correctly.   And every 3 years it’s our job to review the cost thresholds for the RIT-T (for transmission) and the RIT-D (for distribution) to reflect changes in the input costs, such as labour and materials, associated with these large-scale investments.   As industry views are critical to our work as a regulator, we carefully considered stakeholder submissions in our final determination, which you can read here: https://lnkd.in/ghgtVZMK   #Electricity #Transmission #Distribution

📢 Help us shape energy market transparency 📢   Our expanded role in wholesale energy market monitoring and reporting continues to take shape with the release this week of two draft Market Monitoring Information Orders – one for electricity, and one for gas – which are now open for public consultation.   These Orders are essential information-gathering tools that will give us a clearer picture on the state of wholesale market contracts and the overall competitiveness and efficiency of wholesale market operations.   And this is important because it means we will improve market transparency, be able to provide well-informed advice and analysis, and enable deeper insights into retail markets and the drivers of energy prices that ultimately reach the consumer’s hip-pocket.    It's part of our mission to ensure consumers pay no more than necessary for safe and reliable energy.   Businesses will be required to comply with these Orders under National Electricity Law and National Gas Law.   For now they are in draft as we seek to get feedback, in particular on: ⚫ the costs and operational impacts of complying with the draft Orders ⚫ the clarity of the Orders and what needs to be made clearer ⚫ thoughts on our proposed online portal for submitting information. Please share your feedback with us by 20 December, 2024.   Find out more here: https://lnkd.in/gN7dV4mm   #Wholesale #Energy #AcceptingSubmissions #Stakeholders #Feedback