Australian Energy Regulator

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

The Utility Regulators Forum is a focal point for regulators across Australia and is a place to connect with others to drive consistent and effective regulation through open dialogue and shared insights. Members of the forum include the Australian Energy Market Commission (AEMC) and the Essential Services Commission.   As part of this knowledge-exchange, at the most recent forum our General Manager of Compliance and Enforcement Rowena Park and Amelia Jarrett from Essential Services Commission of South Australia delivered an education piece on advancing reconciliation within the energy sector. Their presentation included:   👉 Highlighting the work of the Inter-agency First Nations/Energy Initiatives group, designed to share information and resources, and collaborate on recruitment and First Nations employee networking.  👉 The importance of a Reconciliation Action Plan to enable organisations to sustainably and strategically take meaningful action. 👉 How the First Nations Clean Energy Strategy will address policy and regulatory barriers to enable renewable energy access and supply for First Nations people.   Looking into the future, we need to focus on how to increase First Nations employment, retention and consumer engagement within the energy sector. The AER is deeply committed to reconciliation and calls on fellow regulators to take steps to create lasting and meaningful change.    #Reconciliation #Regulators #Collaboration #Engagement #Education #KnowledgeExchange Lynne Gallagher Kris Funston

Today we released the State of the Energy Market 2024 report: a detailed analysis of Australia’s energy sector.    This year’s report provides a comprehensive overview of trends in gas and electricity markets, documenting the full operation of Australia’s energy landscape from end to end: ⚫ Wholesale electricity prices have eased from the extreme levels of 2022 but remain volatile, influenced by factors such as weather patterns and generator outages. Data shows record-low demand in some states, while Queensland experienced record-high demand. ⚫ With over 20 gigawatts of residential solar now in the National Electricity Market, data highlights a 2.9 GW increase driven by consumer investment in rooftop solar, batteries, and electric vehicles. Consumers are now integral to the energy transition. ⚫ AER Chair Clare Savage has called for industry to prioritise data-backed network efficiency, maximising the use of existing infrastructure before investing in new assets. The Energy Innovation Toolkit enables trials of new technologies, ensuring choices are tested and based on quantifiable outcomes. ⚫ Data shows trends toward electrification, although gas remains essential for grid reliability and industry support. ⚫ While debt levels per customer have risen, data indicates stable proportions of customers in debt. Government rebates have offset some costs, but economic pressures continue to impact affordability. Alongside the State of the energy market report, the AER will continue to publish a range of in-depth reports into specific parts of the energy system in the coming months. Read more on our website: https://lnkd.in/g8NxeWKF #NewInsights #Energy #Innovation #EnergyTransition

The transition to renewable energy sources is changing the way transmission networks operate and invest. In the rapidly-changing energy landscape, we are looking at what aspects of the transmission service target performance incentive scheme (STPIS) are still working as intended.   The STPIS provides a financial incentive to transmission network service providers to maintain and improve service performance.   Today we published proposed amendments to the STPIS. As community and industry engagement is a vital part of our approach to regulation, we look forward to your participation in the consultation process:      📆 We are holding a public forum on 10 December 2024   ✍️We are accepting submissions by 3 February 2025   Find out more on our website: https://lnkd.in/dS78XSSW   #EnergyTransition #Transmission #Consultation #Engagement

One of our many roles is to monitor and report on the performance of wholesale gas and electricity markets. We do this to ensure market participants - generators, distributors and retailers - are participating fairly and effectively on behalf of Australian consumers. ⚡     In the past we have relied mostly on public information to assess the performance of wholesale energy markets, which provides limited visibility of market participants' contracting behaviour.     We now have enhanced functions in monitoring the wholesale gas markets and electricity and gas contract markets – and will know more about the drivers influencing how and why market participants behave the way they do, and whether wholesale energy markets are operating efficiently.     🔎 With these deeper insights we can ensure that we have a more holistic view of wholesale energy markets – improving our capability to evaluate performance, competition and efficiency.     Our Enhanced Wholesale Market Monitoring and Reporting Guideline sets out our approach to these enhanced functions. Find out more on our website: https://lnkd.in/gwgA9j46   #Energy #EnergyRegulation #WholesaleMarkets #Gas #Electricity

The role of natural gas in Australia’s energy transition is changing as more people electrify their homes and new technology around renewable gases comes into play. We are approaching the regulation of gas pipelines in an increasingly uncertain future with flexibility and an open mind, which is what we’ve done with the release of our final gas ring-fencing guide. Gas ring-fencing is important because it separates out a monopoly pipeline operator’s regulated and competitive business activities and prevents them from favouring their competitive activities to the disadvantage of other competitors in the market. What you need to know 🔍 This guide sets out how we will apply our powers and processes related to ring-fencing decisions and will help pipeline operators understand their obligations and how to apply for a ring-fencing exemption. Dive into the detail on our website: https://lnkd.in/gvBibhrx   #Gas #Energy #RingFencing #OutNow

In Case You Missed It! 👀 As a regulator we want to make sure consumers and industry are kept up to date with our important work. In this new monthly LinkedIn series, we'll be diving into recent projects and activities you may have missed.💡💬   #AERICYMI #ICYMI #RegulatorRecap #EnergyUpdates #StayInformed