AER submits rule change request to expand the transmission ring-fencing framework to include negotiated transmission services.

In March 2023, the AER released the new Transmission Ring-fencing Guideline (Guideline) which ringfences TNSPs’ provision of prescribed transmission services from other services it provides. As part of the consultation process for the Guideline, a number of stakeholders raised concerns that the guideline did not adequately address TNSPs’ conduct as part of the connections process for negotiated transmission services. The AER subsequently consulted on whether there was a need for greater transparency and/or regulation of TNSPs’ provision of negotiated transmission services, including the potential for a rule change to bring negotiated transmission services within the AER’s powers to require ringfencing arrangements.
 
Following this consultation, the AER has now submitted an expedited rule change request to the AEMC proposing an amendment to the transmission ring-fencing framework under the NER. The rule change will, if made, bring negotiated transmission services within the AER’s ringfencing powers; following which, the AER would then consult on any relevant amendments to the Guideline to require ringfencing of negotiated transmission services. If the rule change is made, the addition of ringfencing of negotiated transmission services has the potential to significantly change how TNSPs provide their connection services (and, consequently, project developers’ connection arrangements).

The AEMC will consult on the AER’s rule change request in due course – one to keep a close eye on!