Energy Networks Australia has requested that the Australian Energy Regulator (AER) delay the timing of its review into ring-fencing arrangements for transmission network businesses and its plan to update its Transmission Network Ring-fencing Guidelines.

The reason behind the request to delay was  because of the many other regulatory changes and reviews currently underway which will impact on the regulation of transmission networks.

These include the Australian Energy Market Commission’s review of the Coordination of Generation and Transmission Investment and the Energy Security Board’s work on actioning the Integrated System Plan.

The AER originally intended to complete the review by December of 2019, but if the review is delayed, the Guidelines will be reviewed during 2020.

Ring-fencing requires regulated network businesses to separate their regulated business activities, costs and revenues from other unregulated services.

In doing so, ring-fencing aims to promote competition and consumer choice in contestable markets for electricity services, and it aims to ensure efficient costs in the delivery of regulated services by network businesses.

Interested parties and stakeholders are encouraged to provide views to the AER on the impact of delaying this review by emailing by Thursday 18 April 2019.

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