Grace period for Embedded Network Operators

The AER has declared a transitional period from 1 December 2017 to 31 March 2018 for the adoption of the new National Electricity Rule requirements.

Under the new national electricity rules, which were due to come into effect nationally on 1 December, network owners will need to appoint an Embedded Network Manager for each network, and absorb the cost of this service. 

Given a lack of suitably trained and qualified Embedded Network Managers (ENM), the AER will now allow operators to maintain current practices until 31 March 2018 if they can demonstrate they are taking active steps to appoint an ENM. 

The decision will enable Queensland time to pass legislation to give effect to the new national regulatory framework. The Government was unable to pass the Electricity and Other Legislation (Batteries and Premium Feed-in Tariff) Amendment Bill 2017 before the Parliament was dissolved, leaving the reform in a legislative limbo.

Amendments proposed in the Bill would have had the effect of removing the restriction placed on ‘receivers’ having to connect to the local distribution network, in order to access retail market offers from an authorised retailer. 

Concerns were raised by the Property Council, through a submission on the Bill, about how the changes will place an inequitable administrative and cost burden on the owners of embedded networks.