State provides updated Embedded Networks Rule advice

The Department of Natural Resources, Mines and Energy has provided advice to asset owners in relation to the new national Embedded Networks Rule within the National Energy Market, which commenced on 1 December 2017.

Under the new national electricity rules, network owners will need to appoint an Embedded Network Manager for each network, and absorb the cost of this service.

The new advice comes in response to concerns from embedded network customers and operators that section 23(2) of the Electricity Act 1994 may prevent embedded network customers from accessing retail market offers under the Embedded Networks Rule. The Department’s view is that section 23(2) will not prevent embedded network customers from accessing the competitive electricity market.

Legislative changes to the Act, contained in the Electricity and Other Legislation (Batteries and Premium Feed-in Tariff) Amendment Bill 2017 were not passed prior to the Parliament’s dissolution – leaving the reform in a legislative limbo.

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. 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. 

Further information is available from the Australian Energy Regulator website.