What does the Accredited Embedded Network Manager do?
The ENM provides Embedded Network management services and maintains electrical information about the Embedded Network. These services are only performed at a site for which an ENM is appointed.
The Embedded Network management services include facilitating the market interface for ‘Off-Market’ customers to become ‘On-Market’ and access retail competition. An ‘On-Market’ customer is a customer that purchases electricity from a retailer of their choice from within an Embedded Network, after being allocated a National Meter Identifier (NMI) by the ENM. The NMI enables the address of the customer to be identified in the NEM. Once a customer is ‘On-Market’, they may re-enter the Embedded Network, and become ‘Off-Market’, if they accept an offer from the EENSP.
The ENM acts as the Local Network Service Provider (LNSP) for ‘On-Market’ customers and, as such, requires site-specific information to be maintained. Information that must be maintained for each Embedded Network includes the type and configuration of metering installations, relevant Embedded Network wiring information, Distribution Loss Factors (DLF), Transmission Node Identity (TNI), and all correspondence with persons. This maintained information is utilised to support customers that wish to become ‘On-Market’, as well as assisting AEMO with the settlement process.
The ENM’s obligations are set out within AEMO’s Service Level Procedure – Embedded Network Manager.
Do you need to appoint an ENM?
Under the National Electricity Law (NEL) and the National Electricity Rules (NER), any party that engages in the transmission or distribution of electricity must either be registered with the Australian Energy Market Operator (AEMO) as a network service provider (NSP), or gain an exemption from the requirement to be registered from the Australian Energy Regulator (AER).
Obtaining an exemption from the AER requires the EENSP to comply with certain ‘conditions’ pertaining to safety, dispute resolutions, network pricing, metering and retail competition. The extent to which these conditions are applicable is determined by the ‘activity classes’ the site has been registered for (‘Registrable’) or is deemed to be a part of (‘Deemed’). Failure to comply with these conditions is a breach of the NEL and could invalidate the exemption and expose civil penalties.
The appointment of an ENM is a condition of the following ‘applicable activity classes’: ND10, NR1, NR2, NR3, NR5 and NR6.
All existing Embedded Networks that fall into an ‘applicable activity class’ following the rule change that came into effect from 1 December 2017, and have equal to or greater than 30 customers, residential or commercial, must have appointed an ENM unless they are subject to a non-appointment or reversion entitlement. These conditions extend to new sites once they commence operation post 1 December 2017.
For all other classes, the AER has determined that the cost of appointing an ENM will outweigh the benefit.
If an ENM is not appointed at an Embedded Network due to the size or activity class, an ENM will still be required to be appointed if an ‘ENM Trigger Event’ occurs. An ‘ENM Trigger Event’ occurs when an Embedded Network customer, or their chosen retailer, provides notice that the customer wishes to access retail competition; a counter offer by the EENSP is not accepted by the customer; and, the cooling off period for the market retail contract has expired. If all three elements transpire, an ENM must be appointed at the Embedded Network