Embedded Network Manager Information
Thank you for seeking further information about your Embedded Network.
For a free ‘Introduction to the ENM’ document or to get in contact with us, please fill out the form at the end of this page.
ENM Solutions has made contact because the upcoming changes to the National Electricity Rules (NER), on 1 December 2017, may have a direct affect on you and your Embedded Network. To that extent, our purpose is to create awareness and provide clear and succinct guidance on what your requirements may be.
ENM Solutions is a specialist in Embedded Network rules and regulations, and we have undertaken accreditation with the Australian Energy Market Operator to become an Embedded Network Manager (ENM). We are listed on the AEMO Readiness Report, and will be accredited for 1 December 2017 to support many Embedded Networks across the National Electricity Market (NEM) – Queensland, Victoria, New South Wales, South Australia, Tasmania, and the Australian Capital Territory.
If you are required to appoint an ENM at your Embedded Network, we will work with you to ensure you are compliant for 1 December 2017 and help you evaluate becoming accredited yourselves.
If you would like a detailed explanation of Embedded Networks, please Click Here.
As you may be aware, a person who engages in the activity of owning, controlling or operating an Embedded Network is known as the Exempt Embedded Network Service Provider (EENSP). 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 (‘Registerable’) 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 AER’s exemption for some ‘activity classes’.
What's happening in Queensland?
Queensland Premier Annastacia Palaszczuk has called for a state election on 25 November 2017; dissolving Parliament and removing the remaining sitting days this year.
The effect of this is that the “Electricity and Other Legislation (Batteries and Premium Feed-In Tariff) Amendment Bill”, introduced on 15 June 2017 which holds the required amendments to support retail competition in Embedded Networks, will not be signed off. At this time, Exempt Embedded Network Service Providers do not have to appoint an Embedded Network Manager until this bill is passed.
We anticipate that the bill will be passed in March of 2018, however we will not know until the Governor has issued summons for the return of parliament and the sitting dates and notice papers are published.
Opinion: It is believed that the bill will be passed and Queensland Embedded Networks will require an Embedded Network Manager.
What is the new rule?
The Australian Energy Market Commission’s National Electricity Amendment (Embedded Networks) Rule 2015 No.15 (Rule) outlines a series of amendments to the NER specific to Embedded Networks that will commence on 1 December 2017. The Rule creates a new Australian Energy Market Operator (AEMO) accredited role called the Embedded Network Manager (ENM) that will be appointed to an Embedded Network . The ENM will have the responsibility of performing the market interface functions that link Embedded Network customers to the NEM.
The amendments will enable Embedded Network customers to:
- Choose the price and structure of their electricity supply,
- Choose from a variety of products and services, and
- Gain easier access to government schemes and consumer protections.
The changes will not prevent current EENSP’s from continuing to sell electricity to customers. It will, however, increase the requirement on Embedded Networks to provide competitive rates and services in line with the NEM.
To find out more about the amendment to the rules, please Click Here.
We made contact because your Embedded Network has been registered in one of the following ‘applicable activity classes’: ND10, NR1, NR2, NR3, NR5 and NR6.
All existing Embedded Networks that fall into an ‘applicable activity class’ that are equal to or greater than 30 customers must appoint an ENM by 1 December 2017 – unless subject to a non-appointment or reversion entitlement.
For all other classes, the AER has determined that the cost of appointing an ENM will outweigh the benefit.
Snapshot of the Changes
The following information is from the Australian Energy Regulator:
- From 1 December 2017, some network exemption holders must immediately appoint or become an ENM.
- From 1 December 2017, all network exemption holders must appoint or become an Embedded Network Manager (ENM) when a customer within an embedded network enters into a market retail contract.
- To become an ENM, an application for accreditation must be submitted to AEMO.
- In most cases, the costs of appointing or becoming an ENM cannot be charged to customers directly.