End of AER’s Transitional Arrangement – 31 March 2018

The Australian Energy Regulator’s (AER) “Transitional Arrangements” to appoint an Embedded Network Manager (ENM) concludes on 31 March 2018. All Embedded Networks in the National Electricity Market will be required to appoint an ENM from 31 March given certain criteria is met.

A quick recap of the criteria to appoint an ENM:

1. The embedded network is located in a state, territory or region where customers in embedded networks are not afforded a right to a choice of retailer. At the time of writing: Queensland, New South Wales, Australian Capital Territory, Victoria, and South Australia.

2. The embedded network contains 30 customers or more relating to the network exemption classes: ND10, NR1, NR2, NR3, NR5 and NR6.

During this transition period, the AER has encouraged a gradual movement towards compliance for all stakeholders through an approach to compliance matters that come to their attention. ENM Solutions would expect that while Embedded Network Operators are actively seeking to appoint an ENM and are progressively looking to support their customers’ right to a retailer of their choice, that this will continue for a period of time after 31 March 2018.

That being said, the AER has clearly noted that: “The AER reserves the right to undertake further action in relation to compliance issues for which the network exemption holder cannot demonstrate that they have taken steps to come into compliance with the requirement to appoint an Embedded Network Manager”.

What is the Transitional Arrangement?

In November 2017 the Australian Energy Regulator (AER) announced that “To allow an opportunity for embedded network operators time to adjust to the new requirement to become or to appoint an Embedded Network Manager, the AER will allow an initial transitional period from 1 December 2017 to 31 March 2018”.

The transitional period is a result of parties taking longer than expected to complete an application to become an accredited Embedded Network Manager (ENM) with the Australian Energy Market Operator (AEMO).

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