Regulator releases ring-fencing report

The Australian Energy Regulatory (AER) has released its Ring-fencing Annual Report for the 2018-19 period, reporting on distribution network service providers’ compliance with the Electricity Distribution Ring-fencing Guideline. It has also published annual compliance reports, accompanied by independent assessments of distributor’s compliance, provided to the AER by each distributor.

Ring-fencing aims to ensure that when network businesses and their affiliates operate in competitive markets, they do so fairly. In particular, the AER’s Ring-fencing Guideline requires networks not to cross-subsidise or discriminate in favour of their affiliated companies.

The report demonstrates there has been an improvement in compliance with the Ring-fencing Guideline by distributors across the past two years. 

While general levels of compliance have improved, the AER says it will focus on compliance in regard to staff sharing and protection of confidential information over the coming period.

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