Ring-fencing guideline (electricity distribution) – Draft of proposed guideline (version 4) and draft explanatory statement

AGL Energy (AGL) welcomes the opportunity to provide responses to the Australian Energy Regulator’s (AER) consultation on the Ring-fencing guideline (electricity distribution).

Distribution ring-fencing is critical to promote the development of competitive markets in the electricity sector, due to the inherent advantages distribution network service providers have as regulated monopolies over other competitive market players. These advantages include access to their network, data, technical expertise, and capital within their regulated business. Ring-fencing is necessary to protect the customer benefits of competitive markets. This framework is essential to avoid cross-subsidisation with the regulated business and to prevent the discrimination of competitors.

Read the full submission here.