8 Energy Definition of office’ is extremely difficult. Arbitrary office’ definition amended to 25,000 ‘regional ‘Regional demarcation based on population/location will inadvertently customer connection points within 100km radius. capture depots with little prospect of competition. Recommend instead basing definition on offices servicing under 50,000 customers. 9 Essential Energy A diagram would alleviate confusion around definitions of Diagram provided in this Explanatory Statement. ‘other services’ and electricity services’. ‘other Agree. The Guideline uses a new term, ‘related entity’ includes part of the DNSP providing ‘Affiliated ‘other electricity service provider’, to include a DNSP’s distribution services’ and/or electricity services. This is ‘other business units providing other distribution services. confusing. Guideline requires direct control services to be separately branded Distribution services that are not direct control services from other distribution services. Should be able to provide may be contestable. These should be functionally distribution services under a single brand. separated from provision of direct control services. office’ definition amended to 25,000 ‘Regional Definition of regional office lacks clarity. Problems with population customer connection points within 100km radius. data. Definition would exclude many depots. Suggest using instead the number of customer premises linked to a depot—30,000 is equivalent to population of 50,000. Expect limited number of waiver applications. Prefer Potential waivers from legal separation for other regulated having opportunity to consider the circumstances of a business activities (e.g. water network business) is insufficient. waiver application, rather than automatic exemptions. Should be automatic exemption. Agree. Separate branding is not required for regional Separate branding unworkable for regional offices where other offices. office/staff separation obligations don’t apply. Separate branding should be exempted too. Waivers: Waivers: Largely no change from Draft Guideline. This AER should have 40 business days for waiver Explanatory Statement provides further guidance assessment about our waiver processes. It is up to DNSPs to require DNSPs to submit waiver renewal applications assess their circumstances and apply for waivers with at least 8 months before end of existing reg period appropriate lead time to manage their own compliance with the Guideline’s obligations. define interim waivers; if no waiver decision made when interim waivers expires, waiver should be granted automatically Guideline should allow 6 months for DNSP compliance following unsuccessful waiver application.
8 Energy Definition of ‘regional office’ is extremely difficult. Arbitrary demarcation based on population/location will inadvertently capture depots with little prospect of competition. Recommend instead basing definition on offices servicing under 50,000 customers. ‘Regional office’ definition amended to 25,000 customer connection points within 100km radius. 9 Essential Energy A diagram would alleviate confusion around definitions of ‘other services’ and ‘other electricity services’. ‘Affiliated entity’ includes part of the DNSP providing ‘other distribution services’ and/or ‘other electricity services. This is confusing. Guideline requires direct control services to be separately branded from other distribution services. Should be able to provide distribution services under a single brand. Definition of regional office lacks clarity. Problems with population data. Definition would exclude many depots. Suggest using instead the number of customer premises linked to a depot—30,000 is equivalent to population of 50,000. Potential waivers from legal separation for other regulated business activities (e.g. water network business) is insufficient. Should be automatic exemption. Separate branding unworkable for regional offices where other office/staff separation obligations don’t apply. Separate branding should be exempted too. Waivers: AER should have 40 business days for waiver assessment require DNSPs to submit waiver renewal applications at least 8 months before end of existing reg period define interim waivers; if no waiver decision made when interim waivers expires, waiver should be granted automatically Guideline should allow 6 months for DNSP compliance following unsuccessful waiver application. Diagram provided in this Explanatory Statement. Agree. The Guideline uses a new term, ‘related electricity service provider’, to include a DNSP’s business units providing other distribution services. Distribution services that are not direct control services may be contestable. These should be functionally separated from provision of direct control services. ‘Regional office’ definition amended to 25,000 customer connection points within 100km radius. Expect limited number of waiver applications. Prefer having opportunity to consider the circumstances of a waiver application, rather than automatic exemptions. Agree. Separate branding is not required for regional offices. Waivers: Largely no change from Draft Guideline. This Explanatory Statement provides further guidance about our waiver processes. It is up to DNSPs to assess their circumstances and apply for waivers with appropriate lead time to manage their own compliance with the Guideline’s obligations.
AER%20Ring-fencing%20Guideline%20-%20Explanatory%20statement%20-%2030%20November%202016.DOCX