Electricity Ring-Fencing Compliance

The Jemena Electricity Network (JEN) delivers electricity to more than 330,000 homes and businesses in north-west Melbourne. Distribution businesses like us must comply with the obligations set out in the Australian Energy Regulator’s Electricity Distribution Ring-fencing Guideline. 

The Ring-fencing Guideline is designed to promote competition by establishing a level playing field for all providers of contestable electricity services. As a business providing services which the Australian Energy Regulator considers monopoly in nature, the Ring-fencing Guideline prevents us from discriminating in favour of our own business (or affiliated businesses) and cross-subsidising between monopoly services and contestable electricity services. You can find out more about the Ring-fencing Guideline here.

Status report

We must comply with the Guideline’s obligations by 1 January 2018.  As we work towards this date, we have prepared a status report, as at 31 July 2017, for the Australian Energy Regulator, outlining our approach to ensuring compliance.

Waiver application

On 31 July 2017, we also applied to the Australian Energy Regulator for a waiver from two of the Guideline’s obligations in relation to a small number of services we currently provide. We have applied for this waiver as we believe the ring-fencing of these services would increase costs for our customers, without delivering any customer benefits such as enhanced competition. You can read an overview of our waiver application here, or read the full document here.