Publication
Watt’s up: Regulatory round-up
Norton Rose Fulbright provides a monthly overview of the key updates to Australian East Coast energy regulation.
Watt’s up: Regulatory round-up
Australia | Publication | May 2025
This article was co-authored with Jack Brown.
Norton Rose Fulbright provides a monthly overview of the key updates to Australian East Coast energy regulation.1
| Update | Amended or Governing Instrument(s) | Application | Description | Status |
|---|---|---|---|---|
| AER publishes proposed Transmission pricing methodology guidelines2 | Transmission pricing methodology guidelines | NEM – Electricity – Transmission | On 3 October 2024, the AEMC made the final rule for Providing flexibility in the allocation of interconnector costs. The final rule provides an alternative mechanism which enables the allocation of interconnector costs between regions in the NEM as specified in agreements between Ministers. Pursuant to this new rule, the AER has now published its draft amendments to the transmission pricing methodology guidelines along with information templates for stakeholder feedback. |
Stakeholder submissions on the draft amendments and information templates close on 20 May 2025. |
| Draft rule to increase credit support options and flexibility3 | National Electricity Rules | NEM – Electricity – Generation, Transmission, Distribution and Retail | The AEMC has published a draft determination that would expand credit support options available to participants in the NEM. The draft rule would allow AEMO to accept cash and surety bonds as credit support from market participants, in addition to bank guarantees or letters of credit that are currently permitted. |
Stakeholder submissions on the draft determination close on 15 May 2025. |
| Energy Amendment (Pipelines and Gas Safety) Bill 20244 | Gas Supply Act 1996 (NSW), Pipelines Act 1967 (NSW), Criminal Procedure Act 1986 (NSW) | NSW – Gas – Distribution | The NSW Government has enacted the Energy Amendment (Pipelines and Gas Safety) Act 2025 which amends the Gas Supply Act 1996 (NSW) and the Pipelines Act 1967 (NSW) to further provide for the regulation of pipelines and gas supply and increases penalties for offences; and amends the Criminal Procedure Act 1986 (NSW) for related purposes. |
The Energy Amendment (Pipelines and Gas Safety) Bill 2025 was assented to on 9 April 2025. |
| Determination on SA Power Networks’ jurisdictional scheme application5 | National Energy Retail Law (South Australia) Act 2011 | SA – Electricity – Distribution | On 13 March 2025 SA Power Networks (SAPN) applied to the AER requesting it determine that the Small Compensation Claims Scheme is a jurisdictional scheme under National Electricity Rules. The scheme obliges SAPN to compensate residential and small business customers who suffer property damage caused by failures in electricity infrastructure, which cause a change in the voltage of electricity supplied to a small customer’s premise outside the standard voltage range. The scheme came into effect in South Australia on 13 March 2025 and is established by the National Energy Retail Law (South Australia) Act 2011. | On 8 April 2025, the AER determined that the Small Compensation Claims Regime is a jurisdictional scheme. |
| AER and WEMDRA release information sharing policy6 | N/A | NEM – Electricity – Wholesale | The AER and the Wholesale Energy Market Dispute Resolution Adviser (WEMDRA) have released a policy for sharing information with each other to determine the appropriate resolution pathway for disputes. While the AER and the WEMDRA fulfil their responsibilities independently, it is important that the appropriate dispute resolution pathway is identified where uncertainty exists. The policy supports this by setting out how the AER and the WEMDRA will receive or obtain information from parties to a dispute, and share that information with each other, to determine the appropriate jurisdiction for that dispute. | The policy was released on 17 April 2025. |
| AER publishes final decision on the Transmission STPIS Review7 | Service Target Performance Incentive Scheme (STPIS) | NEM – Electricity – Transmission |
The AER has completed their review of the electricity transmission STPIS, culminating in a new version 6 of the scheme. The AER’s final positions are to:
|
On 17 April 2025, the AER published the final STPIS version 6 for TNSPs and an accompanying explanatory document. |
In addition to the regulatory changes set out above, the AER published its revenue determination on the amounts payable to the ACEREZ Partnership for the main Central-West Orana Renewable Energy Zone network project.8
Footnotes
1
We have curated this list for the key updates. There may be others relevant to your business.
2
AER publishes proposed transmission pricing methodology guidelines for interconnector costs following AEMC rule change | Australian Energy Regulator (AER)
Recent publications
Subscribe and stay up to date with the latest legal news, information and events . . .