The Australian Energy Market Commission (AEMC or Commission) has been asked by the COAG Energy Council to undertake a review of the regulatory arrangements for stand-alone power systems under the national energy laws and rules.
The objective of the review is to develop a package of law and rule changes to allow standalone power systems to be used as an alternative to standard grid supply where it would be economically efficient to do so, while preserving consumer protections comparable to those afforded to customers supplied via the interconnected grid.
This draft report sets out the analysis undertaken by the Commission over the course of the review to date and explains the Commission’s developing views on mechanisms for transitioning customers to off-grid supply, the regulatory and commercial arrangements that would then apply on an ongoing basis, and the consumer protections that should be put in place.
Stand-alone power systems could potentially be used in a range of situations in the future, but this report focusses on customers who are currently connected to the grid and are transitioned to off-grid supply by their distributor. The COAG Energy Council asked us to look at this as the first priority for the review.
The report presents, for stakeholder feedback, proposed positions on issues associated with off-grid transition and consumer protections. With regard to the arrangements for ongoing supply to off-grid customers after they have been transitioned away from grid supply, the report includes two illustrative service delivery models as options for consultation. The Commission welcomes stakeholder input to refine these models or to identify further options.