This consultation follows the AEMC rule change process on transmission rig-fencing. This submission only reflects the views of our developer and investor industry members and does not reflect the views of TNSPs.
We support the AER’s draft proposed updates to the Guideline which:
• apply ring-fencing obligations to all classes of negotiated transmission services
• extend the non-discrimination clause to negotiated transmission services
• expand ring-fencing information access and disclosure requirements to capture all information obtained by TNSP in the provision of negotiated services.
However, we are concerned that these core obligations will be rendered ineffective by inadequate reporting under clause 6 of the Guideline and the failure to require separation of staff.
We recommend that the AER exercises its powers under clause 6.1 of the Guideline4 to require each of the TNSPs to demonstrate the adequacy of their policies, processes and procedures to ensure the TNSP complies with its obligations under the Guideline through a compliance audit.
We recommend that the staff separation requirements be extended to negotiated transmission services but that the TNSP has the option to seek a waiver if, following a compliance audit, it can demonstrate that there are adequate controls, processes and procedures to ensure that its staff cannot access confidential information which would provide it with an advantage when competing for contestable services or when developing their own competing assets, for example storage.
We recommend that the AER provides the opportunity for Proponents to participate in an anonymous annual survey to confirm if the TNSPs are complying with their ring-fencing obligations.
We do not support the removal of maximum limit on waivers.
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