Ring-Fencing
Waiver Applications
Under the Queensland Competition Authority’s Ring-fencing Guidelines, Distribution Network Service Providers (DNSPs) may seek a waiver from any of its obligations.
Electricity: Draft Decision on Application for Waiver of Ring-Fencing Arrangements for Ergon Energy Corporation Limited
On 13 October 2006, Ergon Energy applied to the Authority for a waiver from complying with sections 1(f), 1(g) and 1(i) of the Authority’s Ring-fencing Guidelines in relation to the interaction between Ergon Energy Corporation Limited and Ergon Energy Queensland (EEQ). Ergon Energy maintained that the administrative costs of complying with this obligation would outweigh any public benefit arising from meeting the obligation.
Following consideration of the Ergon Energy application, the provisions of the Authority’s Ring-fencing Guidelines and the National Electricity Rules, the Authority released a Draft Decision on 15 December 2006 proposing to grant the waiver as the costs of complying with the relevant sections of the Guidelines outweighed the potential benefits since EEQ was prohibited from participating in the competitive energy market.
There were no submissions received in response to the Draft Decision.
The Authority’s Final Decision reflects the position stated in its Draft Decision and is to waive the requirement for Ergon Energy to comply with sections 1(f), 1(g) and 1(i) of the Authority’s Ring-fencing Guidelines in respect of its relationship with EEQ.
A copy of the Authority’s Final Decision can be downloaded below.
Decisions/Recommendations
Interim Reports/Papers
Submissions
