Evoenergy complies with the Australian Energy Regulator’s ring-fencing guidelines to operate fairly in contestable markets.
Ring-fencing refers to the separation of monopoly services and contestable services where a regulated business also offers services in a competitive market.
Evoenergy has a strong track record of compliance with the scheme originally legislated by the Independent Competition and Regulatory Commission (ICRC) in the ACT.
In consultation with electricity network service providers, retailers, customer representatives and other stakeholders, the AER recently developed a national ring-fencing guideline. The AER’s approach is largely consistent preceding jurisdictional schemes but expands these requirements beyond contestable works.
The purpose of the guideline is to prevent regulated network businesses leveraging their monopoly business in a manner that distorts competition in other markets.
The guideline consists of several components:
preventing network business from using regulated revenues to subsidise activities in unregulated markets
ensuring network businesses treat their related businesses and third parties equally
providing relevant information to all commercial parties on equal basis to support competitive market outcomes
restricting access of other participants in contestable markets to the services provided by the network business, or providing access on less favourable terms to their related businesses.