AER: CitiPower and Powercor ring-fencing waiver applications (submissions closed)

The AER has received an application from CitiPower and Powercor for a waiver from the Electricity Distribution Ring-Fencing Guideline for a range of activities.

There are four parts to this waiver application. The first is about service classification. CitiPower and Powercor are seeking a waiver for a range of services that they consider likely to be reclassified in the future. The second and third parts of the waiver are about branding. CitiPower and Powercor are seeking waivers to allow them to continue to use their brands in certain circumstances.

The fourth part of the application relates to CitiPower and Powercor’s joint operating model. The Guideline requires the two distribution businesses to operate separately regardless of whether they both provide only regulated services. CitiPower and Powercor have asked the AER to issue a letter confirming that the AER will take no action in this instance or else amend the Guideline so their joint operating model will no longer be prohibited.

The AER is sought submissions by 21 June 2017 on the above issues before they issue a draft decision on whether to grant the waiver.

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