Alternative Electricity Services

A new regulatory framework to facilitate customer protections in new and emerging electricity business models
Last updated:
Embedded networks and On-site Power Supply Arrangements (OPSA) to be regulated under the Alternative Electricity Services (AES) registration framework
  • Following consultation, the Cook Government has announced the decision to extend protections to electricity customers in embedded networks and OPSA.
  • Consultation on draft Regulations to prescribe these services and the initial version of the AES Code of Practice will happen later in the year.

Most electricity customers have electricity rights. Most isn’t good enough.

The Cook Government has announced the decision to extend protections to electricity customers in embedded networks and subject to On-Site Power Supply Arrangements (OPSA) under the Alternative Electricity Services (AES) regulatory framework. 

The framework can be used to regulate many different types of electricity services, as and when it is needed. When a service is regulated under the framework, providers will need to register with a regulator (the Economic Regulation Authority), and comply with a code of practice, the AES Code. Customers of registered providers will be able to access the Energy and Water Ombudsman for help in resolving disputes.

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Frequently Asked Questions

Why is the AES framework needed?

The current licensing framework that regulates the sale and supply of electricity has not kept up with the rapid growth of emerging and atypical electricity business models. In 2019, the then-Minister for Energy asked Energy Policy WA to review this regulatory framework. In 2020, Energy Policy WA consulted on a proposed new regulatory framework for categories of ‘alternative electricity services’, that offered a lighter-handed and more flexible form of regulation. The AES framework is now being implemented. The 2019 review is publicly available to read

Was consultation undertaken on the AES Bill?

A consultation process was undertaken in 2020. This was part of a regulatory review on the proposed new regulatory framework.

Further consultation was also carried out with public release of the consultation draft of the Electricity Industry Amendment (Alternative Electricity Services) Bill 2023 on 20 March 2023, alongside a stakeholder consultation guide.

 

How will services be regulated?

The activities to be covered by the new framework will be set out in regulations, rather than in an Act of Parliament. This is because the AES registration framework is designed to be flexible to apply to a wide range of electricity-related services as needed over time.

Before a service is covered by the AES framework, there will be a stakeholder consultation process consistent with the Better Regulation Principles.

 

What will be included in the AES Code?

The AES Code will include tailored, fit-for-purpose obligations for providers of each service covered by the AES framework. Some obligations might apply to several services, others only to one service. Providers will be able to register to provide several services if needed.

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