Frequently Asked Questions on the Alternative Electricity Services framework

The AES Regulations that prescribe the services that are regulated have been made. 

The Code of Practice for on-site power supply (OPS) services has been made. 

Registrations for OPS providers will commence 1 February 2027. 

Consultation on the AES Code of Practice for SPN services is now open.

SPN registration under the AES framework is being delayed to mid-2027 to give providers enough time to prepare from the publication of the exposure draft of the AES Code – SPN.

OPS providers will need to register with the Economic Regulation Authority (ERA), join the Energy and Water Ombudsman WA Scheme and comply with the AES Code of Practice from 1 February 2027.

Registrations for single property network service providers are expected to commence in mid-2027.  

An embedded network is a distribution system that supplies electricity to at least one customer who is not in control of the distribution system, or a premise that is not occupied by an entity in control of the distribution system. These networks are supplied with electricity by another distribution system (often the grid) and are not part of a covered network. 

There are two types of embedded networks: 

• A single property network (SPN)
• A multi property network (MPN)

The AES Framework is regulating SPNs. MPN providers must hold a retail and distribution licence under the Electricity Industry Act 2004.

For more information about SPN and MPNs visit Embedded networks regulation under the AES framework.

The Department of Energy and Economic Diversification has previously used the term “embedded network” to describe a single-property network. However, the single property network (or SPN) definition better reflects the service being prescribed under the AES framework. The Prescribing Regulations Reading Guide defines SPN services and outlines what type of business models will have to register under the AES Framework. For information on the Regulations visit Consultation on the Alternative Electricity Services (AES) Prescribing Regulations.

The Prescribing Regulations Reading Guide defines OPS services and outlines what type of business models will have to register under the AES Framework. For information on the Regulations visit Consultation on the Alternative Electricity Services (AES) Prescribing Regulations

An OPS system is a system that stores and/or produces electricity. While an OPS system commonly includes solar panels and/or a battery storage system, it can take any form of electricity storage and generation system. For more information about OPS systems and services visit Regulation of On-site power supply (OPS) services under the AES framework. 

Energy Policy WA has recently consulted on:

•  AES Prescribing Regulations and setting of registration fees
•  AES Code of Practice for OPS services.

Following consultation feedback, the AES Regulations and Code of Practice for OPS services have now been made.

Consultation on the AES Code of Practice for SPNs is now open. 

Visit Alternative Electricity Services Consultations to find out about all previous AES consultations. 

The AES framework has been designed to be flexible enough to apply to a wide range of electricity services where there is a demonstrated need or additional customer protections. 

To apply customer protections in a flexible and low-cost way, a new regulatory framework was needed. WA is the first jurisdiction to create a bespoke framework to deliver tailored customer protections for new electricity services.

The legislation to create this framework was established in 2024, and since then Energy Policy WA has been undertaking detailed consultation with stakeholders to develop the rules for the first two services to be regulated.

Now that regulations have been made, affected service providers will need time to prepare and register. The Regulator (the Economic Regulation Authority) and the Energy and Water Ombudsman of WA will also need time to prepare for their new functions under the framework. To allow time for preparation, OPS service registration will commence 1 February 2027, and SPN registration in mid-2027.  

These people are encouraged to contact the Consumer Protection Contact Centre on 1300 304 054 or via consumer@lgirs.wa.gov.au

Energy Policy WA will be rolling out communications and an awareness and education campaign to reach consumers receiving single property networks and OPS services. Resources will be available to download for AES providers and related organisations to distribute to their customers and residents. 

Core protections will focus on matters such as suitable disclosure of information and access to an independent dispute resolution body.

Where the service involves the primary supply of electricity, such as in Single Property Networks (SPNs), there will be a broader suite of protections for matters such as customers experiencing financial hardship and/or family and domestic violence.

The AES Code of Practice sets out the obligations for providers of each service covered by the AES framework. These obligations are tailored and fit-for-purpose for each service.

The AES Code of Practice for OPS services has now been made. 

Consultation on AES Code of Practice for SPNs is now open. 

Alternative Electricity Service (AES) providers will need to register with the Economic Regulation Authority (ERA) and become a member of the Energy and Water Ombudsman WA Scheme. 

To register with the ERA providers will need to submit a registration application. While there will not be an application fee to register as an AES provider, they will be required to pay an annual fee to the ERA. Information about the annual fees can be found at Alternative Electricity Services - Economic Regulation Authority Western Australia

For information on how to become a member of the Energy and Water Ombudsman, AES providers should visit Alternative Electricity Services | Energy and Water Ombudsman WA 

The Energy and Water Ombudsman WA Scheme will have costs associated with becoming a member. 

The first priority will be to ensure providers are educated and given opportunity to comply with the obligations under the framework.

If that does not resolve the issue, the regulator will have a toolkit of enforcement options that it can use if a service provider remains not compliant. These include enforceable undertakings, and the ability for the regulator to take actions to cause the non-compliance to be rectified.

Ultimately, if a service provider continues to fail to register or fail to comply with requirements, they could face penalties of up to $100,000 plus $5,000 per day.

There will be an information and education program to raise awareness of the new regulations, with detailed material about who will be affected and how to prepare.

The Economic Regulation Authority will be publishing a range of resources, including guidance materials and standard form documents and policies, for service providers to use to prepare for the changes.