Case Study: A new form of energy network ownership

Key issues

TransÉnergie (a subsidiary of Hydro-Quebec) entered the Australian energy market some years ago, with an innovative model to deal with transmission constraints. The regulatory framework did not contemplate the model, under which the network owner/operator earned revenue by bidding capacity into the market rather than receiving regulated returns.

Our solution

A member of our team worked with TransÉnergie to design and draft a new section of the National Electricity Rules to cater for this new model – these new rules were successfully introduced and remain in place today.

This example demonstrates how the regulatory framework that governs Australian energy markets has been designed to accommodate innovative and pragmatic approaches and technologies, where they present sensible options to solve for inefficiencies or structural impediments

These mechanisms enable any proponent to propose changes to the regulatory framework, by appropriately following the rule change process

_Disclaimer

_{Clayton Utz communications are intended to provide commentary and general information. They should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this communication. Persons listed may not be admitted in all States and Territories.}