Nexa Advisory welcomes the opportunity to respond to the Department of Climate Change, Energy, the Environment and Water’s consultation on the National CER Roadmap M3/P5 workstreams.
Current market structures and governance arrangements are not keeping pace with developments across new energy and digital technology sources, new business models, changing consumer preferences and decarbonisation. If this if not addressed, we will have little success in managing the risks and embracing the opportunities of a more dynamic future system.
We have previously discussed that the current regulatory framework for Distribution Network Service Providers (DNSPs) often favours incumbents, limiting the evolution and competitiveness of new entrants and the development of consumer-centric technology solutions.
The AEMC and DCCEEW have recognised the issues correctly, but instead of spending resources on assessing the need for a DSO, it is critical to focus on addressing these challenges in a timely and cost-effective manner which delivers long-term value for consumers.
Rather than pursuing changes to introduce a dedicated DSO, we urge DCCEEW to focus on ‘low-hanging fruit’ to address the structural barriers which result in the above issues – such as network data transparency issues and the continued erosion of ring-fencing.
Additionally, any reform should be focused on creating independence in distribution system operation and network planning/ownership, improve transparency and accountability of the performance of DNSPs, and minimise regulatory cost and complexity.
Read our submission here: Nexa Advisory submission – National CER Roadmap – DSMO M3 Consultation Paper