Alternative Electricity Services

A new regulatory framework to facilitate customer protections in new and emerging electricity business models
Last updated:

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

The WA ºÚÁÏÕýÄÜÁ¿ is introducing the Alternative Electricity Services (AES) regulatory framework to extend customer protections to new and emerging electricity services.

The framework can be used to regulate many different types of electricity services, as and when it is needed. When a service is regulated, 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 to help with disputes.

Legislation to create the framework passed through the Western Australian Parliament on 16 April 2024. Two services are currently being considered for regulation under the framework.

 

 

Frequently Asked Questions

Why is the AES framework needed?

The current licensing framework that regulates the sale and supply of electricity has not kept pace 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. You can find out more about the review here.

 

Was consultation undertaken on the AES Bill?

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

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 multiple services, some will only apply to one service. Providers will be able to register to provide multiple services if needed.

Was this page useful?