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Regulatory Framework

The Alternative Electricity Services regulatory framework is coming in 2027.

The WA government will use the framework to regulate different types of electricity services. When a service is regulated under the framework, providers will need to:

  • register with the Economic Regulation Authority 
  • comply with the relevant AES Code
  • become a member of the Energy and Water Ombudsman WA Scheme for resolving disputes, if they supply any small-use customers.

The first two services to be regulated under the AES framework are:

  • on-site power supply (OPS) services
  • embedded networks (single-property networks (SPNs)). 

An OPS system allows a customer to use all or part of the electricity from an energy system that is installed on their property. An OPS system commonly includes solar panels and/or a battery storage system. However, it can take any form of electricity storage and generation system. For more information, visit Energy Policy WA's website. OPS service providers will need to register under the framework in February 2027.

An SPN (embedded network) is a private electricity network servicing several lots or tenancies in one property. The master meter connects the property to the grid. It also measures the electricity supplied for everyone on that property at that connection point. They are found in apartment buildings, retirement villages, long stay parks, shopping centres and office buildings. SPN providers may be the property owner (or owners) or a third party under contract. SPN providers will need to register under the framework in mid-2027.

Who is involved

  • The Alternative Electricity Services regulatory framework is being led by Energy Policy WA. Please direct any enquiries about the regulations or AES Code to Energy Policy WA.
  • The Economic Regulation Authority (ERA) is the regulator that will be registering providers. Contact the ERA about the process for registration.
  • We will take applications for membership from registered providers. We will handle complaints about a provider's services. 

We will publish more information for AES providers here closer to the time that regulations commence.

FAQs for AES providers

If you:

  1. are an AES provider registered with the Economic Regulation Authority, and 
  2. supply electricity services to any small-use customers,

then you need to become a member of the Energy and Water Ombudsman WA Scheme.

"Small use customer" means a customer who consumes not more than 160 MWh of electricity per annum (Electricity Industry Act 2004).

The Joining Levy is set by the independent Board of the Energy and Water Ombudsman. The Board is comprised of equal representation for industry and customers. The WA Government has provided funding to ensure this new regulation is a low-cost scheme for industry in the first couple of years. Most AES providers will have a small Joining Levy. AES providers with a large number of customers will have a higher Joining Levy.

The Energy and Water Ombudsman has an established process for handling energy complaints. This is set out in its Charter and its experience of over 22 years of handling energy complaints. 

Refer to Complaint handling for members 

Providers are required to respond to the Energy and Water Ombudsman and comply with requests for information, as set out in the Charter. Not doing so can be a breach of a provider's registration obligations.

The ongoing costs of membership include: 

  • Annual Levies - a fixed charge per year
  • Dispute Costs - a variable charge based on complaints about the provider

The WA Government has provided funding to ensure this new regulation is a low-cost scheme for industry in the first couple of years.

Most AES providers will have a small Annual Levy.

All AES providers will also pay Dispute Costs for complaints made about them. The cost will increase the more that the Energy and Water Ombudsman is involved. Refer to Complaint handling for Members for information about the stages of complaints.

No. Each provider only needs to apply for membership with the Energy and Water Ombudsman once. Providers may have multiple registrations for different properties. In this case, the total customer numbers across all properties are used to calculate the applicable charges.

  • Pay applicable charges
  • Provide the Energy and Water Ombudsman with information when we are investigating complaints

If the provider identifies that something went wrong or service could have been better, try to resolve complaints at the earliest opportunity. This is the best customer service and prevents the matter escalating with the Energy and Water Ombudsman. Refer to Complaint handling for members.

By joining, providers become members of a company limited by guarantee. The company is Energy and Water Ombudsman (Western Australia) Limited. Members have the right to attend General Meetings of the company and vote on resolutions. After a transitional period, AES providers will nominate a Director to represent them on the Board.