The Australian Energy Regulator (AER) issued a letter on October 28, 2024, to inform about a recent enforcement action against Locality Planning Energy Pty Ltd (LPE) for breaching section 11(2) of the National Electricity Law. LPE was fined $135,600 for allegedly owning embedded networks without registering as a network service provider with the Australian Energy Market Operator (AEMO) or obtaining an exemption from the AER. 

The AER reminds businesses that owning, controlling, or operating embedded networks requires either AEMO registration or an AER exemption to ensure compliance and consumer protections in safety, pricing, and retail competition.  The AER commits to an ongoing review of the Network Exemptions Guideline, which may impact regulatory obligations in the future, with updates available on the AER’s website.