AGL believes that the energy market transformation presents an important opportunity to empower customers to more fully participate in the broader energy market. Indeed, there is the potential to create personalised energy ecosystems located behind the meter that can be co-optimized to deliver substantial value to customers.

The Council of Australian Government Energy Council and the Australian Energy Council submitted rule change requests seeking to facilitate competition in the emerging energy services market as well as improving clarity and transparency of the distribution service classification framework.

On 29 August 2017, the Australian Energy Market Commission (Commission) published a draft rule determination on the Contestability of energy services rule change requests.

AGL made this submission in response to the Commission's draft rule determination.

AGL considers that the proposed restrictions to be placed on network businesses earning a regulated return on assets and improvements to the distribution classification framework will be critical to the development of a well-functioning market in distributed energy resource (DER)-related products and services and indeed the energy market's broader transformation towards a more decentralized electricity grid.