NECA slams AER's decision to grant waiver for DNSP-led EV charging rollout

The National Electrical and Communications Association (NECA) has strongly condemned the Australian Energy Regulator’s (AER) decision to grant a trial waiver to PLUS ES, to install up to 1,000 kerbside, pole-mounted electric vehicle (EV) chargers across NSW and SA. PLUS ES, a company owned by Ausgrid—which itself is 49% owned by the NSW Government, will now be, has now been awarded an unfair advantage over private industry while risking increased electricity costs for small businesses and consumers.

NECA CEO Oliver Judd has called upon the Federal, and NSW Energy Ministers to intervene immediately to prevent state-owned network businesses from distorting the competitive EV charging market and driving up electricity prices.

“This decision makes a complete mockery of ring-fencing rules and allows a state government-owned entity to expand into a market that should be open to private and independent competition,” Mr Judd said. “The AER’s job is to regulate—not to grant special exemptions that let monopoly network businesses push out smaller private operators.

"The Federal, and NSW Energy Ministers must step in and send a clear message: network businesses must stick to their regulated roles and let the market work.”

CROSS-SUBSIDISATION DRIVING UP ENERGY COSTS

Mr Judd warned that cross-subsidisation of Distribution Network Service Provider (DNSP)-affiliated businesses like PLUS ES could lead to even higher energy costs for households and small businesses already struggling with rising power bills.

“When DNSPs use their monopoly position to subsidise their private entities, it isn’t free money—it comes out of the pockets of small businesses and energy consumers,” he said.

“Australian small businesses, and working families are already paying some of the highest energy prices in the world. Now, the AER is letting a government-backed DNSP enter a competitive market, using its regulated position to undercut private businesses, while passing costs onto consumers.

"This is not innovation—it’s anti-competitive, and it’s unfair to the thousands of small electrical businesses trying to compete in this space.”

DNSP-Led EV Charging—A Dangerous Precedent

NECA has long opposed DNSPs expanding into contestable markets where private businesses already provide viable solutions. In its submission to the NSW Government’s consultation on DNSP-led kerbside EV charging, NECA identified serious risks, including:

•    Market distortion: DNSPs leveraging their monopoly position to take over EV charging, eliminating fair competition.

•    Cross-subsidisation risks: The possibility that regulated income is being used to support unregulated commercial ventures, disadvantaging independent providers.

•    Higher electricity costs: DNSP-backed businesses are propped up at the expense of electricity consumers, leading to higher energy prices.

•    Stranded asset risk: The likelihood that taxpayers and electricity consumers will foot the bill for poorly planned, underutilised infrastructure.

•    No evidence of benefits: No clear cost or efficiency advantages compared to private sector alternatives—just an unnecessary expansion of monopoly activity.

NECA Calls on Ministers to Act Now

Mr Judd warned that this sets a dangerous precedent that could see DNSPs encroach into other areas, such as metering, solar installations, and distributed energy services.

“If the AER is going to hand out waivers to DNSPs like confetti, what’s stopping them from taking over other aspects of electrical contracting? This is a blatant case of regulatory capture, and it must be stopped before it becomes standard practice,” he said. “We’re already seeing independent contractors being muscled out of tenders unfairly by entities attached to DNSPs.”

NECA is calling on both the Federal, and NSW Energy Ministers to act immediately to:

•    Direct the AER to enforce ring-fencing rules properly and stop issuing waivers that undermine competition.

•    Revoke the waiver announced by the AER

•    Ensure network businesses focus on their regulated role and do not use their position to unfairly dominate emerging markets.

•    Guarantee a genuinely competitive EV charging sector where private businesses have a fair opportunity to participate.

•    Ensure that small businesses and consumers do not foot the bill for DNSPs expanding into contestable markets, further driving up electricity costs.

“This is about fair competition, consumer choice, and the integrity of Australia’s energy market,” Mr Judd concluded. “The Federal and NSW Energy Ministers must act now to rein in the AER and stop DNSPs from overstepping their role at the expense of small businesses and struggling energy consumers.”