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Upcoming AES Regulation - Key Organisational Impacts to Consider

The AES regulation is expected to come into effect around this time next year.

While we have already shared many of the specific code requirements, we

want to highlight several broader organisational impacts that may require

your attention.


Non-Compliance Penalties

The regulation introduces significant penalties for nonregistration or noncompliance, with fines up to $100,000. The strata company is responsible for registering with the ERA and ensuring compliance if it operates an embedded network. However, this responsibility may be delegated to you as Strata Managers.


If you accept this role, your contracts should clearly define your responsibilities and include appropriate indemnities to protect you from fines or charges arising from noncompliance.


EnergyTec recommends reviewing your contracts to ensure they reflect these regulatory obligations.


Process and System changes

If you take on responsibility for managing compliance, you may need to invest in updating your systems and processes. Some requirements may align easily with your current practices, but others may require more substantial changes, investigation, or system upgrades to ensure full compliance.


EnergyTec recommends reviewing both the regulation and your existing operational systems to identify any required updates ahead of the enforcement date.


Knowledge gaps

Effective compliance requires a solid understanding of both the regulation and the associated Code of Practice, as well as a clear grasp of how embedded networks operate.


EnergyTec recommends appointing an internal representative who can dedicate time to fully understanding the regulation and its obligations.


EnergyTec will continue monitoring regulatory updates and expanding our compliance support offering. We’re here to support you, and we encourage you to reach out whenever you need assistance.


This article is bought to you by SCA (WA) sponsor EnergyTec.

© 2026 by SCA (WA) Inc

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