Power Purchase Agreements – PPAs – new compliance challenges webinar

Power Purchase Agreements – PPAs – new compliance challenges webinar

AU Energy Compliance, Uncategorized
Solar Power Purchase Agreements are on the rise in Australia. Solar PPAs are regulated primarily through AER's (and in Victoria, the ESC's) retail and network exemption framework. This presentation follows on from our earlier webinar on PPAs. We address two current PPAs compliance challenges for solar PPAs: The new lease accounting standard and metering requirements. What is a Power Purchase Agreement (PPA)? A contract to purchase electricity at a pre-determined price for a fixed period. PPAs take a variety of forms physical/virtual, behind-the-meter/market, solar/non-solar. Each type of PPA presents an opportunity as well as certain potential costs. Regulatory Framework for PPAs General Rules Generally, applicable laws and regulations govern PPAs such as: Australian Consumer Law The Corporations Act 2001, including Part 2M.3 Financial Reporting Sector Specific Rules Standard solar PPA…
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National Energy Guarantee Draft framework released

National Energy Guarantee Draft framework released

AU Energy Compliance
The National Energy Guarantee (NEG) was announced by the Federal Government in April. This followed on from the recommendations made in the Independent review into the future security of the National Electricity Market: Blueprint for the future (Finkel review). Photo by Adrián Tormo on Unsplash By Anne Wardell, Senior Lawyer & Regulatory Specialist, Compliance Quarter An important element of how the NEG will operate is the framework which will underpin the system. The National Energy Guarantee Draft framework On 15 June 2018 the Energy Security Board (ESB) released a Draft Detailed Design of the National Energy Guarantee: Consultation Paper (Detailed Design). Dr Kerry Schott AO, Chair of the ESB, said in a media release that the Detailed Design ‘provides the next level of detail about how the emissions and reliability components of the…
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Are you compliant with the disconnection rules?

Are you compliant with the disconnection rules?

AU Energy Compliance
The Australian Energy Regulator (AER) recently released summaries of compliance audits for 2017 in relating to customer disconnection and AER reporting processes.[1] In today’s article, we look at the audit outcomes and what retailers might do to ensure they are compliant with the disconnection rules. Photo by Malte Wingen on Unsplash By Dr Drew Donnelly, Regulatory Specialist, Compliance Quarter Background Under AER’s Compliance and Procedure Guideline (the Guideline), and the National Energy Retail Rules (NERR), retailers are required to report to AER on breaches of certain NERR obligations at prescribed intervals and in a prescribed manner. At the same time the Guideline sets out the rules for when the AER may require compliance audits to be carried out. The AER required that audits be carried out by five retailers in relation to the…
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Three innovation opportunities presented by the AEMC 2018 Retail Energy Competition Review

Three innovation opportunities presented by the AEMC 2018 Retail Energy Competition Review

AU Energy Compliance
In today’s article, our focus is not on any regulatory proposals, but three innovation opportunities for energy businesses that are suggested by AEMC’s observations in the Review. The Australian Energy Market Commission (AEMC) has just released its mammoth (351 page) review (the Review) of competition in retail energy markets for 2018.[1] In one sense, it is a depressing read. The overriding theme is increased consumer dissatisfaction and hardship as a result of retail price increases over the period. In response, AEMC has recommended various regulatory reforms to improve the efficient operation of the energy retail markets. Of course, there are already a plethora of initiatives underway at both the Commonwealth and State/Territory level with that stated goal. In our May Energy Update, we identified 17 (!) consultations initiated by government…
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What is the new Financial Benchmark Regime?

What is the new Financial Benchmark Regime?

Financial Services
On 12 June the Australian Securities & Investments Commission (ASIC) announced the final regulatory regime for Financial Benchmarks. This regime, introduced through a 2018 amendment to the Corporations Act 2001, empowers ASIC to determine that certain benchmarks are ‘significant’ and to impose a licensing regime on the ‘administrators’ of those benchmarks. In today’s article, we ask, what is the new Financial Benchmark Regime? Photo by Paul Gilmore on Unsplash By Dr Drew Donnelly, Regulatory Specialist, Compliance Quarter Background: What is a Financial Benchmark? A Financial Benchmark has been defined as: an index or indicator calculated from a representative set of underlying data or information, used as a reference price for a financial instrument or financial contract or to measure the performance of an investment fund.[1] Reliable Financial Benchmarks are crucial to the operation of…
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Should You Outsource Compliance?

Should You Outsource Compliance?

AU Energy Compliance, Consumer
In providing legal, regulatory and compliance services, we see a variety of approaches towards compliance and enable clients to outsource compliance to varying degrees. This article is not intended to argue the overall culture a business should create around compliance (we did that in a fantastic recent article - click here) but investigate some of the options for how a company can resource and manage compliance. By Stephen Findley, Relationship Manager, Compliance Quarter Broadly speaking, a company can operate its compliance management in three ways: Fully in-house - Source, hire and build a team dedicated to compliance Fully outsourced - utilise an individual, team or company of outsourced professionals Blended solution - combine in-house and outsourced And the choices here can often come down to the preferences and experiences of…
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Should Australia follow Argentina and introduce a National Regime for Distributed Generation?

AU Energy Compliance, Uncategorized
One year ago, I arrived in Buenos Aires for the first time. Heading to a salsa club in the fashionable Palermo Soho district, my partner and I discovered that not only the club, but the entire city block, was pitch black. Chatting with fellow salseros in the dark we were informed that, yes, this kind of power outage was normal and no, power would not be restored any time soon. Power outages both planned and unplanned are not uncommon in Buenos Aires. In February of this year, a power outage on one of the hottest days of the year left around 370,000 people in the city without power. Of course, unplanned outages and load shedding happen in Australia too. As in Argentina, the catalyst for outages tends to be heat…
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May 2018 Energy Roundup: Budget 2018 and New Renewable Energy Projects

AU Energy Compliance
May has been another massive month for regulatory and compliance developments in Australia. While April was dominated by the National Energy Guarantee and new Consumer Data Right, May was dominated by Budget 2018 and a range of exciting new renewable energy projects coming online. Another theme has been metering; several regulators have commenced action around slow metering installation and the over-use of estimates (see the activities of AEMC, ESC (Vic) and IPART below). As usual, we list all ongoing consultations, both nationally and in the National Electricity Market jurisdictions so that you can have a say in the areas that interest you the most. Photo by Andreas Gücklhorn on Unsplash By Dr Drew Donnelly, Regulatory Specialist, Compliance Quarter 1. Budget 2018 Budget 2018 didn’t provide any significant surprises for the energy sector. While…
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AEMC consults on fairer allocation of ‘Unaccounted For Energy’ (UFE) across retailers

AU Energy Compliance
The Australian Energy Market Commission (AEMC) has just begun consultation on a rule change request that would change National Electricity Market settlement in Australia.[1] In short, the request, if it proceeds into a rule change, would spread the cost of ‘Unaccounted For Energy’ (UFE) across all retailers, replacing the current system which leaves it to ‘Local Retailers’ to foot the bill. We explain the rule change request below. Photo by Francisco Gomes on Unsplash By Dr Drew Donnelly, Regulatory Specialist, Compliance Quarter Unaccounted For Energy (UFE) In any electricity transmission and distribution system, there will be a certain amount of electricity that is ‘lost’ in the system. Some of this is accounted for in the National Electricity Market via Marginal and Regional Loss Factors and Distribution Loss Factors (DLF). This ‘technical loss’ captures…
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Paying electricity bills using Centrepay

Paying electricity bills using Centrepay

AU Energy Compliance
It is essential that all businesses in the energy industry understand their obligations to customers undergoing financial hardship. We talked about upcoming regulatory change around customer hardship policies here https://www.compliancequarter.com.au/are-you-paying-lip-service-to-your-customer-hardship-obligations/. An important aspect of the National Energy Retail Rules relating to customer hardship are the processes for customer payment using the ‘Centrepay’ system. In today’s article, we explain when a business needs to provide Centrepay as an option and the requirements for applying for approval to provide Centrepay. Photo by Carlo Trolese on Unsplash By Dr Drew Donnelly, Regulatory Specialist, Compliance Quarter Centrepay and associated obligations Centrepay is a bill-paying service that is free to use for Centrelink customers. Through Centrelink, a customer can choose to authorise deduction of regular amounts from their welfare payments to pay bills to an authorised business.[1] It…
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