The NZ Electricity Price Review – Options Paper released

AU Energy Compliance
The New Zealand Government’s Electricity Pricing Review has just released an options paper looking at changes in a range of areas(https://www.mbie.govt.nz/have-your-say/electricity-price-review-options-paper/). It explores 41 options across the following broad themes: strengthening the consumer voice; reducing energy hardship; increasing retail competition; reinforcing wholesale market competition; improving transmission and distribution; improving the regulatory system; preparing for a low-carbon future; In this update I focus on those changes that have the potential to directly affect consumers. Photo by Bethany Legg on Unsplash By: Dr Drew, Compliance Quarter. Energy Hardship It is proposed that mandatory minimum standards be introduced for retailers dealing with customers in payment difficulty/financial hardship. Currently, the standards are voluntary and there is significant inconsistency between retailers. While hardship policies have been prescribed in the Australian National Energy Retail Law (NERL) for a long…
Read More
The new Consumer Data Right extended to the energy sector

The new Consumer Data Right extended to the energy sector

AU Energy Compliance
The Australian Competition and Consumer Commission (ACCC) recently released a Consultation paper on data access models for energy data.[1] The Consumer Data Right (CDR) regime, provides individuals and business with a right to conveniently access specified data in relation to them that is held by businesses. It is intended to  improve consumers’ ability to compare and switch between products and services and thereby increase competition. It is currently being rolled out in the banking sector but has been scheduled to roll out in the telecommunications and energy sectors for a while now. By Dr Drew Donnelly, Compliance Quarter A key difference between roll-out in the banking and energy sectors is the diverse range of entities that hold relevant information in the latter sector, including retailers, distributors, embedded network operators and…
Read More
AER Draft Determination of default market offer prices

AER Draft Determination of default market offer prices

AU Energy Compliance
The Australian Energy Regulator (AER) has published its draft determination of default market offer prices. Below we look at the methodology used and the implication for energy sellers. By Connor James, Compliance Quarter.  The default market offer (DMO) came about as a result of recommendations from the Australian Competition and Consumer Commission (ACCC) in its retail electricity price inquiry (REPI). On 23 February 2019, the AER published draft default market offer prices, which are to apply from 1 July 2019 for standing offer customers on relevant tariffs, in network distribution regions not subject to state-based price regulation. Price Reductions As has been widely reported, in a number of regions the DMO will result in a decrease in the rate being paid by consumers on standing offers. The DMO is said to result in “reductions…
Read More
The AEMC draft rule and law package- the regulation of embedded networks.

The AEMC draft rule and law package- the regulation of embedded networks.

AU Energy Compliance
With up to 1 million energy consumers in the embedded networks, the AEMC has proposed sweeping changes to the existing regulatory framework.   By Dr Drew Donnelly and Connor James, Compliance Quarter. The headlines: There will be a very limited number of new embedded networks (post implementation of the rule changes) that qualify for exempt selling: the majority will require an authorised retailer (off-market retailer) to supply electricity within them. All off-market customers will have a National Metering Identifier (NMI) and be ‘discoverable’ in MSATs (the market system). The embedded network service provider (ENSPs) will need to register with the Australian Energy Market Operator (AEMO). It is likely that they will need to comply with higher safety and reliability obligations including those under jurisdictional obligations. The transition question i.e. what…
Read More
The Updated Framework for Embedded Networks

The Updated Framework for Embedded Networks

AU Energy Compliance
On 31 January 2019, the Australian Energy Market Commission (‘AEMC’) released its draft report on its project labelled ‘Updating the regulatory frameworks for embedded networks’ (‘Report’). In total, the Report exceeded 1000 pages and included specific suggestions for amendments to the National Electricity Law (‘NEL’) and National Energy Retail Law (‘NERL’), as well as draft changes to the National Electricity Rules (‘NER’) and National Energy Retail Rules (‘NERR’) to complement the proposed legislative amendments. By Alex Silcock, Compliance Quarter.  The Report is the first practical step taken by the AEMC to update the regulatory framework for embedded networks since the review undertaken for COAG in 2017. The report confirms details of previously discussed legislative changes, gives an estimated timeframe for their implementation and provides opportunities for submissions by stakeholders. These…
Read More