The Metering ICF Package

The Metering ICF Package

AU Energy Compliance
The Australian Energy Market Operator (AEMO) has announced that it is conducting the second stage of consultation on proposed amendments to various metering procedures as a result of a number of issues across various procedures and guides raised by both proponents from industry and AEMO. Interested parties are invited to comment on the proposed changes contained within the draft report. Submissions should be sent to AEMO by 5 PM Melbourne time on 6 August 2019. On 20 May 2019 AEMO published the first notice stage consultation and issue paper for a package of amendments called the Metering ICF Package. Various amendments are proposed including to the following documents: MSATs procedures: CATs MSATs procedures: WIGS Metrology procedure: Part A Metrology procedure: Part B Service Level Procedure: Meter Data Provider Services Service…
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The last of the misleading discount fines?

The last of the misleading discount fines?

AU Energy Compliance
Energy retailers operating in those jurisdictions which have adopted the National Energy Customer Framework offer market retail contracts, which are negotiated contracts, and standard retail contracts, which are contracts on terms substantially specified in the National Energy Retail Rules. Standing offers are pricing offers based on a retailer’s standard retail contract. They apply in a number of ‘default’ situations i.e. where a customer is no longer on a market contract and in the case of a ‘move-in’ customer. On 18 July 2019, the Australian Competition and Consumer Commission announced that M2 Energy Pty Ltd (Dodo) and CovaU Pty Ltd had paid penalties totalling $37,800 and $12,600 respectively after the regulator issued each with infringement notices for alleged misleading claims about discounts available on the energy plans. In addition, both retailers…
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A deeper look at the AFS licence application process

A deeper look at the AFS licence application process

Financial Services
As we noted in our previous article there are five parts to form FS01. Below we describe these in more detail. Part A of the application requires you to provide details of the applicant as well as details of the person who will serve as a contact for the applicant during the application process. In part A you will also be asked questions about the financial services and products you would like to be authorised to provide and how your proposed business will operate. ASIC makes various references to the Corporations Act 2001. As noted in our previous article, applicants should ensure that they understand the applicable provisions of the Corporations Act and understand the controls that they will implement to ensure compliance. Who can apply for an AFS licence…
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Embedded Network Conversion- Retail Exemption Requirements

Embedded Network Conversion- Retail Exemption Requirements

AU Energy Compliance
Requirements relating to retail exemptions for the sale of electricity within embedded networks are set out in the AER Exempt Seller Guideline. Under the National Energy Retail Law any person or business who sells energy to another person for use at a premises must have either obtained a retail authorisation or operate under a retail exemption. The AER notes that where energy selling is your main business, you are selling to a number of customers or selling in a number of states or territories, you will probably need a retail authorisation. The exempt seller regime was designed for small-scale selling activities i.e. between related entities or at a specific site. The AER notes that energy sales do not necessarily have to be for-profit in that even passing energy on at…
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How to obtain an AFSL

How to obtain an AFSL

Financial Services
Regulatory guides are published by ASIC to give guidance to regulated entities by explaining when and how ASIC will exercise specific powers, to explain how ASIC will interpret the law, to describe principles underlying ASIC’s approach, and to give practical guidance describing the steps of a process such as applying for a licence. If you want to understand how to obtain an AFSL, read on. Free Assessment of Whether you are ready Simply provide your details below to arrange an online interview to determine your readiness for an AFSL. We will contact you within 1 business day. Financial Services Regulatory guide one gives practical guidance to applicants for an Australian financial services licence (AFS licence). An AFS licence authorises you and your representatives to provide financial services to clients. Without…
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The Wholesale Demand Response Mechanism Rule Change

The Wholesale Demand Response Mechanism Rule Change

AU Energy Compliance
On 18 July 2019 the Australian Energy Market Commission issued a draft rule determination titled the National Electricity Amendment (Wholesale Demand Response Mechanism) Rule 2019 (the Rule). The Rule sets out a series of changes proposed by the Australian Energy Market Commission to the National Electricity Rules to facilitate wholesale demand response in the National Electricity Market. The changes will result in a wholesale demand response mechanism whereby consumers are able to participate directly in the wholesale market and be paid for providing demand response. The Draft rule was made in response to three rule change requests from a range of stakeholders including industry, governments, and consumer representatives. The proponents of the Rule were the Public Interest Advocacy Centre, the Total Environment Centre, the Australian Institute, the Australian Energy Council,…
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The proposed reforms to Standalone Power Systems (Micro-grids)

The proposed reforms to Standalone Power Systems (Micro-grids)

AU Energy Compliance
The Australian Energy Market Commission (AEMC) recently released two reports about changes to the regulatory framework for Standalone Power Systems. The first report, Review of the Regulatory Frameworks for Stand-alone Power Systems - Priority 1 (the final report) is a finalised set of recommendations with respect to stand-alone power systems operated by Distribution Network Service Providers (DNSPs). The second report is is a draft report Review of the Regulatory Frameworks for Stand-alone Power Systems - Priority 2 (the draft report). This concerns standalone power systems run by third parties.  Submissions on this report are due on August 8.   In this article, we look at the implications of these changes for retailers and third parties that seek to operate a standalone power system. You can read more about the changes…
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What are the AER’s compliance and enforcement priorities for 2019-2020?

What are the AER’s compliance and enforcement priorities for 2019-2020?

AU Energy Compliance
The Australian Energy Regulator (AER) has just released its list of enforcement priorities for the upcoming year. Below we set out those priorities and what retailers need do in order to ensure compliance. Ensuring that customers in financial difficulty receive the required assistance, with a focus on the new AER Hardship Guideline Regulators have expressed concern over the last few years about the lack of support available to customers that are experiencing payment difficulties/financial hardship. For example, the AER Annual Report on Compliance and Performance of the Retail Energy Market 2017-2018 showed that a decreasing proportion of customers are successfully exiting hardship programs: 27 per cent went down to 22 per cent for electricity and 18 per cent went down to 17 per cent in Gas. This includes a significant…
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