The Compliance Framework and Reporting Guidelines: NT Energy Retail

The Compliance Framework and Reporting Guidelines: NT Energy Retail

NT Energy Compliance
The Compliance Framework and Reporting Guidelines were produced in 2016 by the Utilities Commission of the Northern Territory (‘the Commission’). The guidelines were produced pursuant to section 7 of the Utilities Commission Act and are consistent with the aim of the Commission to foster a culture of compliance. The Commission’s objectives in developing the Compliance Framework and Reporting Guidelines are set out in section 1.17 and include the clarification of enforcement and disciplinary processes in cases of non-compliance. The document also specifies and reinforces the Commission’s requirements for: licensees in relation to establishing and maintaining appropriate and robust compliance processes and frameworks in compliance with licence conditions;responsibility of the board and senior management;reporting of information to the commission; andoperational and compliance audits in respect of operations carried out by licensees…
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Victoria ‘makes good’ on its promise to ban embedded network, or does it?

Victoria ‘makes good’ on its promise to ban embedded network, or does it?

AU Energy Compliance
Summary Yesterday it was announced that the Victorian state government had 'made good' on its election promise to ban embedded networks. State minister for energy Lily D’Ambrosio said that from January 2023 embedded networks would be banned unless they 'ran' on 100% renewable energy.  We’re banning embedded networks because all Victorians deserve to get the same competitive energy deals and have the same protections, driving down the cost of living when people need it most, said D’Ambrosio. The recent announcement comes in response to a report from an expert panel. [membership level="0,-1"] Premium content - Click here [/membership] [membership level="1"] Government response The government’s response and position with respect to the expert panel’s final report can be viewed here: https://engage.vic.gov.au/embedded-networks-review Below we examine some of the most important points. Renewable…
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An Introduction to the Electricity Retail Supply Code (NT)

An Introduction to the Electricity Retail Supply Code (NT)

NT Energy Compliance
The Electricity Retail Supply Code was introduced in 2011 with the objective of facilitating retail supply activities following the introduction of contestability and retail competition in the Northern Territory electricity market.  The objective of the Code is to strike an appropriate balance between promoting a level playing field and facilitating full retail competition, whilst protecting the integrity of the market and discouraging inappropriate market signals amongst participants and stakeholders.  The Code includes provisions regarding transferring customers between retailers, credit support requirements and billing, metrology between retailers and network providers, retail of last resort arrangements, dispute resolution processes, and protecting the electricity customers who require life support equipment. In this first of a series of posts, we look at obligations relating to customer transfers, life support and dispute resolution. Customer Transfers…
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2022-2023 Compliance and Enforcement Priorities of the ESC (Victoria)

2022-2023 Compliance and Enforcement Priorities of the ESC (Victoria)

AU Energy Compliance
On 11 July, the Essential Services Commission (ESC) published its energy compliance and enforcement priorities for 2022-23.  The ESC continues to focus on protecting vulnerable customers in the following areas: wrongful disconnection of customersexplicit informed consent (EIC)the payment difficulty frameworkbest offer messagesembedded networks’ fees and chargesdistributors’ guaranteed service level (GSL) compensation paymentsongoing priorities for customers experiencing vulnerability Wrongful disconnection of customers Focus will be on ensuring processes, procedures and rules around disconnections are followed, ensuring disconnections to residential and small businesses are carried out appropriately and only as a last resort. Explicit informed consent (EIC) The ESC will be looking at the area of explicit informed consent to ensure it is correctly obtained (and relevant information provided) prior to entering into certain transactions. They further note: “[W]e have zero tolerance…
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Impacts

Impacts

AU Energy Compliance
It is our corporate mission to provide regulatory services that result in a more sustainable and just society. We are selective in who we work with and in the projects we work on. Each time we open a matter and complete a project we donate via B1G1. You can track the impacts we are making below: LEARN MORE
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Having regard to a customer’s capacity to pay: a Federal Court Decision

Having regard to a customer’s capacity to pay: a Federal Court Decision

AU Energy Compliance
On 27 June 2022, the Federal Court of Australia published reasons by the Honourable Justice Moshinsky in Australian Energy Regulator v Origin Energy Electricity Ltd (2020) FCA 802.  The decision contains important clarifications of sections of the Retail Law that apply where customers in NECF jurisdictions experience financial hardship.  The decision should be reviewed by all energy retailers operating in different NECF jurisdictions. Background The period from March 2019 to 6 October 2021 in the case of the respondents other than OC Energy and in the period from September 2019 to 6 October 2021 in the case of OC Energy, Origin automated aspects of its Power On Program and by use of the automated system: Proposed to increase the amount of payment plan instalments of certain hardship customers within certain…
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The new Retail Exempt Selling Guideline

The new Retail Exempt Selling Guideline

AU Energy Compliance
The Australian Energy Regulator (AER) has published the Retail Exempt Selling Guideline (Version 6). The Guideline includes a copy of newly established documents: A factsheet: how to access an authorised retailer of your choice if you live in an embedded network; andExempt Seller Hardship Policy template. The new Retail Exempt Seller Guideline should be reviewed in detailed by all exempt sellers operating in NECF jurisdiction which includes NSW, QLD, ACT, TAS and SA. The Guideline was developed as part of the AER’s review into the Retail and Network Exemption Guidelines. The AER has decided to defer release of the draft Network Service Exemption Guideline (Version 7) while further changes are made to streamline and simplify the document. It is anticipated that the revised Network Service Provider Exemption Guideline will be…
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2022-2023 Compliance and Enforcement Priorities of the AER

2022-2023 Compliance and Enforcement Priorities of the AER

AU Energy Compliance
The Australian Energy Regulator (AER) has published its 2022-2023 Compliance and Enforcement Priorities. The AER will continue to focus its compliance and enforcement activities on how retailers assist customers who are facing financial difficulties and those who are within embedded networks. Customers who are facing financial difficulties The AER's focus on vulnerable consumers is understandable with market conditions expected to result in higher energy costs for consumers who are already facing higher costs of living. The AER notes that: We continue to closely monitor data on consumers facing financial difficulties, including debt levels, the number of consumers on payment plans and hardship programs, and the successful completion of those plans and programs. We remain concerned by the average debt per customer upon entry into hardship programs, and the number of…
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Who claims and who pays: the administered price cap (APC) compensation process

Who claims and who pays: the administered price cap (APC) compensation process

AU Energy Compliance
The APC compensation scheme allows certain entities to claim compensation via AEMO and the AEMC where their total costs exceed their total revenue from the spot market over an eligible period. Entities that may be entitled to claim include scheduled and non-scheduled generators, scheduled network service providers, market participants in respect of a scheduled load, demand response service providers and ancillary service providers. What is recoverable? There are two broad categories of compensation that go into the total compensation amount (TCA). These are direct costs and opportunity costs. Opportunity costs are defined in the AEMC’s guideline as follows: Opportunity cost is the value of the best alternative opportunity for eligible participants during the application of a price limit event or at a later point in time. The opportunity cost is…
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NSW Energy Minister granted emergency powers to direct coal to fuel electricity generators

NSW Energy Minister granted emergency powers to direct coal to fuel electricity generators

AU Energy Compliance
The NSW Energy Minister, Matt Kean, has been granted emergency powers under the Essential Services Act 1988 to direct coal companies to provide coal to generators.  These powers were granted in response to the current energy market crisis. We haven’t been publishing much about the current energy market crisis as we, like many in the industry, have been in the thick of it. However, from today, we will publish analysis of the regulatory responses of AEMO and state Governments. So, what do the powers allow the Minister to do and do they have any teeth? The power granted to the Minister is to direct a person to do any act or thing to increase, or facilitate the increase of, the supply or distribution of coal to a power station. The…
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