2022 | Compliance Quarter

Dec192022 by Pritish Naik SalgaonkarNo Comments

A Compliance Function: Do we need it?

AU Energy Compliance, NT Energy Compliance

What is compliance? Compliance is the process of ensuring that an organisation adheres to the relevant rules, regulations, or laws applicable to their business. Compliance is a critical component of any successful business, as it helps to ensure that the company is operating legally and ethically. It is also important for businesses to protect themselves from potential liability in the form of fines and regulatory/political scrutiny. Depending on the industry and the size of the business, compliance can involve different levels of complexity and oversight. Some of the most common areas of compliance include data privacy, health and safety, environmental regulations, and financial reporting. Compliance is an ongoing process that requires constant monitoring and updating. Businesses need to stay up to date on the latest regulations and ensure that their…

Dec152022 by Connor JamesNo Comments

AER report into the suspension of the spot market in June 2022

AU Energy Compliance, NT Energy Compliance

The AER’s report into the June 2022 events is an important part of understanding the behaviour of the market and identifying potential improvements to ensure that generators have a greater incentive to supply during times of system stress. The Australian Energy Regulator (AER) has recently released its report into the market events that led to the suspension of the national electricity spot market in June 2022. The AER had received reports from stakeholders, including the Australian Energy Market Operator (AEMO), that generators were withdrawing capacity, causing AEMO to issue urgent directions to increase supply and mitigate the risk of blackouts. The investigation conducted by the AER revealed some concerning behaviour by some generators, along with some compliance issues from traders. The investigation found that some generators had little to no…

Dec122022 by Connor JamesNo Comments

Energy Retailers End of Year Reporting Obligation: AER and ESC

AU Energy Compliance

As the end of the calendar year approaches, energy retailers in Australia should be aware that this also marks the end of a reporting period for the Australian Energy Regulator (AER) and the Essential Services Commission (ESC) in Victoria. It is important for retailers to engage with their billing and other service providers to ensure that all necessary data is collated and available for reporting, and to carefully review the relevant reporting guidelines to determine what information is to be reported and by when. The AER has specific performance reporting requirements for retailers, as outlined in their Performance Reporting Procedures and Guidelines. These guidelines provide information on the reporting obligations for retailers, as well as the definitions of key terms and the required format for reporting. Retailers should pay particular…

Dec82022 by Connor JamesNo Comments

AEMO Suspends Two Retailers

AU Energy Compliance

On Wednesday, the Australian Energy Market Operator (AEMO) issued two separate notices suspending Mojo Power and QEnergy from all trading in the National Electricity Market, effective midnight on Tuesday night. The reasons for the suspension were not stated. Later that day, AEMO lifted the suspension orders for both retailers. Mojo Power, which is based in Sydney, is a smart solar and renewables-focused company that aims to challenge market incumbents and offer customers a more solar and green energy-aligned approach to home energy. QEnergy, based in Brisbane, offers one of the cheapest retail deals in the market, mostly servicing small and medium businesses in New South Wales, Victoria and Queensland, as well as residential customers. Australia's energy market crisis has claimed a number of smaller retailers including Elysian Energy, Social Energy…

Dec72022 by Pritish Naik SalgaonkarNo Comments

White Label Retailers in Victoria

Victorian Energy

White labelling is becoming a common practice in retail energy, where a licensee enters into an arrangement with a third party to sell energy under that third party’s branding. While this arrangement may confer on the non-licensed entity significant influence and control over the sale of electricity, it is important to ensure that the energy retail licensee is undertaking the activity of selling energy and that the non-licensed entity does not engage in activities for which they are not licensed. In Victoria, the Electricity Industry Act 2000 and Gas Industry Act 2001 require that any white-label arrangement must not result in the sale of energy without a licence or an exemption. To ensure compliance with these obligations, it is important to have detailed contractual arrangement that clearly stipulates the responsibilities…

Dec62022 by Connor JamesNo Comments

How to select an external compliance partner

AU Energy Compliance, NT Energy Compliance

When it comes to choosing a compliance partner, there are a few key factors to consider. It is important to ensure that the partner you choose has the necessary experience and qualifications to meet your needs, as well as the capacity to work with you on a personal level. Additionally, the partner should have the necessary project management capacity and service level agreements (SLAs) in place to ensure that the project is completed on time and to the highest standards. Relevant Experience When selecting a compliance partner, it is important to ensure that they have the necessary experience and qualifications to meet your needs. It is important to ask the partner about their experience in the field, as well as any relevant certifications or qualifications that they may have. Additionally,…

Dec32022 by Connor JamesNo Comments

What is a ‘Social Licence’ and why is it critical that businesses understand this term

AU Energy Compliance, NT Energy Compliance

In essence, a social licence is an agreement between a business and its stakeholders and the wider public. It is based on the understanding that the business is not just meeting its legal obligations but also taking into account the interests of its stakeholders, its impact on the community and environment, and its role in the wider society. It is earned through responsible behaviour, transparency and accountability. In practice, businesses that operate under a social licence are those that focus on being ethical, sustainable and socially responsible. This means that they are taking into account the needs of all of their stakeholders, including customers, employees, suppliers, local communities and the environment. They are also taking into account their wider social and environmental responsibilities, such as their impact on climate change…

Dec32022 by Connor JamesNo Comments

An overview of the Australian electricity market

AU Energy Compliance

The electricity market in Australia is an important and complex system that plays a significant role in the national economy. It is comprised of a mix of private and public sector stakeholders, each of whom has a different role to play in the functioning of the market. In addition, the market is regulated by a number of government agencies and regulatory bodies to ensure that it operates in the best interests of consumers. In this, the first of a series, we will introduce the key market participants. The electricity market in Australia is made up of a variety of participants, including electricity generators, electricity retailers, network businesses, traders, and consumers. Electricity generators are responsible for producing electricity, which is then sent to the national electricity grid. Generators typically use coal,…

Nov302022 by Connor JamesNo Comments

Consumers: front and centre of energy regulation

AU Energy Compliance

As the energy market continues to evolve and the ways in which energy is produced, stored, shared and consumed become ever more complex, it is essential that consumers remain front and centre of energy regulation. It is vital that consumers are aware of the changing landscape and their rights and responsibilities when it comes to energy use. The traditional energy market is being transformed as new technologies, such as solar panels and battery storage, become more widely used. This has resulted in a decentralisation of energy production, with consumers able to produce, store and sell energy independently. This decentralisation has led to an increase in the number of small-scale energy producers, such as households and businesses, producing and selling their own energy. While once upon a time consumers were simply…

Nov302022 by Pritish Naik SalgaonkarNo Comments

Family Violence obligations in NECF States

AU Energy Compliance

Background On 15 September 2022, the Australian Energy Market Commission (AEMC) introduced new regulatory protections for customers impacted by family violence. These rules allow family violence customers to focus on other important matters and provide peace of mind that they will receive clear, transparent, and honest support from their energy retailers. The rule change request was submitted by Red Energy and Lumo Energy on 23 September 2021. The AEMC received 21 submissions to its consultation paper and 19 submissions to its draft determination published on 18 November 2021 and 16 June 2022, respectively. On 15 February, 80 people attended the AEMC industry forum to discuss the rule change and examine family violence reform. Intimate partner violence contributes to death, disability, homelessness, and illness in adult women more than any other…