June 2023

Jun272023 by Connor JamesNo Comments

Key points from Executive Board Member Geoff Summerhayes’ speech to the Financial Services Assurance Forum- Lessons for Energy Sellers

Cyber threats are accelerating and evolving rapidly. The COVID-19 pandemic has led to a surge in online activity and remote working, providing more opportunities for cyber criminals to attack. Boards and internal audit functions often lack understanding and expertise in cyber security, leaving organisations vulnerable. To address this, APRA has released a new Cyber Security Strategy for 2020 to 2024. It aims to: Establish a baseline of cyber controls including information sharing and incident response. The goal is to address basic cyber hygiene issues, foster collaboration, and ensure organisations are prepared for breaches. Enable boards and executives to properly oversee cyber risks. APRA will provide guidance and increase scrutiny of cyber governance. Boards need to understand cyber risks and take action. Internal audit functions also need to strengthen their cyber…

Jun262023 by Connor JamesNo Comments

Reminding Scheme Participants of Their Compliance Obligations

AU Energy Compliance, Environmental

As participants in the NSW Energy Savings Scheme (ESS) and Peak Demand Reduction Scheme (PDRS), you have various obligations you must meet to comply with the schemes. This article provides an overview of the key compliance obligations and includes guidance and quotes directly from IPART’s Compliance Guide – Scheme Participants to remind you of what is required. Notify IPART of PDRS Exemptions and Liable AcquisitionsUnder the PDRS, you must notify IPART of any exempt electricity loads or liable acquisitions from non-market sources. According to the Compliance Guide, “You must notify us whether your PDRS liable acquisitions for the period between 2:30pm and 8:30pm AEST on each of the 4 peak days include: exempt electricity loads, or purchases of electricity from a person other than the Market Operator.” IPART requires a…

Jun252023 by Connor JamesNo Comments

Clare Savage Outlines AER’s Consumer Protection Priorities Through Australia’s Energy Transition

AU Energy Compliance

Australian Energy Regulator (AER) Chair Clare Savage recently outlined the regulator’s consumer protection priorities for 2023-2024 during her address at the 2023 Australian Energy Week conference. Savage acknowledged the challenging times facing the energy sector with the twin themes of the accelerating energy transition and increasing cost of living pressures affecting consumers. Savage emphasised the AER’s role in protecting consumers through compliance and enforcement actions against energy companies that fail to meet their obligations. Savage noted that maximum penalties for breaching energy laws have increased substantially, with the largest penalty imposed in 2022 totalling $17 million compared to $1.5 million previously. Over the past two years, total AER issued penalties have amounted to over $39 million, a significant increase from just $3.5 million over the previous 14 years. According to…

Jun252023 by Connor JamesNo Comments

Managing the Transition: Balancing Competing Tensions

AU Energy Compliance

This is the first of a series of posts reflecting on Energy Week 2023. Daniel Westerman, Chief Executive Officer of the Australian Energy Market Operator (AEMO), recently delivered a speech at Australian Energy Week 2023 on the theme of managing the tensions inherent in Australia’s energy transition. Westerman began by outlining AEMO’s view of Australia’s energy transition, which is built on four pillars: low-cost renewable energy like solar and wind; energy storage and firming capacity; new transmission and distribution networks; and power systems able to operate fully on renewable energy. While there is broad acceptance of this vision, Westerman noted several uncertainties including cost of living pressures, supply chain issues and community reactions to large energy projects. Given these uncertainties, Westerman argued the transition must be carefully managed by balancing…

Jun242023 by Connor JamesNo Comments

Australian Government Proposes National product stewardship scheme for solar photovoltaic systems and small electrical and electronic equipment

AU Energy Compliance

The Australian Government has released a discussion paper outlining their proposal for a national regulated product stewardship scheme for solar photovoltaic (PV) systems and small electrical and electronic equipment (SEEE). The scheme aims to reduce the environmental and health impacts of electronic waste (e-waste) by requiring importers and producers to take responsibility for managing their products at end-of-life. The Environment Minister, Tanya Plibersek, said “E-waste is the fastest growing waste stream globally. This scheme will provide Australian households and businesses with sustainable ways to dispose of their e-waste and support Australia’s transition to a circular economy.” Under the proposed scheme, corporations importing or manufacturing SEEE or PV systems above a certain threshold would be required to join the scheme and pay fees to fund services like free e-waste drop-off points…

Jun232023 by Connor JamesNo Comments

Submission: Review into the arrangements for failed retailers’ electricity and gas contracts

AU Energy Compliance

Compliance Quarter has urged the Australian Energy Market Commission (AEMC) to reconsider a proposal that would require all retailers to provide an ‘all assets’ security interest as a mechanism to increase the likelihood of cost recovery from failed retailers. In a submission to the AEMC’s review of the Retailer of Last Resort scheme, Compliance Quarter said that mandating such a security interest would likely increase financing costs for retailers and act as a barrier to new entrants in the market. The AEMC is considering important reforms to improve the likelihood of the AER recovering costs from failed retailers. Its preferred option is to make the AER a secured creditor, requiring retailers to provide an ‘all assets’ security interest that would be registered on the Personal Property Securities Register. There is…

Jun232023 by Connor JamesNo Comments

Revisiting Financial Hardship Obligations in NECF

AU Energy Compliance, Consumer

As interest rates continue to climb so too does the risk of electricity customers being placed in a position where they are not able to pay their bills on time. 'Hardship' can be experienced by anyone and everyone, whether you are working full time or rely on government support. Energy retailers in NECF have a range of obligations in relation to hardship and, as we move towards winter bills, should be reviewing their existing processes to ensure that they are providing the best support possible to those customers facing payment difficulties. Under the National Energy Retail Rules (NERR), energy retailers in Australia have obligations to support customers experiencing payment difficulties or hardship. Part 3 of the NERR outlines specific requirements for retailers to identify, assist and protect hardship customers. Retailers…

Jun222023 by Connor JamesNo Comments

Annual Compliance Reporting Requirements for Energy Retailers in the NT

NT Energy Compliance

The Utilities Commission of the Northern Territory released the Compliance Framework and Reporting Guidelines in February 2016. The guidelines outline the compliance monitoring program and reporting requirements for regulated entities in the NT electricity industry, including energy retailers. According to the guidelines, “A condition of licence is to provide a compliance report to the Commission at reasonable intervals determined by the Commission. The Compliance Report must describe the measures taken by the licensee to ensure compliance with its obligations.” Energy retailers are required to submit an annual compliance report to the Commission by 31 August each year. The annual compliance report must include a declaration of responsibility signed by the Chief Executive Officer and Chairman of the Board of Directors, stating: “We certify that we have made all necessary inquiries…

Jun212023 by Connor JamesNo Comments

Draft Decision Signals Stronger Consumer Protections for Small-Scale Energy Customers

AU Energy Compliance

Late last year, the Essential Services Commission of South Australia (Commission) released its Draft Decision on improving consumer protections for small-scale energy network customers. The decision applies in relation to small-scale energy networks regulated exclusively by the Commission. There are approximately 11,000 customers in these networks in remote and regional South Australia. The Commission's final decision is likely to be made in the coming weeks. The Draft Decision proposes several amendments to strengthen existing protections, increase consistency across the electricity and gas sectors, and better align certain protections with the National Energy Customer Framework. The proposed changes aim to "protect the long-term interests of South Australian consumers with respect to the price, quality and reliability of essential services.” Key proposals include: Establishing a Small-scale Electricity Networks Code and renaming the…

Jun212023 by Connor JamesNo Comments

New Code Sets Standards for Energy Transmission Companies Accessing Private Land

AU Energy Compliance

The Essential Services Commission (ESC) has released a draft Land Access Code of Practice to regulate how energy transmission companies access private land when undertaking new projects or significant upgrades. The code will be critical as we see new transmission projects emerge to support the energy transition. The code aims to balance the rights of landowners and occupiers with the need for transmission companies to access land to provide essential services. The code will require transmission companies to: •Consult with and provide relevant information to affected parties prior to accessing land. According to the code, “An electricity transmission company must consult with affected parties and other parties interested in land in accordance with this Part 2 prior to accessing land in accordance with an access agreement or by exercising its…