July 2023

Jul262023 by Connor JamesNo Comments

Environmental and sustainability claims: Draft guidance for business

AU Energy Compliance, Consumer, NT Energy Compliance

The ACCC recently released draft guidance on environmental and sustainability claims to help businesses understand their obligations under the Australian Consumer Law (ACL) and best practice when making such claims. The draft guidance aims to encourage truthful and accurate claims, decrease instances of ‘greenwashing’, and assist consumers in making informed choices. Principles The ACCC identified eight key principles for businesses to follow when making environmental and sustainability claims: Make accurate and truthful claims: All claims should be factually correct. Even if literally true, they should not create an misleading overall impression. Have evidence to back up your claims: Businesses should ensure they have clear evidence to substantiate any claims made, with independent, scientific evidence being the most credible. As stated in the guidance, “Making the research, evidence, or data that…

Jul262023 by Connor JamesNo Comments

AER Draft Guidance including emission reductions in energy objectives

AU Energy Compliance

The Australian Energy Regulator (AER) has released draft guidance on how it proposes to implement the amended National Electricity Objective (NEO) and National Gas Objective (NGO) to include consideration of emission reductions. The amendments to the NEO, NGO and National Energy Retail Objective are expected to be passed by the South Australian parliament in September 2023. The AER “supports clarity around the changes to the national energy objectives to refer to government emission reduction targets and their application to AER decisions,” the guidance states. “As the independent regulator, the national energy objectives guide our work to promote the long-term interests of consumers with respect to achieving emission reduction targets, alongside our existing considerations including price, quality, safety and reliability of energy supply.” The guidance covers two main areas: The matters…

Jul262023 by Connor JamesNo Comments

AER Releases Annual Compliance and Enforcement Report: Focus on Supporting Vulnerable Customers and Efficient Energy Markets

AU Energy Compliance

The Australian Energy Regulator (AER) recently released its Annual Compliance and Enforcement Report for 2022–23, outlining its activities over the past year to monitor and enforce compliance with Australia’s national energy laws and rules. A key focus has been on supporting vulnerable customers, including those experiencing financial hardship. The AER has also acted to support the efficient operation of competitive energy markets through monitoring compliance of generators, gas pipelines and retailers. In the report the AER note that “Compliance with national energy laws gives consumers and energy market participants confidence that energy markets are working effectively and in their long-term interests.” The AER set five compliance priorities for 2022–23, focusing on consumers, wholesale electricity and gas markets. Supporting Consumers Experiencing Vulnerability A top priority was effective identification of residential customers…

Jul112023 by Connor JamesNo Comments

AER Releases Issues Paper on Reviewing Retail Performance Reporting Guidelines

AU Energy Compliance

The Australian Energy Regulator (AER) has released an issues paper for consultation on potential changes to the AER (Retail Law) Performance Reporting Procedures and Guidelines. The guidelines specify how energy retailers report data on their performance to the AER. The AER is considering changes to improve the data’s quality, relevance and comprehensiveness. Proposed changes include new indicators, refining current ones, increasing data frequency and granularity, consolidating some indicators and making the guidelines’ format clearer. New indicators could include those on embedded networks, life support customers and family violence. The AER said embedded networks data would “allow us to better monitor customers in these networks” and “support our compliance and enforcement functions.” Life support customer data would “enable us to identify broader compliance trends [and] better monitor retailer compliance.” Family violence…

Jul102023 by Connor JamesNo Comments

ACCC Insights on Electricity Bills and Affordability

AU Energy Compliance

The ACCC's latest report on its Inquiry into the National Electricity Market provides unique insights into the electricity bills faced by customers across New South Wales, South Australia, South East Queensland, and Victoria. The ACCC’s findings demonstrate how different energy plans, tariffs and contracts can impact consumers’ bills. The report found electricity prices have increased for most residential and small business customers over the past year, though the full impact of higher wholesale costs experienced in 2022 will continue flowing through to bills over time. According to the ACCC, “Changes in retailers’ costs take time to flow through to retail prices and, even more belatedly, actual billing outcomes experienced by consumers.” Higher wholesale costs are the main driver of price increases. The ACCC noted “wholesale electricity costs are an important…