National Energy Guarantee Draft framework released

National Energy Guarantee Draft framework released

AU Energy Compliance
The National Energy Guarantee (NEG) was announced by the Federal Government in April. This followed on from the recommendations made in the Independent review into the future security of the National Electricity Market: Blueprint for the future (Finkel review). Photo by Adrián Tormo on Unsplash By Anne Wardell, Senior Lawyer & Regulatory Specialist, Compliance Quarter An important element of how the NEG will operate is the framework which will underpin the system. The National Energy Guarantee Draft framework On 15 June 2018 the Energy Security Board (ESB) released a Draft Detailed Design of the National Energy Guarantee: Consultation Paper (Detailed Design). Dr Kerry Schott AO, Chair of the ESB, said in a media release that the Detailed Design ‘provides the next level of detail about how the emissions and reliability components of the…
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Should Australia follow Argentina and introduce a National Regime for Distributed Generation?

AU Energy Compliance, Uncategorized
One year ago, I arrived in Buenos Aires for the first time. Heading to a salsa club in the fashionable Palermo Soho district, my partner and I discovered that not only the club, but the entire city block, was pitch black. Chatting with fellow salseros in the dark we were informed that, yes, this kind of power outage was normal and no, power would not be restored any time soon. Power outages both planned and unplanned are not uncommon in Buenos Aires. In February of this year, a power outage on one of the hottest days of the year left around 370,000 people in the city without power. Of course, unplanned outages and load shedding happen in Australia too. As in Argentina, the catalyst for outages tends to be heat…
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May 2018 Energy Roundup: Budget 2018 and New Renewable Energy Projects

AU Energy Compliance
May has been another massive month for regulatory and compliance developments in Australia. While April was dominated by the National Energy Guarantee and new Consumer Data Right, May was dominated by Budget 2018 and a range of exciting new renewable energy projects coming online. Another theme has been metering; several regulators have commenced action around slow metering installation and the over-use of estimates (see the activities of AEMC, ESC (Vic) and IPART below). As usual, we list all ongoing consultations, both nationally and in the National Electricity Market jurisdictions so that you can have a say in the areas that interest you the most. Photo by Andreas Gücklhorn on Unsplash By Dr Drew Donnelly, Regulatory Specialist, Compliance Quarter 1. Budget 2018 Budget 2018 didn’t provide any significant surprises for the energy sector. While…
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AEMC consults on fairer allocation of ‘Unaccounted For Energy’ (UFE) across retailers

AU Energy Compliance
The Australian Energy Market Commission (AEMC) has just begun consultation on a rule change request that would change National Electricity Market settlement in Australia.[1] In short, the request, if it proceeds into a rule change, would spread the cost of ‘Unaccounted For Energy’ (UFE) across all retailers, replacing the current system which leaves it to ‘Local Retailers’ to foot the bill. We explain the rule change request below. Photo by Francisco Gomes on Unsplash By Dr Drew Donnelly, Regulatory Specialist, Compliance Quarter Unaccounted For Energy (UFE) In any electricity transmission and distribution system, there will be a certain amount of electricity that is ‘lost’ in the system. Some of this is accounted for in the National Electricity Market via Marginal and Regional Loss Factors and Distribution Loss Factors (DLF). This ‘technical loss’ captures…
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Three reminders for exempt businesses from the latest AER Compliance Report  

Three reminders for exempt businesses from the latest AER Compliance Report  

AU Energy Compliance
The Australian Energy Regulator’s (AER) Quarterly Compliance Report: National Electricity and Gas Laws 1 January – 31 March 2018 was recently released.[1] It canvasses a range of compliance activities carried out by the AER over that three-month period, including compliance for wholesale market participants such as retailers, distributors and generators.  Rather than market participants, our focus today is on the AER’s compliance activities with respect to businesses operating under network or retail exemptions. In particular, we look at compliance lessons for Embedded Network Operators (ENOs) and exempt businesses using power purchase agreements (PPAs). By Dr Drew Donnelly, Regulatory Specialist, Compliance Quarter. Advising embedded network customers that seek to go ‘on market’ The AER observes that embedded networks are now expected to be fully in compliance with the power of choice…
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The new Registration Guideline for Exempt Persons in Victoria

The new Registration Guideline for Exempt Persons in Victoria

AU Energy Compliance
Just as Victoria operates a distinct regulatory framework for retail licensing from the rest of the National Electricity Market, so too does Victoria operate a distinct framework for retail and network exemptions. Last year we discussed the new Victorian General Exemption Order setting out the latest rules in Victoria for embedded network exemptions, including price regulation (https://www.compliancequarter.com.au/embedded-network-operators-take-note-new-general-exemption-order-victoria/). [caption id="attachment_4476" align="aligncenter" width="4270"] Photo by Alex Holyoake on Unsplash[/caption] By Dr Drew Donnelly, Regulatory Specialist, Compliance Quarter.  On 17 May, the Victorian Essential Services Commission (ESC) released a Registration Guideline setting out further requirements for entities seeking exemptions in Victoria.[1] Note, entities that are required to register, should register immediately (by 31 May 2018). Today we discuss the registration requirements in the guideline, including ways in which these requirements differ from requirements…
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ACCC Gas Inquiry April 2018 Interim Report

Consumer
By Anne Wardell, Compliance Quarter.  The Australian Competition and Consumer Commission (ACCC) has released its third interim report in relation to gas supply arrangements in Australia; Gas Inquiry April 2018 Interim Report (the report). The report covers three topics: an update on gas prices, which confirms the recent fall in gas commodity price offers for 2018 and 2019 and that prices struck under gas supply agreements (GSAs) remain generally higher in the Southern States than in Queensland; the ACCC decision to publish on its website an LNG netback price series to improve gas price transparency and assist commercial and industrial (C&I) users in negotiating for gas supply; and the ACCC assessment of new reporting in relation to transportation services for non-scheme pipelines, which questions whether early information on standing offers…
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Important changes to Retail Pricing Information Guidelines

AU Energy Compliance
By Anne Wardell, Compliance Quarter.  The Australian Energy Regulator (AER) has released new Retail Pricing Information Guidelines (the new Guidelines) which commence on 31 August 2018. Although the new Guidelines commence on 31 August 2018, not all of the new requirements will commence on that date. The AER is of the view that the changes will take time to implement and has therefore introduced a series of stages for implementation. The important dates for the stage implementation are: Source: new Guidelines at pp 5-6 A number of key changes have been introduced in the new Guidelines including the replacement of the Energy Price Fact Sheet. The key changes to the Guidelines include: replacing the requirement for retailers to provide an Energy Price Fact Sheet with a requirement that each energy plan have two…
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OAIC releases first quarterly statistics report under the NDB Scheme

Consumer, Uncategorized
By Anne Wardell, Compliance Quarter.  Photo by Jefferson Santos on Unsplash The OAIC has published its first quarterly statistics report under the NDB Scheme, Notifiable Data Breaches Quarterly Statistics Report: January 2018 – March 2018. It is interesting to note that the total number of breaches received for the first quarter was 63. Remember that the NDB only commenced at the end of February 2018. The report provides useful snapshots of the findings such as the top five industry sectors where an NDB occurred: The most common type of personal information revealed was contact information. It is perhaps of some concern that the next two most common types of information disclosed were financial details and health information: Although 73% of the eligible data breaches involved the personal information of fewer…
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AER Reporting procedures and guidelines amended

AU Energy Compliance
By Anne Wardell, Compliance Quarter.  AER Reporting procedures - The Australian Energy Regulator has released an updated AER (Retail Law) Performance Reporting Procedures and Guidelines April 2018. The revised Guidelines require retailers to report additional data to the AER, including: Further detail about the retail market and market structure (particularly regarding customer contracts); Information on the rollout of smart meters as a result of the metering contestability regime which commenced on 1 December 2017; and Further information about customers experiencing payment difficulties (including in relation to payment plans, hardship programs, and referrals to credit collection agencies). In order to allow retailers to make the necessary system changes required to capture the new information,  the commencement date for the first new report was moved back six months to 1 January 2019, or…
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