Articles | Compliance Quarter

Apr192021 by Connor JamesNo Comments

Compliance Reporting to the Australian Energy Regulator

The Australian Energy Regulator's Compliance Procedures and Guidelines-Version 6 sets out the matter and form that retailers must submit compliance information and data to the AER. Retailers are required to submit information relating to their compliance with the National Energy Retail Law, National Energy Retail Rules, and National Energy Retail Regulations. Polices, systems and procedures The Retail Law requires that regulated entities establish and observe policies, systems, and procedures in accordance with the AER Compliance Procedures and Guidelines. Pursuant to the guideline, retailers must ensure that they are able to report accurately on their compliance in the manner and form required by the guidelines. Policies, systems and procedures must be established and operate in a manner and form consistent with the relevant Australian Standard AS/ISO 19600-Compliance Management Systems. One of…

Apr182021 by Connor JamesNo Comments

The Presentation of Electricity Retail Offers in NECF

AU Energy Compliance

This article looks at the operation of the AER's Retail Pricing Information Guidelines (April 2018 - Version 5.0). The purpose of the Guideline is to provide guidance to retailers in the presentation of standing offer prices and market offer prices with the objective of assisting small customers in considering and comparing standing offer prices and market offer prices available. The genesis of the Guideline is section 61(1) of the National Energy Retail Law. Retailers looking to advertise or market offers may also need to consider the ACCC's Electricity Retail Code. The Retail Code is not considered in this article. The AER Pricing Guidelines refer to individual plans being plans that are available to a specific customer. The purpose of the Pricing Information Guideline is to enable a customer to compare…

Apr112021 by Connor JamesNo Comments

AER: The Final Statement of Expectations

AU Energy Compliance

On 24 March 2021, the Australian Energy Regulator (AER) announced that it had extended its COVID-19 energy protections for a limited time. The AER's original Statement of Expectations was introduced at the start of the pandemic in March 2020. The Statement of Expectations has been updated a total of four times and applies to households and small businesses in Queensland, New South Wales, Australian Capital Territory, South Australia, and Tasmania. The Statement of Expectations sets out the expectations that the AER has with respect to how energy businesses deal with small business and residential customers who are potentially impacted by the coronavirus pandemic. The expectations include that all residential and small business customers who indicate that they may be in financial stress, be offered a payment plan or a hardship…

Apr112021 by Connor JamesNo Comments

AER’s audit: Provision of timely and accurate information

AU Energy Compliance

The Australian Energy Regulator has released the results of its latest compliance audits looking at the provision of timely and accurate information. The audits in question looked at compliance by EnergyAustralia, M2 Energy, Red Energy and 1st Energy pursuant to Section 282 of the National Energy Retail Law. The audit covered reporting activities for the 1 October to 31 December 2019 reporting period. The audits identified a number of areas in which the audited businesses could improve how they prepare, present, and report performance data to the Australian Energy Regulator (AER). Both retailers and distributors must establish and implement policies and procedures to enable them to effectively monitor compliance with the National Energy Retail Law and the National Energy Retail Rules. One such requirement is found within Section 282 of…

Apr62021 by Connor JamesNo Comments

Injunction granted in relation to electrical contracting in QLD

AU Energy Compliance

On 29 March 2021, Queensland's Electricity Safety Office was granted an injunction in the Southport Magistrates' Court preventing Mr Michael Kelly from doing further electrical contracting and electrical work in Queensland. The Court action followed an investigation by the Electrical Safety Office where it was alleged that Mr. Kelly contracted for and performed electrical work without appropriate licences between 21 March and 19 October 2019. Mr. Kelly is alleged to have used AirTasker to advertise the relevant services. The complaint and summons was issued by Queensland's independent Work Health and Safety Prosecutor in relation to seven alleged contraventions of the Electrical Safety Act 2002. Mr. Kelly was served with the complaint and summons on 9 March 2021. The alleged contraventions included Sections 30/40C, 55, and 56 of the Electrical Safety…

Apr52021 by Connor JamesNo Comments

QLD Large-Scale Energy Storage Trial

AU Energy Compliance

The Queensland Premier, the Honorable Annastacia Palaszczuk, has announced that five locations across regional Queensland will host a large scale, network connected battery trial aimed at supporting Queensland's uptake of renewable energy. The Premier noted that Queensland is putting solar on homes at world record rates with nearly one in three customers in detached houses now having solar PV. Commenting on the trial, the Premier noted, "Because Queensland has one of the highest levels of rooftop solar uptake in the world, we want to make sure that we're using this important source of renewable energy in the right way and our network is keeping up with demand." The energy storage trial is being conducted by Energy Queensland in five locations across Queensland which are Hervey Bay, Bundaberg, Townsville, Yeppoon and…

Apr52021 by Connor JamesNo Comments

The ESC’s Victorian Energy Market Update: March 2021

AU Energy Compliance

On 31 March 2021, the Essential Services Commission of Victoria published its Victorian Energy Market Update: March 2021. In the update the Essential Services Commission provides a summary of key events in terms of the energy market and its regulatory activities. Pricing The ESC reviewed energy retail offers published on 30 June 2020 and 31 January 2021 and found that there were substantial reductions in electricity and gas prices during that period. The ESC found that 7% of electricity market offers are market offers with conditional discounts, compared to a year ago where 33% of market offers had conditional discounts. The ESC welcomed this as a sign of ‘simpler and fairer energy contracts for Victorian consumers,’ following new rules, which were introduced from 1 July 2020, that introduced a cap…

Apr42021 by Connor JamesNo Comments

AEMC: Making Room for More Solar and New Energy Tech

AU Energy Compliance

On 25 March 2021, the Australian Energy Market Commission released to draft determination that aims to assist with the integration of more small scale-solar and other energy technologies, such as batteries into the electricity grid. Commenting on the draft determination, AEMC Chief Executive Benn Barr said, "Within 10 years, half of all energy users will be using home energy options like solar. We must make sure this seismic shift doesn't leave anyone behind because every Australian, whether they have solar or not, deserves an affordable, sustainable power system." The draft determination aims to address the problem of 'traffic jams' on the electricity network which are occurring now. Those traffic jams are expected (by some) to get worse as more solar is connected to the grid. Blocking power exports because the…

Mar102021 by Connor JamesNo Comments

The AER’s Compliance Priorities 2020-2021 – The AER publishes what penalties retailers have paid

AU Energy Compliance

In the mid-year compliance and enforcement update, the AER demonstrated that there has and will be a tighter focus on the compliance of retailers and distributors. Between July and December of 2020, a total of $4.38 million was paid in penalties, of which $3.8 million was paid as a result of court decisions and $580,000 as a consequence of direct infringement notices. Prioritites The AER has clearly stated their enforcement priorities for 2020-2021. These are: Financial difficulties and hardshipLife support equipmentSupporting transition to metering contestabilityEnsuring provision of accurate and timely information to the AER and AEMO Wrongful disconnection for customers facing financial difficulties or hardship The AER reinforced their position that customers in financial difficulty must not be disconnected and must be offered access to affordable payment plans and hardship…

Feb262021 by Connor JamesNo Comments

Penalty for Queensland generator over inability to supply frequency control services

AU Energy Compliance

Frequency control ancillary services (FCAS) is used by AEMO to maintain the frequency of the system within tolerances and around 50 cycles per second. FCAS is a mechanism for ensuring balance within the market which can be variable and volatile. FCAS providers are especially important as the uptake of renewable energy within the NEM continues. On 22 February 2021, the AER announced that CS Energy has paid $200,000 in penalties for allegedly failing to ensure that it could provide FCAS that it had already offered to the market. CS Energy has also repaid $1.13 million to AEMO, which it had received as payment to provide the services. In a comment on the incident, AER Chair Clare Savage said: “Inaccurate information about FCAS offers undermines AEMO’s ability to manage frequency deviations…