Price Comparisons under the Electricity Retail Code
On 12 January 2022, the Australian Competition and Consumer Commission (ACCC) announced that energy retailer CovaU Pty Ltd had paid $33,300 in penalties arising from three infringement notices issued for alleged contraventions of the Competition and Consumer (Industry Code—Electricity Retail) Regulations 2019 (the Code).
AEMO Draft 2022 Integrated System Plan review
On 10 December 2021, the Australian Energy Market Operator (AEMO) published the Draft 2022 Integrated System Plan (ISP) (Draft ISP). This was subject to a ‘transparency review’ by the Australian Energy Regulator (AER), released 7 January 2022. The Draft ISP is now in the consultation stages, prior to final publication in June 2022.
The Essential Services Commission (Vic) Minimum Feed-In Tariff review 2022/23
On 2 December 2021, the Essential Services Commission (ESC) released its draft decision for minimum feed-in tariffs for solar exporters. It is anticipated that the
Refresher: the Australian Energy Regulator’s (AER) Exempt Selling Guidelines
NB: The most recent guidelines for exempt energy sellers are contained in the AER (Retail) Exempt Selling Guideline dated March 2018. In February 2021, the
ACCC Report: Prices, Profits, and Margins in the Supply of Electricity in the NEM
The Australian Competition and Consumer Commission (ACCC) has published its sixth report as part of its inquiry into the prices, profits and margins in the
Victorian Essential Services Commission Annual Report 2020-21 – Summary
On 17 November 2021, the Victorian Essential Services Commission (ESC) released its Annual Report for 2020-21 (the Report). The purpose of the Report is to provide an overview of the previous financial year (ending 20 June 2021), including what they did, how they performed on key goals, and what they plan to do in the future.
AER Calls for Energy Retailers to Focus on Support for Customers in Hardship
stralian Energy Regulator (AER) has called on energy retailers to provide “better” support to customers in hardship. The AER released its Annual Retail Markets Report 2020/21 on 30 November (2021) and noted that despite the fall in retail energy prices for households for the year 20/21, energy debt had risen by 12%, and the amount of the debt of customers entering the various retailer’s hardship programs had risen by 21%.
Electricity and Embedded Networks within Residential Parks in NSW
The New South Wales Government is currently reviewing laws that apply to residential and land lease communities. The Government notes that more than 35,000 people live in over 500 residential and these communities across New South Wales.
The Ongoing Viability of Big Batteries
On 2 December 2021, the AEMC published its final decision on its website, under the heading “Incentives for more batteries to enter the market”.
Time to understand “Ring-fencing”
On 3 November 2021, The Australian Energy Regulator (AER) concluded and published a revision of the Ring-fencing Guideline. Parties are expected to be fully compliant
Standardised Models for Regulated Metering Services
The Australian Energy Regulator (AER) is developing a standardised metering services model to use in the future across all jurisdictions. The AER intends to standardise
Simply Energy pays penalty for alleged wrongful disconnection
On 13 August 2021, the Essential Services Commission (Victoria) served a penalty notice on IPower 2 Pty Limited and IPower Pty Limited (trading as Simply Energy). The Penalty notice can be viewed here.
Getting Serious: The Peak Demand Reduction Scheme
The First PDR Initiatives:
– There will be incentives (rebates) for households to purchase and install energy efficient air conditioners (rebates for businesses ACs have been available for some time via other schemes);
– Businesses with EV fleets will be able to export power from their parked vehicles back in to the grid at peak times.
The two initiatives above were cited as examples in the press release on 28 September 2021. There is very little information available as to what other initiatives will be forthcoming.
Alinta Energy improves systems and waives more than $1 million in customer debt following an AER investigation.
On 8 October 2021, the Australian Energy Regulator (AER) announced that, in response to an investigation, Alinta Energy have substantially improved its systems and was
An Alternative to Compliance by Coercion
Alternatives to penalties are provided by the behavioural sciences, including command and control and economic instruments such as ‘nudging.’ The underlying concept is to create an environment in which individuals make choices based on nudges towards the desired state. This area is well-developed thanks to the advertising industry and, in the context of compliance, is considered to be ‘at the forefront of regulatory policy and governance.’
AER Life Support Registration Guide – A Good Reminder
On 1 August 2021, the new obligations regarding life support came into effect. These obligations were made pursuant to a rule change published by the
ESC Review of the Payment Difficulty Framework
In January 2019, the payment difficulty framework commenced in Victoria to ensure that disconnection for non-payment is a last resort and that vulnerable customers are
Opportunity to shape energy bills of the future
On 2 September 2021, the AER has made a call for submissions on issues that will inform the AER Bill Contents and Billing Requirements Guideline (Guideline). Submissions are due by Wednesday, 22 September 2021.
The purpose of the Guideline is to provide retailers with guidance on preparing and issuing bills to make it easier for residential and small customers to understand billing information. The Guideline is a further step in the AER Strategic Plan 2020-2025 to improve consumer outcomes.
An Embedded Network (Guideline) Refresher
If you own, operate or control a private embedded network, you will need to ensure that you hold the exemptions you require. In all of
Automated compliance under the microscope? AER initiates proceedings against Origin in the Federal Court.
This week the AER announced that it had initiated proceedings in the Federal Court of Australia. The AER alleges systemic failures in the automated processes
Minutes of Energy Ministers’ Meetings could become publicly available following a recent decision on the status of National Cabinet
A recent decision of the Administrative Appeals Tribunal (AAT) will be welcomed by those in the energy industry seeking clarity on the nation’s changeable climate
The use of Machine Learning in Compliance
The regulatory environment is evolving at a lightning pace. As a result, compliance officers must also keep up. To meet this challenge, AI applications have
New Round of Enforcement Actions
Energy sellers should review the announcements made by the ESC and ensure that they have adequate controls in place to avoid the same issues.
Submission to the AER’s Network and Retail Exemption Guidelines Review
We’ve submitted that the AER should consider implementing a ‘fast track approval’ process for the approval of proposed retrofit conversions of sites where the resulting embedded network would clearly bring consumers better pricing and where the configuration of the network infrastructure facilitates consumers who wish to ‘opt-out.’
As energy sellers know, the regulatory framework is partly designed to set the minimum standards of conduct expected and to punish those that are non-compliant. We believe that it is time that incentives were built into the regulatory framework. Where energy sellers develop products or services that have a clear consumer benefit, they should be rewarded by, for example, faster approvals. Faster approvals result in better commercial outcomes for energy sellers and those should be tied to consumer benefits.
Update on Victoria’s proposal to ‘ban’ embedded networks
In January we reported on updates to the Victorian Government’s proposal to ‘ban’ embedded networks within residential developments. The Expert Panel that was established by
AER’s 2021 to 2022 Compliance and Enforcement Priorities: Consumer Protection
#NECF, #Retailers, #ExemptOperators
On 23 June 2021, the Australian Energy Regulator (AER) released five compliance and enforcement priorities for 2021 to 2022 with a major focus on protecting energy consumers.
Review of the AER’s Network and Retail Exemption Guidelines
On 18 May 2021, the Australian Energy Regulator published a consultation paper concerning a review of the AER’s (Retail) Exempt Selling Guideline and Electricity Network Service Provider – Registration Exemption Guidelines. Clearly, this review being conducted by the Australian Energy Regulator is of significant importance to all exempt and authorised retailers operating within embedded networks.
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
The Presentation of Electricity Retail Offers in NECF
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
AER: The Final Statement of Expectations
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
AER’s audit: Provision of timely and accurate information
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
Injunction granted in relation to electrical contracting in QLD
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
QLD Large-Scale Energy Storage Trial
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
The ESC’s Victorian Energy Market Update: March 2021
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
AEMC: Making Room for More Solar and New Energy Tech
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
The AER’s Compliance Priorities 2020-2021 – The AER publishes what penalties retailers have paid
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
Penalty for Queensland generator over inability to supply frequency control services
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
Substantial increases in penalties for non-compliance in the energy sector
Summary: As a result of recent reforms discussed below, non-compliant energy businesses in NECF now face penalties of up to 10 percent of their annual turnover or $10,000,000. Consequently, all energy businesses should seriously re-examine their compliance programs and regulatory controls.
Converting Existing Buildings into Embedded Networks
Today we are looking at the ‘retrofit process’ for embedded networks. We focus on the eastern states, other than Victoria – which has its own
ASIC’s report on regulatory technology
The Australian Securities and Investment Commission (ASIC) has published a report (Report 685) on ASIC’s Regtech initiatives during 2019-2020. We’ve spoken previously about the benefits
Should Your Business Invest in a Compliance Management System?
Businesses around the world face challenges in managing regulatory compliance. Compliance requirements and the regulatory environment are constantly changing and there is no ‘one-size-fits-all’ solution.
4 Months not prompt enough to fix customers’ meters
For the failure to promptly fix meters, the AER has issued eight infringement notices which led three AGL retailers to pay a total of 160,000
New NECF derogations for NSW Retailers
The passing of the NSW Government’s Electricity Infrastructure Investment Bill 2020 dominated headlines at the end of 2020. However, with much less pomp and ceremony,
Spot the difference: Legal vs Compliance
Many large businesses have both in-house legal teams and compliance teams. What is the difference between the two and how do you know if you
Are You putting Your Business at Risk with inadequate Compliance Controls?
History is littered with spectacular compliance failures; from Eron to WorldCom and the shocking findings of Australia’s recent Banking Royal Commission. And yet, we can
Upcoming Webinars on Energy Regulation
Compliance Quarter is an energy regulatory specialist firm. We run webinars relevant to energy businesses operating in Australia. You can join our webinar training sessions
RRO triggered in NSW
The AER has accepted a recommendation from AEMO and has made the T-3 reliability instrument triggering the Retailer Reliability Obligation (RRO). In making this decision
AER’s Statement of Expectations
The AER has published its third statement of expectations of energy businesses during Covid 19. This statement of expectations applies from 1 November 2020 and
Retailer Reconnection- Rule 121
Disconnection is a key area of risk for energy retailers. The process that must be followed by a retailer have been set out in other
ESC Guide to embedded networks
The Essential Services Commision of Victoria has published a variety of resources for operators of embedded networks on its website including a guide to exempt