Compliance Archives

Oct272023 by Connor JamesNo Comments

Understanding Power Purchase Agreements in Western Australia: Exemptions, Conditions, and Obligations

Introduction Solar Power Purchase Agreements (PPAs) have become increasingly popular in Western Australia (WA) as a means of accessing solar power. These agreements involve a supplier installing and maintaining a solar power system at a customer's premises at no up-front cost to the customer. In exchange, the customer agrees to purchase the energy generated by the system from the supplier over an agreed period at an agreed rate. The unique nature of these agreements, however, calls for a distinct regulatory framework. This article delves into the specifics of PPAs in WA, focusing on the available retail licence exemptions, the conditions tied to these exemptions, and the obligations for reporting and disclosure. Retail Licence Exemptions for Solar PPAs In August 2016, the Minister for Energy approved a licence exemption framework for…

Oct262023 by Connor JamesNo Comments

Membership of Ombudsman Scheme: A Mandatory Requirement for Exempt Operators

Compliance, Embedded Networks

The Australian Energy Regulator (AER) mandates that all exempt operators must be members of an energy ombudsman scheme for each jurisdiction where they sell energy to exempt customers. This requirement is not just a mere formality—it is a significant component of safeguarding customer rights and ensuring a fair and equitable energy market. What are Exempt Operators? Before diving into the significance of the ombudsman scheme, it's important to understand who exempt operators are. In the energy sector, exempt operators are entities that sell energy to a specific site or to customers with whom they already have a relationship. They are covered under what is called a 'retail exemption'. These exemptions apply to a range of energy selling activities, often seen in scenarios such as landlords recovering energy costs from their…

Sep42023 by Connor JamesNo Comments

Proposed reforms to address unfair trading practices in Australia

AU Energy Compliance, Compliance, NT Energy Compliance

The Australian Government is consulting on options to strengthen protections for consumers and small businesses against unfair trading practices. Unfair trading practices refer to certain commercial practices that cause harm but are not prohibited by existing laws. The consultation paper released by Treasury in August 2023 explores options to amend the Australian Consumer Law (ACL) to introduce new protections from unfair trading practices. What is proposed? The options discussed in the consultation paper include: Retaining the status quo – no change to existing laws. The ACL would continue to protect against misleading or deceptive conduct, unconscionable conduct and unfair contract terms but would not specifically target unfair trading practices. Amending the statutory unconscionable conduct provision to expand its scope. This could involve expanding the list of factors courts must consider…

Aug292023 by Connor JamesNo Comments

Expanded Unfair Contract Terms Laws in effect in November

AU Energy Compliance, Compliance, NT Energy Compliance

Contracts are an integral part of our business transactions and consumer purchases in Australia. Whenever someone buys a product or service, they generally enter into a contract with the seller which outlines the rights and responsibilities of both parties. Some contracts are formal written documents while others are verbal or implied. Regardless of the form, contracts aim to provide certainty for buyers and sellers. However, some contracts contain terms that are inherently unfair to one of the parties. Unfair contract terms can limit liability for the seller, allow unfair price increases or make it difficult for the buyer to exit the contract. Standard form contracts, where the terms are set by the seller and offered on a ‘take it or leave it’ basis, often contain unfair terms as the buyer…

Aug282023 by Connor JamesNo Comments

Misconduct in Public Organisations: Important Lessons for Businesses

AU Energy Compliance, Compliance, NT Energy Compliance

On 9 August 2023, the Victorian Ombudsman published Misconduct in public organisations: A casebook. The casebook examines seven real-world cases of misconduct substantiated by the Ombudsman through investigations. While the cases specifically involve public sector entities, the issues explored, like conflicts of interest, financial mismanagement, and failure to foster a culture of integrity, apply equally to private businesses. One of the most common issues identified across cases was failure to properly manage conflicts of interest. In one example, the chair of a cemetery trust gave grave-digging work to their own private business, failing to recognize this arrangement as a conflict of interest. According to the Ombudsman, “conflicts of interest are poorly understood by many people in public roles.” The Ombudsman recommends all organizations “educate employees, volunteers and contractors about what…

Apr262023 by Pritish Naik SalgaonkarNo Comments

Privacy Awareness Week (PAW) 2023-24

AU Energy Compliance, Compliance

What is Privacy Awareness Week (PAW)? Privacy Awareness Week is an annual event held in Australia by the Office of the Australian Information Commissioner (OAIC) to raise awareness about privacy issues and promote the importance of protecting personal information. The event is typically held in May and involves a range of activities and events, such as webinars, workshops, and social media campaigns. In 2023-24, Privacy Awareness Week is expected to focus on the importance of privacy in the digital age and the need for individuals and organisations to take proactive steps to protect personal information in online environments. What is PAW 2023-24? The upcoming PAW in 2023 will be held from Monday 1 May to Sunday 7 May. This year's theme is "Back to Basics," which emphasises the fundamental principles…

Apr212023 by Pritish Naik SalgaonkarNo Comments

Understanding the New Energy Tech Consumer Code – A Guide for Clients

AU Energy Compliance, Compliance

Introduction The New Energy Tech Consumer Code is a voluntary code that sets minimum standards for retailers in the new energy technology market. The Code provides consumers with clear information about products and services, while retailers commit to providing high-quality products and services in a transparent, accountable, and fair manner. Participating in the Code To participate in the New Energy Tech Consumer Code, clients need to follow these steps: Step 1: Understand the Code Requirements The first step is to understand the requirements of the Code, which include: Providing clear information about products and services, including pricing, performance, and warranties. Using accurate and clear advertising that does not mislead consumers. Complying with fair and reasonable contract terms, including the right to a cooling-off period. Having a complaints and dispute resolution…

Apr122023 by Pritish Naik SalgaonkarNo Comments

A Guide to AER’s Minimum Disconnection Threshold

AU Energy Compliance, Compliance

In this article, we provide a detailed overview of the Australian Energy Regulator's (AER) 2017 decision on the minimum disconnection amount for energy customers. Background and Context On March 17, 2017, the AER released its final decision on the minimum disconnection amount applicable to small customers within the jurisdictions of the Australian Capital Territory, New South Wales, South Australia, Queensland, and Tasmania. The decision aimed to balance the protection of vulnerable consumers with the need to maintain the efficient operation of energy services. The Final Decision In its final decision, the AER determined that the minimum disconnection amount for small customers should be set at $300 for both electricity and gas services. This amount was an increase from the previous threshold of $200, which had been in place since 2006.…

Jan242023 by Connor JamesNo Comments

An approach to Understanding New Regulatory Obligations

AU Energy Compliance, Compliance, Consumer Data Right, Victorian Energy

Understanding new regulatory obligations can be a daunting task for any organization. It is important to be aware of all applicable laws and regulations, both federal, state, local, and internal company-instituted rules. Ignorance of the law is no excuse, so it is essential to ensure that everyone in authority is aware of the law and understands it. This is the role of compliance, to make sure people know the rules beforehand and help to ensure that they continuously follow them. To understand new regulatory obligations, there are a few key steps that organizations should take. Research The first step is to research the applicable laws and regulations. This includes researching federal, state, local, and internal company-instituted rules. It is important to be aware of all potentially applicable laws and regulations.…

Jan182023 by Connor JamesNo Comments

Navigating Due Diligence: A Comprehensive Guide to Reducing Risk in Transactions

Compliance, Financial Services

Due diligence is an essential process to follow to reduce risk in a variety of transactions. Due diligence is the structured process of investigating and testing the true position of a business or asset. Due diligence is typically used in business transactions, such as mergers and acquisitions, but can be applied in other contexts, such as when hiring a new employee or when making large purchases. Due Diligence Processes The due diligence process has several steps, including evaluating the goals of the project, analyzing business financials, inspecting documents, analyzing business plans and models, forming a final offering, assessing risks, and categorizing diligence efforts. During the due diligence process, buyers carefully scrutinize every aspect of the target company or asset, from the business plan to real estate and cash flow. The…