AU Energy Compliance Archives

May162026 by Connor JamesNo Comments

Energy Retailer Assurance Audits in 2026: An Australian Guide

Assurance audits used to be a tick-the-box exercise. They are not anymore. With the Australian Energy Regulator (AER) refreshing its Compliance Procedures and Guidelines and releasing an updated Practice Guide for Compliance Audits last year energy retailers in Australia are operating in a sharper, more evidence-driven assurance environment than at any point in the National Energy Retail Law's history. This post explains, in plain English, what an assurance audit looks like under the current settings, where the AER is looking hardest in 2025/26, and how Australian energy retailers can prepare without burning out their compliance teams. What is an assurance audit, in the AER's words? An assurance audit is an independent review of an authorised retailer's compliance policies, procedures and systems and a sample of their operation in practice. The AER may either carry…

Jan82026 by Connor JamesNo Comments

The AER’s Independence: Understanding What the Structural Separation Means for Energy Businesses

AU Energy Compliance

On 1 July 2026, just months from now, the Australian Energy Regulator (AER) will formally separate from the Australian Competition and Consumer Commission, ending a longstanding administrative relationship that has defined energy regulation in Australia since the AER's establishment. 🔑 KEY TAKEAWAY: The AER's structural independence strengthens its regulatory focus and creates opportunities for enhanced engagement with energy businesses. Whilst the separation is primarily administrative, it signals the AER's evolution into a fully independent, specialised energy regulator with dedicated resources, expertise, and strategic priorities focused solely on energy market regulation. While the AER's fundamental legal powers and regulatory mandate remain unchanged, the context within which the regulator exercises those powers is evolving in ways that warrant attention from regulated entities. The Historical Context of AER-ACCC Integration Understanding why separation is…

Oct202025 by Connor JamesNo Comments

Navigating the AER Retailer Authorisation Process: How Compliance Quarter Can Help

AU Energy Compliance, Compliance

If you're planning to enter Australia's energy retail market, obtaining a retailer authorisation from the Australian Energy Regulator (AER) is not just a regulatory formality—it's a comprehensive assessment of your business's readiness to operate in one of the country's most heavily regulated sectors. Under the National Energy Retail Law, any business selling electricity or gas to customers must hold either a retailer authorisation or a retail exemption, and the authorisation process is designed to ensure only capable, well-resourced, and suitable businesses enter the market. The authorisation process can take a minimum of 12 weeks from the time all required information is submitted, though in practice it often takes considerably longer (6-12 months). This is because the AER's assessment is thorough and multifaceted, examining everything from your financial capacity and organisational…

Aug132025 by Connor JamesNo Comments

ACCC’s 2025 Report on the National Electricity Market

AU Energy Compliance

On 1 August 2025, the Australian Competition and Consumer Commission (ACCC) published its 13th annual report on prices, profits, and margins in the supply of electricity in the National Electricity Market. For the first time, the ACCC undertook analysis of customer outcomes and competition for so-called new energy services, which the ACCC identified as an area of rapid growth and an important part of the energy transition. To inform the publication of the report, the ACCC collected billing data from retailers covering 97% of residential customers and 90% of business customers in New South Wales, Victoria, South Australia, and South-East Queensland. Some of the main findings from the ACCC as published in their annual report are set out below: Firstly, the ACCC found that when measured on an annualised basis,…

Jun292025 by Connor JamesNo Comments

Outcome of Ergon Energy’s Challenge of the AER’s Overcharge Investigation Notice

AU Energy Compliance

In January 2025, our clients were advised of Ergon Energy's commencement of proceedings in the Federal Court seeking to set aside a notice it received from the Australian Energy Regulator (AER). This notice, issued on 7 November 2024 under section 206(1) of the National Energy Retail Law, called for the production of information and documents relevant to the AER’s regulatory functions. We have followed this matter with interest because it also relates to the application of Rule 31 of the National Energy Retail Rules (NERR) which regulates how retailers must deal with overcharging. At the heart of the dispute was the AER’s ongoing investigation into possible breaches by Ergon Energy of Rule 31 of the NERR and section 273 of the National Energy Retail Law. These alleged breaches relate to…

May12025 by Connor JamesNo Comments

Key Reporting Obligations for Australian Electricity Retailers under the ERA’s 2025 Performance Indicators Handbook

AU Energy Compliance

The Economic Regulation Authority (ERA) of Western Australia has recently published its updated "Performance Indicators and Definitions Handbook – For Electricity Retailers" (April 2025). This significant regulatory document establishes comprehensive reporting requirements for electricity retail licence holders operating within Western Australia. As legal practitioners specialising in energy regulation, we believe it is crucial for electricity retailers to understand these obligations thoroughly to ensure compliance with their licence conditions. The handbook, which has undergone several modifications since its previous iteration, outlines the performance data that must be reported annually to the ERA. This article examines the key aspects of these reporting requirements, potential compliance challenges, and important deadlines that electricity retailers must observe. Regulatory Context and Purpose The ERA administers the licensing scheme under Part 2 of the Electricity Industry Act…

Mar212025 by Connor JamesNo Comments

Draft Default Market Offer and Victorian Default Offer Realeased: background and implications.

AU Energy Compliance

The Australian Energy Regulator (AER) and the Essential Services Commission (ESC) have recently released their draft determinations for the Default Market Offer (DMO 7) and Victorian Default Offer (VDO) respectively for the 2025-26 period. These draft determinations establish important price safety nets for electricity consumers on standing offers across eastern Australia. This article examines the key features of these draft determinations, their implications for various stakeholders, and the diverse perspectives that have emerged from industry participants, consumer advocates, and government representatives. Background and Regulatory Framework The DMO and VDO were introduced in 2019 as price safety nets designed to protect consumers from unjustifiably high electricity prices. The DMO applies in New South Wales, South East Queensland, and South Australia, whereas the VDO operates exclusively in Victoria. Both serve as price…

Mar202025 by Connor JamesNo Comments

Navigating Compliance Obligations When Entering New Markets in Australia

AU Energy Compliance

Expanding into new markets presents significant opportunities for business growth, whether through geographic expansion or product diversification. However, such expansion introduces substantial regulatory compliance obligations that vary across jurisdictions, particularly within Australia's federated system of government. Businesses entering new markets must navigate a complex web of regulatory requirements, including industry-specific regulations, consumer protection laws, licensing requirements, and jurisdictional variations. Failure to identify and comply with these obligations may result in severe penalties, reputational damage, and operational disruptions. This article examines the critical importance of compliance considerations when entering new markets in Australia, with particular focus on the energy sector's National Energy Customer Framework (NECF) as an illustrative case study of jurisdictional complexity. The Significance of Compliance in Market Entry Strategy Compliance obligations should be viewed as fundamental business risks requiring…

Feb72025 by Connor JamesNo Comments

Implementing an Effective Compliance Management Framework in Energy Retail

AU Energy Compliance, Compliance

Energy retail is one of the most highly regulated sectors in Australia. Retailers must navigate a web of national and state laws, industry codes, and licence conditions – all enforced by multiple regulators – making compliance a complex task. An effective compliance management framework is therefore essential to avoid legal penalties and reputational damage; in fact, failing to comply can cost millions in fines or worse, result in loss to consumers and severely harm an organisation’s reputation. To assist businesses in managing these obligations, international standards like ISO 37301:2021 (Compliance Management Systems) and its predecessor AS ISO 19600:2015 (Compliance Management Guidelines) provide structured guidance. This article explains how energy retailers can apply these standards in practice, with a focus on governance, risk assessment, policies and procedures, monitoring, and continuous improvement. It offers practical insights…

Jan92025 by Connor JamesNo Comments

Proposed Changes to National Energy Retail Rules: Supporting Hardship Customers with Deemed Best Offers

AU Energy Compliance

The Australian Energy Market Commission (AEMC) is currently considering a rule change request from the Honourable Chris Bowen MP, Minister for Climate Change and Energy. The rule change seeks to amend the National Energy Retail Rules (NERR) to further support people experiencing hardship. The rule change build on the Australian Energy Regulator's (AER) Game Changer Report presented to the Energy and Climate Change Ministerial Council in December 2023 and is one of the four put forward. Submissions on the proposed rule change is due by 16 January 2025. Below, we provide a summary of what is proposed in relation to crediting hardship customer’s accounts so that they pay no more than what they would pay if they were on a retailer’s best offer. Moving hardship customers to a deemed best offer. This…