Taking the Axe to Embedded Network Exemptions

AU Energy Compliance
Yesterday we spoke about the final Australian Energy Market Commission (AEMC) report on the regulation of embedded networks. Recommendations from the report will be considered by COAG and are likely to be implemented mid-to-late next year. Today, we answer Five Key Questions for existing embedded network operators. [caption id="attachment_2700" align="aligncenter" width="640"] Photo by Malte Wingen on Unsplash[/caption] By Anne Wardell and Connor James, Compliance Quarter.  If implemented, the AEMC recommendations will effectively take an axe to the existing regulation of embedded networks, redefining a sector of the energy market that is growing in importance and prevalence. The changes discussed in this article are focused on NECF jurisdictions (NSW, QLD, SA, ACT and Tas). In an article to follow we will consider similarly significant changes to be implemented in Victoria following…
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Consultation on draft exempt embedded network guidelines (part one): embedded network managers take note

Consultation on draft exempt embedded network guidelines (part one): embedded network managers take note

AU Energy Compliance
On 17 November, the Australian Energy Regulator (AER) released the latest Draft Guideline – Exemption from Registration as a Network Service Provider (the Draft Guideline) and an accompanying Issues Paper[1]. AER is consulting on all aspects of the proposed amendments, and encourages submissions from stakeholders by 15 January 2018. [caption id="attachment_2696" align="aligncenter" width="640"] Photo by ål nik on Unsplash[/caption] By Dr Drew Donnelly, Compliance Quarter. Of the changes in the Draft Guideline, three relate to the Transmission Connection and Planning Arrangements final rule determination, and four relate to other matters necessary to update and clarify aspects of the guideline. As the Embedded Network Manager (ENM) regulatory changes have just come into effect (1 December 2017), this article looks at two small changes in the draft Guideline that could have a…
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Greater Regulation of Embedded Networks in 2018

Greater Regulation of Embedded Networks in 2018

AU Energy Compliance
Today we look at two new publications that will impact the regulation of embedded networks in 2018. This month saw the release of the Australian Energy Market Commission’s (AEMC) final report on the Regulation of Embedded Networks along with the publication of Version 6 of the Electricity Network Service Provider Exemption Guideline (draft) by the Australian Energy Regulator (AER). [caption id="attachment_2683" align="aligncenter" width="640"] Photo by Seb Zurcher on Unsplash[/caption] By Connor James, Compliance Quarter. Electricity Network Service Provider Guideline As readers will be aware, in the Eastern States, anyone who engages in an electricity distribution activity must either be registered with the Australian Energy Market Operator as an electricity network service provider or must gain an exemption from that requirement. Exemptions are granted by the AER. On 17 November 2017,…
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Is it time we had an energy sandbox to encourage innovation?

Is it time we had an energy sandbox to encourage innovation?

AU Energy Compliance
Should we be looking to collaborate with the energy industry regulators and push for an energy sandbox that will foster innovation into the industry? By Steve Findley, Compliance Quarter.  It has long been the case that, in a similar way to the banking industry, there are many barriers to entry for those looking to become an energy retailer. Recently we have taken enquiries with a number of technology-focused entrants looking to disrupt the industry. This poses the question: Should the regulators be providing a regulatory "energy sandbox" to allow new-to-market entrants, or tech startups, an opportunity to test their business models and help encourage innovation in the industry? The energy regulators generally maintain good relationships with retailers and some of the collaboration and support they provide to retailers gives them…
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Transitional Compliance for Embedded Network Managers (ENM): The Key Facts

Transitional Compliance for Embedded Network Managers (ENM): The Key Facts

AU Energy Compliance
The Australian Energy Regulator (AER) has just announced that a transitional compliance approach to the new embedded network manager (ENM) obligations that are coming into force on 1 December (https://www.aer.gov.au/communication/aer-announces-transitional-compliance-approach-embedded-network-manager-appointment). [caption id="attachment_2595" align="aligncenter" width="640"] Photo by Khara Woods on Unsplash[/caption] By Dr Drew Donnelly, Compliance Quarter Below we set out some key things you need to know. The ENM role The ENM is a new role that has been created to support customers in embedded networks transferring from ‘off-market’ to ‘on-market’ and vice versa: That is, embedded network customers switching between electricity supply from an exempt ‘on-seller’ and an authorised retailer. Key components of the ENM role include (but are not limited to): registering a child NMI (National Metering Identifier) to customers in embedded networks, and; creating and updating NMI…
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The proposed new dispute resolution obligations for exempt sellers

AU Energy Compliance
We recently summarised the changes proposed in the new draft retail exempt selling guideline (the draft guideline) issued by the Australian Energy Regulator (https://compliancequarter.com.au/aer-seeking-feedback-revised-draft-retail-exempt-selling-guideline/). By far the most significant change proposed is to the dispute resolution obligations of exempt sellers with respect to residential customers. In this piece, we take a deeper look at the dispute resolution changes for exempt sellers as proposed in the latest draft guideline. Background The National Energy Retail Law (Retail Law) requires all energy sellers to either hold a retailer authorisation or a valid exemption. A common situation where an exemption may apply is where an owner purchases energy from a retailer and then 'on-sells' that energy to tenants. That owner, if granted an exemption would be an ‘exempt seller’. Guidelines, such as the draft…
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Innovative demand response programs being trialled for the upcoming summer

Innovative demand response programs being trialled for the upcoming summer

AU Energy Compliance, Uncategorized
On 11 October, the Australian Renewable Energy Agency (ARENA) and the Australian Energy Market Operator (AEMO) jointly announced that 10 pilot projects have been awarded funding under the new ‘demand response initiative’. This is an initiative designed to manage electricity supply during times of intense pressure on the system. [caption id="attachment_2541" align="alignnone" width="640"] Demand Response Initiative[/caption] Today we take a look at some of the innovative and varied response programs that are being trialled through this initiative including programs offered being provided by energy distributors, retailers and customers. Background to the demand response initiative The Independent Review into the Future Security of the National Electricity Market (the ‘Finkel Report’), released earlier this year, emphasised that the continuing retirement of older energy generators will place increasing pressure on the National Energy…
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IPART review of Compliance and Enforcement Policy

IPART review of Compliance and Enforcement Policy

AU Energy Compliance, Uncategorized
By Anne Wardell, Compliance Quarter.    The Independent Pricing and Regulatory Tribunal NSW (IPART) is currently undertaking a review of its Compliance and Enforcement Policy with a view to introducing a single policy. The Draft Report was released on 30 October 2017 and submissions will close on 27 November 2017. The new Compliance and Enforcement Policy will commence when the final version is published on the IPART website. This is anticipated to be in December 2017. All organisations and people who are currently regulated by IPART will need to be familiar with the new policy from that date. I have written an article which reviews the Draft Report and you can read the full article here.  
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A poll to pass a resolution not to appoint an Embedded Network Manager– Caravan park operators take note

A poll to pass a resolution not to appoint an Embedded Network Manager– Caravan park operators take note

AU Energy Compliance
The AEMC has made a number of rule changes which come in to force on 1 December 2017. The changes relate to embedded networks and metering arrangements. Two major new roles will be introduced under the rule changes, an Embedded Network Manager (ENM) and a Metering Coordinator (MC). By Anne Wardell, Compliance Quarter.  The regulator has made certain exemptions for caravan parks, holiday parks, residential land lease parks and manufactured home estates (caravan parks). Operators of caravan parks who operate an embedded network will often hold an R4 retail exemption and an NR4 network exemption, both of these exemptions apply specifically to caravan parks. Apart from the current conditions imposed under the exemptions, there are a number of state based Acts which impose restrictions on how much a caravan park…
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The National Energy Guarantee (NEG)—what we know so far

AU Energy Compliance
On 17 October, the Commonwealth Government announced that it intends to introduce a ‘National Energy Guarantee' (NEG) scheme.[1] The scheme would introduce reliability and emissions obligations for energy retailers with the goal of delivering more reliable and lower emissions generation, each year. By Dr Drew Donnelly, Compliance Quarter. In today’s piece we describe the new policy and how it may be operationalised. Note, at this stage the National Energy Guarantee is Commonwealth Government policy, but it is not law and there are several steps that need to be taken before it could be finalised (we explore this in the final section of the article). The National Energy Guarantee The reliability obligation would be set by the Australian Energy Market Commission (AEMC) and Australian Energy Market Operator (AEMO) and would set…
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