New review of regulatory arrangements for embedded networks

New review of regulatory arrangements for embedded networks

AU Energy Compliance
By Anne Wardell, Compliance Quarter On 12 September 2017 the Australian Energy Market Commission (AEMC) released a Draft Report which recommends changes to the regulatory framework for embedded networks. A copy of the Draft Report is available on the AEMC website under Market Reviews: Open: Review of regulatory arrangements for embedded networks. Submissions on the Draft Report must be submitted by 17 October 2017. Although this seems a relatively short period to allow stakeholders to read the Draft Report, which is 140 pages, and make recommendations, the issue of whether there is sufficient regulation of embedded networks has been on the regulator's agenda for some time. A stakeholder workshop was held on 4 October 2017. Significant Changes Ahead The AEMC is of the view that the current regulatory framework for…
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Power of Choice Procedure Changes Package 3 released

Power of Choice Procedure Changes Package 3 released

AU Energy Compliance, Uncategorized
By Anne Wardell, Compliance Quarter The Australian Energy Market Operator has released Package 3 changes to amend a number of procedures which had previously been amended or developed as part of the Power of Choice reforms. Substantial Amendments - Package 3 - Power of Choice Reforms Some of the amendments are minor but there are also more substantial changes which have been identified as follows: Procedural issues that are seen as unnecessarily restrictive; Alignment of procedures released in Package 1 with corresponding changes in procedures released in Package 2; Removal of redundant legacy provisions in procedures; and Issues regarding the requirement to specify when an existing metering installation that is to be replaced by an MC may be a ‘network device’[1]. These issues arose following publication of the procedures in…
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Energy Storage Reforms suggested by the Clean Energy Council

Energy Storage Reforms suggested by the Clean Energy Council

AU Energy Compliance, Uncategorized
In May 2017, the Clean Energy Council (CEC) released a Briefing Paper, Charging Forward: Policy and regulatory reforms to unlock the potential of energy storage in Australia (Briefing Paper). By Anne Wardell, Regulatory Specialist, Compliance Quarter The purpose of the paper is to outline ‘thirteen reforms that can be introduced to accelerate the uptake of energy storage and the many benefits this technology can deliver to homes, businesses and the electricity system overall’[1] The CEC is of the view that the National Energy Market Framework (NEMF) currently undervalues many of the benefits which effective storage can offer. ‘The Clean Energy Council has identified thirteen energy market reforms required to drive the most efficient commercial roll-out of energy storage throughout Australia while ensuring a secure and affordable national power system. These…
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Key definitions under the Energy Retail Law

Key definitions under the Energy Retail Law

AU Energy Compliance, Uncategorized
There are some key definitions contained in the Energy Retail Law which need to be understood.  Chapter 10 of the National Electricity Rules (NER) contains the Glossary and it covers 114 pages. Often the definition of the word or phrase will contain words which also need to be defined. By Anne Wardell, Compliance Quarter Embedded Network For example, the definition of an Embedded Network is: A distribution system, connected at a parent connection point to either a distribution system or transmission system that forms part of the national grid, and which is owned, controlled or operated by a person who is not a Network Service Provider. Each of the phrases in italics has a separate definition within the Glossary. To understand all the meanings, you may watch a short presentation…
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Prof Garnaut: Does Finkel Solve the Trilemma?

Prof Garnaut: Does Finkel Solve the Trilemma?

AU Energy Compliance, Uncategorized
By Anne Wardell, Compliance Quarter   Professor Ross Garnaut recently delivered a lecture to the Faculty of Business and Economics at The University of Melbourne. In this lecture he considers the Finkel review and discusses 'the trilemma of providing energy security at low cost while Australia contributes to its fair share in the global climate change mitigation effort'. The lecture is available for viewing on YouTube at https://youtu.be/WV5FaYL-tWc Professor Garnaut is a Professorial Research Fellow in Economics at the University of Melbourne (since 2008). He was the senior economic policy official in Papua New Guinea’s Department of Finance in the years straddling Independence in 1975, principal economic adviser to Australian Prime Minister Bob Hawke 1983-1985, and Australian Ambassador to China 1985-1988. He is the author of a number of influential reports…
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AEMC Market Review 2017 and 2016

AEMC Market Review 2017 and 2016

AU Energy Compliance, Uncategorized
By Anne Wardell, Compliance Quarter   The Australian Energy Market Commission (AEMC) has obtained an extension of the timeframe for publication of its 2017 retail competition review final report (2017 report). The 2017 report will now be published on 25 July 2017. The AEMC has provided the following overview of the scope of the 2017 review: [1] The extension was sought to allow stakeholders further time in which to consider the findings of two recently released reports in relation to the energy market: Independent Review into the Future Security of the National Electricity Market presented by Dr Alan Finkel, and State of the Energy Market from the AER We will provide a summary of the 2017 report when it is published. For more information about these reports see our earlier article,…
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Electricity Retail Authorisation from the AER

Electricity Retail Authorisation from the AER

AU Energy Compliance
So you are considering obtaining an electricity retail authorisation from the AER and an electricity retail licence from Victoria, read on to learn about the process.It is an interesting time in the Australian energy market. The energy market is currently characterised by structural change and policy uncertainty. For some, this need for change equals opportunity. Below, we talk about the State of the Energy Market and some of the key steps you would need to take to become an electricity retailer (in the eastern states other than Victoria). If you're asking "How do I obtain an electricity retail licence?" then please feel free to contact us by clicking here and/or read on!  The Energy Market: Uncertainty and ChangeThe energy market in Australia is going through significant structural change (and a…
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AER releases new billing compliance checks for energy retailers

AER releases new billing compliance checks for energy retailers

AU Energy Compliance
We recently looked at changes to compliance reporting guidelines issued by the Australian Energy Regulator (AER), today we examine three new compliance checks published by the AER that energy retailers should review.     By Anne Wardell, Compliance Quarter. The AER has released three new compliance checks setting out the obligations which must be met under the National Energy Retail Rules. The new compliance checks were issued on 28 June 2017 and cover: Bill content, frequency and payment method, (Compliance check #2017-01); Calculating and basis for bills, (Compliance check #2017-02); and Billing complaints and incorrect charges, (Compliance check #2017-03). The new compliance checks are available on the AER website at Retail Markets > Compliance. The information contained in each of the new compliance checks is based on the requirements contained…
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Exempt Sellers: the Requirement to hold an Electricity Retail Authorisation or exemption

Exempt Sellers: the Requirement to hold an Electricity Retail Authorisation or exemption

AU Energy Compliance
By Anne Wardell and Connor James, Compliance Quarter. A variety of businesses are involved in the sale of energy. These businesses include caravan parks, building managers, shopping centres, office buildings, airports, industrial parks and solar power providers. Below we look at when an electricity retail authorisation is required and when a person or business can operate under an exemption. Energy sellers in the Eastern States of Australia must either operate under licence or an exemption. The sale of energy, under the Retail Law, includes the sale of energy at cost, i.e. without profit. Our previous articles look at some of the changes proposed in this area. National Energy Consumer Framework The Eastern States (except Victoria) are governed by the National Energy Retail Rules (‘Retail Rules’) and National Energy Retail Law…
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Is Energy Regulation Fit for Purpose? Review of regulatory arrangements for embedded networks – AER submission

Is Energy Regulation Fit for Purpose? Review of regulatory arrangements for embedded networks – AER submission

AU Energy Compliance
By Anne Wardell, Compliance Quarter. In a recent article, Embedded Networks under the spotlight, Connor James outlined the Australian Energy Market Commission (AEMC) review of the regulatory arrangements for embedded networks. The AEMC released a consultation paper and sought submissions. The Australian Energy Regulator (AER) lodged a submission on 17 May 2017. In this article I consider the Australian Energy Regulator (AER) submission. Paula Conboy, Chair of the AER, has provided a covering letter which usefully summarises the recommendations made in the submission. Attachment A provides detailed answers to the questions asked in the Consultation paper. The AER is of the view that the review ‘provides an opportunity to consider whether the benefits of embedded networks outweigh the detriment’[1] The submission identifies both areas for improvement in the regulatory framework…
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