AU Energy Compliance Archives

Dec62024 by Connor JamesNo Comments

Understanding Record-Keeping Requirements for Energy Retailers: A Guide to Compliance

Record-keeping is a fundamental compliance obligation for energy retailers operating under the National Energy Retail Law (NERL), the National Energy Retail Rules (NERR), and the Australian Competition and Consumer Commission’s (ACCC) Electricity Retail Code. Good record management practices not only ensure compliance and mitigate the risk of penalties, but also foster transparency, accountability, and trust with customers, regulators, and other stakeholders. In this article, we outline key record-keeping requirements for energy retailers, provide a reference table for commonly encountered obligations, and offer practical recommendations for establishing robust record management policies, systems, and processes. Please note that this list is not exhaustive; it does not, for example, include requirements under the National Electricity Rules (NER) or other jurisdictional energy legislation. Key Record-Keeping Obligations Energy retailers are subject to a range of…

Nov292024 by Connor JamesNo Comments

Victorian Default Offer 2025-26: Essential Services Commission Opens Consultation Process

AU Energy Compliance, Victorian Energy

The Essential Services Commission (Commission) has released its request for comment paper regarding the 2025-26 Victorian Default Offer (VDO), marking the commencement of stakeholder consultation for the forthcoming regulatory period. The paper outlines key areas for refinement while maintaining the established methodological framework for determining default offer prices in Victoria. You can read the Commission's paper here. Regulatory Context The VDO remains a critical consumer protection mechanism within Victoria's electricity retail framework, established under section 13 of the Electricity Industry Act 2000. The Commission's determination, due by 24 May 2025, will establish regulated standing offer prices for both domestic and small business customers for the period 1 July 2025 to 30 June 2026. Key Consultation Areas The Commission has identified several crucial areas for stakeholder consideration. Notably, the paper explores…

Oct172024 by Connor JamesNo Comments

Australian Energy Market Commission Consultation Paper on real time access to data

AU Energy Compliance

Millions of Australian households and businesses are adopting consumer energy resources (CER) such as solar panels and batteries. The energy landscape in Australia is rapidly evolving, driven by technological advancements, market changes, and the transition to a cleaner energy system. Smart meters play a crucial role in this transition by enabling real-time access to energy usage data, which can help consumers optimise their energy use and reduce costs. However, the AEMC's Review of the regulatory framework for metering services found that access to real-time data is limited, and changes to the regulatory framework may be necessary to ensure all consumers can benefit. Following the Review, Energy Consumers Australia (ECA) submitted a rule change request to improve access to real-time data. This consultation paper seeks stakeholder feedback on the barriers to…

Oct102024 by Connor JamesNo Comments

Better Bills Guideline Compliance Review – Key Findings and Industry Guidance

AU Energy Compliance

The Australian Energy Regulator (AER) has completed a compliance review following the full implementation of the Better Bills Guideline (Version 2). This Guideline provides essential instructions for retailers on how to prepare and issue bills that help small customers understand and pay for their energy usage. Retailers are required to comply with the Guideline under rule 25(1) of the National Energy Retail Rules (Retail Rules), a tier 3 civil penalty provision. Key Compliance Activities Since the Guideline's implementation, the AER has undertaken several compliance activities, including: A compliance assessment of post-implementation bill templates for all retailers. Assessing self-reported breaches from retailers regarding contraventions of the Guideline. Regular engagement with retailers to address queries related to the Guideline. Ongoing monitoring of key intelligence sources, such as energy Ombudsmen, consumer intermediaries, and…

Aug262024 by Connor JamesNo Comments

Federal Court Ruling Emphasises Comprehensive Nature of Energy Retail Regulatory Framework

AU Energy Compliance

The recent Federal Court decision in Australian Energy Regulator v AGL Retail Energy Limited [2024] FCA 969 delivers a significant wake-up call to energy retailers regarding their interpretation and application of regulatory obligations. Justice Downes' ruling underscores the importance of adopting a broad, purposive approach to compliance, rather than relying on narrow interpretations or assumed "common sense" practices. In the energy industry, we don't often have the benefit of court decisions to assist us in understanding statutory obligations, this decision is useful from this perspective. Comprehensive Regulatory Framework A central theme of the judgment is the Court's view that the National Energy Retail Rules (NERR) and Law (NERL) form part of a comprehensive regulatory framework designed to protect consumers. Justice Downes rejected AGL's argument that certain obligations were exclusively governed…

Aug232024 by Connor JamesNo Comments

The Australian Energy Market in 2024: Challenges and Opportunities for Energy Retailers

AU Energy Compliance

The Australian energy market is undergoing a significant transformation, driven by the transition to renewable energy sources, policy interventions, and evolving market dynamics. For energy retailers, understanding these changes is crucial for navigating the complex regulatory landscape and identifying opportunities for growth. This article explores the current state of the electricity and gas markets, highlighting key trends and their implications for retail businesses. The Changing Face of the National Electricity Market The National Electricity Market (NEM) is in the midst of a profound shift away from centralised, fossil fuel-based generation towards a more distributed, renewable-focused system. The Australian Energy Regulator (AER) has noted that "the NEM continues to transition from a system dominated by large thermal generators to one that incorporates an increasing volume of widely dispersed intermittent renewable generators"…

Aug142024 by Connor JamesNo Comments

Adapting Regulation to Australia’s Energy Future: Insights from AER Chair Clare Savage

AU Energy Compliance

As we continue to see the transition of the NEM in Australia, regulation plays a crucial role in balancing innovation and consumer protection. Clare Savage, Chair of the Australian Energy Regulator (AER), recently shared her thoughts in a Q&A following the Energy Networks Australia "Beyond the Wires" Regulation Seminar in Brisbane. Her discussion provides valuable insights into how the AER is adapting its approach to meet the demands of the energy transition. Network Utilisation and the "Wall of Capex" Savage began by highlighting an important issue: while network reliability has improved over time, asset utilisation has decreased significantly, currently hovering in the low 40% range across the National Electricity Market (NEM). This underutilisation comes at a time when many distribution networks are proposing significant increases in capital expenditure (capex). These…

Jul232024 by Connor JamesNo Comments

Explaining the Integrated System Plan

AU Energy Compliance, NT Energy Compliance

If you are interested in understanding the enormity of the energy transition in Australia, AEMO's 2024 Integrated System Plan for the National Electricity Market (ISP) is the document to read. The ISP is a plan for investment to ensure a reliable and secure power system through Australia's transition to a net zero economy. It was produced by AEMO following extensive consultation (with more than 2,100 stakeholders) over the previous 2 years. The 2024 ISP is set among the background of the 'essential transition [that] is well underway.' That transition is from expensive to run and maintain coal generators to renewable generation. The transition is already underway as demonstrated by the fact that renewables accounted for close to 40% of the total electricity delivered through the NEM in 2023 and as…

Jun82024 by Connor JamesNo Comments

Avoiding Compliance Atrophy: The Critical Role of Assurance Reviews for Growing Energy Retailers

AU Energy Compliance, NT Energy Compliance

As energy retailers expand their customer base and operations, ensuring ongoing compliance with regulatory obligations can become increasingly challenging. A key risk is "compliance atrophy" - where initially compliant documents, processes and systems slowly deteriorate and waste away over time if not regularly monitored and reviewed. What is compliance atrophy? Compliance atrophy is typically a result of documents, processes and systems being 'updated' or 'reworded' to reflect changes in focus for the business and input from other stakeholders including marketing and sales teams. Oftentimes, a business incorrectly assumes that provided that the original intent is retained, a document, process or system will remain complaint. That is not the case. In energy, and in other industries the regulatory framework is ultra specific in what it tells businesses to do. For example,…

Jun32024 by Jodi DonovanNo Comments

AER payment difficulty framework review

AU Energy Compliance, Compliance, Consultation

The Australian Energy Regulator (AER) is conducting a review of the consumer protections available under the National Energy Customer Framework (NECF) for those experiencing payment difficulties. On 14 May 2024, the AER released an issues paper for consultation. The review is driven by the commitment in Action 8 of the ‘Towards Energy Equity’ strategy in which the AER committed to considering whether improvements could be made to the NECF to ensure that consumers experiencing payment difficulties are identified early, engaged proactively, and provided with assistance tailored to their individual needs. Currently, the NECF offers various protections for consumers facing payment difficulties through regulatory instruments such as the National Energy Retail Law (NERL), National Energy Retail Rules (NERR), National Energy Retail Regulations, and the AER Customer Hardship Policy Guideline. These protections…