Changes to Energy Retail Reporting and Audit Obligations

Changes to Energy Retail Reporting and Audit Obligations

AU Energy Compliance
By Anne Wardell, Compliance Quarter On 9 June 2017, the Australian Energy Regulator (AER) released the following documents: Compliance procedures and guidelines – Version 4 – June 2017, and The AER Practice Guide for Compliance Audits – June 2017. The revised guidelines incorporate new rules introduced by the Australian Energy Market Commission (AEMC), refine the reporting framework and provide new guidance material on compliance audits. Changes to reporting obligations An important change is to the name given to reports and reporting periods. Reports will now be referred to as Immediate, Quarterly or Half Yearly Reports. Consequently, the sections in the procedures and guidelines which deal with reporting have been amended in line with this change. This includes substantive amendments to Appendix A. The report and template contained in Appendix B…
Read More
State of the Energy Market

State of the Energy Market

AU Energy Compliance
Today saw the release of the 2017 State of the Energy Market, a report published by the Australian Energy Regulator. There is a lot to digest in the AER's comprehensive and useful report. In this first post, I will briefly look at some of the key themes. It has been a challenging year for the industry, one that has seen significant structural and technological change. 'Technology change is impacting on the wholesale electricity and gas markets more than at any other time in the history of the NEM...' Paula Conboy—AER Chair. Retail and Wholesale Pricing Electricity retail pricing trended higher in 2016, in all states other than Victoria. As I noted in a previous post, significant increases are expected this financial year on top of the average 13 percent in…
Read More
Selling Electricity: Licence Requirements

Selling Electricity: Licence Requirements

AU Energy Compliance
A variety of businesses are involved in selling energy. These businesses include caravan parks, building managers, shopping centres, office buildings, airports, industrial parks and solar power providers. 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. National Consumer Framework The Eastern States (except Victoria) are governed by the National Energy Retail Rules (‘Retail Rules’) and National Energy Retail Law (‘Retail Law’), implemented as part of the National Energy Consumer Framework. Obtaining an electricity retail authorisation is a complex and time-consuming process. Broadly, it requires that an applicant prove to the Australian Energy Regulator (‘AER’) that it can meet financial, operational, and technical requirements. An alternative…
Read More