NT Energy Compliance Archives

Oct262023 by Connor JamesNo Comments

Navigating Energy Regulation: Best Practices for Effective Communication

AU Energy Compliance, NT Energy Compliance

Energy retailers operate in a dynamic and highly regulated environment so dealing with energy regulators is an inevitable aspect of this business. To maintain a healthy and compliant relationship with energy regulators, there are some key principles to keep in mind. Be Succinct When communicating with energy regulators, less can often be more. Energy retailers should strive for succinctness because providing excessive information increases the risk of regulators raising further questions on other areas of the business not previously in the spotlight. By offering precisely what's requested and nothing more, retailers minimise the chances of inadvertently highlighting furtherissues. When responding to requests for information, provide the regulators with precisely what they have asked for and ensure your response is directly relevant to their inquiry. Address any specific questions asked without…

Sep42023 by Connor JamesNo Comments

Proposed reforms to address unfair trading practices in Australia

AU Energy Compliance, Compliance, NT Energy Compliance

The Australian Government is consulting on options to strengthen protections for consumers and small businesses against unfair trading practices. Unfair trading practices refer to certain commercial practices that cause harm but are not prohibited by existing laws. The consultation paper released by Treasury in August 2023 explores options to amend the Australian Consumer Law (ACL) to introduce new protections from unfair trading practices. What is proposed? The options discussed in the consultation paper include: Retaining the status quo – no change to existing laws. The ACL would continue to protect against misleading or deceptive conduct, unconscionable conduct and unfair contract terms but would not specifically target unfair trading practices. Amending the statutory unconscionable conduct provision to expand its scope. This could involve expanding the list of factors courts must consider…

Aug292023 by Connor JamesNo Comments

Expanded Unfair Contract Terms Laws in effect in November

AU Energy Compliance, Compliance, NT Energy Compliance

Contracts are an integral part of our business transactions and consumer purchases in Australia. Whenever someone buys a product or service, they generally enter into a contract with the seller which outlines the rights and responsibilities of both parties. Some contracts are formal written documents while others are verbal or implied. Regardless of the form, contracts aim to provide certainty for buyers and sellers. However, some contracts contain terms that are inherently unfair to one of the parties. Unfair contract terms can limit liability for the seller, allow unfair price increases or make it difficult for the buyer to exit the contract. Standard form contracts, where the terms are set by the seller and offered on a ‘take it or leave it’ basis, often contain unfair terms as the buyer…

Aug282023 by Connor JamesNo Comments

Misconduct in Public Organisations: Important Lessons for Businesses

AU Energy Compliance, Compliance, NT Energy Compliance

On 9 August 2023, the Victorian Ombudsman published Misconduct in public organisations: A casebook. The casebook examines seven real-world cases of misconduct substantiated by the Ombudsman through investigations. While the cases specifically involve public sector entities, the issues explored, like conflicts of interest, financial mismanagement, and failure to foster a culture of integrity, apply equally to private businesses. One of the most common issues identified across cases was failure to properly manage conflicts of interest. In one example, the chair of a cemetery trust gave grave-digging work to their own private business, failing to recognize this arrangement as a conflict of interest. According to the Ombudsman, “conflicts of interest are poorly understood by many people in public roles.” The Ombudsman recommends all organizations “educate employees, volunteers and contractors about what…

Aug12023 by Connor JamesNo Comments

Building a Compliance Culture: Why It Matters and How to Achieve It

AU Energy Compliance, NT Energy Compliance

A strong compliance culture is essential for any business to operate ethically and efficiently while avoiding legal and regulatory issues. A compliance culture means that compliance with laws, regulations, policies, and ethical standards becomes ingrained in the way a business and its employees think and behave. It ensures that compliance is not just a matter of checking boxes for mandatory training but is fully integrated into the organisation's DNA. There are several key elements required to develop a robust compliance culture: •Leadership commitment: The tone from the top is critical. Senior leaders and managers must believe in the importance of compliance and convey that to the entire organisation through words and actions. They need to lead by example. •Communication: Compliance expectations and the rationale behind them must be clearly communicated…

Jul262023 by Connor JamesNo Comments

Environmental and sustainability claims: Draft guidance for business

AU Energy Compliance, Consumer, NT Energy Compliance

The ACCC recently released draft guidance on environmental and sustainability claims to help businesses understand their obligations under the Australian Consumer Law (ACL) and best practice when making such claims. The draft guidance aims to encourage truthful and accurate claims, decrease instances of ‘greenwashing’, and assist consumers in making informed choices. Principles The ACCC identified eight key principles for businesses to follow when making environmental and sustainability claims: Make accurate and truthful claims: All claims should be factually correct. Even if literally true, they should not create an misleading overall impression. Have evidence to back up your claims: Businesses should ensure they have clear evidence to substantiate any claims made, with independent, scientific evidence being the most credible. As stated in the guidance, “Making the research, evidence, or data that…

Jun222023 by Connor JamesNo Comments

Annual Compliance Reporting Requirements for Energy Retailers in the NT

NT Energy Compliance

The Utilities Commission of the Northern Territory released the Compliance Framework and Reporting Guidelines in February 2016. The guidelines outline the compliance monitoring program and reporting requirements for regulated entities in the NT electricity industry, including energy retailers. According to the guidelines, “A condition of licence is to provide a compliance report to the Commission at reasonable intervals determined by the Commission. The Compliance Report must describe the measures taken by the licensee to ensure compliance with its obligations.” Energy retailers are required to submit an annual compliance report to the Commission by 31 August each year. The annual compliance report must include a declaration of responsibility signed by the Chief Executive Officer and Chairman of the Board of Directors, stating: “We certify that we have made all necessary inquiries…

Jun192023 by Connor JamesNo Comments

Submission: Draft decisions and reasons for proposed changes to the scope and design of the electricity licensing regime

Consultation, NT Energy Compliance

Utilities-Commission-submission-16-June-2023_upload_2Download Compliance Quarter supports the Northern Territory Utilities Commission’s proposal to take a risk-based approach to determining if an activity requires an electricity supply licence or can operate under an exemption. This approach aligns regulation with the potential impacts of an activity and avoids imposing unnecessary obligations and costs. Compliance Quarter agrees with exempting electric vehicle charging stations from licensing requirements. They also support a standing exemption for small energy storage systems to facilitate uptake and benefit consumers. Compliance Quarter submits that power purchase agreements (PPAs) for small-scale solar PV systems and battery storage systems should be exempt from licensing. Their reasons are: PPAs provide a supplemental service as customers retain their grid connection. Electricity supply remains accessible even if PPA supply is curtailed. Exempting PPAs would align with other…

Jan242023 by Pritish Naik SalgaonkarNo Comments

Conduct Risk: A New & Emerging Risk For Energy Businesses

AU Energy Compliance, Financial Services, NT Energy Compliance

What is Conduct Risk Conduct risk refers to the risk that a company's employees, agents, or contractors may engage in behaviour that is inappropriate, unethical, or illegal, and which could lead to harm or damage to the company or its stakeholders. Although there is no official definition, it is usually associated with issues such as how consumers are handled, employee compensation, and how businesses handle conflicts of interest. The Australian Securities & Investment Commission (ASIC) states conduct risk is a risk of improper, unethical, or unlawful activity that may be brought on by intentional acts or unintentional deficiencies in an entity's procedures, framework, or training programs. Conduct risk has become an increasingly important consideration for companies in Australia, as regulatory agencies have become more focused on ensuring that companies operate…

Jan162023 by Connor JamesNo Comments

Resources for existing and aspiring energy retailers: Financial Model

AU Energy Compliance, NT Energy Compliance

Compliance Quarter is excited to announce the first of several new resources available for existing and aspiring energy retailers, including those looking to obtain an energy retailer authorisation. These resources include tools that will help you become compliant and plan for the future. The first such tool we are making available is a financial model. Financial Model for Energy Retailers The financial model is an excel model that includes sensitivity analysis as required by the AER and ESC. Provision is made for fixed costs, taxes, and AEMO prudentials. Assumptions are explained in the model and users can run scenarios based on different input costs. The tool is only available for existing or proposed energy retailers, and is not available for consultants or firms. For a limited time, you can purchase…