NZ Energy Compliance Archives

Jan122021 by Connor JamesNo Comments

Spot the difference: Legal vs Compliance

AU Energy Compliance, Building and Construction, Consumer, Financial Services, NZ Energy Compliance

Many large businesses have both in-house legal teams and compliance teams. What is the difference between the two and how do you know if you need a legal or a compliance professional? The role of an in-house legal team Of the two, the role of an in-house lawyer is probably more easily defined. Their role involves managing legal risk and providing legal services that support business growth. On a day-to-day basis, this includes reviewing contracts, interpreting the law, managing disputes and litigation, managing employment law matters, and providing legal advice on areas such as privacy law. In-house legal teams are staffed by qualified lawyers and are typically supported by external law firms engaged on panels. Having an in-house lawyer can be a very good investment for a business seeking to…

Jan112021 by Connor JamesNo Comments

Are You putting Your Business at Risk with inadequate Compliance Controls?

AU Energy Compliance, Building and Construction, Consumer, Financial Services, NZ Energy Compliance

History is littered with spectacular compliance failures; from Eron to WorldCom and the shocking findings of Australia's recent Banking Royal Commission. And yet, we can expect more compliance failures to come. Which begs the two questions- why is that and what can be done about it? In reality, compliance is often seen as an afterthought by business leaders and founders. While founders want to grow innovative and successful businesses, the truth is that a founder’s first priority should be not just building a great company, but on building a great company that can last. Compliance is Critical to the Longevity of a Business While regulation and compliance don't exactly scream "sexy," they are crucial to the longevity of a business [for an interesting article on how to make compliance more…

Aug22018 by Connor JamesNo Comments

How do I work out my compliance spend?

AU Energy Compliance, Financial Services, NZ Energy Compliance

In the just released final report of the Australian Competition & Consumer Commission (ACCC) retail electricity pricing inquiry[1], energy retailers identified the rising cost of regulatory compliance as a major concern.[2] Furthermore, rising compliance costs are not just a challenge for the energy sector. In 2014 Deloitte estimated that the total cost of compliance for Australian businesses was $250 billion every year.[3] This raises the question; what kinds of things must I consider when calculating my compliance spend as an energy business in Australia? By Dr Drew Donnelly, Compliance Quarter. Compliance Costs in General Unfortunately, there are no publicised benchmarks for compliance spend for individual energy businesses. This is likely because, in part, compliance spend is often not captured by a distinct line in the budget. Even when a business…

May82018 by Alex SilcockNo Comments

Electricity charges in lease agreements: competing interpretations

Consumer, NZ Energy Compliance

A recent judgment handed down by the High Court of New Zealand highlights the need for exercising extreme care when drafting and reviewing lease agreements. Volumex Nominees Limited V The Attorney-General [2018] NZHC 647 concerned an agreement between landlord and tenant in a seven-story building in New Plymouth. The dispute was about the amount of electricity charges to be paid by the tenant. We take a look at electricity charges in lease agreements. Photo by chuttersnap on Unsplash By Alex Silcock, Compliance Quarter Electricity charges in lease agreements - Background: The case was brought before the court in an application for summary dismissal. Associate Judge Johnston, at the beginning of his reasons, noted that ‘at the heart of this case is a humble comma’. The particular clause that provided for the payment of…

May82018 by Connor JamesNo Comments

Victoria, other Eastern States and New Zealand: What are the different processes for becoming an Electricity Retailer?

AU Energy Compliance, NZ Energy Compliance

Here at Compliance Quarter, a key focus of ours is supporting Australian energy retailers with licensing, authorisation and general compliance processes.[1] However, we also offer compliance support for energy retailers in other countries and jurisdictions such as California[2] and New Zealand.[3] For any Australian retailers who are considering expanding into another state or into New Zealand, it is essential to understand the similarities and differences in retail regulation across jurisdictions. In today’s article, we look at the different retail regulatory regimes and application processes across Victoria, the other southern and eastern states and New Zealand. By Dr Drew Donnnelly, Compliance Quarter Electricity Retailers in the Eastern and Southern States (sans Victoria) A unified electricity retail authorisation process applies across New South Wales (NSW), South Australia (SA), Queensland, Tasmania and the…

May52018 by Connor JamesNo Comments

Six Questions Every Director Should Be Asking About Compliance

AU Energy Compliance, Building and Construction, Consumer, Financial Services, NZ Energy Compliance

The obligation to ensure adherence to general and specific laws applying to your company’s operations is at the heart of your responsibilities as a company director – both under the Corporations Act 2001 (Cth) and at common law. The most recent set of hearings before the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Royal Commission) are a sage reminder of the need for organisations (of all sizes) to reflect on how they are managing issues of governance and compliance within their business. You can follow some of our previous coverage of the Royal Commission here (https://www.compliancequarter.com.au/three-financial-services-compliance-lessons-from-the-royal-commission/#_ftn1). By The consequences of failing to meet your obligations as a director can potentially expose the organisation to actions by shareholders, along with civil penalty enforcement action by the…

Apr132018 by Connor JamesNo Comments

The rules for owning or operating an embedded network in New Zealand

NZ Energy Compliance

We have spent a lot of time recently discussing embedded networks and, in particular, the ‘power of choice’ and embedded network manager reforms.[1] We also recently discussed the permissive regulatory environment in New Zealand for electricity retail.[2] Assessing the regulatory environment in New Zealand for ‘Secondary Networks’ (the New Zealand equivalent of Australian embedded networks) is more complex. [caption id="attachment_4099" align="aligncenter" width="640"] Photo by Tim Swaan on Unsplash[/caption] By Dr Drew Donnelly, Compliance Quarter. Today we look at the key rules for owning or operating an embedded network in New Zealand with an emphasis on the differences between the Australian and New Zealand contexts. The definition of secondary networks. A Secondary Network is defined as any network that is connected to a local distribution network rather than directly to the…