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On 31 May 2022, the ESC published its findings of a review into how Victorian energy retailers are implementing the payment difficulty framework. The payment difficulty framework requires retailers to assist Victorians struggling to pay their energy bills. This includes helping consumers stay on top of bills by adjusting payment amounts and frequency, offering payment plans to manage missed bills or ongoing energy usage and providing advice on how to manage energy usage or apply for utility relief grants and concessions.  The review noted some positive findings. Since the framework came into effect in 2019, more customers have received tailored assistance compared to past retailer hardship programs. More customers are receiving more appropriate assistance, and there have been fewer disconnections for non-payment. But of those customers that were disconnected, over…

On 11 January 2022, the expert panel appointed by the Victorian Government to review the policy position of banning embedded networks in residential apartment buildings published its final report. The recommendations, if implemented, will have a significant impact on embedded network operators in Victoria. The report sets out the panel’s recommendations for implementing a ban and further considers how the ban should apply to, or rather what changes should be made to the regulation of, legacy (existing) embedded networks. Consultation process This final report follows extensive consultation. In January 2021, the expert panel published an issues paper and, in response, received 133 submissions. The panel then held two online sessions. The expert panel published a draft recommendations report in June 2021 outlining proposed recommendations to implement the ban. The expert…

A report published by the AER highlights the range of enforcement activities undertaken during 2020-21 and serves as a clear warning to energy retailers of the importance of ensuring compliance with the Rules and Laws. Source: AER's Annual compliance and enforcement report 2020-21 The AER has highlighted actions relating to failures by energy retailers in areas including wrongful disconnection, failure to provide life support protections to vulnerable customers, and failure to meet timeframes for installing and repairing meters used to calculate customers’ energy bills. Highlights from the report include energy businesses paying a total of $3.8 Million in civil penalties as part of resolutions to litigation commenced by the AER and a further $960,000 being paid in infringement notices for alleged breaches of the Laws. Source: AER's Annual compliance and…

In a recent article, we summarised the findings of the Expert Panel in the Victorian Embedded Networks Review Draft Recommendations Report (Report). The implementation of the Panel’s recommendations would see the end of ‘embedded networks’ by 2023. However, subject to certain conditions, ‘private networks’ will remain. Below, we highlight the key components of the Report for embedded network operators in Victoria. It is clear from the Report that embedded networks will not be ‘banned’, rather they will be re-named ‘private networks’ and subject to stricter regulation. Residential vs Commercial The Panel’s recommendations would apply to residential embedded networks only. The likely reason for this is that the election promise on which this review was based, referred only to embedded networks in residential apartment buildings. In respect of commercial or industrial…

In October 2018, the Victorian Government announced an election commitment to ban embedded networks in new residential developments in Victoria. Since that time little has been publicly said about the proposed ban and, presumably, industry has lobbied the relevant ministers to highlight benefits of embedded networks and the impact of a ban on consumers and the industry. The election commitment was not forgotten however and the Victorian Government appointed an Expert Panel whose work consists of reviewing the options available as a policy response and advising the Government accordingly. The Victorian Government has also since opened up a consultation on the election promise - which they now say included appropriate 'exemptions for buildings that use renewable energy microgrids to deliver low-cost renewable energy to apartment buildings.' The consultation includes an…

On 28 October 2020, we presented a webinar on the Victorian embedded network regulatory regime and changes under consideration. The webinar was recorded and you can watch it on-demand here by registering at this link: https://us02web.zoom.us/webinar/register/WN_G9mMl-BLQKmCohS27IBh1Q If you would like to learn more about embedded networks in Victoria, please get in touch.