Modernising Electricity Regulation: The AES Framework and Embedded Networks in Western Australia

Modernising Electricity Regulation: The AES Framework and Embedded Networks in Western Australia

Embedded Networks, WA Energy Compliance
Background The existing licensing framework overseeing the sale and supply of electricity in Western Australia (WA) has struggled to adapt to the rapid expansion of emerging and atypical electricity business models in recent years. To address this, in 2019, the then Minister for Energy commissioned Energy Policy WA to assess the regulatory framework in Western Australia. In 2020, Energy Policy WA initiated consultations on a proposed regulatory framework for various categories of 'alternative electricity services' called the Alternative Electricity Services (AES) registration framework. This framework aims to apply customer protection obligations to persons providing electricity services through atypical business models not covered by the existing licensing framework, or where the current framework is deemed inadequate. Legislative amendments to the Electricity Industry Act 2004 (WA) to give effect to the AES…
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Voluntary Embedded Network Code of Practice – Western Australia (WA)

Voluntary Embedded Network Code of Practice – Western Australia (WA)

WA Energy Compliance
Background The Voluntary Embedded Network Code of Practice (the Code) was developed by Energy Policy WA, responsible for developing the policy and regulatory framework for the electricity sector in Western Australia. This Code aims to provide similar customer protections and service standards to embedded network customers as those supplied by licensed electricity retailers in Western Australia. During the initial voluntary period of 6 months (with possible extension), learnings from this Code will help inform the development of a mandatory code of practice for alternative electricity services (AES), which may apply to embedded network sellers and other emerging business models that fall outside the licensing framework. The AES framework is expected to be implemented in late 2024 or early 2025. The decision paper outlines feedback received from key stakeholders during the…
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Understanding Power Purchase Agreements in Western Australia: Exemptions, Conditions, and Obligations

Understanding Power Purchase Agreements in Western Australia: Exemptions, Conditions, and Obligations

Compliance, WA Energy Compliance
Introduction Solar Power Purchase Agreements (PPAs) have become increasingly popular in Western Australia (WA) as a means of accessing solar power. These agreements involve a supplier installing and maintaining a solar power system at a customer's premises at no up-front cost to the customer. In exchange, the customer agrees to purchase the energy generated by the system from the supplier over an agreed period at an agreed rate. The unique nature of these agreements, however, calls for a distinct regulatory framework. This article delves into the specifics of PPAs in WA, focusing on the available retail licence exemptions, the conditions tied to these exemptions, and the obligations for reporting and disclosure. Retail Licence Exemptions for Solar PPAs In August 2016, the Minister for Energy approved a licence exemption framework for…
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