EWON expanded jurisdiction and new fee structure

Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on facebook
Facebook

The Energy and Water Ombudsman of NSW (EWON) has announced changes to its Constitution and a new funding model. This follows an extensive review conducted by EWON in response to the requirement for Exempt Entities to become members of EWON. In this article, we look at the changes including expanded jurisdiction and a new fee structure.

Old Register EWON expanded jurisdiction

By Anne Wardell, Regulatory Specialist, Compliance Quarter.

Photo by Ramiro Mendes on Unsplash

KPMG Final Report

As part of the review, EWON commissioned KPMG to assist and review proposed models. On 9 May 2018, KPMG released its Final report: KPMG’s Final report on membership model, fees, voting rights and Board composition (the Report). The Report considered the following issues:
• Membership model;
• Fee structure;
• Member voting rights; and
• Board composition.
The Report includes the following summary:

EWON expanded jurisdiction summary of key themes

The Report also includes the following useful summary:

EWON expanded jurisdiction summary of final options

The new Funding Model

EWON expanded jurisdiction fees tables

As you can see the new Funding Model has been designed to accommodate the types of exempt entities which have smaller customer numbers than the large energy retailers.
The EWON Board has also delegated the discretion to the Ombudsman, Janine Young, to recommend to the Board that some new exempt entity members are offered a varied fee or a payment plan in appropriate circumstances. This will be assessed on a case by case basis.

Amended Constitution

At an Extraordinary General Meeting on 7 June 2018, EWON’s members voted to approve the necessary changes to EWON’s Constitution to enable exempt entities to join EWON.  The Constitutional amendments include the following:

  • changes to the voting rights of members;
  • composition of Industry Directors on the Board; and
  • director tenure.

EWON will continue to have a Board consisting of five Directors representing consumer interests, five Directors representing industry directors and an independent Chair.

The Ombudsman will also establish an operational advisory group comprised of representatives of Exempt Entities and WICA (Water Industry Competition Act 2006 (NSW)) Providers. The first meeting of this group is scheduled for 31 July 2018.  If you would like to attend the meeting, please contact Stephanie Saill, Manager Governance on 02 8218 5257 or by email to stephanies@ewon.com.au.

In relation to voting rights, Clause 9.7 provides that each member present at the General Meeting is entitled to cast that number of votes which is equal to the midpoint of the Customer Bandwidth into which the Member falls.

In relation to Industry Directors, Clause 10.10 provides as follows:

The Industry Directors must comprise:

a) two directors who were nominated by a Member in the energy retail sector;

b) one director who was nominated by a Member in the energy network sector;

c) one director who was nominated by a Member in the water sector; and

d) one director nominated by a Member in accordance with Clause 10.16(b).

Clause 10.16(b) provides for invitations to nominate candidates to be sent to various members in the event of a vacancy.

Further information is available on the EWON website at EWON Expanded Jursidiction Final Report.

Please contact the Compliance Quarter team by clicking here if you’d like to know more or have any questions for us.

More to explorer

Technicians installing photovoltaic solar panels on roof of house.

Compliance Quarter’s Submission to the AER’s Review of the Compliance Procedures and Guidelines

On 11 April 2024, Compliance Quarter put forward its submission on proposed changes to the AER Compliance Procedures and Guidelines. The AER is reviewing its Compliance procedures and guidelines, which set out the manner and form in which energy businesses in jurisdictions that have adopted the National Energy Retail Law must submit compliance information and data to the AER. We argue that there should be consideration of measures to incentivise early reporting of potential breaches. These may, for example, take the

person wearing foo dog costume

Obligations of Energy Retailers Regarding Best Offer Information

Energy retailers in Victoria have specific obligations under the Energy Retail Code of Practice to provide clear information to customers about their ‘best offer’ – that is, the plan that would minimize the customer‘s energy costs based on their usage history. The objective is to ensure small customers can easily understand whether they are on the retailer‘s best plan for them and how to access the retailer‘s best offer if not. One of the significant challenges in the energy sector (as in banking and elsewhere) is that customers

low angle photo of sydney opera house australia

Guide to the National Energy Retail Rules

The National Energy Retail Rules (NERR) are a set of rules that govern the sale and supply of electricity and gas by retailers to consumers in Australia, alongside the related National Energy Retail Law (NERL). The NERR came into effect on 1 July 2012 in Tasmania, the Australian Capital Territory, and the Commonwealth. South Australia followed on 1 February 2013, New South Wales on 1 July 2013, and Queensland on 1 July 2015. The NERR do not yet apply in

Leave a Reply

Your email address will not be published. Required fields are marked *