2022-2023 Compliance and Enforcement Priorities of the AER
The Australian Energy Regulator has published its 2022-2023 Compliance and Enforcement Priorities. The AER will continue to focus its compliance and enforcement activities on how retailers assist customers who are facing financial difficulties and those who are within embedded networks.
Who claims and who pays: the administered price cap (APC) compensation process
The APC compensation scheme allows certain entities to claim compensation via AEMO and the AEMC where their total costs exceed their total revenue from the spot market over an eligible period. Entities that may be entitled to claim include scheduled and non-scheduled generators, scheduled network service providers, market participants in respect of a scheduled load, demand response service providers and ancillary service providers.
NSW Energy Minister granted emergency powers to direct coal to fuel electricity generators
The NSW Energy Minister, Matt Kean, has been granted emergency powers under the Essential Services Act 1988 to direct coal companies to provide coal to generators. These powers were granted in response to the current energy market crisis.
We haven’t been publishing much about the current energy market crisis as we, like many in the industry, have been in the thick of it. However, from today, we will publish analysis of the regulatory responses of AEMO and state Governments. So, what do the powers allow the Minister to do and do they have any teeth?
Unaccounted for Energy (UFE) Rule Change: Global Settlement
The Australian Energy Market Commission (AEMC) has implemented a new rule which commenced (after delay) on 1 May 2022. The new rule relates to a change in the current market settlement framework. The rule changes the framework from the previous framework of ‘settlement by difference’ to a ‘global settlement’ framework.
Increase to cap on discounts for paying energy bills on time (Victoria)
The Essential Services Commission has increased the amount energy retailers can charge Victorian customers who do not make their payment on time to 5.71 per cent. The cap applies to ‘pay-on-time’ discounts that are conditional upon the customer paying a bill on or before the pay-by date.
The Essential Services Commission’s review into how Victorian energy retailers are implementing the payment difficulty framework
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.