Review of the AER’s Network and Retail Exemption Guidelines

Review of the AER’s Network and Retail Exemption Guidelines

AU Energy Compliance
#Embedded #AER On 18 May 2021, the Australian Energy Regulator published a consultation paper concerning a review of the AER's (Retail) Exempt Selling Guideline and Electricity Network Service Provider - Registration Exemption Guidelines. The consultation paper was published as a result of the review commenced in February 2021 into each of those respective guidelines. The stated objectives of the AER's review include to improve the clarity and readability of exemption requirements, to streamline the Network Exemption Guideline and to remove redundancies, to clarify concepts such as own, control, and operate, to introduce new standardised statements where information requirements need to be met, and to improve consistency between the two guidelines. Clearly, this review being conducted by the Australian Energy Regulator is of significant importance to all exempt and authorised retailers…
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AEMC rule and law changes for embedded networks

AEMC rule and law changes for embedded networks

AU Energy Compliance
As noted in previous posts the Australian Energy Markets Commission (AEMC) is working on rule and law changes for the regulation of embedded networks. We now have a new draft timeline- as provided by the AEMC today and set out below: On the draft report, submissions were received from the Australian Energy Regulator (AER), the Public Interest Advocacy Centre (PIAC), and retailers among others. The AER requested that the AEMC consider retaining individual exemptions as part of the retail framework to ensure that there remains flexibility in the regulation of embedded networks. Retailers were, unsurprisingly, supportive of measures to ensure that customers within embedded networks had power of choice. Individual exemptions In retaining individual exemptions, the AEMC proposes to restrict the power of the AER to specify varying conditions on…
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What will happen to ‘legacy embedded networks’ under the AEMC’s proposed rule and law changes

What will happen to ‘legacy embedded networks’ under the AEMC’s proposed rule and law changes

AU Energy Compliance
Tomorrow the Australian Energy Market Commission (AEMC) will hold a stakeholder forum to examine the question of what will happen to 'legacy embedded networks' under the AEMC's proposed rule and law changes. Below we discuss this question. By Connor James, Compliance Quarter. In January the AEMC released its draft report Updating the regulatory frameworks for embedded networks. The report set out proposed amendments to the national energy laws and rules to establish a new regulatory regime to improve consumer protections and access to retail market competition for embedded network customers. We have discussed the report in previous posts. The headline items included the establishment of a new 'type' or retailer holding an off-market retail authorisation and the abolition of the majority of exemptions meaning that all 'new' embedded networks would need to…
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Embedded Networks Framework Update – Further Questions

Embedded Networks Framework Update – Further Questions

AU Energy Compliance
Following our webinar on the topic last week (which you can watch at https://zoom.us/recording/share/jBd95cUmW_4wZ9fGoZMqnXaJEe-kDAaVBhehvD2pp7uwIumekTziMw?startTime=1551409241000)), we had a range of questions. As those questions will be of interest to a wide range of people, we offer our responses here. By Dr Drew Donnelly, Compliance Quarter.  All references are to AEMC’s draft report ‘Updating the regulatory frameworks for embedded networks’ available at https://www.aemc.gov.au/market-reviews-advice/updating-regulatory-frameworks-embedded-networks. We encourage you to make submissions on this report soon as they close on 14 March. Can the embedded network owner or operator pass on the costs of appointing the Embedded Network Service Provider (ENSP) and the Off-Market Retailer? The proposed new framework will require the entities which own and operate new embedded networks to register with the Australian Energy Market Operator (AEMO) as an ENSP and as an…
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Webinar Recording Energy Updates: AEMC taking the axe to Embedded Network Exemptions

AU Energy Compliance
If implemented, the AEMC recommendations will effectively take an axe to the existing regulation of embedded networks - embedded network exemptions - redefining a sector of the energy market that is growing in importance. The changes discussed in this webinar are focused on NECF jurisdictions (NSW, QLD, SA, ACT and TAS). In a webinar to follow we will consider similarly significant changes to be implemented in Victoria following the gazettal of a new section 17 order. View our webinar here. Hosted by Connor James and Anne Wardell Welcome The presentation will run for 25 minutes then we will have a Q & A for 10 minutes after. What is an Embedded Network? • Embedded networks are private electricity networks connected to the distribution and transmission system of the national electricity…
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Strengthening protections for customers requiring life support equipment

Strengthening protections for customers requiring life support equipment

AU Energy Compliance, Uncategorized
Photo by Jair Lázaro on Unsplash By Anne Wardell, Compliance Quarter.  The Australian Energy Market Commission (AEMC) has today released its final rule in relation to the rights which must be provided to life support customers by energy retailers and distributors. The final rule will become effective from 1 February 2019, however, from 1 February 2018 transitional arrangements will apply. The transitional arrangements are: provide the protections in the current life support rules during the transition period (i.e. 1 February 2018 to 1 February 2019) to all existing customers who are registered as having life support equipment, whether they have provided medical confirmation or not; and provide the protections in the current life support rules during the transition period to all new customers who advise a retailer or distributor they…
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Embedded Network Operators take note: A new General Exemption Order in Victoria

Embedded Network Operators take note: A new General Exemption Order in Victoria

AU Energy Compliance
The sale of electricity in Victoria is regulated by the Electricity Industry Act 2000 (VIC).  Sellers must either operate under a licence or an exemption. Most embedded network operators (ENOs) in Victoria operate under a General Exemption Order (‘GEO’) that exempts them from the requirement to hold a licence. On 15 November 2017, a GEO under section 17 of the Electricity Industry Act 2000 (VIC) was published in the Victorian Government Gazette. The new GEO implements recommendations from the Department of Environment, Land, Water and Planning, whose final report was published in August 2017. The new GEO will come into effect from 1 April 2018 (clause 11 will come into effect on 11 July 2018). [caption id="attachment_2716" align="aligncenter" width="640"] Photo by Samuel Zeller on Unsplash[/caption] By Connor James, Compliance Quarter. …
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Taking the Axe to Embedded Network Exemptions

AU Energy Compliance
Yesterday we spoke about the final Australian Energy Market Commission (AEMC) report on the regulation of embedded networks. Recommendations from the report will be considered by COAG and are likely to be implemented mid-to-late next year. Today, we answer Five Key Questions for existing embedded network operators. [caption id="attachment_2700" align="aligncenter" width="640"] Photo by Malte Wingen on Unsplash[/caption] By Anne Wardell and Connor James, Compliance Quarter.  If implemented, the AEMC recommendations will effectively take an axe to the existing regulation of embedded networks, redefining a sector of the energy market that is growing in importance and prevalence. The changes discussed in this article are focused on NECF jurisdictions (NSW, QLD, SA, ACT and Tas). In an article to follow we will consider similarly significant changes to be implemented in Victoria following…
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A poll to pass a resolution not to appoint an Embedded Network Manager– Caravan park operators take note

A poll to pass a resolution not to appoint an Embedded Network Manager– Caravan park operators take note

AU Energy Compliance
The AEMC has made a number of rule changes which come in to force on 1 December 2017. The changes relate to embedded networks and metering arrangements. Two major new roles will be introduced under the rule changes, an Embedded Network Manager (ENM) and a Metering Coordinator (MC). By Anne Wardell, Compliance Quarter.  The regulator has made certain exemptions for caravan parks, holiday parks, residential land lease parks and manufactured home estates (caravan parks). Operators of caravan parks who operate an embedded network will often hold an R4 retail exemption and an NR4 network exemption, both of these exemptions apply specifically to caravan parks. Apart from the current conditions imposed under the exemptions, there are a number of state based Acts which impose restrictions on how much a caravan park…
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New review of regulatory arrangements for embedded networks

New review of regulatory arrangements for embedded networks

AU Energy Compliance
By Anne Wardell, Compliance Quarter On 12 September 2017 the Australian Energy Market Commission (AEMC) released a Draft Report which recommends changes to the regulatory framework for embedded networks. A copy of the Draft Report is available on the AEMC website under Market Reviews: Open: Review of regulatory arrangements for embedded networks. Submissions on the Draft Report must be submitted by 17 October 2017. Although this seems a relatively short period to allow stakeholders to read the Draft Report, which is 140 pages, and make recommendations, the issue of whether there is sufficient regulation of embedded networks has been on the regulator's agenda for some time. A stakeholder workshop was held on 4 October 2017. Significant Changes Ahead The AEMC is of the view that the current regulatory framework for…
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