electricity retail Archives

Nov242021 by Cedric von DueringNo Comments

Time to understand “Ring-fencing”

On 3 November 2021, The Australian Energy Regulator (AER) concluded and published a revision of the Ring-fencing Guideline. Parties are expected to be fully compliant with the updated Guideline (version 3) by 3 February 2022. The Ring-fencing Guideline was revised to establish a framework and controls for a competitive market for deploying community-scale batteries and Stand-Alone Power Systems (SAPS). By separating monopoly network services and avoiding cross-subsidisation of large Distributed Network Service Provider (DNSP), the AER seeks to make energy services more competitive and beneficial for customers. What is Ring-fencing? Ring-fencing describes the division of regulated services (eg. installation/maintenance of poles and wires) and contestable services (eg. installation of smart meters) provided by DNSPs. Thus, the Ring-fencing Guideline regulates to what extent the DNSPs can provide regulated services and when…

Sep212021 by Cedric von DueringNo Comments

ESC Review of the Payment Difficulty Framework

AU Energy Compliance

In January 2019, the payment difficulty framework commenced in Victoria to ensure that disconnection for non-payment is a last resort and that vulnerable customers are supported to pay for their energy usage. After two years of operation, the payment difficulty framework remains the most stringent customer protection framework in the country and has been considered a success by the Essential Services Commission (ESC). Now the ESC has commenced a review to evaluate and assess the operation of the framework in meeting its objective. The ESC does not intend for the review to result in significant reforms to code obligations or to revisit the underlying rationale of the framework. Rather, the ESC seeks to provide more actionable guidance on the framework. The aim of the review is to: Identify issues with…

Jan162020 by Connor JamesNo Comments

Increased Retailer Reporting and the CDR in NSW

AU Energy Compliance

At the end of December 2019, the Independent Pricing and Regulatory Tribunal NSW (IPART) released its final report on its Review of the Performance and Competitiveness of the NSW Retail Electricity Market for 2018-2019 (Report). We previously provided an update upon the release of the interim report here. The Report found that smaller retailers have continued to increase market share and that prices fell for those customers engaged in the market. IPART also made three recommendations to the Minister for implementation in NSW going forward. These recommendations are aligned with two significant changes in the energy sector in 2020: i) the Consumer Data Right; and ii) increased price regulation and financial reporting. Recommendation 1: Interval meter data on comparison sites IPART recommended that: “Energy Made Easy and NSW Energy Switch…

Apr272018 by Connor JamesNo Comments

Important changes to Retail Pricing Information Guidelines

AU Energy Compliance

By Anne Wardell, Compliance Quarter. The Australian Energy Regulator (AER) has released new Retail Pricing Information Guidelines (the new Guidelines) which commence on 31 August 2018. Although the new Guidelines commence on 31 August 2018, not all of the new requirements will commence on that date. The AER is of the view that the changes will take time to implement and has therefore introduced a series of stages for implementation. The important dates for the stage implementation are: Source: new Guidelines at pp 5-6 A number of key changes have been introduced in the new Guidelines including the replacement of the Energy Price Fact Sheet. The key changes to the Guidelines include: replacing the requirement for retailers to provide an Energy Price Fact Sheet with a requirement that each energy plan have two…

Jun212017 by Connor JamesNo Comments

Exempt Sellers: the Requirement to hold an Electricity Retail Authorisation or exemption

AU Energy Compliance

By Anne Wardell and Connor James, Compliance Quarter. A variety of businesses are involved in the sale of energy. These businesses include caravan parks, building managers, shopping centres, office buildings, airports, industrial parks and solar power providers. Below we look at when an electricity retail authorisation is required and when a person or business can operate under an exemption. Energy sellers in the Eastern States of Australia must either operate under licence or an exemption. The sale of energy, under the Retail Law, includes the sale of energy at cost, i.e. without profit. Our previous articles look at some of the changes proposed in this area. National Energy Consumer Framework The Eastern States (except Victoria) are governed by the National Energy Retail Rules (‘Retail Rules’) and National Energy Retail Law…

Jun152017 by Connor JamesNo Comments

Embedded Networks Under the Spotlight

AU Energy Compliance

By Connor James, Compliance Quarter. The Australian Energy Market Commission (AEMC) is reviewing the regulatory arrangements for embedded networks. Embedded networks operate in a unique space from the regulatory perspective. Common examples of embedded networks include shopping centres, retirement villages, apartment complexes and caravan parks. Embedded networks are also found in commercial buildings. Below we discuss the AEMC review and the broad regulatory challenges with embedded networks. What is an embedded network? Embedded networks are private electricity networks connected to the distribution and transmission system of the national electricity market through a parent connection point (gate meter). Consumers within embedded networks are typically individually metered and sold electricity from the ENO. ENOs own network infrastructure and on-sell electricity from the gate meter within the embedded network to the occupants. There…