Jul262023 by Connor JamesNo Comments
AER Releases Annual Compliance and Enforcement Report: Focus on Supporting Vulnerable Customers and Efficient Energy Markets

AER Releases Annual Compliance and Enforcement Report: Focus on Supporting Vulnerable Customers and Efficient Energy Markets

AU Energy Compliance
The Australian Energy Regulator (AER) recently released its Annual Compliance and Enforcement Report for 2022–23, outlining its activities over the past year to monitor and enforce compliance with Australia’s national energy laws and rules. A key focus has been on supporting vulnerable customers, including those experiencing financial hardship. The AER has also acted to support the efficient operation of competitive energy markets through monitoring compliance of generators, gas pipelines and retailers. In the report the AER note that “Compliance with national energy laws gives consumers and energy market participants confidence that energy markets are working effectively and in their long-term interests.” The AER set five compliance priorities for 2022–23, focusing on consumers, wholesale electricity and gas markets. Supporting Consumers Experiencing Vulnerability A top priority was effective identification of residential customers…
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Jun272023 by Connor JamesNo Comments
Key points from Executive Board Member Geoff Summerhayes’ speech to the Financial Services Assurance Forum- Lessons for Energy Sellers

Key points from Executive Board Member Geoff Summerhayes’ speech to the Financial Services Assurance Forum- Lessons for Energy Sellers

AU Energy Compliance
Cyber threats are accelerating and evolving rapidly. The COVID-19 pandemic has led to a surge in online activity and remote working, providing more opportunities for cyber criminals to attack. Boards and internal audit functions often lack understanding and expertise in cyber security, leaving organisations vulnerable. To address this, APRA has released a new Cyber Security Strategy for 2020 to 2024. It aims to: Establish a baseline of cyber controls including information sharing and incident response. The goal is to address basic cyber hygiene issues, foster collaboration, and ensure organisations are prepared for breaches. Enable boards and executives to properly oversee cyber risks. APRA will provide guidance and increase scrutiny of cyber governance. Boards need to understand cyber risks and take action. Internal audit functions also need to strengthen their cyber…
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Mar252023 by Pritish Naik SalgaonkarNo Comments
<strong>Embedded Network Action Plan – New South Wales</strong>

Embedded Network Action Plan – New South Wales

AU Energy Compliance, Consultation
The Embedded Network Action Plan sets expectations for embedded network operators to better engage with their customers. This comes after reviews and inquiries found that some customers of embedded networks face poor outcomes due to gaps in the current regulatory framework. The NSW Government Embedded Network Action Plan aims to provide equitable consumer and price protections for customers of embedded networks. The plan outlines immediate and medium-term actions to improve outcomes for these customers. Immediate actions: Introduce a maximum price for energy sold to customers of hot and chilled water embedded networks and gas embedded networks to protect against unreasonably high prices. Release a Ministerial Statement of Expectations (see below) Medium-term actions: Implement policy updates to strengthen consumer protections for hot and chilled water embedded network users. Broaden the Energy…
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Mar252023 by Connor JamesNo Comments
IPART review into Embedded Networks in NSW

IPART review into Embedded Networks in NSW

AU Energy Compliance, Embedded Networks
The Independent Pricing and Regulatory Tribunal (IPART) has been requested by the Hon. Victor Dominello MP, Minister for Customer Service, to investigate and report on embedded network issues in New South Wales (NSW). Embedded networks are private energy networks that serve multiple customers and are connected to another distribution or transmission system in the national grid. They are typically found in residential developments, shopping centers, caravan parks, and other lend lease communities. The investigation aims to address regulatory gaps in customer protection frameworks and ensure fair pricing for customers in embedded networks. Proposed Changes and Impact on Businesses: IPART will develop appropriate methodologies for setting maximum prices for hot and chilled water supplied through embedded networks. The possibility of prohibiting new embedded networks for hot and chilled water in NSW…
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Oct122022 by Connor JamesNo Comments
Our submission to Ausgrid’s Draft Plan 2024-2029

Our submission to Ausgrid’s Draft Plan 2024-2029

AU Energy Compliance, Embedded Networks
NSW distributor Ausgrid is proposing, in its draft plan 2024-2029, to introduce new embedded network tariffs that would have the effect of increasing network costs by approximately 30%. The reasons that Ausgrid advance for the proposed EN Tariffs centre around the nebulous concepts of equity and fairness to other network users. When comparing the electricity market today to the electricity market in April or May 2022, we see that there are fewer market offers available for consumers, higher prices on most market offers, and fewer retailers (with 8 retailers entering the Retailer of Last Resort scheme since 1 May 2022). Against this background, a proposal to introduce EN Tariffs that would result in a ~30% increase in network charges (Ausgrid’s Pricing Directions Paper for 2024-2029 para 4.4.3), needs to be…
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Jul272022 by Connor JamesNo Comments
Victoria ‘makes good’ on its promise to ban embedded network, or does it?

Victoria ‘makes good’ on its promise to ban embedded network, or does it?

AU Energy Compliance
Summary Yesterday it was announced that the Victorian state government had 'made good' on its election promise to ban embedded networks. State minister for energy Lily D’Ambrosio said that from January 2023 embedded networks would be banned unless they 'ran' on 100% renewable energy.  We’re banning embedded networks because all Victorians deserve to get the same competitive energy deals and have the same protections, driving down the cost of living when people need it most, said D’Ambrosio. The recent announcement comes in response to a report from an expert panel. Government response The government’s response and position with respect to the expert panel’s final report can be viewed here: https://engage.vic.gov.au/embedded-networks-review Below we examine some of the most important points. Renewable energy condition The government will amend the General Exemption Order…
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Jul192022 by Connor JamesNo Comments
The new Retail Exempt Selling Guideline

The new Retail Exempt Selling Guideline

AU Energy Compliance
The Australian Energy Regulator (AER) has published the Retail Exempt Selling Guideline (Version 6). The Guideline includes a copy of newly established documents: A factsheet: how to access an authorised retailer of your choice if you live in an embedded network; andExempt Seller Hardship Policy template. The new Retail Exempt Seller Guideline should be reviewed in detailed by all exempt sellers operating in NECF jurisdiction which includes NSW, QLD, ACT, TAS and SA. The Guideline was developed as part of the AER’s review into the Retail and Network Exemption Guidelines. The AER has decided to defer release of the draft Network Service Exemption Guideline (Version 7) while further changes are made to streamline and simplify the document. It is anticipated that the revised Network Service Provider Exemption Guideline will be…
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Jul12022 by Connor JamesNo Comments
2022-2023 Compliance and Enforcement Priorities of the AER

2022-2023 Compliance and Enforcement Priorities of the AER

AU Energy Compliance
The Australian Energy Regulator (AER) 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. Customers who are facing financial difficulties The AER's focus on vulnerable consumers is understandable with market conditions expected to result in higher energy costs for consumers who are already facing higher costs of living. The AER notes that: We continue to closely monitor data on consumers facing financial difficulties, including debt levels, the number of consumers on payment plans and hardship programs, and the successful completion of those plans and programs. We remain concerned by the average debt per customer upon entry into hardship programs, and the number of…
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