energy retail Archives

Mar12026 by Connor JamesNo Comments

Embracing the uncertainty of rapid advancement and adoption of general artificial intelligence for energy businesses

Client Updates

The way businesses and professionals interact with artificial intelligence has changed. Over the past two months, we have observed a shift across our client base and the broader regulatory and legal community that goes beyond curiosity or experimentation. Professionals who were previously sceptical are now actively engaging with AI tools. Those who were already experimenting are finding that the tools have become materially more capable than they were even six months ago. The cause is straightforward: AI models have increased in capacity and usefulness at a pace that has caught many off guard. The implications for energy retailers, compliance professionals, and every individual working in a regulated industry are worth examining carefully. AI capability is advancing rapidly and unevenly. The organisations and individuals who experiment safely and strategically now will…

Oct172024 by Connor JamesNo Comments

Australian Energy Market Commission Consultation Paper on real time access to data

AU Energy Compliance

Millions of Australian households and businesses are adopting consumer energy resources (CER) such as solar panels and batteries. The energy landscape in Australia is rapidly evolving, driven by technological advancements, market changes, and the transition to a cleaner energy system. Smart meters play a crucial role in this transition by enabling real-time access to energy usage data, which can help consumers optimise their energy use and reduce costs. However, the AEMC's Review of the regulatory framework for metering services found that access to real-time data is limited, and changes to the regulatory framework may be necessary to ensure all consumers can benefit. Following the Review, Energy Consumers Australia (ECA) submitted a rule change request to improve access to real-time data. This consultation paper seeks stakeholder feedback on the barriers to…

Jun82024 by Connor JamesNo Comments

Avoiding Compliance Atrophy: The Critical Role of Assurance Reviews for Growing Energy Retailers

AU Energy Compliance, NT Energy Compliance

As energy retailers expand their customer base and operations, ensuring ongoing compliance with regulatory obligations can become increasingly challenging. A key risk is "compliance atrophy" - where initially compliant documents, processes and systems slowly deteriorate and waste away over time if not regularly monitored and reviewed. What is compliance atrophy? Compliance atrophy is typically a result of documents, processes and systems being 'updated' or 'reworded' to reflect changes in focus for the business and input from other stakeholders including marketing and sales teams. Oftentimes, a business incorrectly assumes that provided that the original intent is retained, a document, process or system will remain complaint. That is not the case. In energy, and in other industries the regulatory framework is ultra specific in what it tells businesses to do. For example,…

Jun32024 by Jodi DonovanNo Comments

AER payment difficulty framework review

AU Energy Compliance, Compliance, Consultation

The Australian Energy Regulator (AER) is conducting a review of the consumer protections available under the National Energy Customer Framework (NECF) for those experiencing payment difficulties. On 14 May 2024, the AER released an issues paper for consultation. The review is driven by the commitment in Action 8 of the ‘Towards Energy Equity’ strategy in which the AER committed to considering whether improvements could be made to the NECF to ensure that consumers experiencing payment difficulties are identified early, engaged proactively, and provided with assistance tailored to their individual needs. Currently, the NECF offers various protections for consumers facing payment difficulties through regulatory instruments such as the National Energy Retail Law (NERL), National Energy Retail Rules (NERR), National Energy Retail Regulations, and the AER Customer Hardship Policy Guideline. These protections…

Oct262023 by Connor JamesNo Comments

Navigating Energy Regulation: Best Practices for Effective Communication

AU Energy Compliance, NT Energy Compliance

Energy retailers operate in a dynamic and highly regulated environment so dealing with energy regulators is an inevitable aspect of this business. To maintain a healthy and compliant relationship with energy regulators, there are some key principles to keep in mind. Be Succinct When communicating with energy regulators, less can often be more. Energy retailers should strive for succinctness because providing excessive information increases the risk of regulators raising further questions on other areas of the business not previously in the spotlight. By offering precisely what's requested and nothing more, retailers minimise the chances of inadvertently highlighting furtherissues. When responding to requests for information, provide the regulators with precisely what they have asked for and ensure your response is directly relevant to their inquiry. Address any specific questions asked without…

Jul102023 by Connor JamesNo Comments

ACCC Insights on Electricity Bills and Affordability

AU Energy Compliance

The ACCC's latest report on its Inquiry into the National Electricity Market provides unique insights into the electricity bills faced by customers across New South Wales, South Australia, South East Queensland, and Victoria. The ACCC’s findings demonstrate how different energy plans, tariffs and contracts can impact consumers’ bills. The report found electricity prices have increased for most residential and small business customers over the past year, though the full impact of higher wholesale costs experienced in 2022 will continue flowing through to bills over time. According to the ACCC, “Changes in retailers’ costs take time to flow through to retail prices and, even more belatedly, actual billing outcomes experienced by consumers.” Higher wholesale costs are the main driver of price increases. The ACCC noted “wholesale electricity costs are an important…

Jun252023 by Connor JamesNo Comments

Clare Savage Outlines AER’s Consumer Protection Priorities Through Australia’s Energy Transition

AU Energy Compliance

Australian Energy Regulator (AER) Chair Clare Savage recently outlined the regulator’s consumer protection priorities for 2023-2024 during her address at the 2023 Australian Energy Week conference. Savage acknowledged the challenging times facing the energy sector with the twin themes of the accelerating energy transition and increasing cost of living pressures affecting consumers. Savage emphasised the AER’s role in protecting consumers through compliance and enforcement actions against energy companies that fail to meet their obligations. Savage noted that maximum penalties for breaching energy laws have increased substantially, with the largest penalty imposed in 2022 totalling $17 million compared to $1.5 million previously. Over the past two years, total AER issued penalties have amounted to over $39 million, a significant increase from just $3.5 million over the previous 14 years. According to…

Apr162023 by Connor JamesNo Comments

Empowering Change: New Obligations for Energy Retailers to Support Customers Affected by Family Violence

Consultation

As of May 1, 2023, significant changes to the National Energy Retail Rules will come into effect, placing new obligations on energy retailers to better support customers impacted by family violence. This landmark rule change, spearheaded by the Australian Energy Market Commission, aims to protect residential and small business customers from the exploitation of essential services by perpetrators. In response to these amendments, the Australian Energy Regulator (AER) has released an interim guidance note detailing their expectations for retailers' adherence to the new family violence provisions. This article explores the key messages from the AER's guidelines, such as customer identification, safety and risk considerations, staff training, and the necessary steps for compliance. As the energy sector navigates these transformative changes, our team stands ready to provide assistance in reviewing and…

Nov302022 by Connor JamesNo Comments

Consumers: front and centre of energy regulation

AU Energy Compliance

As the energy market continues to evolve and the ways in which energy is produced, stored, shared and consumed become ever more complex, it is essential that consumers remain front and centre of energy regulation. It is vital that consumers are aware of the changing landscape and their rights and responsibilities when it comes to energy use. The traditional energy market is being transformed as new technologies, such as solar panels and battery storage, become more widely used. This has resulted in a decentralisation of energy production, with consumers able to produce, store and sell energy independently. This decentralisation has led to an increase in the number of small-scale energy producers, such as households and businesses, producing and selling their own energy. While once upon a time consumers were simply…

Nov182022 by Connor JamesNo Comments

AER releases latest Wholesale Markets Quarterly

AU Energy Compliance

The Australian Energy Regulator (AER) has published its latest wholesale markets quarterly report that looks at the wholesale gas and electricity markets in the period from July to September 2022. During the relevant period, gas and electricity prices continued to fluctuate and remained high compared to previous years. Gas and electricity prices halved in August from record levels in July but have remained consistently high. In June and July, higher winter demand at the time of acute tightening of gas and electricity supply drove wholesale energy prices to record levels. At the same time international: gas prices climbed sharply and the Iona southern gas storage dropped to record low levels. That scarcity of gas influenced by domestic gas and electricity prices. Exacerbating the situation, a number of coal plants experienced…