Webinar – The Keys to Regulation for Embedded Networks

Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on facebook
Facebook

In this webinar, lawyer and regulatory energy expert Alex Silcock provides a review of regulatory arrangements for embedded networks titled “The Keys to Regulations for Embedded Networks” including key takeaways for Embedded Network Operators, Exempt Sellers and On-Market and Off-Market Retailers. The Keys to Regulations for Embedded Networks

The Compliance Quarter team is dedicated to providing excellent service to our clients across the energy sector and this includes insight into current and potential future regulation within the industry. If you have any questions about embedded networks or the sector in general, please do not hesitate to contact us.

Below you can view a video of the webinar along with the presentation slides and a full transcript.

Background and Current Regulatory Framework

  • Definition of Embedded Network
  • Consumer Protection
  • Benefits of Embedded Networks
  • The Power of Choice

Timeline of Regulatory Change

  • November 2012 – Power of Choice Review.
  • November 2017 – Final Report on Review of Regulatory Arrangements in Embedded Networks.
  • 2019-2020 – Recommendations from the Final Report implemented
  • December 2015 – Changes to the National Electricity Rules to implement the Power of choice.
  • December 2017 – Final Power of Choice Rules come into effect.

Elevation of Embedded Networks into the National Framework

Owning, controlling or operating a distribution system (NEL)

  • Register with AEMO as a network service provider
  • Exemption from registration as network service provider.

Selling energy (NERL)

  • Authorisation as a retailer from AER.
  • Exemption from authorisation as a retailer.

Owning, controlling or operating a distribution system (NEL)

  • Register with AEMO as a network service provider.
  • Registration with AEMO as a registered embedded network service provider.
  • Exemption from registration as network service provider – limited circumstance.

Selling energy (NERL)

  • Authorisation as a retailer from AER
  • Authorisation as an on-selling retailer from AER – additional flexibility.
  • Exemption from authorisation as a retailer – limited circumstances.

AEMC Review of regulatory arrangements for emebedded networks 2017

Changes for Sellers in new Embedded Networks

‘Any party who sells energy to a consumer in an embedded network to hold a retailer authorisation from the AER or be exempted by the AER from holding a retailer authorisation according to a narrow set of circumstances’.

Heightened consumer protection requirements and compliance obligations.

Metering responsibilities and compulsory Embedded Network Manager appointments.

Provision of information on costs, benefits and risks to Embedded Network customers prior to entry into retail contracts.

Changes for Network Operators in new Embedded Networks

‘the registration of embedded network service providers with AEMO should be required unless exempted by the AER according to a narrow set of circumstances’.

Heightened obligations focused on consumer protection.

Obligations to be under the Retail Rules and Retail Law.

Guaranteed Service Level Schemes.

Impact on current Authorised Retailers only engaged in on-selling.

Increased Regulatory Certainty

  • Authorised retailers are already well prepared
  • ‘Designated Retailer’ concept and the tripartite relationship
  • Risk of duel obligations.

Effect on Legacy Embedded Networks

AER Enforcement and ease of switching on-market.

Where there is an ENM appointment, child embedded network customer connections must be issued with National Metering Identifiers (NMIs), so they are discoverable by retailers.

AER to have specified role codified in legislation to monitor embedded network service provider and exempt selling behaviour.

Enforcement options for network exemption breaches, to be more closely aligned with powers for retail exemption breaches.

ENSP to charge the retailer no more than the equivalent external network charge that would have been charged by the LNSP if the customer had been directly connected to the LNSP’s network.

Going on Market and Network Charges

Keys to Regulation for Embedded Networks - Option 1

Keys to Regulation for Embedded Networks - Option 2

AEMC Review of regulatory arrangements for embedded networks 2017

The Keys to Regulation for Embedded Networks Presentation Slides

More to explorer

Technicians installing photovoltaic solar panels on roof of house.

Compliance Quarter’s Submission to the AER’s Review of the Compliance Procedures and Guidelines

On 11 April 2024, Compliance Quarter put forward its submission on proposed changes to the AER Compliance Procedures and Guidelines. The AER is reviewing its Compliance procedures and guidelines, which set out the manner and form in which energy businesses in jurisdictions that have adopted the National Energy Retail Law must submit compliance information and data to the AER. We argue that there should be consideration of measures to incentivise early reporting of potential breaches. These may, for example, take the

person wearing foo dog costume

Obligations of Energy Retailers Regarding Best Offer Information

Energy retailers in Victoria have specific obligations under the Energy Retail Code of Practice to provide clear information to customers about their ‘best offer’ – that is, the plan that would minimize the customer‘s energy costs based on their usage history. The objective is to ensure small customers can easily understand whether they are on the retailer‘s best plan for them and how to access the retailer‘s best offer if not. One of the significant challenges in the energy sector (as in banking and elsewhere) is that customers

low angle photo of sydney opera house australia

Guide to the National Energy Retail Rules

The National Energy Retail Rules (NERR) are a set of rules that govern the sale and supply of electricity and gas by retailers to consumers in Australia, alongside the related National Energy Retail Law (NERL). The NERR came into effect on 1 July 2012 in Tasmania, the Australian Capital Territory, and the Commonwealth. South Australia followed on 1 February 2013, New South Wales on 1 July 2013, and Queensland on 1 July 2015. The NERR do not yet apply in

Leave a Reply

Your email address will not be published. Required fields are marked *