We are calling for stakeholder feedback on a proposed rule which would lead to shorter switching times for people who want to change their energy retailer.
The new rule as proposed would clear the way for AEMO to update its processes so customers can be transferred from one retailer to another retailer in two days - no matter what kind of meter they have.
The draft rule released today is in line with joint advice provided by the AEMC and AEMO to the Council of Australian Governments (COAG) Energy Council on 3 December 2018. That advice proposed improvements to the national electricity market’s customer transfer process, taking into account the related recommendations eight and nine of the Australian Competition and Consumer Commission (ACCC) Retail Electricity Pricing Inquiry Final Report (REPI).
Consequently, AEMO proposed a high level design to reform the customer transfer process. It proposes to create market processes that will provide for customers to transfer electricity retailers within two days irrespective of their metering type — being either an accumulation or advanced meter. This process will stop "retail save" activity and allow customers faster access to prices and products that they want.
The draft rule makes amendments to the national electricity rules and the national energy retail rules that allow AEMO implement this high level design.
We have also analysed consumer protections for customer transfer as part of this rule change process. This was because the high level design may result in a greater use of estimate meter reads being used for customer transfers. At this stage we consider the current Rules contain sufficient consumer protections and therefore no further amendments are required.
The draft determination and draft rule are now open for consultation and submissions are due by 7 November 2019.
Media: Prudence Anderson, Communication Director, 0404 821 935 or (02) 8296 7817