06 June 2013
The AEMC has commenced consultation on a rule change request from the Independent Pricing and Regulatory Tribunal of NSW regarding the annual network pricing arrangements under the National Electricity Rules.
A Consultation Paper has been published to facilitate public comment. Submission close on 4 July 2013.
23 May 2013
On 23 May 2013, the AEMC published the final rule determination and final (more preferable) rule for the Market Operator Service (MOS) – Timing and Eligibility rule change request.
The Commission has decided to make a more preferable rule that largely adopts the changes proposed by the rule change proponent, the Australian Energy Market Operator (AEMO), in their rule change request.
The final rule reduces the MOS period to one month in the National Gas Rules (NGR) and broadens the MOS provider eligibility requirements to include trading right holders.
The final rule will commence on 1 April 2014, with the new monthly MOS period in effect from 1 June 2014.
23 May 2013
Review of retail competition in NSW - Draft Report
Today the AEMC called for public submissions on its draft report on the effectiveness of competition for small electricity and natural gas customers in NSW.
We have found that competition in NSW retail energy markets is delivering discounts and other benefits to small customers with more than 60 per cent already on market contracts.
Customers have a choice of retailer and a choice of product or service, and many are taking advantage of the choices they have.
However, more can be done to make it easier for customers to engage with the market.
AEMC Chairman, John Pierce, said the Commission would consult with customers, their representatives and other stakeholders before final recommendations are provided to the State Government in September.
“We’ll be looking at new ways to make it easier for customers to engage in the market.
“We will also seek to build on the findings of our Power of Choice review which showed that residential customers may make savings in the short term if they choose to change their retail price offers.”
“Ultimately, customers are in the best position to decide what works for them.
“The next stage of this review will focus on what measures may be necessary in NSW to give customers the information, choices and protection they need to engage in this market and enhance the competition that is already present,” Mr Pierce said.
Draft report key points
- Customers should have tools and knowledge to better understand the market and how to compare offers. Targeted communication channels will need to evolve with the market and the review is seeking views on the best ways to achieve this.
- In our draft report we recommend that price caps be removed to encourage greater innovation and lead to more tailored energy products and services being available for customers.
- In our draft report we recommend ongoing market monitoring of the state of competition. This should be accompanied by the ability to reintroduce price caps if competition is no longer effective in the future.
- The National Energy Customer Framework (NECF), which the NSW government aims to adopt on 1 July 2013, provides additional protections for customers who will continue to benefit from regulation on some terms and conditions of retailers’ offers such as late fees and early termination fees.
Next steps
We will provide our final advice to the NSW Government by 30 September 2013.
Submissions on our draft report are due on 5 July 2013.
For information contact:
AEMC Chairman, John Pierce (02) 8296 7800
Media: Communication Manager, Prudence Anderson 0404 821 935 or (02) 8296 7817
23 May 2013
16 May 2013
The AEMC has commenced consultation for the gas market scoping study, which was announced on 9 May 2013. Consultation will be carried out through a variety of means, including:
Sydney – Friday, 31 May 2013, 10.00am to 1.00pm
09 May 2013
The AEMC has today published two documents as part of the consultation process for the 2013 review of its strategic priorities: a document summarising the discussion paper published in April, and a summary of discussions at the recent stakeholder workshops.
09 May 2013
Today the AEMC commenced work on a gas market scoping study. This project was initiated by the AEMC in response to changes underway in Australia’s eastern gas markets due to the emerging liquefied natural gas export industry, and feedback from stakeholders through the strategic priorities review.
The purpose of the scoping study is to provide the AEMC with an overview of developments in the gas market and to identify areas of potential improvement in the market and regulatory arrangements for the downstream gas sector that may benefit from future market development work.
We expect to commence stakeholder consultation for this project in late May/early June. Please monitor the AEMC website and mailing list updates for further information.
08 May 2013
AEMC Chairman, John Pierce, has presented a conference paper and addressed the Canadian Association of Members of Public Utility Tribunals in Ontario, Canada. Mr Pierce was invited to present at their annual conference “Serving the Public Interest: The Regulator’s Balancing Act” (12.30am Wednesday 8 May 2013 AEST).
08 May 2013
Australian Energy Market Commission (AEMC) Chairman, John Pierce, has addressed the Canadian Association of Members of Public Utility Tribunals (CAMPUT) in Ontario, Canada. He was invited to address CAMPUT’s annual conference “Serving the Public Interest: The Regulator’s Balancing Act” in a session on progressive approaches to utility regulation (12.30am Wednesday 8 May 2013 AEST).
AEMC Chairman John Pierce said today regulators around the world face common challenges in walking the fine line between over and under regulation when it comes to serving the public interest.
“It is important not to limit consumer choice through over regulation.
“At the same time it is important not to expose consumers to costs and risks that ought to be managed by energy companies.
“We are guided in this task by a unifying theme – the role and power of incentives to affect consumer and company behaviour. Regulators generally recognise that, rather than trying to direct behaviour, regulation should create the right incentive framework for effective decision-making.
“In Australia the AEMC takes an evidence-based approach based on extensive consultation with stakeholders across the community, business and government sectors.
“Today I will discuss two examples of regulation in Australia’s National Electricity Market (NEM) that sit at opposite ends of the regulatory spectrum – network regulation and identifying opportunities for efficient demand side participation.
“Both are good examples of the regulatory balancing act – creating incentives for business to invest and innovate while enabling benefits to flow to consumers,” Mr Pierce said.
Key points
- improvements to market and regulatory arrangements to better facilitate cost reflective pricing for residential and small business customers;
- regulatory changes to encourage more flexible pricing on the networks component of retail bills;
- a proposed model to encourage commercial investment in smart meters.
Read the J. Pierce conference paper
For information contact:
AEMC Chairman, John Pierce (02) 8296 7800
Media: Communication Manager, Prudence Anderson 0404 821 935 or (02) 8296 7817
Wednesday 8 May 2013
18 April 2013
These Rule changes are being initiated by the AEMC to correct minor errors and make non-material changes to the National Electricity Rules and the National Gas Rules (the Rules) to improve their quality.
As with previous AEMC initiated rules, these minor corrections and non-material changes will make the Rules clearer to stakeholders.
This Rule proposal seeks to:
Any written objections to the expedited process must be received by 2 May 2013.
The Commission invites parties to provide submissions on the proposal by 16 May 2013.
15 April 2013
The AEMC has released a discussion paper that reviews our strategic priorities for energy market development. We are seeking your views on three proposed priorities – a ‘consumer priority’, a ‘gas priority’ and a ‘market priority’.
The proposed consumer and market priorities build on two of the existing priorities developed in our first strategic priorities review in 2011. The proposed gas priority reflects the growing importance of gas as a fuel source and export commodity. We are encouraging stakeholders to participate in the consultation process, including attending our workshops in Sydney, Brisbane and Melbourne and submitting a written response to our consultation. Submissions close on Monday 27 May 2013.
Our stakeholder workshops were advertised on 4 April 2013 and registrations close on Friday 19 April 2013. We remind interested stakeholders who are yet to register to refer to our registrations page, by clicking one of the links below, as soon as possible as numbers are limited.
Links to the Discussion Paper and Information Sheet are provided above.