31 July 2014
The AEMC is consulting on a rule change request from ElectraNet to permit eligible transmission businesses to apply to the Australian Energy Regulator (AER) for early application of a component of the Service Target Performance Incentive Scheme (STPIS) within a current regulatory control period.
31 July 2014
On 31 July 2014, the AEMC extended the period of time for the publication of the draft rule determination on the bidding in good faith rule change request.
The Commission considers that the extension is necessary due to the complexity of issues raised by the rule change request, as reflected in the extensive stakeholder submissions on the consultation paper and views expressed at the stakeholder forum held on 5 May 2014.
The period of time for publication of the draft determination has therefore been extended to 16 April 2015. This will provide sufficient time to assess the extent and materiality of the issues raised and to accommodate additional stakeholder consultation towards the end of 2014.
A summary of stakeholder submissions on the consultation paper has been prepared by AEMC staff.
31 July 2014
The Australian Energy Market Commission (AEMC) has made a draft rule to improve the information given to consumers when entering retail energy contracts.
AEMC Chairman, John Pierce, said consumers would be able to shop more confidently for electricity and gas deals if they had access to clearer information on energy contract options.
Research that informed the draft rule was also released by the AEMC today and indicates that some consumers may be entering contracts unaware that prices may change. The research also indicates that people want a range of contract and price options to meet the specific needs of their household or business – with both fixed and variable prices to choose from.
“The survey results showed a mix of preferences with almost half of residential (45 per cent) and small business (47 per cent) consumers preferring a variable price while a third (31 per cent) of residential consumers and a quarter (25 per cent) of small business consumers prefer a fixed rate,” Mr Pierce said.
“Previous AEMC analysis has shown that consumers can save between five and sixteen per cent on their annual electricity bill by shopping around for the best deal and switching away from regulated standing offer contracts. To do that, consumers need to have different types of contracts explained to them very clearly.
“We have released a draft rule that clarifies that energy retailers must tell consumers if prices can change during the term of their retail contracts; and provide clear product disclosure details on when they will notify customers about price changes,” Mr Pierce said.
“We have also called on the Australian Energy Regulator to review the effectiveness of their energy price comparator website, Energy Made Easy, and its guidelines on how retailers market their energy offers to consumers.
“Improved information enables consumers to engage more confidently in retail energy markets and make decisions that better meet their needs. This in turn is likely to enhance competition in retail energy markets,” Mr Pierce said.
The Commission’s draft rule was made in response to a rule change request submitted by Victorian consumer groups, the Consumer Action Law Centre and the Consumer Utilities Advocacy Centre. Their request sought to prohibit retailers from changing their prices during energy contracts that have a defined period of time or a benefit that is offered for a specific period.
The AEMC has called for public submissions on its draft determination (Retailer Price Variations in Market Retail Contracts) which are due by 11 September 2014.
Other key points
About the Research
To inform the Retailer Price Variations in Market Retail Contracts Draft Determination, Newgate Research conducted focus groups with 162 participants and a survey of 2,213 residential and small business consumers across NSW, ACT, SA, VIC, and Queensland. For more details and to access the full report go to our project page.
For more information
AEMC Chairman, John Pierce (02) 8296 7800
Media Contact: Prudence Anderson, Communications Manager (0404) 821 935 or (02) 8296 7817
About the AEMC
The Australian Energy Market Commission is the independent body responsible since 2005 for providing policy advice to Australian governments on the electricity and gas sector. It makes energy market rules which are applied and enforced by the Australian Energy Regulator.
31 July 2014
On 31 July 2014 the AEMC (Commission) made a final determination in relation to the Governance of retail market procedures rule change request. It determined not to make a rule.
The rule change request sought to rationalise the processes to make retail market procedures required by Chapter 7 of the National Electricity Rules, including business-to-business (B2B) procedures, under a single integrated framework to be managed by AEMO.
The Commission is not satisfied that a case has been made to shift the control of B2B procedures to AEMO, considering that the existing industry-led approach remains appropriate under current conditions. While changes to the B2B arrangements may be necessary in the future to support wider market developments, consideration of significant amendments would be more appropriately addressed within the context of more detailed frameworks. These include the current and forthcoming reviews and rule changes, such as the Expanding competition in metering and related services rule change request, recommended by the Power of Choice review.
17 July 2014
Registration is now open for the AEMC’s second stakeholder workshop on the competition in metering and related services rule change. The workshop will be held in Brisbane on 1 August 2014 and will focus on the issues related to the proposed network regulatory arrangements.
To register for this workshop, please contact Claire Richards at claire.richards@aemc.gov.au or on (02) 8296 7800, by 25 July 2014. Further information about the workshops is available on the project page.
10 July 2014
On 10 July 2014, the AEMC commenced consultation on a rule change request from the Australian Energy Market Operator (AEMO) on the removal of force majeure provisions for the wholesale gas market in Victoria.
AEMO considers that the force majeure provisions – participant force majeure (PFM) and system force majeure (SFM) – are ineffective, redundant and should be removed. Other changes are proposed to clarify AEMO’s role in the administered pricing arrangements.
A consultation paper has been prepared to facilitate public consultation and assist stakeholders in providing submissions on the rule change request. The closing date for submissions is 7 August 2014.
10 July 2014
The AEMC invites submissions relating to its draft rule determination and draft rule for the Setting the Opening Capital Base rule change request published today.
The Commission considers that the draft rule will contribute to the achievement of the national gas objective and is consistent with the regulatory incentive framework. It will also give service providers greater certainty about the methods the economic regulators use to calculate the value of a regulated gas pipeline.
Submissions to the draft rule determination and draft rule are due by 21 August 2014.
01 July 2014
On 26 June 2014, the AEMC held the first stakeholder workshop for the competition in metering and related services rule change. The workshop discussed the role of the Metering Coordinator and the gate keeper function for smart meter services. Materials from the workshop are now available on the project page.
19 June 2014
On 19 June 2014, the AEMC made a draft rule determination on the portfolio rights trading rule change request submitted by the Australian Energy Market Operator. The draft rule, if implemented, would facilitate the trading of the financial benefits of authorised MDQ and AMDQ credit certificates between market participants in the Victorian declared wholesale gas market.
Submissions on the draft rule determination and draft rule are due by 31 July 2014.
12 June 2014
On 12 June 2014, the AEMC made a final rule determination on the Extension of Call Notice Timing rule change request. The rule as made delays by one hour the time at which a call notice issued by the Australian Energy Market Operator (AEMO) is taken to have been issued on the next business day.
The Commission has made the rule as proposed by AEMO in its rule change request. The rule as made will commence on 1 July 2014.