Rule Change: Open

Overview

This rule change request from the Honourable Josh Frydenberg MP, Minister for the Environment and Energy, on behalf of the Australian Government, proposes to prohibit confusing retailer discounting practices — where retailers apply discounts to electricity rates in a market contract that are higher than the retailer’s equivalent standing offer. This can result in a discount ‘deal’ that leaves consumers worse off.
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This rule change request from the Honourable Josh Frydenberg MP, Minister for the Environment and Energy, on behalf of the Australian Government, proposes to prohibit confusing retailer discounting practices — where retailers apply discounts to electricity rates in a market contract that are higher than the retailer’s equivalent standing offer. This can result in a discount ‘deal’ that leaves consumers worse off.

Consultation paper

On 20 March 2018 the Commission published a consultation paper with an initial position on the rule change request and associated indicative drafting. 

Submissions in response to issues raised in the consultation paper and the rule change request closed on 17 April 2018. Submissions on the consultation paper are provided below.

Expedited process

Based on analysis of current energy offers, the Commission considers the request is non-controversial as defined in the National Energy Retail Law and should be subject to the expedited rule making process. 

The Commission has taken the approach of publishing an initial position and indicative drafting in the consultation paper to provide greater opportunities for stakeholder feedback than the minimum requirements of the expedited process.

Objections to the Commission’s decision to expedite the rule change request were due by 3 April 2018. No objections to expedition of this rule change were received.

Consultation

While the rule change request meets the tests to be expedited, the Commission notes that the issues presented are contentious and complex. Therefore, the Commission has provided, and will continue to provide, opportunities for consultation above the usual consultation within an expedited process.

The AEMC held a stakeholder workshop for this rule change at its offices on Thursday 5 April 2018. Please find below the agenda and presentation slides for the stakeholder workshop.

Please find a table of key dates for this rule change below.

Milestone  Date
Early informal stakeholder workshop 15 February 2018
Publication of consultation paper and rule change commencement 20 March 2018
Objections to Commission decision that the rule change request is for a non-controversial rule (expedition) 3 April 2018
Stakeholder workshop 5 April 2018
Opportunities for individual engagement Prior to 17 April
Submissions on the consultation paper due 17 April 2018
Publication of final determination and final rule (if made) 15 May 2018


 

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