NATIONAL ROLR SCHEME NOW APPLICABLE IN VICTORIA
On 30 July 2024, the National Energy Retail Law (Victoria) Act 2024 (Vic) and the National Energy Retail Law (Victoria) Regulations 2024 (Vic) commenced, applying the national ROLR scheme in Victoria.
Prior to this Victoria had its own ROLR scheme, under which the Essential Services Commission (ESC) was responsible for initiating and enforcing the ROLR process. This process automatically transfers customers from failed electricity retailers to specified Victorian retailers to ensure Victorians have a continued supply of essential electricity services.
From 30 July 2024, the national ROLR scheme applies in Victoria, shifting the responsibility for ensuring customers continue to receive electricity supply under the ROLR arrangements from the ESC to the AER. This change brings Victoria into line with other National Electricity Market (NEM) jurisdictions like Queensland and New South Wales, which are already subject to the national scheme implemented by the AER.
More information on the ROLR scheme is available here.
AER’s RRO GUIDANCE
On 23 August 2024, the AER published guidance to provide market participants with more clarity around their obligations under the RRO.
The RRO, operational since July 2019, aims to support reliability in the NEM by requiring retailers to eliminate forecast reliability gaps that are pre-emptively identified. Upon the AER making a reliability instrument, retailers are put on notice to enter into sufficient qualifying contracts with generators to ensure demand can be met, after which they must inform the AER of their net contract position (NCP).
- The AER’s guidance focuses on the following 4 areas:
- What entities are liable under the RRO
- Timing, form, and content requirements for liable entities in submitting a compliant NCP report
- How liable entities can submit an NCP adjustment application
- How large energy users can opt-in to manage RRO obligations themselves
More information is available here.
AER’S RETAIL PERFORMANCE REPORTING GUIDANCE
On 28 August 2024, the AER updated its guidelines specifying how regulated entities need to submit information and data to the AER about their performance under the National Energy Retail Law and the National Energy Retail Rules. The guidelines take effect on 1 July 2025.
This information and data is used by the AER to monitor retail market outcomes in order to assist policy design, target compliance, and enforcement priorities. Such information also feeds into the AER’s strategic objectives and initiatives.
The AER made numerous changes to the guidelines aimed at better allowing it to collect data to effectively monitor outcomes in the retail market. The key changes include:
- introducing embedded network indicators which requires reporting of things such as types of contracts and customer payment difficulty metrics;
- introducing reporting on life support customers and registration/deregistration of life support within a specified time period;
- introducing reporting on how many customers are affected by family violence;
- refining indicators relating to debt, tariff and meter type, and customer service to improve definitional clarity and ensure retailers are reporting consistently, allowing for better comparability of retailers; and
- removing indicators that do not add value or where retailers do not have access to the required information, such as indicators relating to buy now pay later services.
More information is available here.
AEMC PUBLISHES FINAL RULE ON CER
On 15 August 2024, the AEMC made a final determination about the use and adoption of CER such as rooftop solar, batteries, and electric vehicles.
Currently, large customers can only engage multiple energy service providers if they use the embedded network framework, or if they obtain a second National Metering Identifier by establishing two distribution network connection points. The determination seeks to allow large customers to trade with multiple energy service providers at their premises without needing to use an embedded network or establishing multiple connection points. It aims to have lower barriers to entry than the status quo and to minimise implementation costs.
To benefit small customers, the AEMC will allow small customers with CER devices to separate passive or flexible loads and choose how they participate in the market.
The AEMC has also proposed creating three new types of meters to enable settlement and billing using technology with in-built measurement capability, such as public lights and public electric vehicle chargers. These new types of meters will have lower minimum specifications than the meters currently used, meaning they should support increased electric vehicle charger uptake for residential, business, and public customers.
This rule change is estimated to deliver up to $100 million in benefits over 20 years through reduced metering installation, maintenance, wholesale costs and smart streetlight emissions, and avoiding public electric vehicle charger metering costs.
The majority of the rules will be implemented by November 2026. More information and a copy of the Final Rule is available here.
