Australian Energy Regulator Exempt Selling guideline revised

by Energy Action | Oct 12, 2015
Further to our article in last month’s Electricity Market Update, on 25 September 2015, the Australian Energy Regulator published a draft revised version of its Exempt Selling guideline for consultation and accompanying Notice of Draft Instrument.

Further to our article in last month’s Electricity Market Update, on 25 September 2015, the Australian Energy Regulator published a draft revised version of its Exempt Selling guideline for consultation and accompanying Notice of Draft Instrument.

The Australian Energy Regulator (AER) is proposing to amend the guideline following a comprehensive review to bring alternative energy selling activities within the exempt selling framework, including proposing a new class exemption.

The AER is also consulting on changes to regulating retrofitted embedded networks, requiring exempt sellers to claim government energy rebates and concessions for exempt customers and a number of other changes.

The proposed amendments are issued for stakeholder comment and to highlight the areas on which the AER is looking for further detail to inform their position. No final views have been reached and the AER has said it welcomes submissions from exempt sellers, customers and other interested parties.

Key changes include

  • Tighten the guideline’s language to provide clearer guidance to exempt sellers about their obligations, for example, removal of references to ‘fair and reasonable’ pricing and imposing a positive obligation on sellers in relation to customers’ concession energy rebates.

  • Create a new class exemption for sellers supplying energy, on a temporary basis, for the construction and commissioning phase of building, civil, construction, 

    industrial transportmining or other projects.

  • Extend the eligibility criteria for particular classes of sellers, including opening up a number of classes to sellers that are of the same “type” without specifically identifying them. This is intended to allow the AER to better regulate the “unknown” element of exempt selling and reduce the need for ongoing revisions to the guideline.

  • Clarify how the AER administers the guideline, including in relation to the liability of agents, the cancellation of an exemption and consequences of breaches of conditions.

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