should be given the power to ensure The AEMC has recently completed a review of regulatory arrangements for retailers who collect network charges from embedded networks, and has made recommendations to COAG to exempt customers pass these on to address this particular matter. exempt sellers. As the possibility of double network charging arises due to the network conversion, we consider it reasonable for the applicant to take responsibility for this. The requirement that customers must be Applicants must demonstrate they have clearly, fully and adequately informed’ is subjective. disclosed all matters relevant to the customer’s consent to a network ‘fully conversion. This obligation mirrors that on retailers to obtain explicit informed consent from new customers. Matters for disclosure include information about associated benefits and possible detriments. SCCA, EA SCCA is concerned that some tenants are An application to sell energy through a converted network must difficult to engage and 100 per cent demonstrate it has given every tenant/resident the opportunity to provide consent is not achievable in all instances. consent. We recognise that not all tenants/residents may consent to a It argues it should be able to provide proposed network conversion. Requirements for applicants who have details of actions taken where consent is gained less than 100 per cent consent are specified in section 7.2.1 and not obtained. Appendix B. EA says it is unclear whether the AER Specifically, applicants with less than 100 per cent consent should outline requires 100 per cent consent from every whether non-consenting tenants/residents raised particular concerns and tenant/resident affected by the network what these were. The application should also detail what actions the conversion, and that application applicant took or offered to take to address tenant/resident concerns and instructions should clearly specify what lessen the potential detriments of the network conversion. Further applications must address to receive clarification of these requirements has been added to Appendix B. approval if they have less than 100 per cent consent. SCCA is concerned that the AER may In regulating exempt selling, the Retail Law provides a principles based refuse an application if it does not meet approach to assessing individual exemption applications, and specifies the requirements for evidence stated in not for the AER to apply. They include customer related ‘factors’ ‘criteria’ Appendix B, or demonstrate why the factors and exempt seller related factors. The latter provides that the AER exemption should be granted. It suggests may take into account any seller related matters it considers relevant that the exemption should be granted if it (Retail Law section 115).
should be given the power to ensure retailers who collect network charges from exempt customers pass these on to exempt sellers. The AEMC has recently completed a review of regulatory arrangements for embedded networks, and has made recommendations to COAG to address this particular matter. As the possibility of double network charging arises due to the network conversion, we consider it reasonable for the applicant to take responsibility for this. The requirement that customers must be ‘fully informed’ is subjective. Applicants must demonstrate they have clearly, fully and adequately disclosed all matters relevant to the customer’s consent to a network conversion. This obligation mirrors that on retailers to obtain explicit informed consent from new customers. Matters for disclosure include information about associated benefits and possible detriments. SCCA, EA SCCA is concerned that some tenants are difficult to engage and 100 per cent consent is not achievable in all instances. It argues it should be able to provide details of actions taken where consent is not obtained. EA says it is unclear whether the AER requires 100 per cent consent from every tenant/resident affected by the network conversion, and that application instructions should clearly specify what applications must address to receive approval if they have less than 100 per cent consent. An application to sell energy through a converted network must demonstrate it has given every tenant/resident the opportunity to provide consent. We recognise that not all tenants/residents may consent to a proposed network conversion. Requirements for applicants who have gained less than 100 per cent consent are specified in section 7.2.1 and Appendix B. Specifically, applicants with less than 100 per cent consent should outline whether non-consenting tenants/residents raised particular concerns and what these were. The application should also detail what actions the applicant took or offered to take to address tenant/resident concerns and lessen the potential detriments of the network conversion. Further clarification of these requirements has been added to Appendix B. SCCA is concerned that the AER may refuse an application if it does not meet the requirements for evidence stated in Appendix B, or demonstrate why the exemption should be granted. It suggests that the exemption should be granted if it In regulating exempt selling, the Retail Law provides a principles based approach to assessing individual exemption applications, and specifies ‘factors’ not ‘criteria’ for the AER to apply. They include customer related factors and exempt seller related factors. The latter provides that the AER may take into account any seller related matters it considers relevant (Retail Law section 115).