more efficient allocation of network costs, and potentially reduced capital and operating network costs being passed through to all consumers, as more tariff structures are developed. an improved service in of quality, reliability and security of supply, through the ability for network businesses to use additional meter functionality. End use customers may face additional metering service costs for an advanced meter compared to the charges for their existing accumulation meter. However, additional costs are expected to be minimised because: retailers have an incentive to minimise the costs of metering services procured for their customers, otherwise their price offers become uncompetitive, and/or in making a decision to switch to an advanced the customer considers that additional benefits will outweigh additional costs. The AER will also retain the ability to regulate the metering fees of an LNSP, for example where the AER considers that there is not yet competition which would constrain the fees charged by the Metering Coordinator business unit of an LNSP. Retailers and third party energy service providers Retailers and third party energy service providers are likely to benefit from the proposed Rule in the following ways: the opportunity to customers an increased range of pricing offers and DSP products, the opportunity to fill the new role of Metering Coordinator to organise metering and related services on behalf of customers. the availability of a range of competitive offers to provide metering services, leading to increased innovation and lower costs. certainty about exit fees when replacing an existing LNSP responsible person’s meter. LNSPs Local network service providers would: no longer have the exclusive right to provider provide type 5, 6 or 7 metering services, unless other arrangements are specified by a jurisdiction. be required to compete with other accredited metering service providers to supply metering services to small customers. have minimal stranding risk on their existing metering assets given an appropriate exit fee that has been approved by the AER.
more efficient allocation of network costs, and potentially reduced capital and operating network costs being passed through to all consumers, as more tariff structures are developed. an improved service in of quality, reliability and security of supply, through the ability for network businesses to use additional meter functionality. End use customers may face additional metering service costs for an advanced meter compared to the charges for their existing accumulation meter. However, additional costs are expected to be minimised because: retailers have an incentive to minimise the costs of metering services procured for their customers, otherwise their price offers become uncompetitive, and/or in making a decision to switch to an advanced the customer considers that additional benefits will outweigh additional costs. The AER will also retain the ability to regulate the metering fees of an LNSP, for example where the AER considers that there is not yet competition which would constrain the fees charged by the Metering Coordinator business unit of an LNSP. Retailers and third party energy service providers Retailers and third party energy service providers are likely to benefit from the proposed Rule in the following ways: the opportunity to customers an increased range of pricing offers and DSP products, the opportunity to fill the new role of Metering Coordinator to organise metering and related services on behalf of customers. the availability of a range of competitive offers to provide metering services, leading to increased innovation and lower costs. certainty about exit fees when replacing an existing LNSP responsible person’s meter. LNSPs Local network service providers would: no longer have the exclusive right to provider provide type 5, 6 or 7 metering services, unless other arrangements are specified by a jurisdiction. be required to compete with other accredited metering service providers to supply metering services to small customers. have minimal stranding risk on their existing metering assets given an appropriate exit fee that has been approved by the AER.
Rule-change-request-Meter-competition_0.docx