Support class ND3 not being required to appoint an ENM unless a As noted above, Residential land lease communities will be communities’. customer enters into a retail contract but references to and ‘rental’ ‘eligible is inaccurate in the context of short term holiday ‘tenancy’ Information provision accommodation. Our provision requires that information be given Recommend NR4 class (regardless of the number of customers) not be both initially and on request. We think this concern required to appoint an ENM unless a customer enters into a retail is misplaced. contract. Network conversions supplementary conditions – Who pays for the ENM? Noted. ENM are unnecessary for residential land communities and result in Other issues additional costs for operators to bear without a means of cost recovery through utility billing. Operators will have to resort to site fee increases We have made a number of minor drafting to the detriment of customers largely in need of affordable housing. amendments in response to this submission. We agree with a pays’ model for ENM cost recovery. However, ‘user because NSW legislation prevents ENM cost recovery from the customer base of utility users in residential land lease communities, there is no incentive for customers to vote for fees to be recovered on a user pays basis instead. Recommend that ENOs recover ENM costs from the retailers of EN customers. Should the retailer not agree the costs of the ENM are costs’ the parties may seek a binding ‘reasonable determination from the Ombudsman. Eligible communities Residential land communities will not fall within definition of ‘eligible communities’ as property is not shared with residents and energy savings which are passed through to residents are usually the result of the residential land lease community operator (a separate legal entity) choosing to share the cost benefits of their commercial energy contract. Residents in a residential land lease community don’t generally consensually in a group buying scheme”. “participate
Support class ND3 not being required to appoint an ENM unless a customer enters into a retail contract but references to ‘rental’ and ‘tenancy’ is inaccurate in the context of short term holiday accommodation. Recommend NR4 class (regardless of the number of customers) not be required to appoint an ENM unless a customer enters into a retail contract. Who pays for the ENM? ENM are unnecessary for residential land communities and result in additional costs for operators to bear without a means of cost recovery through utility billing. Operators will have to resort to site fee increases to the detriment of customers largely in need of affordable housing. We agree with a ‘user pays’ model for ENM cost recovery. However, because NSW legislation prevents ENM cost recovery from the customer base of utility users in residential land lease communities, there is no incentive for customers to vote for fees to be recovered on a user pays basis instead. Recommend that ENOs recover ENM costs from the retailers of EN customers. Should the retailer not agree the costs of the ENM are ‘reasonable costs’ the parties may seek a binding determination from the Ombudsman. Eligible communities Residential land communities will not fall within definition of ‘eligible communities’ as property is not shared with residents and energy savings which are passed through to residents are usually the result of the residential land lease community operator (a separate legal entity) choosing to share the cost benefits of their commercial energy contract. Residents in a residential land lease community don’t generally “participate consensually in a group buying scheme”. As noted above, Residential land lease communities will be ‘eligible communities’. Information provision Our provision requires that information be given both initially and on request. We think this concern is misplaced. Network conversions – supplementary conditions Noted. Other issues We have made a number of minor drafting amendments in response to this submission.
AER%20Reasons%20for%20Decision%20-%20Amended%20Network%20Exemption%20Guideline%20-%20Version%205%20-%201%20December%202016.docx