Page 2334 - Week 06 - Thursday, 10 May 2012
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The bill will adopt the National Energy Retail Law (South Australia) Act 2011 as a law of the ACT, with some modifications. A second bill, which accompanies this bill, will make necessary consequential amendments to existing ACT legislation. This legislation represents one of the final and major achievements under the energy reform agenda program agreed by all Australian governments under the Australian energy market agreement. The legislation is also being adopted by other jurisdictions in the national electricity market and is scheduled to commence on 1Â July this year.
The bill transfers the regulation of retail supply of energy from the ACT under the Utilities Act 2000 to a new national framework. This national framework, commonly known as the national energy customer framework or NECF, not only preserves the existing level of consumer protections in the ACT but also provides for increased requirements in important areas like customer hardship.
Implementing the NECF provides a number of benefits to the ACT. Firstly, there will now be a single national scheme for authorising energy retailers, instead of separate licensing schemes in each state. Retailers will no longer need separate licences in each state nor to comply with different regulatory obligations for core retailing functions. This will encourage more retailers to participate in the ACT market. A more competitive market will benefit the interests of ACT consumers in the longer term.
Secondly, the NECF delivers an improved and robust consumer protection framework. Energy retailers in the ACT will now be required to have an approved hardship policy. These hardship policies will be designed to identify and help customers experiencing difficulties in managing their bills. This, combined with the government’s energy efficiency cost of living legislation, will provide comprehensive support for low income households who always struggle with any change in energy prices.
The NECF also includes comprehensive arrangements for resolving disputes between customers and energy providers. The ombudsman role of the ACT Civil and Administrative Tribunal has been preserved under the NECF and it will remain responsible for resolving and hearing these matters in the ACT.
This scheme also provides for model contracts. These model contracts will serve as the basis of contracts developed by retailers and distributors. Further, approval by the Australian Energy Regulator will be required to ensure these contracts are fair and reasonable to consumers. The NECF also includes a number of new arrangements that currently have no local equivalent and represent significant additional benefits for ACT consumers. For example, it provides for a price comparator website to be established and administered by the Australian Energy Regulator. This website will enable consumers to find and compare different offers from energy retailers in their area.
The bill also imposes energy bill benchmarking requirements on retailers. Retailers will now be required to provide information on bills that enables consumers to compare their usage with a local benchmark. This will motivate consumers to reduce their consumption to equal or improve the benchmark. This will not only help reduce bills by motivating customers to curb wasteful usage; it will also have the indirect
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