Have you appointed your Metering Coordinator?

The implementation of the new arrangements resulting from the Power of Choice Review undertaken by the Australian Energy Market Commission’s (AEMC), will take effect on 1 December 2017.  The new arrangements include the introduction of the Metering Coordinator, along with changes to the National Electricity Rules (NER).The implementation of the new arrangements resulting from the Power of Choice Review undertaken by the Australian Energy Market Commission’s (AEMC), will take effect on 1 December 2017.  The new arrangements include the introduction of the Metering Coordinator, along with changes to the National Electricity Rules (NER).

Key features of the final rule include:

1. A shift in who has overall responsibility for metering services under the NER, promoting competition in the provision of metering and related services. This is a result of the following:

  • the role and responsibilities of the existing “Responsible Person” to be provided by a new type of Registered Participant, referred to as a Metering Coordinator;
  • allowing any person to become a Metering Coordinator, subject to meeting the registration requirements, other than at transmission connection points and in relation to type 7 metering installations;
  • permitting large customers, and Non-Market and exempt Generators to appoint their own Metering Coordinator at distribution connection points; and requiring a retailer to appoint the Metering Coordinator, where a customer hasn’t appointed its own Metering Coordinator

 
2. The Metering Coordinator will take on roles additional to those currently performed by the Responsible Person, ensuring that the security of, and access to, advanced meters and the services they provide are appropriately managed.

3. Local Network Service Providers (LNSPs) will continue to benefit from network devices installed at customers’ premises, allowing them to monitor, operate or control their networks, provided there is sufficient space to house both the metering installation and the network device.

4. It permits a retailer to arrange for a supply interruption at its customers’ premises for the purposes of installing, maintaining, repairing or replacing an electricity meter.

5. Retailers have the ability to arrange for the de-energisation of a premises if the customer fails to give safe and unhindered access to the premises.

What this means for you:

As a large customer you will have the ability to engage your preferred Metering Coordinator as of 1st December 2017.  If you currently have a Direct Metering Agreement (DMA) with a provider, your retailer should be instructed to nominate your metering provider as Metering Coordinator.

Should you not have a DMA in place, now would be an opportune time to discuss your metering requirements with Edge, as we are in a position to negotiate competitive rates for your metering services.

The reforms from the Power of Choice Review will support the electricity market in meeting consumer needs over the next 15-20 years.  It provides more opportunities for consumers to make informed choices about the way they use electricity based on the benefits that end use services provide. Further information on Power of Choice can be found here: http://www.aemc.gov.au/Major-Pages/Power-of-choice

Potential delay in reaching agreement on National Energy Guarantee

The Queensland Premier officially called an early election to be held 25 November 2017. This means that the planned November COAG Energy Council meeting is unlikely to be able to agree on the National Energy Guarantee (NEG) as it requires all states and territories in the National Electricity Market to agree. The Federal Minister for the Environment and Energy, Josh Frydenberg, is still pushing ahead with modelling the scheme which the Energy Security Board will deliver to the Minister 13 November 2017.

It is not known how soon after the election a government could be formed in Queensland, however with Sportsbet tipping the Liberals to take over in a close race, it may take some time. Until then, the only constant is uncertainty which is proving highly detrimental to investment.

Ergon Retail offer ‘EasyPay Rewards’ to help alleviate rising costs in energy

On Tuesday 24 October, Queensland Treasurer Curtis Pitt and Energy Minister Mark Baily announced a new suite of measures to create electricity savings for Queenslanders under the Palaszczuk Government’s Affordable Energy Plan.

One of the initiatives announced will be the removal of Ergon’s non-reversion policy.  The non-reversion policy prevented customers who transferred away from Ergon Retail from returning.  The Government believes that removing this policy will give customers in regional Queensland more choice when selecting a retailer.  Not only will regional customers be able to shop around, but they will now have the ability to test the water and return to Ergon Retail should they wish to do so.  Coupled with this announcement, Ergon Retail are now offering ‘EasyPay Rewards’ whereby regional customers could earn discounts of up to $75 for residential households and $120 for small businesses every year.

Other initiatives under the Affordable Energy Plan included:

  • Rebates of up to $300 to purchase an energy efficient fridge, washing machines or air conditioner, providing bill savings of up to $50 a year for an energy efficient washing machine or fridge or $135 a year for an air conditioner. Up to 100,000 Queensland households are expected to take up the offer.
  • An Asset Ownership Dividend of $50 a year for every household bill over the next two years, starting from January 2018 and evident on bills from the second quarter of 2018.
  • Another 4000 regional households can save up to $200 through the expansion of the Energy Savvy program.
  • Support for primary producers by delivering an additional 200 energy audits to agricultural customers through an expanded Energy Savers Plus program in partnership with the Queensland Farmers’ Federation, as well as providing a 50% co-contribution (up to $20,000) to implement audit recommendations.
  • Support for Queensland jobs and industry by providing energy audits for large customers including manufacturers, with a 50% co-contribution to implement recommendations (up to $250,000 per customer). This is expected to deliver savings of 10% to 40% for large industrial customers.
  • No-interest loans to help those Queenslanders who don’t have access to the upfront capital required to invest in solar and battery technologies to help reduce their bills and be part of a clean energy future. Queenslanders will be able to apply from March 2018, with savings of up to $700 per year expected for those who take up solar.

 

The initiatives are planned to be available from 1 January 2018, with calls for applications for Ergon’s EasyPay Rewards open now.

QLD Premier provides ultimatum to QLD Retailers

QLD energy retailers have been requested by the QLD Premier to pass on lower electricity prices to customers or face public shaming and increased competition through a new government owned retailer.

The lower electricity prices are driven by the QLD Governments intervention in the market which consists of ordering Stanwell Corporation (state owned) to lower wholesale prices, the $770 million subsidy for non-solar households for QLD Solar Bonus Scheme and the recommissioning of the Swanbank E Gas power station. Premier Palaszczuk promised to name and shame retailers who did not commit to the pledge by this Friday. Moving forward, Ms Palaszczuk confirmed that her government and the QLD Competition Authority would be monitoring retailers on a quarterly basis. If it is found that retailers are not passing on the savings then she would order a re-entry by the government into the retailing sector.

Clean Energy Target dismissed by Federal Government

The Federal Government has released its Powering Forward Plan which seeks to reduce electricity prices while still delivering reliable energy and meeting Australia’s international commitments on carbon reduction. The plan is wide ranging and includes direct subsidies to vulnerable households as well as improved transparency in the gas market.

The Plan will look at putting obligations on the retailers to secure a minimum amount of synchronous generation. It was also confirmed that the Government would not be implementing the Clean Energy Target proposed by Finkel, however will obligate retailers to purchase an amount of low-emissions generation. The targets have not been set at this stage.

It was also reported that renewable generators which were built after 2020 would not be eligible to receive large-scale generation certificates. Any renewable generation built before 2020 would still be eligible (subject to current eligibility criteria) to create certificates out to 2030.

The market responded with increased prices. Until there is further clarity, the market will remain nervous.

If you would like to know more about this announcement and how your business may be affected, please call one of our team members on 07 3232 1115 or contact your Edge Portfolio Manager.

Energy Minister Josh Freydenburg commits to a response on the Clean Energy Target before the end of the year

The Australian Financial Review National Energy Summit kicked off in Sydney this morning.

Within the first hour of the summit beginning, Federal Environment and Energy Minister Josh Freydenburg has committed to respond to the Clean Energy Target (CET) recommended in the Finkel Review. This is the only outstanding recommendation from the Finkel review that has not been accepted by the Turnbull Government.

Edge are at the AFR’s energy summit and will continue to provide updates over the next two days.