The Australian Energy Regulator (AER) today released the final revised AER Compliance Procedures and Guidelines (the Guidelines). Accompanying the final Guideline is the Notice of Final Instrument and the AER's Practice Guide for Compliance Audits. These documents seek to explain the AER's decision making on the changes to the Guidelines.
The AER is responsible for energy market regulation, including ensuring compliance with the National Energy Retail Law (Retail Law), the National Energy Retail Rules (Retail Rules) and the applicable National Regulations. The Guidelines support this function.
In jurisdictions that have adopted the Retail Law, the Guidelines establish a self reporting framework that set out the manner and form businesses must submit compliance information and data to the AER. The Guidelines also includes guidance on the carrying out of compliance audits under the Retail Law.
Background
On 9 December 2016, the AER published for consultation proposed amendments to the Guidelines. Accompanying the draft Guidelines is the Notice of Draft Instrument and the AER's Practice Guide for Compliance Audits, inviting submissions from interested stakeholders.
The Guidelines were last revised in September 2014. Since then, the AEMC has made a number of rule changes to the Retail Rules. Given these developments, there was a need to re-open the Guidelines to consider if any of these rules should be incorporated into the reporting framework. In reviewing the Guidelines, the AER has also proposed amendments to further refine the reporting framework and to revise the guidance material on compliance audits to reflect the AER's approach to utilising its powers under the Retail Law.
Interested parties were invited to make written submissions on the draft Guideline by 23 January 2017. A total of 13 submissions were received.