On 15 December 2020, the Australian Energy Regulator (AER) approved South Stradbroke Utilities Pty Ltd’s (SSU) application for an individual exemption under the National Energy Retail Law to sell energy at Couran Cove Resort, Queensland.
The AER has made this final decision after careful consideration of the content of SSU’s application and the submissions we received on the application and our draft decision.
The final decision outlines conditions that provide increased protection and pricing transparency to the customers, which would otherwise be unregulated. In response to the stakeholder submissions we are applying a number of conditions, specific to this exemption, including:
- Pricing: tariffs must be based on actual costs, with evidence to be provided each time tariffs are set. Any changes to tariffs must be notified to customers at least 10 business days prior to them taking effect.
- Protection against potential double charging: SSU is prohibited from recovering electricity supply costs from exempt customers where it would result in residents paying for their electricity supply twice.
- Maintaining records: SSU must maintain records of any bills issued for the previous 24 months, including the basis for determining any estimates of consumption where a meter read cannot be obtained. Where requested by customers, SSU must also produce copies of these records.
- Electricity infrastructure replacement and upgrades: metering infrastructure is to be replaced only when necessary, at the end of its operating life. Metering charges may not exceed the costs of purchasing and installing new meters.
- Dispute resolution and commercial arbitration: prior to the Ombudsman gaining jurisdiction, disputes between parties are to be addressed by commercial arbitration pursuant to the Commercial Arbitration Act 2013 (Qld).
A full list of the exemption conditions, and our Final Decision Statement, which explains the Final Decision, can be found in the Related Content link below.
The exemption will be effective from the date that SSU accepts the conditions in the Instrument of Exemption. SSU must advise the AER in writing by 18 January 2021 whether it accepts these conditions.