The Victorian Government has today released its final determination on exemptions for embedded networks, with the intention that there will be a new exemption order issued replacing the previous “General Exemption” order in council applicable to Victorian embedded networks and on-selling.
The final paper contemplates adopting multiple “deemed / registrable / individual” classes along the lines of the AER’s existing network and retailing exemption guidelines applicable in other NEM states adopting the National Energy Customer Framework (and in Victoria for the operation of embedded networks).
However, Victoria has decided to a few additional requirements, including:
- Requiring that operators of embedded networks in Victoria register also with the Victorian ESC, in addition to their registration with the national regulator the AER;
- Requiring that resellers obtain explicit informed consent of embedded customers to the energy reselling arrangements;
- Requiring disclosure notices to be forwarded annually to the customer; and
- Inserting provision that the ESC can determine a maximum selling price for power on the embedded network, which conceivably could be less than the current arrangement of capping at the standing offer of the local retailer.
The new exemption order has not yet been made, but a draft has now been issued for public comment (by 22 September 2017).
The final determination and draft order are available here.
This article was written by Graeme Dennis, Partner.