From the 1st December 2017, Owners and Body Corporates need to be compliant with new rules surrounding Embedded Networks required under the Australian Energy Market Commission (AEMC) and National Energy Retail Rules (NERR).
If you are an Owner/Operator of an embedded network (ENO), you are required to appoint an accredited Embedded Network Manager (ENM) by 1 December 2017. This is one of the biggest changes affecting ENO’s since the Network and Retail Exemption Registration processes in 2015.
WHAT IS AN EMBEDDED NETWORK MANAGER AND WHY THE CHANGE?
These changes have arisen following the introduction of “Power of Choice” (link below).The Power of Choice provides occupants within an embedded network to appoint a retailer direct, should they wish to re-join the National Electricity Market (NEM) post 01 Dec 2017. Initially, QLD was thought to possibly not partake this year in the ENM rollout due to the complexities involved, however, recent changes to policies will allow this customer churn to happen and we need to be prepared for these changes. It should be noted that within most embedded network sites, the incentive is to remain due to significantly reduced tariff rates and service fees. The cost to churn is borne by the occupant or retailer and this is in consultation with both the ENM and ENO.
If a customer chooses to exercise their Power of Choice, the process needs to be overseen and executed by an industry expert that has achieved accreditation with the Australian Energy Market Operator (AEMO) as an ENM. METER2CASH Solutions is currently in the progress of accreditation as an ENM with the AEMO. Any churn is an intensive and technical process to ensure all requirements and rules within the framework are met, this includes compliance with associated metering adjustments and billing. All churn needs to be managed through an approved billing system that can process the management of these meters back to the retailer and reconcile the parent meter whilst recovering network charges. METER2CASH Solutions have an approved billing system in place that handles this churn and complies with legislation.
RESIDENTIAL/COMMERCIAL/RETAIL ACCOUNTS
We do not expect the Power of Choice to greatly impact on residential churn, however, it is still too early to predict with the pending changes. Larger commercial tenants may be incentivised to churn by retailers and we therefore recommend that a review of your tariff rates is undertaken in order to remain competitive so all parties within the embedded network site maintain savings through competitive, reduced tariffs and service fees. Please talk to us if you require assistance.
WHAT DO YOU NEED TO DO?
If you own or operate an embedded network you will need to be registered, or, assign an accredited ENM before 1 December 2017. The process in which this is undertaken is dictated by your registered activity class with the AER. Please refer to Network Exempt Selling Applicable Conditions pertaining to your registration. If you are unsure, please contact us. Appointment by 01 Dec 17 is necessary for the following registration classes with a lot count of 30 or more; ND10, NR1, NR2, NR3, NR5 or NR6. If your network is lower than this lot threshold, an ENM will be required once churn occurs. METER2CASH Solutions are in the process of obtaining this accreditation and can act as your ENM if appointed.
At this stage, to express your interest in appointing METER2CASH Solutions as your ENM, kindly complete the online form which can be found at www.meter2cashsolutions.com.au. If you are appointing another provider or assigning your own ENM then please let us know.
Please also be aware that AER Network exemption Registrations also need to be updated once at ENM is appointed. Please keep a look out for up to date information on our website.
To find out more regarding this new legislation, visit:
- AEMO
- AER Electricity NSP Network & Retail Exemption Guidelines