This alert concerns:
- anyone who owns or operates a facility where electricity is on-sold (on-supplier), for example multi-user industrial facilities, shopping centres and caravan parks in Queensland; and
- anyone who generates electricity and sells that electricity to another person.
Special Counsel Peter Burge and Associate Emily McCartney discuss further.
Proposed changes to the regulation of the sale of electricity in Queensland
The National Energy Customer Framework (the Customer Framework) is expected to commence in Queensland on 1 July 2015. A number of different laws and regulations (including the National Energy Retail Law (Queensland) Act 2014 (Qld)) will implement the Customer Framework. In this Alert, we refer to these together as the Retail Reform Laws.
The Retail Reform Laws will bring the regulation of the sale of electricity (as well as gas) in Queensland more into line with the regulation of such activities throughout the other States on the east coast of Australia.
How does this change in the law affect you?
If your business involves the sale of electricity, including for example on-supply to your tenants, you will be required to comply with the Customer Framework as implemented in Queensland.
How will the regulation of on-supply in Queensland change from 1 July 2015?
Currently the sale of electricity in Queensland is regulated under the Electricity Act 1994 (Qld) (Electricity Act). Typically, on-suppliers are exempt from the requirement to hold either a retail or distribution authority otherwise required by the Electricity Act.
Primarily, if you are an on-supplier in Queensland and wish to avoid having to apply for a retailer authorisation under the Retail Reform Laws, you will need to ensure that you have the relevant exemption. There are three classes of exemption available: deemed, registrable, and individual exemptions.
On 10 April 2015 the Australian Energy Regulator released a new version of the AER (Retail) Exempt Selling Guideline. These guidelines set out in what circumstances the various types of exemption are available.
Certain generators also impacted by the Retail Reform Laws
Similarly, those who currently generate and distribute electricity in Queensland, whether pursuant to a special approval, deemed special approval or a generation authority (where that authorisation allows the holder to sell electricity), will also be affected by the change in the law.
Transitioning into the new Customer Framework
The differences between the current law and the regulatory regime that will take effect from 1 July, and the implications for retailers, on-suppliers, and generators are summarised in the table below:
Click here to view table.
It is important that all businesses that are involved in the sale of electricity in Queensland (on any scale) consider how the implementation of Customer Framework in Queensland will affect it and take steps to prepare for the new regime.