Annual Report 2018-19

Ensuring customers receive appropriate support from retailers and distributors

We license Victorian gas and electricity businesses. We publish codes and guidelines that regulated businesses must follow, and conduct reviews and inquiries to promote the long-term interests of electricity and gas consumers. We also publish regular reports on the state of the energy market to keep the community informed.

Our year in review

We implemented a range of energy reforms 

From 1 July 2019, households and small businesses have benefited from several game-changing reforms including: 

• access to the Victorian Default Offer for electricity and gas
• ‘best offer’ information regularly appearing on their energy bill
• clear advice from energy retailers about their energy plan.

From 1 January 2020, new protections will be in place for customers experiencing family violence. We’ve also implemented a payment difficulties framework that enables customers to access standard and tailored assistance through their energy retailer. 

We used our new enforcement powers to take action against energy businesses

From July 2018, we issued penalties totalling $340,000 to three energy retailers for transferring customers without explicit informed consent.

We also issued penalties totalling $350,000 to all five Victorian electricity distributors for failing to notify customers of planned interruptions. 

We approved 22 new energy licences for retailers, distributors and generators of electricity and gas

Between 1 July 2018 and 30 June 2019, we have issued 12 electricity generation licences, four electricity retail licences, four electricity wholesale licences and two gas retail licences.

This year is the first time large scale battery systems have been licensed to generate electricity in Victoria, including: 

• the GESS ProjectCo (25MW/50MWh battery storage system in Kerang)
• the Bulgana Green Power Hub (a wind farm connected with a battery energy storage system)
• generator Murra Warra ProjectCo (61 wind turbines with a total capacity of 226MW) 
• generator Lal Lal Wind Farms. (total capacity of 228MW).

Progress report, 2018–19

Key focus: customer protections
Status: Complete

• Develop resources to help energy companies provide assistance to customers experiencing family violence.
• Establish consumer protections for customers living in exempt networks.
• Amend and modernise our codes to enhance the quality of information provided to customers.

Outputs

• Released resources for energy companies that promote support for customers experiencing family violence.
• Amended the Energy Retail Code identifying relevant obligations for exempt electricity sellers.
• Developed new requirements for retailers to provide clear, useful information on bills and marketing material.

Outcomes

• Energy companies can confidently help customers facing family violence.
• Exempt persons understand their obligations and customers receive their entitlements.
• Customers can more easily understand, compare and switch energy plans.

Key focus: compliance reporting
Status: On track

• Publish regular reports on the performance of energy companies.
• Develop compliance strategies and targeted audit programs to foster self-compliance.
• Use enforcement action to deter noncompliance.

Outputs

• Published our Victorian Energy Market Report and updates on the compliance and performance of energy companies.
• Reported on how each retailer and distributor performed in our audit program.
• Produced reports on our enforcement activities.

Outcomes

• Consumers have easy access to performance information about their retailer and distributor, empowering them to make more informed choices about their electricity and gas provider.
• he energy industry designs processes and programs to ensure they can comply with key regulatory focus areas.

Key focus: regulatory frameworks
Status: On hold

• Define a framework for reporting on competitiveness and efficiency in the market.
• Commence our review into the competitiveness and efficiency of the retail energy market.
• We will consult stakeholders and develop a review approach in late 2019. This follows our new ongoing function to monitor and report on competitiveness and efficiency in Victorian retail energy markets.

Outputs

Develop a fit for purpose competitiveness and efficiency assessment framework.

Outcomes

Stakeholders feel they have actively participated in the development of the framework.

Our framework relies on common sense and economic principles.

Key focus: stakeholder engagement
Status: Complete

• Regularly engage with our regulatory community through forums, enewsletters and site visits.
• Improve the diversity of stakeholders we engage with on our work program.

Outputs  

Established and maintain monthly enewsletters for the sector.

Included a representative sample of Victorian consumers in our behavioural insights testing to inform our work on changes to bills and marketing materials.

Outcomes

Provide accessible engagement opportunities for a wide range of stakeholders.