Updated reporting requirements

On 24 July 2024, we updated our direction to distribution businesses to report against their revised Greenfields Negotiated Electricity Connection Customer Service Standards (standards). 

On 21 December 2023, the Minister for Energy made a Ministerial Order specifying several performance reporting metrics related to negotiated connections as enforceable. These enforceable metrics were based on the performance reporting framework component of the standards.

Our new reporting direction aligned the reporting timeframes of the standards with the reporting timeframes of the Ministerial Order. 

This direction also specified the manner and form in which electricity distributors must report to us on the performance reporting required under section 7(3)(c) of the Ministerial Order.

Reporting must be made to the commission every six months for the periods:

• 1 January to 30 June – reporting due by 31 August that year.
• 1 July to 31 December – reporting due 31 March the following year.

Templates and letters specifying the updated reporting directions to electricity distributors can be found in the resources tab.

Previous reporting requirements

On 27 March 2023, we made a final decision directing distribution businesses to report on their performance against revised Greenfields Negotiated Electricity Connection Customer Service Standards when working with developers and contractors to connect new housing developments to electricity.

We first directed distributors to report against the Greenfields Negotiated Electricity Connection Customer Service Standards in March 2021.

Distribution businesses are required to report to the commission every six months for the regulatory period from 1 April 2023 to 31 March 2026.

The customer service standards include:

• an overarching customer outcomes statement setting out what a distribution business expects to deliver over the next three years in relation to negotiated connections
• a requirement to form a consultative committee that meets regularly to discuss improvements in negotiated connection processes
• a performance reporting framework that distribution businesses are to report against every six months.

View reports against the customer service standards

Distribution business reports against their customer service standards can be found in the resources tab.

Overview

In 2022, we developed a statement of expectations in relation to how transmission companies access land. The statement of expectations took effect on 1 June 2022 and remained in place until 29 February 2024. On 1 March 2024, the Land Access Code of Practice came into effect. Transmission companies are now required to comply with the Land Access Code of Practice and provide monthly performance reports in accordance with the Land Access Code of Practice.

Landowners, parties with interest in land, and electricity transmission companies are critical partners in the delivery of major energy projects and the provision of essential services. This statement of expectations sought to achieve a balance between the statutory right to access private lands and the rights of those affected by that exercise of that power.

This statement of expectations did not relate to decisions regarding the route of transmission projects or the decisions about whether to proceed with these projects.

Land access can be done through a voluntary agreement between a transmission company and a landowner. If a voluntary arrangement cannot be reached, transmission companies have powers under section 93 of the Electricity Industry Act 2000 to access land compulsorily.

The statement comprises of a set of principles outlining how electricity transmission companies were expected to exercise their powers according to section 93 of the Electricity Industry Act 2000 to access land until the Land Access Code of Practice came into effect.

Consultation 

We released the draft statement of expectations for public consultation on 24 March 2022.

Consultation originally ran from 24 March to 12 April. Following stakeholder feedback, we extended the consultation period to 19 April. During this period, we held two events: a public webinar on 4 April and an industry forum on 5 April. Together, these events had over 50 attendees.

We received 32 submissions to the draft statement of expectations. Of these, six submitters requested confidentiality (AusNet provided a public and confidential submission and is not counted as part of our confidential submissions).

We have published all non-confidential submissions in the resources tab of this page, as part of our publishing process for the final statement of expectations. If you made a confidential submission, but would like to make your submission public, please email energyreform@esc.vic.gov.au.

Victoria’s new regulatory sandboxing framework enabling innovators to trial new products and services in the energy market commenced on 1 June 2022.

New provisions in the Electricity Industry Act 2000, the Gas Industry Act 2001 and the Essential Services Commission Act 2001 provide the commission new powers to grant a time-limited trial waiver to innovators who sell, supply, generate or transmit electricity, or sell or supply gas. This will allow the trialling of innovative technologies, approaches, business models, products and services in the Victorian energy market, in a controlled setting, and help inform whether permanent changes to particular energy rules would benefit Victorian consumers.

Trial waivers operate alongside licences and licence exemptions as a distinct authorisation category that enables entry into Victoria’s energy market.

To support the regulatory sandboxing framework, we have developed a Trial Project Guideline to provide Victoria-specific guidance to innovators on the requirements to operate a project in Victoria. The Trial Project Guideline sets out our proposed approach, information and process requirements that we will consider for trial waiver applications and how decisions on trial waiver applications will be made.

Consultation 

We consulted on our draft decision and draft Trial Project from 19 April to 17 May 2022. We received three submissions, available in the resources tab. Submissions covered a number of topics, including:

• mandatory membership with the Energy and Water Ombudsman (Victoria) for all trial waiver holders
• information requirements for dispute resolution
• the timeframe to determine trial waiver applications
• consultation trial waiver applications
• monitoring and reporting
• confidential information
• extension of trial waivers.

Feedback on the national regulatory sandboxing framework

The Australian Energy Regulator consulted with stakeholders on its draft Trial Projects Guidelines to support the development of a national regulatory sandboxing framework. We have had regard to the Australian Energy Regulator’s draft guidelines in developing our guideline and sought to achieve consistency where possible and appropriate.

Overview

As part of its Energy Fairness Plan commitments, the Victorian Government reformed the enforcement framework that we operate under. To align with this new framework our energy codes have transitioned to to ‘codes of practice’.

The new enforcement framework was implemented via the Essential Services Commission (Compliance and Enforcement Powers) Amendment Act 2021 (Compliance and Enforcement Act). 

The Compliance and Enforcement Act commenced on 1 December 2021 and resulted in our existing energy codes being deemed as ‘codes of practice’. However, for the provisions of those instruments to be fully enforced through the new enforcement framework, we are undertaking a further step of reviewing each code.

We consulted on the proposed new Electricity Distribution Code of Practice in late March 2022. In August 2022 we published a final decision. The new Electricity Distribution Code of Practice will take effect on 1 October 2022.

Compliance and Performance Reporting obligations

Distributors are required to report to the comission in accordance with the Compliance and Performance Reporting Guideline (version 7). Annex E to the final decision sets out the equivalent clauses in the new Electricity Distribution Code of Practice.

We intend to conduct further consultation on distributors’ reporting obligations under the new Electricity Distribution Code of Practice, and to conclude such process by the end of 2022.

We are responsible for setting and annually reviewing the Victorian Default Offer prices. The default offer is designed to be a simple, trusted and reasonably priced electricity option that safeguards customers that are unwilling or unable to engage in the market.

We have set the Victorian Default Offer prices to apply from 1 July 2022 to 30 June 2023. 

Victorian default offer prices to apply from 1 July 2022 to 30 June 2023 

Fixed flat tariffs for general usage and general usage + controlled load usage – residential customers

Fixed flat tariffs for general usage – small business customers with consumption less than 40 MWh per year

Two period time of use tariffs – residential customers

Two period time of use tariffs – small business customers with consumption less than 40 MWh per year 

Our price determination covers all types of standing offers, including those based on time-of-use, demand, and flexible tariff structures. 

If you're not sure which distribution zone you're in, you can look it up on your electricity bill or view more information on the Victorian Government's energy website.