Rule Changes: Open

Notification of end of fixed benefit period

Reference:
RRC0010
Stage:
Consultation on request for rule change (expedited)
Proponents:
The Honourable Minister Josh Frydenberg MP, Minister for the Environment and Energy on behalf of the Australian Government
Project Leader:
Lily Mitchell
Date initiated:
12-Sep-2017
Overview

On 12 September 2017 the AEMC published a consultation paper for the Notification of end of fixed benefit period rule change request. This rule change request will proceed under the expedited rule making process on a non-controversial basis.

Overview

On 12 September 2017 the AEMC published a consultation paper for the Notification of end of fixed benefit period rule change request. This rule change request will proceed under the expedited rule making process on a non-controversial basis.

Any objections to the expedited process must be submitted by 26 September 2017.

Stakeholder submissions on the consultation paper are due by 10 October 2017.

Proposed rule change

On 22 August 2017 the Honourable Josh Frydenberg MP, Minister for the Environment and Energy on behalf of the Australian Government (proponent) submitted a rule change request to the Australian Energy Market Commission under the National Energy Retail Law. It seeks to increase customer awareness of changes in retail market contracts by requiring retailers to give customers notice of the end of fixed benefit periods under those contracts.      

Many market contracts have fixed benefit periods, where a customer receives a benefit or benefits which expire prior to the end of the market contract. A fixed benefit period is defined in the National Energy Retail Rules as “a period of a market retail contract (where the end date of that period is specified or ascertainable at the beginning of that period) during which a benefit to the customer (such as a price discount) is available.”         

The proponent is proposing a new rule that requires retailers to inform their customers of the impending expiry of their fixed benefit period and to provide them with certain financial and other information between 20 and 40 business days before expiry.

Expedited rule making process

The proponent submitted that the rule change should be made under the expedited process set out in s.252 of the National Energy Retail Law. The AEMC proposes adopting the expedited process. We consider that the rule change request is within the meaning of a non-controversial rule on the basis that the proposed rule is unlikely to have a significant impact on a market for energy or the regulation of customer connection services.

 

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