Rule Changes: Completed

Using estimated reads for customer transfers

Reference:
ERC0196
Proponents:
COAG Energy Council
Decision:
Rule not made
Overview

The AEMC has determined not to make a final rule in relation to a rule change request from the COAG Energy Council to allow small customers with manually-read meters to transfer to a new retailer based on an estimated meter read, rather than an actual meter read.

Overview

The AEMC has determined not to make a final rule in relation to a rule change request from the COAG Energy Council to allow small customers with manually-read meters to transfer to a new retailer based on an estimated meter read, rather than an actual meter read.

The rule request proposed that estimated reads could only be used for customers switching retailers but not moving house, where the customer has given explicit informed consent to the use of an estimate, and where the customer’s previous meter read was an actual read.

A number of important changes have occurred in the market in recent years, including a reduction in transfer times and the introduction of advanced meters. When the likely cost to consumers for an estimated read and the complexity in implementation are taken into account, the AEMC considers the introduction of an additional transfer option using estimated reads is not likely to be in the long term interest of consumers.

The rule change process

A consultation paper was published on 28 April 2016 to facilitate initial public consultation on the rule change request. Submissions on the consultation paper are available below.

The AEMC also held a workshop on the issues raised in the rule request in Sydney on 24 June 2016. The agenda and the presentation on estimated reads are below.

A draft determination was published on 27 October 2016. Submissions on the draft determination are available below.

The final determination was published on 2 February 2017.

Background

This rule change request, received in November 2015, is based on a recommendation from the AEMC’s 2014 Review of Electricity Customer Switching which found issues with the accuracy and timeliness of customer transfers. The review made six recommendations to improve specific aspects of the customer transfer process.

The AEMC has also made a final determination on a separate rule request (ERC0195) on another two of the review’s recommendations.

 

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Documentation