The Commission has decided not to make a rule following its consideration of whether a new framework was needed for customers who wanted a supply arrangement with more than one retailer at a premises.
MTR refers to the ability of a customer to engage with multiple retailers at a premises. Customers can already do this under the current rules by establishing a second connection point between the premises and the electricity network. The rule change request intended to make it easier for customers to engage with multiple retailers by implementing a new framework that removed the need for a second connection point.
The Multiple Trading Relationships (MTR) rule change request followed earlier work by the AEMC as part of the Power of Choice and Electric Vehicles reviews. These reviews recommended that further work should be done to explore how MTR might be encouraged.
The Commission has found that the current rules provide better support for multiple trading relationships than initially thought, and that recent market reforms remove the need for a new framework at this time. These reforms, specifically related to distribution network pricing and competition in metering are expected to:
- reduce costs for customers wanting to establish a second connection point; and
- facilitate new pricing and service choices through new tariff structures without the need for customers to engage with multiple retailers.
The proposed new framework would have been likely to require retailers and distributors to make extensive changes to their IT and administration systems. The costs of doing so could increase retail electricity prices for all customers and increase the complexity of retail market operations. Consumer protection rules would also need to be amended to ensure additional risks for vulnerable customers were addressed.