What are the National Electricity Rules and what do they cover?
The National Electricity Rules govern the operation of the National Electricity Market (NEM). Changes to the National Electricity Rules are made by the AEMC. The rules govern the operation of the wholesale electricity market; that is, the market arrangements for the commercial exchange of electricity from the electricity producers (generators) through to the electricity retailers.
They also regulate the transportation of electricity by transmission and distribution network companies from the generators to the retailers, but do not cover the retail sale of electricity to end users. See more at AEMC http://www.aemc.gov.au/About-Us/FAQs
Why does the energy market need rules?
The electricity supply chain between the generators and consumers is divided in the competitive generation sector, the monopoly network businesses and the competitive retail sector.
The generator sector operates as a spot market with many generating companies competing to provide energy to be delivered to consumers. The operation of this market is governed by a set of rules to facilitate:
See more at AEMC http://www.aemc.gov.au/About-Us/FAQs
What is the outlook for gas prices in the eastern gas market?
Australia’s eastern gas market is experiencing a structural and permanent increase in demand and supply due to the development of the Queensland LNG export industry.
This has resulted in upward pressure on prices and a focus on the improving the efficiency of the gas supply chain. East coast gas prices, which have been historically low by international standards, are likely to rise as new gas contracts are negotiated at a time coinciding with increasing LNG exports.
See more at AEMC http://www.aemc.gov.au/About-Us/FAQs
What are the National Energy Retail Rules and what do they cover?
The National Energy Retail Rules govern the sale and supply of energy (electricity and natural gas) from retailers and distributors to customers.
While some of the rules have general application to all customers, most are primarily focused on the sale and supply of energy to residential and other small customers, such as those that set out the consumer protection measures and model contract terms and conditions. These rules are an important part of the National Energy Customer Framework.
See more at AEMC http://www.aemc.gov.au/About-Us/FAQs
Do the customer protections under the National Energy Customer Framework apply to me?
If you are a residential or other small customer; and your premises are located within one of the participating states or territories, you will be covered by the consumer protection provisions established under the customer framework.
If you are a non-residential customer with energy consumption levels that exceed the thresholds for a small customer, then the NECF consumer protection provisions do not apply to you. Rather the sale of energy is covered by the terms and conditions of your individual supply contract.
See more at AEMC http://www.aemc.gov.au/About-Us/FAQs
Will the National Energy Customer Framework lead to lower energy prices?
Retail energy price decisions are made by the jurisdictional regulators of relevant state and territory governments or by individual energy retailers.
The National Energy Customer Framework does not deal with pricing matters; rather, it is about providing a base level of protection for residential and small customers while achieving retail energy market efficiency and effectiveness.
See more at AEMC http://www.aemc.gov.au/About-Us/FAQs
What if I have an issue with my current energy supplier, or I wish to make a complaint?
If you have an issue about energy billing or supply, or have a complaint about your retailer or distributor:
You must try and resolve the issue with your service provider directly, first. If you are not sure who your service provider is, your last invoice from them should provide you with the name and contact details.
If you have approached your service provider about your issue and feel that it has not been satisfactorily resolved, then you may wish to contact your jurisdictional energy ombudsman and register a formal complaint.
If you are not sure what option you should take, or have other concerns or questions, please contact your energy ombudsman to discuss. See more at AEMC http://www.aemc.gov.au/About-Us/FAQs
I am trying to understand the NEM/Spot Market. How does AEMO decide which generators to dispatch?
Briefly, the National Electricity Market is a wholesale exchange for electricity for the States and Territories that are electrically connected – namely Queensland, New South Wales, the Australian Capital Territory, Victoria, South Australia and Tasmania.
The NEM commenced operation on 13 December 1998, starting with just NSW and Victoria. Wholesale trading in electricity is conducted as a spot market where supply and demand are instantaneously matched in real time through a centrally coordinated dispatch process.
Generators offer to supply the market with specific amounts of electricity at particular prices. Offers are submitted every five minutes of every day. From all offers submitted, AEMO determines the generators required to produce electricity based on the principle of meeting prevailing demand in the most cost-efficient way. AEMO then dispatches these generators into production.
A dispatch price is determined every five minutes, and six dispatch prices are averaged every half hour to determine the spot price for each trading interval for each of the regions of the NEM. AEMO uses the spot price as the basis for the settlement of financial transactions for all energy traded in the NEM.
See More at AEMO http://www.aemo.com.au/About-the-Industry/FAQs
What are the National Gas Rules and what do they cover?
The National Gas Law and the National Gas Rules bring responsibility for regulation of access to natural gas pipeline services provided by transmission and distribution pipelines under the national energy market framework.
The National Gas Rules also govern the operation of the Short Term Trading Market (STTM) in Brisbane, Sydney and Adelaide, the Declared Wholesale Gas Market in Victoria, and the Natural Gas Services Bulletin Board. In Western Australia some aspects of the National Gas Rules are applied by the Energy Regulation Authority of Western Australia rather than the AER.
See more at AEMC http://www.aemc.gov.au/About-Us/FAQs
What is the outlook for electricity prices?
Electricity prices are complex.
The factors driving them can change in response to social and economic developments which are hard to predict such as changes in general demand and peak demand; entry and exit of generators from the wholesale market; changes to retail price regulation depending on policy decisions made by states and territories; changes in network prices following new regulatory determinations for each network business.
At the same time price trends in each state and territory are different as costs vary due to population spread and density, weather, technology, economy strength and consumer choices. The AEMC publishes an annual report on retail electricity price trends. The main driver of upward pressure on retail prices has been network prices in recent years but these cost rises are expected to moderate
See more at AEMC http://www.aemc.gov.au/About-Us/FAQs
What is the National Energy Customer Framework?
The National Energy Customer Framework is the name given to the broad national arrangement that has been developed by energy ministers to support the efficient operation of the electricity and natural gas retail markets, while also ensuring appropriate consumer protections are in place for residential and other small customers.
This involves the transfer of previously existing state and territory responsibilities (for participating jurisdictions) for energy customer protections to a new national regulatory regime that governs the sale and supply of electricity and natural gas to retail customers.
See more at AEMC http://www.aemc.gov.au/About-Us/FAQs
What states and territories are participating in the National Energy Customer Framework?
The National Energy Customer Framework has commenced in the following jurisdictions:
- The Australian Capital Territory (commenced 1 July 2012);
- Tasmania (commenced 1 July 2012)
- The Commonwealth (commenced 1 July 2012)
- South Australia (commenced 1 February 2013)
- New South Wales (commenced 1 July 2013)
Other jurisdictions may follow in accordance with their own implementation plans. Western Australian and the Northern Territory are not adopting the customer framework as separate energy industry frameworks apply in these jurisdictions.
See more at AEMC http://www.aemc.gov.au/About-Us/FAQs
What happens when the National Energy Customer Framework starts in my state or territory?
Once the national laws become operational in your state or territory, the consumer protections under the customer framework apply subject to jurisdictional modifications.
You don’t have to do anything further to receive the benefit of these protections. The Australian Energy Regulator is responsible for enforcement of these consumer protections. There should be no significant difference to the way your electricity or natural gas services are delivered.
You may, however, notice some additional information on your electricity bills which will allow you to compare your electricity use to similar sized households in your area.
See more at AEMC http://www.aemc.gov.au/About-Us/FAQs
What do I do if I am having difficulty paying my electricity or gas bill?
If you are a residential or small customer and you are experiencing difficulties in meeting your energy bills, ask your electricity or gas retailer about the customer hardship measures that they have in place.
These are designed to assist you to manage your energy bills on an ongoing basis. Alternatively, you can find more general information about energy supply and consumer protections from the website of the Australian Energy Regulator.
See more at AEMC http://www.aemc.gov.au/About-Us/FAQs
What is an energy ombudsman?
Most jurisdictions have an energy ombudsman whose role is to receive, investigate and facilitate the resolution of customer complaints about electricity or gas companies operating in their jurisdiction (in many jurisdictions they will also look into complaints about water companies).
The services provided to consumers are free of charge. If you have approached your service provider about your issue and feel that it has not been satisfactorily resolved, then you may wish to contact your energy ombudsman and register a formal complaint.
Who is my energy ombudsman and what are the contact details? http://www.aemc.gov.au/Australias-Energy-Market/Useful-links