Enhancing Retail Performance Reporting: What You Need to Know

The Australian Energy Regulator (AER) has released its Draft updated Retail Performance Reporting Procedures and Guidelines. This comprehensive document, following the Issues Paper published in July 2023, addresses aspects of performance reporting in the energy sector.

One of the key concerns voiced by retailers was the potential for increased costs and resource demands resulting from proposed changes. These concerns are not unfounded, as they could ultimately lead to higher costs for consumers. However, amidst these apprehensions, there's recognition that additional performance metrics may play a vital role in ensuring consumer protection and enhancing regulatory transparency.

Finding Balance: Stakeholder Input and Reporting Goals

The AER emphasises that the draft Guidelines strike a fair balance between stakeholder input and the overarching reporting objectives. Drawing on feedback from the Issues Paper, several adjustments have been made, demonstrating a responsive approach to industry concerns.

Introducing New Indicators

1. Embedded Networks: Enhancing visibility into customers within embedded networks.
2. Life Support Customers: Consistently tracking life support customers to improve transparency and monitor customer protections.
3. Customers Affected by Family Violence: Capturing data on customers impacted by family violence to better understand their needs and provide support.

Consolidating and Removing Indicators

The proposal to consolidate complaint indicators related to meter contestability has been withdrawn, considering ongoing smart meter rollout dynamics. While retailers favoured this consolidation, consumer groups opposed it. Similarly, indicators deemed less valuable for performance reporting, such as Indicator S3.38, “Total number of residential customers reconnected in the same name at the same address”, have been removed.

Refinements to Current Indicators

Stakeholder input has led to clarifications and refinements in indicator definitions, aiming to reduce non-compliance risks and ensure reporting consistency. Notable refinements include:

1. Inclusion of all meter types and tariff structures in data collection to reflect market transitions.
2. Incorporating prepayment meters for improved visibility.
3. Detailed complaint categories for deeper insights into customer dissatisfaction causes.
4. Adjustments in payment plan indicators to encompass small business customers and residential customers.
5. Introduction of new indicators to track emerging payment methods like 'buy now, pay later' services and their utilisation by hardship customers.
6. Enhancement of debt indicators to better monitor and understand retail support for customers with energy debt.
   
   

Frequency and Granularity of Data

While there was consideration for monthly data submissions on key indicators like debts and disconnections, challenges and resource demands highlighted by retailers have led to the removal of this proposal. Additionally, a compromise has been proposed for distribution network-level reporting to enhance pricing analyses and understand the impact of network tariff reforms.

What's Next?

The AER aims to conclude the review of the draft Guidelines by May 2024, with an implementation date set for January 1, 2025. Stay informed by reading the full AER (Retail Law) Performance Reporting Procedures and Guidelines and speak with your Account Manager to explore how renewable energy sources can align with your business objectives.

By staying abreast of these developments and understanding their implications, you can navigate the evolving energy landscape effectively, ensuring compliance while seizing opportunities for innovation and sustainability. SmartestEnergy is here to support you on this journey.


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