Recent Changes to Energy Retail Code

The Essential Services Commission (ESC) has published its final decision on Amendments to the Energy Retail Code.

Significant changes are summarised below.

Refundable advances
 
Clause 8.1 sets out the circumstances under which a retailer can seek a refundable advance. It has been amended to clarify that retailers may have regard to a relevant default only, in determining a customer’s unsatisfactory credit rating. This means retailers can’t ask a customer for a refundable advance just because they don’t have a credit rating.


Energy efficiency/financial counsellor availability advice

Clause 12.2 (d) which required a retailer to offer customers energy efficiency advice when offering an instalment plan—as well as advice on the availability of a financial counsellor— has been deleted.


Energy efficiency advice—small business customers
 
This clause (26.6) requires retailers to provide energy efficiency advice on request. It has been amended to remove the obligation on retailers to provide this advice to small business customers but the obligation to provide it to residential customers remains.
 

Early termination fee component

Clause 31(c) was amended to include a fixed amount of $20 as part of the early termination fee. This amount represents the additional administrative costs to a retailer of the early termination and the value of any imbalance in the retailer’s electricity or gas hedging programme.

More information » Version 6 of the Energy Retail Code on the ESC’s website (under Energy/Regulation & Compliance/ Codes & Guidelines/Energy Retail Code)

What does this mean for you? Make sure you use the latest version of the Energy Retail Code when you’re working with your clients. Be aware of the strict guidelines retailers must follow before asking a customer for a refundable advance.

Return to the Message from the Ombudsman.

Changes made
to the Energy
Retail Code
are likely to have
direct implications
for your clients