Start of July, the Australian Energy Regulator (AER) unveiled its comprehensive compliance and enforcement priorities for the2025/26 financial year, underscoring a critical commitment to consumer protection, the nationwide smart meter transition, and safeguarding the stability and integrity of Australia's energy system. Embedded Network Owners/Operators should understand that these evolving requirements, represent significant operational and strategic benchmarks that make expert compliance support more crucial than ever.
The AER's Compliance and Enforcement Priorities - 2025/26 add further nuances to the existing landscape:
Improving Outcomes for Vulnerable Consumers The AER is intensifying efforts to ensure vulnerable consumers access robust hardship protections and genuinely affordable payment plans. They will closely monitor retailer data and investigate non-compliance that harms consumers facing hardship. A key effort involves improving retailer hardship policies, ensuring they cover outstanding debt even after a consumer leaves the retailer and clearly outline processes for missed payments. The AER also acknowledged the importance of interpreter services for vulnerable consumers, monitoring compliance through various intelligence sources, including ombudsman reports.
Protecting Customer During the Smart Meter Transition The AER's strategy fo rthe smart meter rollout is multifaceted, aiming to protect consumers while fostering an efficient transition. This involves ensuring transparent and adequate information for consumers regarding installation, subsequent tariff adjustments, and managing any site defects.
The regulator will also oversee Distribution Network Service Providers' (DNSPs) Legacy Meter Replacement Plans, ensuring they are timely, cost-effective, fair, and safe.
The AER aims to minimise disruption during installation and ensure upgrades are completed on time. To empower consumers, the AER will monitor explicit informed consent for tariff changes and mandate flat tariff options where applicable, helping people make informed decisions about their energy plans.
Promoting Competition, and Ensuring Safe and Reliable The AER will facilitate efficient and safe integration for new market participants, with increased attention to network connection rules. They will be prioritising activities to promote competition and ensure safe and reliable network infrastructure.
Our regulatory and compliance expertise directly addresses the intricate challenges posed by both the AER's broad priorities and the specific demands of Network and Retail Exemptions Guidelines.
Understanding and interpreting rules, regulations, and guidelines at both the state and federal levels.
Supporting Implementation and management of embedded networks, ensuring compliance from inception to ongoing operation.
Reviewing existing rules, regulations, and guidelines to identify potential gaps and ensure continued compliance.
Monitoring proposed rules, regulations, and guidelines to proactively prepare for future changes.
Embedded Networks operate under a complex regulatory framework, governed primarily by the National Electricity Rules (NER) and the National Energy Retail Law (Retail Law) within the National Electricity Market(NEM). These regulations often require Embedded Network Operators (ENOs) to obtain specific exemptions from the AER for both network and retail activities.Failure to comply with these regulations can result in significant penalties and jeopardise a project's success.
ENM Solutions as Your Embedded Network Expert
Partnering with ENM Solutions allows your business to gain a clear understanding of its network compliance and regulatory obligations. Streamlining your compliance processes, enables you to confidently focus on your core operations within Australia's dynamic energy market. This proactive approach is invaluable in mitigating risks, avoiding significant penalties, and ensuring the long-term success and viability of your embedded network projects.
To gain a deeper understanding of the AER's extensive work and how ENM Solutions can empower your organisation we invite you to contact our team for a conversation today.
