The rollout of consistent, nationwide protections for residential and some small business energy consumers has commenced with legislation to implement this major reform initiative passing the South Australian Parliament Tuesday evening.
The National Energy Customer Framework (NECF) has been agreed by all participating states and territories as part of the work of the Ministerial Council on Energy. As lead legislator, South Australia is the first jurisdiction to legislate new national energy laws, with other states and territories also committed to implementing the NECF in their respective jurisdictions by 1 July 2012.
Chair of the Ministerial Council on Energy, and Federal Minister for Resources and Energy, Martin Ferguson AM MP, welcomed this important step in the national rollout.
“This framework is an important tool for strengthening and harmonising customer protection for energy users,” Minister Ferguson said.
“This legislation brings a national approach to the regulation of customer protection for energy users, and will reduce costs for energy retailers by standardising the regulatory framework across jurisdictions.”
The framework will simplify regulation for energy retail businesses, and require model terms and conditions to apply as part of contracts with energy customers.
“The Australian Government is very conscious of the cost of living pressures being experienced by many Australians,” Minister Ferguson said.
“Rising electricity prices are part of this. The main driver behind rising electricity costs to date is the significant investment required to build new network infrastructure and replace ageing assets.
“This investment is crucially important in ensuring that customers continue to enjoy the reliable supply of electricity they have come to expect.
“In this environment, these improvements to the energy retail regulatory framework are an important step forward in making sure that consumers are appropriately protected.”
The NECF provides for strong, nationally consistent protections for energy customers. In particular, it places mandatory obligations on retailers to develop hardship policies that will assist residential customers experiencing payment difficulties.
Further information on the NECF is available at www.ret.gov.au