As you're likely aware, the regulatory requirements for embedded network operators, exempt retailers, and authorised retailers in Australia is constantly evolving and changing. As part of this, there are a number of regulatory changes coming into effect from 1 July 2019 you'll need to be across.
All of these may or may not impact your business directly, but Utilmate will need to be prepared and ready for these. As such, in June we will be making the following changes:
AER Default Offer (DFO)
DescriptionIn all states other than Victoria (where the ESC has jurisdiction), the AER is replacing the current standing offer concept with a new DFO, or default offer. As far as we're aware, you don’t have to make this available to your customers and only need to be used as a reference point if you are showing guaranteed discounts. |
Utilmate changesThis regulatory change will not require any system changes. If you are using offerings with guaranteed discounts, you may wish to review your use of these and the related price plans. |
Read more about AER Default Offer
ESC Default Offer (ESC)
DescriptionIn Victoria the ESC is replacing the current standing offer concept with a new VFO (Victorian default offer). This differs from the DFO mentioned above as you DO have to offer it to your customers if they ask for it. It is set as what the ESC considers a "fair" market price, whereas the DFO is a "fall back" position.The VDO also needs to be used as a reference point if you are showing guaranteed discounts. |
Utilmate changesThis regulatory change will not require any system changes. However, the VDO price plans will be set up in Utilmate and set as in-active. If you wish to use them, you will just need to activate them. If you are using offerings with guaranteed discounts, you may wish to review your use of these and the related price plans. |
Current VDO prices. Final VDO prices are not yet published.
Read more about ESC Default Offer
GST inclusive Rates
DescriptionIn Victoria the ESC requires all electricity and gas pricing to be GST inclusive. |
Utilmate changesThis regulatory change will require changes to your invoice layout. Although it is only Victoria mandating this change, it is likely other states will follow. As such, this is being done as a global change.
Example is shown below. If you do not have Victorian customers or wish to opt out of this change, please advise us by 31 May 2019. |
Example invoice layout charges.
Read more about GST inclusive rates
Best Offer
DescriptionIn Victoria the ESC is introducing rules around informing customers if they are on the "best offer" available to them (or not). This, in conjunction with the VDO means all customers will likely have at least two price plans available to them. This applies to electricity and gas invoices for authorised retailers. Exempt retailers may choose not to display the best offer information. |
Utilmate changesThis regulatory change will require a significant system change.
This change can easily be applied to other states if required in the future. |
Best offering calculation:
| Customer | Price Plan | Annual saving | Best offer |
| 123456 | PP_1 | $0 | Y |
| 654321 | PP_2 | $100 | N |
Each month Utilmate will calculate the best offer for each:
- Victorian customer
- With a Bundled price plan
- And a site class of SMALL
And populate best offer data into a table as shown above.
- Take the customers usage (up to last 12 months)
- Calculate by other available price plans
- Assume no PPD or other discounts apply to VDO’s
- Assume the same PPD and other discounts to other available price plans
- Assume same level of concessions (if any)
- Assume same levels of Demand (if any)
- If comparison plan is peak/ off peak assume 65/35 split
- Assume same water charges (if any)
- Include GST in total
- If annual saving is estimated at more than $22 set best offer to N. Otherwise Y.
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Invoice example for customer on best offer
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Invoice example for customer not on best offer
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Read more about best offers on bills
As always, this is our interpretation of these upcoming regulatory changes. If you have interpreted any of these differently or would like to discuss, please get in touch by phone on 1800 952 578 or email enquiries@utilmate.com.
Alternatively if you would like to engage with an industry specialist in this area, we recommend the Compliance Quarter team. Feel free to get in touch with Connor.