Executive summary of update

This update introduces significant regulatory changes across three key areas. Firstly, it establishes new rules for solar-generated electricity, mandating that retailers and exempt sellers cannot charge customers for exported solar energy and must credit them at a rate no less than $0 per kilowatt hour. Secondly, it substantially increases the financial penalties for licence breaches and expands the regulatory powers of the Independent Pricing and Regulatory Tribunal (IPART), including the ability to institute proceedings under the National Electricity Law for specific rule breaches. Thirdly, it creates a new framework for network-to-network connections, empowering the Minister to issue binding guidelines to streamline the planning and delivery of major electricity infrastructure. These changes aim to support renewable energy uptake, strengthen regulatory enforcement, and facilitate critical network development.

Impacted parties

This update most significantly impacts electricity retailers, exempt sellers, network operators (both distribution and transmission), and customers with solar photovoltaic systems.

Change Analysis

New Regulations for Solar-Generated Electricity

A new Division 5 has been added to Part 4, introducing specific rules for how retailers and exempt sellers must handle electricity supplied by customers from solar photovoltaic systems.

• What has changed:

  • Section 43G now prohibits retailers and exempt sellers from charging small customers for solar-generated electricity they supply to the grid. It also establishes a floor price, mandating that customers must be credited at a rate of at least $0 per kilowatt hour.
  • Section 43H extends a similar protection to customers who are not small customers, preventing retailers or exempt sellers from charging them more for their exported solar electricity than the amount they are credited for it during a billing period.
  • A new definition for solar-generated electricity has been added to the Dictionary to support these changes.

• Why it matters: This change codifies a minimum standard for solar feed-in tariffs, preventing negative pricing for residential and commercial solar exports. It creates a new compliance obligation for retailers and exempt sellers, directly impacting their billing systems, customer contracts, and financial models for solar customers.

Enhanced Regulatory Enforcement and Increased Penalties

The update significantly strengthens the regulatory enforcement framework, increasing financial penalties and expanding the powers of the Tribunal (IPART).

• What has changed:
  • Schedule 2, clauses 8 and 8A have been amended to substantially increase the maximum monetary penalties the Minister or the Tribunal can impose for licence contraventions....