Competition and Consumer (Industry Code—Electricity Retail) Regulations 2019

law://au/li/2019/f2019l00530@2026-11-13

Contents

1Name#

This instrument is the Competition and Consumer (Industry Code—Electricity Retail) Regulations 2019.

3Authority#

This instrument is made under the Competition and Consumer Act 2010.

4Simplified outline of this instrument#

Part 2 prescribes a mandatory industry code for supplying electricity to small customers (see section 6).

The objective of the code is set out in section 9A.

Under the code:

(a) standing offer prices must be set such that, were a small customer to be supplied in a financial year at those prices with the amount of electricity determined by the AER for the financial year under Part 3 (the model annual usage), the total amount the customer would have to pay for the supply would not exceed the price determined by the AER under that Part (the comparison price set by the AER) (see section 10); and

(b) there are tariff caps on standing offer prices for small customers on regulated tariffs (see section 10A); and

(c) a relevant electricity retailer must make an SSO standing offer generally available to residential customers who have a smart meter, but must first explain the circumstances in which an SSO regulated tariff may or may not be of benefit to the customer and may only place the customer on an SSO regulated tariff if the customer agrees (see section 11); and

(d) small customers must be told how prices for supplying electricity compare with the relevant comparison price set by the AER (see section 12); and

(e) an advertisement for supplying electricity to small customers must not have a discount as its most conspicuous price-related matter, and must state any conditions on discounts clearly (see section 14).

Under Part 3, the AER determines:

(a) a model annual usage and a comparison price set by the AER for non-regulated tariffs and regulated tariffs in relation to each distribution region and each type of small customer (see subsections 16(1) and (1A)); and

(b) tariff caps for regulated tariffs (see subsection 16(1A); and

(d) guidelines for the purposes of making determinations under sections 16 and 18 (see section 18B).

This instrument does not apply in relation to supplying electricity in:

(a) small distribution regions; or

(b) distribution regions where standing offer prices are set under a State or Territory law.

(See section 8).

Division 2 · Definitions etc.

5Definitions#

Note: A number of expressions used in this instrument are defined in the Act, including the following:

(a) AER;

(b) contract;

(ca) personal information;

(d) supply.

In this instrument:

Act means the Competition and Consumer Act 2010.

communicate prices for supplying electricity: see subsection 12(2A).

comparison price set by the AER for a financial year, in relation to supplying electricity in a distribution region to a small customer of a particular type:

(a)for electricity supplied under a non-regulated tariff—means the per-customer annual price determined by the AER under paragraph 16(1)(b) for the year in relation to the supply; and

(b)for electricity supplied under a regulated tariff—means the per-customer annual price determined by the AER under paragraph 16(1A)(b) for the year in relation to the supply.

comply with the price cap has the meaning given by subsection 10(3).

conditional discount:

(a)subject to paragraph (b), includes a conditional rebate or conditional credit; and

(b)does not include a discount, rebate or credit if all of the conditions on it relate to the circumstances in which a small customer enters into a contract with an electricity retailer for supplying electricity to the small customer.

conditional price has the meaning given by subsection 12(4).

consumer has the meaning given by subsection 51ACA(1) of the Act.

controlled load tariff means a tariff for supplying electricity for use only in specific appliances.

demand tariff: a tariff for supplying electricity is a demand tariff if working out the amount a consumer is charged for the supply of electricity during a period at prices that include that tariff requires identifying, from among particular sub-periods of the period, the sub-period during which the consumer’s demand for the supply of electricity is the highest.

distribution region means the region in which a particular electricity distribution network operates.

electricity retailer means a corporation authorised by or under a law of the Commonwealth or of a State or Territory to sell electricity.

fixed charge in relation to an electricity retailer, means the electricity retailer’s charge for supplying electricity to a small customer in a distribution region which does not vary according to the customer’s usage of the electricity.

flat-rate tariff means a tariff for supplying electricity that does not vary (wholly or partly) by any of the following:

(a)the time of day the electricity is supplied;

(b)the amount of electricity that is supplied on a day;

(c)the temperature, whether actual or forecast, on the day the electricity is supplied;

(d)any other characteristic that varies, or may vary, during the day the electricity is supplied.

flexible tariff means a tariff (other than a demand tariff), for supplying electricity, that varies (wholly or partly) according to the time of day when the electricity is supplied.

free usage period, in relation to a residential customer, means a period determined by the AER under subsection 18(1) during which there is no variable charge for electricity used by the customer that does not exceed the reasonable use cap for the free usage period.

Note: A residential customer may incur a variable charge for any electricity used during the free usage period that exceeds the reasonable use cap, see subsections 11A(3) and 18(4).

industry code has the meaning given by subsection 51ACA(1) of the Act.

model annual usage for a financial year, in relation to supplying electricity in a distribution region to a small customer of a particular type:

(a)for electricity supplied under a non-regulated tariff—means the matters determined by the AER under paragraph 16(1)(a) for the year in relation to the supply; and

(b)for electricity supplied under a regulated tariff—means the matters determined by the AER under paragraph 16(1A)(a) for the year in relation to the supply.

MWh means megawatt hour.

non-regulated tariff means a tariff:

(a)that is not a regulated tariff; and

(b)for which the AER has determined a comparison price set by the AER under paragraph 16(1)(b).

price:

(a)subject to paragraph (b), includes a charge of any description, including a recurring fee (for example, an annual membership fee); and

(b)does not include any of the following:

(i)a one-off fee (for example, a connection or reconnection fee or an account establishment fee);

(ii)a fee for making, or failing to make, a payment in particular circumstances (for example, a credit card transaction fee, a late payment fee or a direct debit dishonour fee);

(iii)a fee for a service provided on request on an ad-hoc basis (for example, a fee for a meter read requested by a consumer).

proportional conditional discount has the meaning given by subsection 12(4).

reasonable use cap: see subsection 11A(2).

regulated tariff means any of the following types of tariff for which the AER has determined a tariff cap under subsection 16(1A):

(a)a flat rate tariff for residential customers;

(b)a flat rate tariff for small business customers;

(c)a flexible tariff (other than an SSO regulated tariff) for residential customers;

(d)a flexible tariff for small business customers;

(e)a controlled load tariff for residential customers;

(f)an SSO regulated tariff;

(g)a tariff type determined by the AER under section 15A for the purposes of this paragraph.

representative customer, in relation to supplying electricity in a distribution region in a financial year to a small customer of a particular type, means a small customer of that type who is supplied with electricity in that region in the year in accordance with the model annual usage for the year in relation to the supply.

residential customer has the meaning given by section 6.

small business customer has the meaning given by section 6.

small customer has the meaning given by section 6.

smart meter, in relation to a residential customer, means a digital device that automatically records electricity usage at frequent intervals (for example, every 30 minutes) at the premises to which the meter is connected.

SSO regulated tariff means a flexible tariff for residential customers that includes a free usage period, and a reasonable use tariff cap, determined under section 18.

SSO standing offer means a standing offer by an electricity retailer to supply electricity to a residential customer under an SSO regulated tariff.

standing offer prices means all of an electricity retailer’s prices for supplying electricity in a distribution region to a small customer in any of the following circumstances:

(a)the retailer is required under a law of a State or Territory to offer to supply the electricity;

(b)the electricity is not supplied under a contract.

Note: Examples of the circumstances covered by paragraph (b) include the following:

(a) the small customer starts consuming electricity at premises without first contacting the retailer;

(b) the small customer continues consuming electricity at premises after a contract for the supply of electricity to the premises has ended;

tariff cap has the meaning given by paragraph 16(1A)(c).

types of small customer has the meaning given by section 6.

unconditional price has the meaning given by subsection 12(4).

variable charge, in relation to an electricity retailer, means the electricity retailer’s charge for supplying electricity to a small customer in a distribution region that varies according to the customer’s usage of that electricity.

6Small customers#

(1)This section applies in relation to an electricity retailer supplying (or proposing to supply) electricity to a consumer.

(2)Subject to subsection (3), the consumer is a small customer if the consumer is any of the following types of small customer:

(a)a consumer (a residential customer) in relation to whom electricity is supplied principally for personal, household or domestic use;

(b)a consumer (a small business customer) in relation to whom both of the following apply:

(i)the electricity is not principally for personal, household or domestic use;

(ii)the supply is, or will be, at a rate of less than 100 MWh a year.

(3)The consumer is not a small customer, of any type, if:

(b)the supply is through a prepayment meter; or

(c)the supply is by means of an embedded network.

7Civil penalty provisions#

A provision of Division 2 of Part 2 that is of one of the following kinds and sets out at its foot a pecuniary penalty indicated by the words “civil penalty” is a civil penalty provision of the industry code in that Division for the purposes of Part IVB and section 76 of the Act:

(a)a subsection;

(b)a section that is not divided into subsections.

Division 3 · Scope of this instrument

8Distribution regions to which this instrument does not apply#

This instrument does not apply, in relation to a financial year, to supplying electricity in a distribution region if:

(a)any standing offer prices, or maximum standing offer prices, for supplying electricity in the year in the region to a small customer are set by or under a law of a State or Territory; or

(b)the total number of consumers to whom electricity retailers supplied electricity in the region, and any interconnected distribution regions, in the previous financial year was less than 100,000.

Part 2 · Electricity Retail Code of Conduct

Division 1 · Introduction

9Mandatory industry code in Division 2#

For the purposes of section 51AE of the Act, the industry code set out in Division 2 of this Part:

(a)is prescribed for the purposes of Part IVB of the Act; and

(b)is declared to be a mandatory industry code.

9AObjective of industry code#

(1)The objective of the industry code is to provide small customers that are supplied with electricity at standing offer prices with a fair, trusted and reasonably priced electricity option that reflects the costs of supplying small customers with an essential service.

(2)For the purposes of meeting this objective, the AER must have regard to any guidelines determined under section 18B.

Division 2 · Electricity Retail Code of Conduct

Subdivision A · Price caps on standing offer prices for non-regulated tariffs

10Price caps on standing offer prices for non-regulated tariffs#

(1)This section applies in relation to an electricity retailer’s standing offer prices on a day in a financial year for supplying electricity in a distribution region to a small customer of a particular type if:

(a)the electricity is supplied under a non-regulated tariff; and

(b)both the following are in force for the year in relation to the supply:

(i)a model annual usage;

(ii)a comparison price set by the AER.

Note: For distribution regions to which this instrument does not apply in relation to a financial year, see section 8.

(2)The electricity retailer must ensure that the standing offer prices comply with the price cap on that day.

Civil penalty: 300 penalty units.

(3)The standing offer prices comply with the price cap if the total amount a representative customer, who was a small customer of that type, would be charged for the supply of electricity in the region in the year at the standing offer prices would not exceed the comparison price set by the AER.

Record keeping

(4)The electricity retailer must:

(a)make a record demonstrating how the retailer calculated the total amount mentioned in subsection (3) in relation to the standing offer prices; and

(b)keep the record for 6 years from the end of the financial year mentioned in subsection (1).

Civil penalty: 300 penalty units.

Subdivision AA · Tariff caps on standing offer prices for regulated tariffs

10ATariff caps on standing offer prices for regulated tariffs#

(a)the electricity is supplied under a regulated tariff; and

(b)a tariff cap is in force for the regulated tariff for the year for the supply.

Note: For distribution regions to which this instrument does not apply in relation to a financial year, see section 8.

(2)The electricity retailer must ensure that the standing offer prices for the regulated tariff comply with the tariff cap on that day.

Civil penalty: 300 penalty units.

(3)The standing offer prices for a regulated tariff comply with the tariff cap if the fixed and variable charges of the regulated tariff do not exceed the tariff cap for those components of the regulated tariff.

Note: A tariff cap is determined under subsection 16(1A) and determines a maximum amount of any fixed charge or variable charge or charges that an electricity retailer may charge a small customer for supplying electricity to the customer under a regulated tariff of a particular type.

Record keeping

(4)The electricity retailer must:

(a)make a record of the tariff components of the regulated tariff and the tariff cap for those components; and

(b)keep the record for 6 years from the end of the financial year mentioned in subsection (1).

Civil penalty: 300 penalty units.

Subdivision AD · SSO standing offers

11Electricity retailers must make available SSO standing offers to certain residential customers with smart meters#

(1)Subject to subsection (3), an electricity retailer supplying electricity in a distribution region to residential customers must make available an SSO standing offer to residential customers in the region who have a smart meter connected to the premises to which the electricity is to be supplied.

Civil penalty: 300 penalty units.

Residential customers must consent to being placed on an SSO regulated tariff

(2)The electricity retailer must not place a residential customer on an SSO regulated tariff unless the customer has agreed to be placed on the SSO regulated tariff.

Note: This means that an SSO standing offer cannot be used as a default standing offer.

Civil penalty: 300 penalty units.

(3)This section does not apply in relation to electricity that is to be supplied, or is supplied, by an electricity retailer in a financial year if:

(a)for the financial year beginning on 1 July 2026—on 1 March in the financial year beginning on 1 July 2025, the electricity retailer supplied electricity to fewer than 1,000 residential customers across all distribution regions to which this code applies; and

(b)for a financial year (the relevant financial year) beginning on or after 1 July 2027—on 1 March in the financial year immediately preceding the relevant financial year, the electricity retailer supplied electricity to fewer than 1,000 residential customers across all distribution regions to which this code applies.

11AFree usage periods for SSO regulated tariffs#

(1)Subsections (2) and (3) apply to an electricity retailer supplying electricity to a residential customer under an SSO regulated tariff.

Electricity retailers must not charge for usage up to reasonable use cap during free usage period

(2)The electricity retailer must not charge for electricity supplied to the customer in a free usage period on a day if the electricity used by the customer in that period on the day does not exceed 24 kilowatt hours (the reasonable use cap).

Civil penalty: 300 penalty units.

Electricity retailers must not charge more than reasonable use tariff cap for usage over reasonable use cap

(3)The electricity retailer must not charge more than the reasonable use tariff cap determined under subsection 18(4) for any electricity exceeding the reasonable use cap used by the customer in a free usage period on a day.

Civil penalty: 300 penalty units.

Subdivision B · Communicating prices to small customers

12Communication to small customers must compare retailer’s prices with comparison price set by the AER#

Scope of this section

(1)This section applies, at a time in a financial year, to an electricity retailer’s prices (the offered prices) for supplying electricity in a distribution region to a small customer of a particular type if:

(a)a model annual usage; and

(b)a comparison price set by the AER;

are in force for the year in relation to the supply.

Note: For distribution regions to which this instrument does not apply in relation to a financial year, see section 8.

Civil penalty provision

(2)The electricity retailer must not communicate the offered prices to a small customer of that type unless the communication meets the requirements of subsections (2B), (3), (6) and (7).

Civil penalty: 300 penalty units.

(2A)The electricity retailer communicates the offered prices to a small customer of that type if:

(a)the electricity retailer advertises or publishes the prices; or

(b)the electricity retailer offers to supply electricity in the region to the small customer at those prices; or

(c)both of the following subparagraphs apply:

(i)the electricity retailer notifies the small customer of the offered prices in writing (other than as mentioned in paragraph (a) or (b)) as part of notifying the small customer of a change to the electricity retailer’s prices for supplying electricity to the small customer;

(ii)the offered prices are the prices that apply after the change.

Non-regulated tariffs and regulated tariffs

(2B)The communication must state the following matters:

(a)whether the offered prices apply in relation to a non-regulated tariff or a regulated tariff;

(b)if the offered prices apply in relation to a non-regulated tariff—the relevant comparison price set by the AER for the non-regulated tariff;

(c)if the offered prices apply in relation to a regulated tariff—the relevant comparison price set by the AER for the regulated tariff.

Prices and discounts

(3)The communication must state the following matters, making it clear that the matters relate to a representative customer:

(a)the difference between:

(i)the comparison price set by the AER; and

(ii)the unconditional price;

expressed as a percentage of the comparison price set by the AER;

(b)for each proportional conditional discount mentioned in the communication—the difference between:

(i)the unconditional price; and

(ii)the conditional price for the discount;

expressed as a percentage of the comparison price set by the AER.

(4)In this instrument:

conditional price for a proportional conditional discount means the total amount a representative customer would be charged for the supply of electricity in the financial year at the offered prices, assuming that the conditions on the discount were met and disregarding any other conditional discounts.

proportional conditional discount means a conditional discount that is calculated as a proportion of all or part of the amount a small customer is charged for the supply of electricity at the offered prices.

unconditional price means the total amount a representative customer would be charged for the supply of electricity in the financial year at the offered prices, disregarding any conditional discounts.

Other matters

(6)The communication must also state:

(a)the distribution region; and

(b)the type of small customer.

(7)The communication must state the matters required by subsections (2B), (3) and (6) clearly and conspicuously.

13Communication about SSO regulated tariffs must include information that SSO regulated tariffs may not be suitable in all circumstances#

An electricity retailer must not make an SSO standing offer to a residential customer unless, before making the offer (or at the time the offer is made), the retailer (or a person acting on behalf of the retailer) communicates the following information to the residential customer:

(a)that the offer is best suited to residential customers who are able to shift their electricity usage to the free usage period;

(b)that not shifting electricity usage to the free usage period could result in higher electricity costs;

(c)that electricity supplied under an SSO regulated tariff during the free usage period may incur a variable charge for any electricity supplied during that period that exceeds the reasonable use cap for the free usage period.

Civil penalty: 300 penalty units.

13AKeeping records#

Scope of this section

(1)This section applies if, during a financial year:

(a)an electricity retailer communicates to a small customer of a particular type the electricity retailer’s prices (the offered prices) for supplying electricity in a distribution region to a small customer of that type; and

(b)both:

(i)a model annual usage; and

(ii)a comparison price set by the AER;

are in force for the year in relation to the supply.

(1A)This section also applies if, during a financial year, an electricity retailer communicates to a small customer that is a residential customer the information required under section 13 in relation to an SSO regulated tariff.

(2)The electricity retailer must:

(a)make a record of the following:

(i)the content of the communication;

(ii)the date of the communication;

(iii)for a communication mentioned in subsection (1)—how the retailer calculated or estimated the matters mentioned in paragraphs 12(3)(a) and (b) in relation to the offered prices; and

(b)keep the record for 6 years from the end of the financial year in which the communication is made.

Civil penalty: 300 penalty units.

(2A)The record must record whether the content of the communication complied with subsections 12(2B), (3) and (6).

(3)The record is not required to contain:

(a)the name or contact details of a small customer; or

(b)personal information about a small customer who is an individual.

Communications based on a single template or script

(4)The electricity retailer may make a single record under paragraph (2)(a) in relation to 2 or more communications about the offered prices or the SSO regulated tariff (whether to the same small customer, or to different small customers of the same type in the same distribution region) if the communications are:

(a)made during the same financial year; and

(b)based on a single template or script; and

(c)substantially identical in content and form (apart from being made to different small customers).

(5)A record made in accordance with subsection (4):

(a)is taken to meet the requirement of subparagraph (2)(a)(i) if it records so much of the contents of the communications as are identical; and

(b)is taken to meet the requirement of subparagraph (2)(a)(ii) if it records the first and last dates on which the communications were made.

Subdivision C · Advertising conditional discounts

14Advertising conditional discounts#

(1)An electricity retailer must not advertise prices for supplying electricity in a distribution region to small customers if:

(a)the advertisement mentions a conditional discount in relation to the prices; and

(b)the advertisement does not meet the requirements of subsections (2) and (3).

Civil penalty: 300 penalty units.

(2)The conditional discount must not be the price-related matter that is mentioned most conspicuously in the advertisement.

(3)The advertisement must state the conditions on the conditional discount clearly and conspicuously.

(4)To avoid doubt, in determining whether this section does not apply because of section 8 (distribution regions to which this instrument does not apply), have regard to the financial year in which the advertising occurs, rather than the financial year in which the electricity is expected to be supplied.

Part 3 · Functions of the AER

Division 1 · Preliminary

14APurpose of this Part#

This Part is made for the purposes of paragraph 44AH(1)(b) of the Act.

15Functions of the AER#

(1)The AER has the function of determining the matters required or permitted by the rest of this Part to be determined by the AER.

(2)To avoid doubt, the AER may determine the matters mentioned in section 15A and subsections 16(1) and (1A) and 18(1) and (4) in the same legislative instrument.

15ADetermining types of regulated tariffs#

The AER may, by legislative instrument, determine a tariff type for the purposes of paragraph (g) of the definition of regulated tariff in section 5.

Division 2 · Determining model annual usage, comparison price set by the AER and tariff caps

16Determining model annual usage and annual prices#

Non-regulated tariffs—determining model annual usage and comparison price set by the AER

(1)The AER must, by legislative instrument, determine the following matters for a financial year in relation to supplying electricity in a distribution region under a non-regulated tariff to small customers of a particular type:

(a)both of the following matters that the AER considers to be broadly representative, at the time it makes the determination, of the supply of electricity in that region in the year to small customers of that type:

(i)the per-customer amount of electricity supplied;

(ii)the timing or pattern of the supply;

(b)what the AER considers would be a reasonable per-customer annual price for the year in relation to supplying electricity under the non-regulated tariff in that distribution region to small customers of that type.

Regulated tariffs—determining model annual usage, comparison price set by the AER and tariff caps

(1A)The AER must, by legislative instrument, determine the following matters for a financial year in relation to supplying electricity in a distribution region under a regulated tariff of a particular type to small customers of a particular type:

(i)the per-customer amount of electricity supplied;

(ii)the timing or pattern of the supply;

(b)what the AER considers would be a reasonable per-customer annual price for supplying electricity under a regulated tariff of that type in that distribution region to small customers of that type;

(c)subject to subsection (1B), the maximum amount (the tariff cap) of any fixed charge or variable charge or charges that an electricity retailer may charge small customers of that type in that distribution region in the year for supplying electricity under a regulated tariff of that type.

(1B)The AER must not determine a tariff cap (other than a reasonable use tariff cap under subsection 18(4)) that applies to the free usage period for an SSO regulated tariff.

(3)Despite subsection 33(3A) of the Acts Interpretation Act 1901, the AER must not, under subsection (1) or (1A) of this section, in relation to the same type of non-regulated tariff or regulated tariff:

(a)determine a matter in relation to supplying electricity:

(i)in a part, but not all, of the distribution region; or

(ii)to some, but not all, small customers of that type in the region; or

(b)make different provision with respect to supplying electricity:

(i)in different parts of the region; or

(ii)to different small customers of that type in the region.

Matters relevant to determining annual prices and tariff caps

(4)For the purposes of paragraphs (1)(b) and (1A)(b) and (c), the AER must have regard to the following matters:

(a)the efficient costs of supplying electricity in the distribution region to small customers on standing offers;

(b)the types of small customers on standing offers to whom electricity is supplied in the distribution region;

(ba)the long-term interests of consumers;

(c)the following costs:

(i)the wholesale cost of electricity in the region;

(ii)the cost of distributing and transmitting electricity in the region;

(iii)the cost of complying with the laws of the Commonwealth and the relevant State or Territory in relation to supplying electricity in the region;

(iv)if relevant to the region—the modest cost of acquiring and retaining small customers;

(ca)the objective set out in section 9A;

(cb)any guidelines determined under section 18B;

(d)any other matter the AER considers relevant.

Note: Before making a determination, the AER must consider any submissions received under subsection 17(1).

17Requirements relating to making determinations#

(1)Subject to subsection (4) of this section, before making a determination under section 16, the AER must:

(a)publish a draft of the determination on the AER’s website; and

(b)invite submissions about the draft determination, within a specified period (which must be at least 21 days after the draft is published); and

(c)consider any submissions received within that period.

(2)The AER must not make a determination under section 16 for a financial year:

(a)before 1 July in the previous financial year; or

(b)subject to subsection (4) of this section—earlier than 42 days after the day the AER publishes a draft of the determination under subsection (1); or

(c)subject to subsections (4) and (5)—after the first business day after 25 May in the previous financial year.

(3)A determination made under section 16 must not commence earlier than 30 days after the day the determination is registered.

Exceptions

(4)Subsection (1) and paragraphs (2)(b) and (c) do not apply to a determination (the new determination) of a model annual usage, a comparison price set by the AER or a tariff cap for a financial year, in relation to supplying electricity in a distribution region to small customers of a type, if:

(a)the AER has previously made such a determination (the previous determination) for the year in relation to the region and the type of small customer; and

(b)the only effect of the new determination is to correct minor or technical errors in the previous determination.

(5)Paragraph (2)(c) does not apply to a determination (the new determination) of a model annual usage, a comparison price set by the AER or a tariff cap for a financial year, in relation to supplying electricity in a distribution region to small customers of a type, if:

(a)the AER has previously made, or purportedly made, such a determination (the previous determination) for the year in relation to the region and the type of small customer; and

(b)the previous determination was not validly made.

Division 3 · Determinations in relation to SSO regulated tariffs

18Free usage periods and reasonable use tariff caps for SSO regulated tariffs#

(1)The AER must, by legislative instrument, determine a free usage period as part of the tariff structure of an SSO regulated tariff in a distribution region.

Note: A residential customer may use up to 24 kilowatt hours of electricity in a free usage period on a day without being charged, see subsection 11A(2).

(2)The free usage period must:

(a)be a period of 3 consecutive hours; and

(b)apply for each day during which electricity is supplied under the tariff.

(4)For the purposes of subsection 11A(3), the AER must, by legislative instrument, determine the maximum amount (the reasonable use tariff cap) an electricity retailer may charge a residential customer for any electricity exceeding the reasonable use cap used by the customer in a free usage period on a day.

18AMatters to be considered in determining free usage periods#

In determining a free usage period under section 18 for an SSO regulated tariff in a distribution region, the AER:

(a)must have regard to the following matters:

(i)the periods of high solar generation in the distribution region;

(ii)the periods of low wholesale and network costs in the distribution region; and

(b)as far as practicable, must align the timing of a free usage period for the SSO regulated tariff with the periods mentioned in paragraph (a); and

(c)if the AER considers it relevant and appropriate to do so—may have regard to other relevant system and market factors.

Division 4 · Determining guidelines

18BGuidelines for the purposes of sections 16 and 18#

Guidelines for determining model annual usage, comparison price set by the AER and tariff caps

(1)The AER must, by written instrument, determine guidelines setting out the following matters:

(a)the approach and methodology the AER proposes to use to:

(i)identify the cost components for the comparison price set by the AER for non-regulated tariffs; and

(ii)determine the cost components for the comparison price set by the AER, including the information and data the AER intends to use to determine those cost components;

(b)the approach and methodology the AER proposes to use to:

(i)identify the cost components for determining tariff caps for regulated tariffs; and

(ii)determine the cost components for such tariff caps, including the information and data the AER intends to use to determine those cost components;

(c)the approach and methodology the AER proposes to use to determine free usage periods for SSO regulated tariffs;

(d)any additional tariff type that the AER considers should be determined as a regulated tariff;

(e)the process that the AER proposes to undertake for the purposes of making a determination for the purposes of section 15A and subsections 16(1) and (1A) and 18(1) and (4);

(f)any other matters that the AER considers relevant to achieving the objective in section 9A.

(2)The AER must:

(a)publish the guidelines on the AER’s website as soon as practicable after making the guidelines; and

(b)maintain a register of guidelines so published.

(3)The AER must ensure that the first guidelines determined under subsection (1) are published on the AER’s website no later than 1 December 2026.

18CRequirements relating to determining guidelines#

Before determining guidelines under subsection 18B(1) or, subject to subsection 18D(2), amending guidelines under subsection 18D(1), the AER must:

(a)publish a draft of the guidelines or amendments, as appropriate, on the AER’s website; and

(b)invite submissions about the draft guidelines or draft amendments, as appropriate, within a specified period (which must be at least 21 days after the draft is published); and

(c)consider any submissions received within that period.

18DAER may amend guidelines on own initiative#

(1)The AER may amend guidelines determined under subsection 18B(1).

(2)In amending guidelines under subsection (1), the AER is not required to comply with section 18C if:

(a)the matters in the proposed amendment were included in a determination under section 16; and

(b)the AER complied with section 17 before making that determination.

Part 4 · Application and transitional provisions

Division 1 · Application of this instrument

19Application of this instrument#

(1)Subject to this section, this instrument applies to financial years starting on or after 1 July 2019.

Electricity Retail Code of Conduct

(3)Section 14 applies to advertising that occurs on or after 1 July 2019.

Determinations

(4)Subsection 17(1), paragraph 17(2)(b) and subsection 17(3) do not apply in relation to a determination made on or before 30 June 2019.

(5)Paragraph 17(2)(c) applies in relation to a determination for the financial year starting on 1 July 2019 as if the reference in that paragraph to 1 May in the previous financial year were a reference to 30 June 2019.

20No acquisition of property otherwise than on just terms#

Subdivision A of Division 2 of Part 2 (caps on standing offer prices) does not apply to the extent that its operation would result in an acquisition of property (within the meaning of paragraph 51(xxxi) of the Constitution) from a person otherwise than on just terms (within the meaning of that paragraph).

Division 2 · Amendments made by the Competition and Consumer Legislation Amendment (Electricity Retail) Regulations 2020

21Application of amendments—Schedule 1#

Parts 1 and 2 of Schedule 1

(1)The amendments of this instrument made by Parts 1 and 2 of Schedule 1 to the Competition and Consumer Legislation Amendment (Electricity Retail) Regulations 2020 apply:

(a)to the extent the amendments relate to the operation of section 14 of this instrument—in relation to advertising that occurs on or after 1 July 2020; and

(b)otherwise—in relation to financial years starting on or after 1 July 2020.

(2)Subsection 17(1), paragraph 17(2)(b) and subsection 17(3) do not apply in relation to a determination made:

(a)on or after the commencement of this section; and

(b)on or before 30 June 2020.

Part 3 of Schedule 1

(3)The amendments of this instrument made by Part 3 of Schedule 1 to the Competition and Consumer Legislation Amendment (Electricity Retail) Regulations 2020 apply in relation to a determination made under paragraph 16(1)(a) or (b) of this instrument on or after the commencement of this section.

22Application of amendments—Schedule 2#

The amendments of this instrument made by Part 1 of Schedule 2 to the Competition and Consumer Legislation Amendment (Electricity Retail) Regulations 2020 apply in relation to financial years starting on or after 1 July 2020.

Division 3 · Amendments made by the Competition and Consumer (Industry Code—Electricity Retail) Amendment (No. 2) Regulations 2026

23Reasonable use tariff cap determinations#

A determination made under subsection 18(4) that was in force immediately before the commencement of this section continues in force (and may be dealt with) on and after that commencement as if it had been made under subsection 18(4) as amended by the Competition and Consumer (Industry Code—Electricity Retail) Amendment (No. 2) Regulations 2026.

Sourced from the Federal Register of Legislation at legislation.gov.au, © Commonwealth of Australia, licensed under CC BY 4.0. Compilations may have been reformatted.

1Name#

3Authority#

4Simplified outline of this instrument#

5Definitions#

6Small customers#

7Civil penalty provisions#

8Distribution regions to which this instrument does not apply#

9Mandatory industry code in Division 2#

9AObjective of industry code#

10Price caps on standing offer prices for non-regulated tariffs#

10ATariff caps on standing offer prices for regulated tariffs#

11Electricity retailers must make available SSO standing offers to certain residential customers with smart meters#

11AFree usage periods for SSO regulated tariffs#

12Communication to small customers must compare retailer’s prices with comparison price set by the AER#

13Communication about SSO regulated tariffs must include information that SSO regulated tariffs may not be suitable in all circumstances#

13AKeeping records#

14Advertising conditional discounts#

14APurpose of this Part#

15Functions of the AER#

15ADetermining types of regulated tariffs#

16Determining model annual usage and annual prices#

17Requirements relating to making determinations#

18Free usage periods and reasonable use tariff caps for SSO regulated tariffs#

18AMatters to be considered in determining free usage periods#

18BGuidelines for the purposes of sections 16 and 18#

18CRequirements relating to determining guidelines#

18DAER may amend guidelines on own initiative#

19Application of this instrument#

20No acquisition of property otherwise than on just terms#

21Application of amendments—Schedule 1#

22Application of amendments—Schedule 2#

23Reasonable use tariff cap determinations#

Connections

Defined terms · 35

History · 1 version

Key facts

1Name#

3Authority#

4Simplified outline of this instrument#

5Definitions#

6Small customers#

7Civil penalty provisions#

8Distribution regions to which this instrument does not apply#

9Mandatory industry code in Division 2#

9AObjective of industry code#

10Price caps on standing offer prices for non-regulated tariffs#

10ATariff caps on standing offer prices for regulated tariffs#

11Electricity retailers must make available SSO standing offers to certain residential customers with smart meters#

11AFree usage periods for SSO regulated tariffs#

12Communication to small customers must compare retailer’s prices with comparison price set by the AER#

13Communication about SSO regulated tariffs must include information that SSO regulated tariffs may not be suitable in all circumstances#

13AKeeping records#

14Advertising conditional discounts#

14APurpose of this Part#

15Functions of the AER#

15ADetermining types of regulated tariffs#

16Determining model annual usage and annual prices#

17Requirements relating to making determinations#

18Free usage periods and reasonable use tariff caps for SSO regulated tariffs#

18AMatters to be considered in determining free usage periods#

18BGuidelines for the purposes of sections 16 and 18#

18CRequirements relating to determining guidelines#

18DAER may amend guidelines on own initiative#