This year’s audit program has been developed in line with our 2019-20 compliance priorities.
Energy audit program 2019-20
Overview
Compliance program update
In response to the emerging impact of the coronavirus pandemic on the energy market, we reshaped our 2020 compliance program to target regulatory requirements aimed at supporting customers experiencing vulnerability. We used different compliance tools, such as pulse checks, to minimise the regulatory burden on businesses.
An energy retail industry pulse check was issued to retailers on 4 May 2020. The pulse check helped the commission to understand the practices retailers have in place to support customers experiencing payment difficulties and family violence in line with protections in the Energy Retail Code.
The pulse check found that, in general, retailers had adequate systems and processes to support customers during this challenging time. The pulse check also identified some areas where retailers may benefit from further guidance to ensure their practices achieve the objectives of key obligations under the payment difficulty framework. Guidance on these areas have been published here.
About the program
We monitor how licensed energy businesses comply with Victoria’s energy rules through our annual audit program. These rules are designed to protect Victorian consumers. View more about the rules and how we regulate the electricity and gas industries.
Audits provide us with an independent level of confidence that licensed energy businesses:
- understand and comply with the rules
- have adequate systems and processes in place to reduce their risk of not complying with the rules.
This year’s audit program has been developed in line with our 2019-20 compliance priorities.
Electricity distributors we’re auditing
Update: These audits are complete. View the results electricity distributors' smart meter audits 2020.
We will audit all five electricity distribution businesses operating in Victoria:
- AusNet Services
- United Energy
- Powercor
- CitiPower
- Jemena.
This year, we will target electricity distribution businesses and examine how they ensure smart meters are performing to industry standards. We will also look at the effectiveness of smart meters to provide actual meter readings and to reduce estimated energy bills, which can often lead to bill shock for customers.
Energy retailers we’re auditing
1st Energy
Update: This audit is complete. View the results 1st Energy explicit informed consent audit 2020.
Following their penalty notice for allegedly failing to obtain explicit informed consent from a customer, we will review 1st Energy’s ability to comply with their obligations to obtain explicit informed consent before transferring customers, and transfer the correct customer.
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Resources
Relevant resources
After penalising 1st Energy in 2019, we followed up with an audit to re-examine their understanding of what it means to obtain explicit informed consent from a customer before transferring them.
We required all five Victorian electricity distributors to undergo independent audits to check whether they complied with the smart meter regulatory framework.