26 September 2023

New energy code to protect consumers

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South Australian energy users are to be better protected and informed under a new code of conduct for energy retailers due to come into effect next year.

Releasing its final decision on the Retailer Energy Productivity Scheme (REPS) Code Review, the Essential Services Commission of South Australia (ESCOSA) said the Code had been amended to improve consumer protections, primarily through the provision of better information to customers, and clarify retailers’ obligations with respect to providing appropriate oversight of activity provider behaviour and record keeping requirements.

The Commission said the new REPS Code would come into effect at the start of the new reporting year on 1 January 2023.

“This will provide market participants with six months to make any necessary changes to their contractual arrangements, policies and procedures,” it said.

ESCOSA said the amendments were largely supported by stakeholders.

“The one issue that was not supported was a proposal to require the obliged retailer to be identified at the time an energy productivity activity is undertaken, so that customers had a clear avenue to have their complaints and disputes resolved,” it said.

“Stakeholders were concerned that this requirement would fundamentally change the practical operation of REPS, with most activities delivered by third-party activity providers, and could lead to a lessening of competition in the market.

To address this issue in a different way, the Commission has developed an effective complaint referral process with Consumer and Business Services for matters covered by Australian Consumer Law (for example, misrepresentation, false and misleading claims, poor sales and quoting practices), and good outcomes have been negotiated for customers in many instances in the first year of operation of the REPS.”

The Commission said there was a new requirement for obliged retailers to resubmit their Compliance Plans where the Commission was not satisfied with the information provided.

“As an additional check on market behaviour, the Commission will continue to undertake audits on different areas of the REPS each year,” it said.

The Commission’s 21-page Final Decision on the REPS Code Review can be accessed at this PS News link and its 15-page REPS Code at this link.

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