On 1 December 2017, the Power of Choice (POC) will come into effect as part of energy industry-wide market reforms, including electricity metering, which means that you will need to make changes to your Direct Metering Agreement (DMA).
You will receive an email from your meter provider to make changes to your DMA by appointing a Metering Coordinator.
Background
Electricity metering for commercial and industrial (large) customers has been open to competition for several years. What does this mean? Your meter provider is separate from your energy retailer and its network (owner of poles and wires).
Objective of Power of Choice for Electricity Metering
The POC aims to expand competition in metering and related services to all consumers, not just large customers. POC also intends to put greater discipline on competing metering suppliers to provide services at an efficient cost and consistent with consumer preferences.
Introduction of Electricity Metering Coordinator role
The POC introduces a new electricity Metering Coordinator role to drive greater flexibility and more transparency regarding your energy consumption. The function was previously performed by the electricity retailer which, could sometimes get in the way.
If you do not nominate an electricity Metering Coordinator yourself, your electricity retailer will appoint one for you, but you may incur extra charges. It is therefore in your best interest to do this as soon as possible to ensure that the process kicks in well before the deadline to avoid extra costs, service interruptions and inconvenience to your business.
The MC will be responsible for phasing in digital metering systems which will allow you real-time direct access to your energy consumption.
The MC must meet strict data protection standards to be given a licence to operate.
Current Metering Providers must register to become Metering Coordinators and will be ready to provide the new umbrella of services as of 1 December.
Retailers will need to start a separate company to establish a ring‑fenced Metering Coordinator business. Distributors will, likewise, be subject to ring‑fencing requirements.
What do you need to do?
You need to appoint a Metering Coordinator. In the coming weeks, you will receive emails from the current owner or manager of your meter to agree to the amendments of your DMA to assign them to become your Metering Coordinator (MC). If you do not hear from your Metering Provider, then we will be contacting you directly via email.
You may have already received an email from your Metering Provider. If you have left that email unopened and sitting in your inbox, then you need to read it and follow the instructions in the email authorising the Metering Provider to make the changes to your agreement. If they have not yet gotten in touch with you or you might have missed the email, contact your provider as soon as possible.
You may have questions, which they will also be able to answer. The one thing not to do is nothing. If you do that, you risk incurring added charges, service disruptions and all-around inconveniences to your business.
How will your agreement change?
- The term “Metering Provider” has been replaced by “Metering Coordinator”;
- New definitions have been included for Metering Coordinator and MC Services;
- The definition of Metering Services has been amended to include MC Services.
More information about the POC and smart metering is available
Further information about the Power of Choice reforms is available on the AEMO and AEMC websites or you can call Leading Edge directly on 1300 852 770 to talk to one of our Energy Experts.
You can also click on the links for information about the phasing in of smart meters in the states of New South Wales, Queensland, South Australia and Victoria.
Want to save money on your business’ energy bills?
Get in touch with our Energy Management Consultants and we’ll see how we can reduce your energy costs – you can check out our case studies to see how we’ve helped companies in Australia lower their energy bills. Or visit our blog for articles related to adapting your business to make energy savings during the pandemic, the benefits of installing rooftop solar, and updates on the National Energy Market. When you’re ready, call us at 1300 852 770 or drop us an e-mail at hello@leadingedgeenergy.com.au so we can start you on the way to energy efficiency!
