Power of Choice reform has led to increased competition in the market, allowing consumers to choose their preferred provider. From December 1, 2017, the new regulations allow embedded network customers to seek competitive retail contracts, allowing them to access a wider array of electricity offers. However, customers should be cautious of potential double billing for distribution charges.
Key Benefits of Power of Choice
Souce: AEMC
Enhanced Consumer Choice: Consumers can now choose whether they want a smart meter installed and select their preferred electricity retailer.
Increased Competition: Competition in the market can lead to more innovative products and services, potentially driving down costs.
Improved Transparency: Smart meters provide real-time data on energy consumption, empowering consumers to make informed decisions about their usage.
More Efficient Energy Usage: With access to detailed energy usage data, consumers can identify areas for energy efficiency
How Power of Choice Works
ENM Role: For customers within embedded networks, an Embedded Network Manager (ENM) facilitates their access to the NEM and ensures accurate data entry into the market systems. The ENM acts as the Local Network Service Provider (LNSP) for ‘On-Market’ customers and, as such, requires site-specific information to be maintained. The appointment of an ENM is required for certain types and sizes of embedded network.
Metering Choice: Consumers can choose whether to have a smart meter installed, which provides detailed energy usage data.
Retailer Choice: Consumers can select their preferred electricity retailer, who will be responsible for billing and customer service.
Metering Coordinator: A metering coordinator, independent of both the retailer and distributor, is responsible for managing meter installations, maintenance, and data collection.
Impact on Embedded Networks
For embedded network operators, the creation of the role of an Embedded Network Manager (ENM) is significant. The ENM facilitates the connection between embedded network customers and the broader National Electricity Market (NEM), ensuring accurate registration in market systems.
Benefits for Embedded Network Customers
Increased Choice: Embedded network customers can now access competitive electricity offers from various retailers.
Improved Energy Management: With access to detailed energy usage data, customers can make informed decisions to optimize their energy consumption.
Benefits for Embedded Network Operators
Simplified Market Access: ENMs streamline the process of integrating embedded network customers into the NEM.
Reduced Administrative Burden: ENMs handle many of the administrative tasks associated with metering and market participation.
Opportunities for Innovation: The increased competition and data-driven insights enabled by Power of Choice can drive innovation in energy solutions and services.
By understanding the role of ENMs and the broader implications of Power of Choice, consumers and businesses can leverage the benefits of this reform to make informed decisions about their energy usage and costs.
If you are unsure about whether you are required to appoint an ENM, and whether you or your service providers are equipped to manage the requirements of this function – reach out to us today.
