Part 12Compliance and performance

Part 12—Compliance and performance Division 1—AER compliance regime 272—Obligation of AER to monitor compliance The AER must monitor compliance of regulated entities and other persons with the requirements of this Law, the National Regulations and the Rules applicable to them. 273—Obligation of regulated entities to establish arrangements to monitor compliance (1) A regulated entity must establish policies, systems and procedures to enable it to efficiently and effectively monitor its compliance with the requirements of this Law, the National Regulations and the Rules. (2) The policies, systems and procedures must be established and observed in accordance with the relevant provisions of the AER Compliance Procedures and Guidelines. 274—Obligation of regulated entities to provide information and data about compliance (1) A regulated entity must submit to the AER, in the manner and form (including by the date or dates) required by the AER Compliance Procedures and Guidelines, information and data relating to the compliance of the entity with the requirements of this Law, the National Regulations and the Rules. (2) The AER may use any information or data provided by a regulated entity under this section for the purposes of any of the functions and powers of the AER under— (a) section 204 of this Law; or (b) section 15 of the NEL; or (c) section 27 of the NGL. The AER is subject to Division 3 of Part 8 of this Law and section 44AAF of the Competition and Consumer Act 2010 of the Commonwealth in respect of the disclosure of confidential information it receives. 275—Compliance audits by AER (1) The AER may— (a) carry out compliance audits; or (b) arrange for the carrying out by contractors or other persons of compliance audits on behalf of the AER, of any or all activities of a regulated entity for the purpose of assessing the entity's compliance with the requirements of this Law, the National Regulations and the Rules. (2) Without limitation, compliance audits may be carried out by or on behalf of the AER in respect of— (a) the compliance by retailers with their obligations under Division 6 of Part 2 and the Rules in relation to hardship customers; and (b) the implementation by retailers of their customer hardship policies. 276—Compliance audits by regulated entities (1) A regulated entity must, if so required by the AER, carry out a compliance audit in connection with specified aspects of the activities of the entity in relation to the entity's compliance with the requirements of this Law, the National Regulations and the Rules. (2) Without limitation, a retailer must, if so required by the AER, carry out a compliance audit in respect of the compliance by the retailer and associates of the retailer with their obligations under the Rules relating to marketing. (3) If the AER requires a regulated entity to carry out a compliance audit under this section, the entity may arrange for the audit to be carried out on its behalf by contractors or other persons, but the entity remains responsible for the audit. (4) A regulated entity must, within a period specified by the AER, provide the AER with the results of a compliance audit carried out under this section. Subsections (1), (2) and (4) are civil penalty provisions. 277—Carrying out of compliance audits A compliance audit is to be carried out in accordance with the AER Compliance Procedures and Guidelines. 278—Cost of compliance audits (1) The cost of conducting a compliance audit under section 275 is to be an amount determined in accordance with the AER Compliance Procedures and Guidelines and is recoverable by the AER from the regulated entity concerned. (2) The cost of conducting a compliance audit under section 276 is to be borne by the regulated entity concerned. 279—Compliance reports (1) The AER must, as soon as practicable after 30 June (but on or before 30 November) in each year publish a report (a compliance report) on the matters referred to in section 280 in respect of the period of 12 months ending with 30 June in that year. (2) The AER must publish each compliance report on its website. 280—Contents of compliance reports A compliance report must, in accordance with the AER Compliance Procedures and Guidelines, include the following (in relation to the period to which the report relates): (a) a report in relation to the AER's monitoring activities under this Law; (b) a report on the extent to which regulated entities have complied, or failed to comply, with their obligations under this Law, the National Regulations and the Rules; (c) without limiting paragraph (b), a report on the compliance by retailers and associates of retailers with their obligations under the Rules relating to energy marketing activities; (d) a report on any additional matters that the AER considers appropriate for inclusion. 281—AER Compliance Procedures and Guidelines (1) The AER must make procedures and guidelines (AER Compliance Procedures and Guidelines) in accordance with the retail consultation procedure. (2) Without limitation, the AER Compliance Procedures and Guidelines may provide guidance for regulated entities about the following: (a) compliance with the requirements of this Law, the National Regulations and the Rules; (b) the carrying out of compliance audits, and the costs payable by regulated entities, under this Division; (c) the receiving and recording by regulated entities of explicit informed consent given by small customers; (d) the AER's acceptance of enforceable undertakings under section 288; (e) the provision of information by distributors for the purpose of benchmarks for energy consumption for residential customers in accordance with the Rules; (f) any additional matters that the AER intends to include in its compliance reports. (3) The AER Compliance Procedures and Guidelines must provide for the manner and form in which regulated entities must submit information and data to the AER under section 274, including the date or dates each year by which that information and data must be submitted to the AER. (4) The AER Compliance Procedures and Guidelines may include a statement of the AER's compliance priorities. (5) The AER may amend the AER Compliance Procedures and Guidelines in accordance with the retail consultation procedure. (6) The AER Compliance Procedures and Guidelines may form part of similar guidelines under this Law or the NEL or the NGL. Division 2—AER performance regime 282—Obligation of regulated entities to provide information and data about performance (1) A regulated entity must submit to the AER, in the manner and form (including by the date or dates) required by the AER Performance Reporting Procedures and Guidelines, information and data relating to— (a) the performance of the entity against the hardship program indicators and distributor service standards; and (b) the activities of the entity in relation to any other matters that are required by the Rules to be included in a retail market performance report. (2) The AER may use any information or data provided by a regulated entity under this section for the preparation of— (a) one or more retail market performance reports; or (b) one or more reports under the NEL or NGL, or both. The AER is subject to Division 3 of Part 8 of this Law and section 44AAF of the Competition and Consumer Act 2010 of the Commonwealth in respect of the disclosure of confidential information it receives. 283—Performance audits—hardship The AER may conduct performance audits in respect of the performance of retailers by reference to hardship program indicators established by the AER and notified to retailers. 284—Retail market performance reports (1) The AER must, as soon as practicable after 30 June (but on or before 30 November) in each year publish a report (a retail market performance report) on the matters referred to in section 285 in respect of the period of 12 months ending with 30 June in that year. (2) The AER must publish each retail market performance report on its website. 285—Contents of retail market performance reports A retail market performance report must, in accordance with the Rules and the AER Performance Reporting Procedures and Guidelines, include the following (in relation to the period to which the report relates): (a) a retail market overview; (b) a retail market activities report; (c) a report on the performance of retailers by reference to the hardship program indicators; (d) a report on the performance of distributors by reference to distributor service standards and associated GSL schemes; (e) a report on the performance of distributors in relation to the small compensation claims regime under Part 7; (f) a report on any additional matters that the AER considers appropriate for inclusion. 286—AER Performance Reporting Procedures and Guidelines (1) The AER must make procedures and guidelines (AER Performance Reporting Procedures and Guidelines) in accordance with the retail consultation procedure. (2) Without limitation, the AER Performance Reporting Procedures and Guidelines may provide guidance for regulated entities about the following: (a) measuring their performance against the hardship program indicators; (b) any additional matters that the AER intends to include in its retail market performance reports. (3) The AER Performance Reporting Procedures and Guidelines must provide for the manner and form in which regulated entities must submit information and data to the AER under section 282, including the date or dates each year by which that information and data must be submitted to the AER. (4) The AER may amend the AER Performance Reporting Procedures and Guidelines in accordance with the retail consultation procedure. (5) The AER Performance Reporting Procedures and Guidelines may form part of similar guidelines under this Law or the NEL or the NGL. 287—Hardship program indicators (1) The AER must determine and publish hardship program indicators in accordance with the Rules. (2) The Rules may make provision for or with respect to the content and development of, consultation about, and determination and amendment and publication of hardship program indicators.