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South Australian Off-Grid Electricity Networks

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South Australian Off-Grid Electricity Networks Off-Grid Regulatory Performance Report 2017-18 electricity through standalone or off-grid networks. Key messages The Commission regulates these services through Electricity disconnections for non- the licensing and consumer protection regime payment increased from 75 in 2016-17 to under the Electricity Act 1996 (Electricity Act). 102 in 2017-18. Of these disconnections, The Commission licences all participants in the 63 were reported by the District Council of electricity supply industry where those participants Coober Pedy and 37 by the Municipal engage in the generation of electricity, operation of Council of Roxby Downs. The reason a transmission or distribution network, power given for this was an increase in electricity system control or the retailing of electricity (off- prices and customers’ inability to pay. grid energy retailers only). The AER can issue There have been no changes in the exemptions under National Energy Retail Law disconnection policy. exemption to entities providing retail services. Unplanned electricity supply interruptions These customers are still provided protection and decreased from 176 in 2016-17 to 160 in performance monitoring in the national electricity 2017-18. The majority of the unplanned and gas retail markets. The AER also issues interruptions (115) were reported in areas authorisations to entities providing retail services. operated by Cowell Electric, and were Licensees are required to operate in accordance caused by storms, lightning and switching with specified licence requirements set out by the issues. The Essential Services Commission. Off-grid licensees providing retail and Commission (Commission) has reviewed distribution services have licence requirements each reported interruption and there do broadly covering: not appear to be any systemic issues or remediation action required. Technical requirements – such as development of a Safety, Reliability, A review is being undertaken to see if Maintenance and Technical Management Plan there any compliance issues with the (SRMTMP), a connections policy and a District Council of Coober Pedy’s metering plan (if applicable). adherence to its licensing requirements. Consumer protections – behavioural For LPG licensees, disconnections for standards and minimum requirements to be non-payment increased from three in complied with by retailers when dealing with 2016-17 to seven in 2017-18. their customers, including reliability of supply There were no unplanned supply requirements. interruptions reported for LPG customers Reporting requirements and administrative in 2017-18. matters. South Australian off-grid Consumer protections electricity networks Customers of off-grid electricity licensees are afforded similar consumer protections to There are several remote communities in South customers of on-grid energy licensees. Off-grid Australia that are not connected to the national electricity market and are instead provided with Energy Fact Sheet – Off-grid Regulatory Performance Report December 2017-18 Public – I2 – A2 licensees’ obligations to their customers, as set Off-grid electricity licensee performance out in their licences, relate to: How performance is measured Customer supply contracts – requirement to develop standard terms and conditions on The Commission has identified key metrics to which it will connect customers’ supply and monitor the performance of off-grid licensees over sell and supply electricity. time. These include: Customer dispute resolution procedures – disconnections for non-payment of a bill made requirement to have procedures in place, by each off-grid retailer based on AS ISO 10002-2006 ‘Customer Satisfaction - Guidelines for Complaints the number and duration of interruptions of Handling in Organisations’. supply for each off-grid distributor, and Supply obligations – maintain the quality of licensees’ compliance with their licence supply and minimise interruptions; provide requirements. notice for planned interruptions; connect Monitoring these indicators allows the customers within agreed timeframes. Commission to assess the adequacy of licensees’ Customer service obligations – provision of performance and whether the consumer regular bills and information to be included on protections are appropriate. the bill; conduct regular meter readings; Disconnections and unplanned interruptions dealing with billing disputes (including increased in 2017-18 undercharging and overcharging); minimum payment methods; offering flexible payment Off-grid retailers reported that 102 customers were arrangements; rules for security deposits. disconnected for non-payment of a bill in 2017-18, this is an increase on the 75 disconnections Disconnections and restoration of supply – performed in 2016-17. Of these disconnections, 63 retailer obligations around disconnecting were reported by the District Council of Coober. customer supply for non-payment; Pedy and 37 by the Municipal Council of Roxby prohibitions on disconnection; timeliness for Downs, the reason given for this was an increase restoration of supply. in electricity prices and customers’ inability to pay. There have been no changes in the disconnection Number of off-grid electricity policy. connections and location There were 160 reported unplanned interruptions In 2017-18, 5,849 customers were supplied that impacted on residential customers in 2017- through off-grid electricity networks, refer 18; a decrease to the 176 reported for 2017-18. Table 1 (next page). The majority of the unplanned interruptions (around 72 percent) were reported in areas operated by Cowell Electric, and were Figure 1 (next page) shows the location of the off- predominately caused by storms, lightning and grid electricity businesses licenced to operate in switching issues. The Commission has reviewed South Australia. each reported interruption and there do not appear to be any systemic issues or remediation action required. There were no major non-compliances reported by the licensees. However the Commission is investigating the District Council of Coober Pedy for compliance to its licensing requirements. Table 1: South Australian Off-grid electricity networks Retail Generation Number of Distribution licensee Location licensee source connections BHP Billiton Olympic Dam Inset network Exempta Olympic Dam 35 Corporation Pty Ltd via ElectraNet Cowell Electric Supply Off-grid supply APY lands 1,498 Pty Ltd Cowell Electric Supply Pty Ltd Inset network Iron Knob, Pimba, Exempta 165 via OneSteel at Iron Woomera Knob Dalfoam Pty Ltd Dalfoam Pty Ltd Off-grid supply Yunta 63 District Council of Coober District Council of Off-grid supply Coober Pedy 1,537 Pedy Coober Pedy Jeril Enterprises Pty Ltd Jeril Enterprises Pty Ltd Off-grid supply Andamooka 470 Municipal Council of Roxby Inset network Exempta Roxby Downs 2,060 Downs via Olympic Dam OneSteel Manufacturing Inset network Iron Knob, Iron Exempta 21 Pty Ltd via ElectraNet Barron, Iron Lake Total 5,849 a National Energy Retail Law exemption, issued by the Australian Energy Regulator (AER). These customers are still provided protection and performance monitoring in the national electricity and gas retail markets. Figure 1: Locations provided with electricity through off-grid networks LPG networks There are several remote communities in South Supply obligations – maintain the quality of Australia that are not connected to a national gas supply and minimise interruptions; provide network and are instead provided with liquefied notice for planned interruptions; connect petroleum gas (LPG) through standalone customers within agreed timeframes. networks. The Commission regulates these services through the licensing and consumer Customer service obligations – provision of protection regime under the Gas Act 1997 (Gas regular bills and information to be included on Act). the bill; conduct regular meter readings; dealing with billing disputes (including Those who engage in the activity of distributing undercharging and overcharging); minimum and retailing LPG through reticulated networks in payment methods; offering flexible payment South Australia are required to be licenced by the arrangements; rules for security deposits; Commission. Licensees are required to comply publishing fees and charges; rules for with the Reticulated LPG Industry Code. The changing tariffs; methods of communication Reticulated LPG Industry Code contains provisions with customers. relating to the sale and supply of reticulated LPG to small customers (customers consuming less Disconnections and restoration of supply – than 1TJ of LPG annually). retailer obligations around disconnecting customer supply for non-payment; Retail licences and the Reticulated LPG Industry prohibitions on disconnection; timeliness for Code set the following broad obligations for restoration of supply. licensees: Number of LPG connections and location technical requirements – such as development of a SRMTMP, a connections There are three licenced distributors and retailers policy and a metering plan (if applicable) providing services to around 3,568 customers through reticulated LPG networks in South consumer protections – behavioural Australia (Table 2 next page). standards and minimum requirements to be complied with by retailers when dealing with LPG licensee performance their customers, including reliability of supply requirements How performance is measured reporting requirements and administrative The Commission has identified key metrics to matters. monitor the performance
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