AER - Review of consumer protections for future energy services - Options paper - October 2022

The AER published an options paper as part of the 'Review of consumer protections for future energy services', formerly known as the 'Retailer authorisation and exemption review'. 

The AER's preliminary position is that the current regulatory framework will not be fit for purpose for the future energy market. Emerging energy products and services are not likely to fall under the current energy consumer protection framework. However, they are likely to bring new risks and there is a strong case for considering whether additional energy-specific consumer protections are needed to protect consumers. 

We sought stakeholder feedback on the three reform model options for the future consumer protections framework. The reform model options were intended to stimulate discussion and stakeholder feedback will help decide which model(s), or model elements, should be further developed. 

The options paper sets out: 

• The purpose of the options paper
• A background to our Review 
• Our analysis to date, including: 
  • an overview of our risk analysis process and how it will feed into the development of our final recommendations
  • short summaries of stakeholder feedback received in response to our April issues paper 
• How we intend to address embedded network issues in our review 
• A high-level overview of the three potential reform models. The three model options are: 
  • Model 1: Tiered conditional authorisation framework, with reduced exemption framework 
  • Model 2: Authorisation framework based on regulatory principles
  • Model 3: Outcomes-based regulatory framework