Complexity, cost and uncertainty, PIAC submission to the Multiple Trading Relationships (MTRs) rule change consultation paper 2015 Alternative formats available on request to PIAC - Contact PIAC
The submission Complexity, cost and uncertainty responds to the Australian Energy Market Commissions (AEMC) Multiple Trading Relationships (MTR) Consultation paper that discusses the rule change request from the Australian Energy Market Operator (AEMO). The MTR consultation paper examines the proposal in providing access for multiple retailers to connection points at one site. PIACs submission responds to how MTR may affect a consumer, particularly focusing on small electricity and vulnerable consumers.
The purpose for the rule change is to increase market competition whereby retailers could have access to these divided points, and consumers could make further choices in available energy rates and offers depending on what they were using the energy for. For example, a consumer could choose to have various retailers offering energy within their home such as one retailer providing fridge connection, an alternative retailer for an electric vehicle, another for solar power or any other appliances or points necessary for the consumer.
However PIAC questions whether the benefits of MTR arrangements outweigh the risks, especially for small electricity and vulnerable consumers who may experience greater difficulty with the increased complexity in their energy supply arrangements. The submission addresses two key concerns with the rule change: MTR operational outcomes and its complex relationship for consumers; and, consumer impact and costs. PIAC discusses and recommends that further consideration be given to these concerns with the evolvement of MTR.