A proactive monitoring and compliance function is critical to maintain and build trust and confidence in the electricity market. The Authority has developed a Compliance Strategy and associated Compliance Monitoring Framework to enhance its monitoring and compliance intent, to promote long-term benefits for consumers, consistent with our statutory objective.

Between 12 October to 23 November 2021, the Authority sought submissions from industry on the draft Strategy.

The Authority received 12 submissions. The feedback for the Strategy was generally positive. Some themes arising included:

  1. timeliness is important for effective compliance and enforcement
  2. a consistent approach is required, particularly where impacts are material
  3. consideration of the participant’s size in relation to its ability to comply
  4. alignment of audit and compliance functions
  5. a strategy is only as effective as its implementation and enforcement.

Submitters encouraged the Authority to provide guidance to the industry on compliance, publish more information about where non-compliance is being detected and to be proactive in dealing with non-compliant issues.

The Authority has now finalised the Strategy. It structures the Authority’s compliance approach to focus its resources on the most serious and highest priority risks.

Our compliance strategy establishes guiding principles and objectives for the Authority. It supports us to deliver compliance activities like participant registration, auditing, education, monitoring, investigation, and enforcement.

It outlines our approach to compliance, including educating and providing compliance advice, to laying a complaint with the Rulings Panel. Having a range of compliance tools enables us to adapt our response to a situation. You can find our full Compliance Strategy here.