My tags

Water, energy and environment

National Energy Customer Framework (NECF)

On this page:

Information for energy consumers
Information for energy retailers and distributors
Background to the implementation of the NECF in South Australia

Information for energy consumers

What is the National Energy Customer Framework?

The National Energy Customer Framework (NECF) introduces new legislation that supports the efficient operation of the electricity and gas retail markets and ensures that there are appropriate protections in place for consumers.

When does the NECF begin?

The NECF commenced in South Australia on 1 February 2013.

Does the NECF apply to me?

The NECF will apply to all South Australian electricity and gas consumers who are connected to the national energy networks and who consume less than 160MWh of electricity per annum and/or 1TJ of gas per annum respectively. Almost all homes and many small businesses will consume less energy than these thresholds and will therefore be covered by the NECF.

Will I notice any changes when the NECF begins?

You should not notice any significant changes to the way your electricity and gas services are delivered, but you may notice some additional information on your electricity bills.

As part of the NECF, all energy providers are required to show information on your electricity bill that compares your use with other households in your area. If your consumption is higher than average, there may be opportunities to save energy in your home. This information will not appear on your gas bill.

See Compare your electricity use with other households.

Will the NECF affect the current electricity and/or gas contract I have with my energy provider?

All existing electricity and gas contracts will automatically transition to the new regime so you do not need to do anything.

If you were on a market contract prior to 1 February 2013, you will remain on a market retail contract under the new regime.

If you were on a standing contract with AGL for electricity or Origin Energy for gas prior to 1 February 2013, you will automatically transfer to the standard retail contracts offered by AGL and Origin Energy. The standard retail contract does not have an exit fee so you can change to another contract at any time.

Will the NECF help me to get a better deal for energy?

As part of the NECF, a free independent energy comparison service has been launched which quickly compares current electricity and gas contracts available in South Australia to help you find the best deal. You can access the service online by visiting the Australian Government's Energy Made Easy website or by calling 1300 585 165.

Energy Price Fact Sheet

To help you understand the contract being offered, all energy providers must supply an Energy Price Fact Sheet which includes key information such as:

charges for electricity and gas and any fixed or standing charges
all fees
all discounts and rebates
other key information such as the length of the contract, options for solar customers and where you can access the full terms and conditions.

What contracts can be offered by energy providers under the NECF?

There are two types of energy contract available in South Australia: a standard retail contract and a market retail contract. If you are unsure which type of energy contract you are on, check with your energy provider.

Standard retail contract

Standard retail contracts are offered by all electricity and gas providers and have model terms and conditions set by law. If you have not signed up to a market contract, your energy will be supplied under a standard retail contract. This contract has no exit fees and you can change to a different contract at any time.

If you were on a standing contract with AGL for electricity or Origin Energy for gas prior to 1 February 2013, you will automatically transfer to the standard retail contracts offered by AGL for electricty and Origin Energy for gas.

For the best energy deals, you should always compare the energy contracts available and choose the best deal for your needs. See Choosing electricity and gas providers and comparing price plans.

Market retail contracts

Market retail contracts are offered by electricity and gas providers often include discounts and benefits for customers. Market contracts have a minimum set of terms and conditions and offer the same basic consumer protections as the standard retail contract. All energy providers must offer at least one market contract with no exit fees.

To ensure you are getting the best deal for energy, compare the energy contracts available. See Choosing electricity and gas providers and comparing price plans.

What about if I am offered an energy contract over the phone, by mail or by a salesperson?

Any person selling you an energy contract must provide you with an Energy Price Fact Sheet, but the NECF also gives you greater consumer protections. If a salesperson contacts you, they must tell you who they are and why they are contacting you.

If the contact is in person, they must show you identification and leave your home or property if you ask them to.

If you sign up to a new energy contract, the salesperson must give you a written copy of the sales agreement, inform you of your right to cancel the contract and the steps to do this, and not ask you to waive your right to cancel within the cooling off period.

Salespeople for energy providers cannot force or pressure you into signing up to an energy contract or to buy services you are not interested in.

You can also ask to be placed on any energy provider's 'do not contact' list which means they cannot contact you by email or in person at your home for the purpose of selling products.

If you do not want to be contacted by door to door salespeople, you can also display a 'Do not knock' sticker. These are available free of charge from:

If you do not wish to be contacted by telephone salespeople, you can add your telephone number(s) to the Australian Communications and Media Authority's 'Do not call' register.

If you think a salesperson who has contacted you has not met their legal requirements, try to remember any details provided (eg name) and the energy provider they represent and contact the Australian Competition and Consumer Commission's Infocentre on 1300 302 502. For more information see Know your rights when a salesperson knocks.

Will the NECF help me if I am having trouble paying my energy bills?

Yes, the NECF introduces a legal obligation on energy providers to support customers who are experiencing financial difficulties and are unable to pay their energy bills.

As a minimum, if you inform your energy provider you are experiencing financial difficulties, your provider must offer you a payment plan to make the bill payments more manageable.

The provider may also offer further assistance if you are a hardship customer including:

flexible payment options, for example payment plans and Centrepay
help to access other support services such as concessions and financial counselling
advice about saving energy in the home.

If you are a hardship customer or a residential customer on a payment plan because you are experiencing financial difficulties, and you are meeting the terms of the plan, you cannot be disconnected.

It is also illegal for your energy provider to disconnect you if your home is registered as requiring life-support equipment.

What if I buy my energy from my landlord, eg if I live in a retirement village, caravan park or rent a shop in a shopping centre?

If you purchase energy from your landlord, rather than direct from a provider, for example, if you are a tenant at a shopping centre, caravan park or in a retirement village, this is called 'on selling' and you will still have the rights and protections under the NECF.

If you are a residential or business tenant, you may also have energy related rights and obligations under your tenancy agreement.

If you are a residential customer, your consumer protections will also include:

flexible payment options if you are experiencing financial difficulty
clear and set time frames for receiving and paying your energy bills
complaints handling arrangements
price protections
clear and reasonable disconnection procedures.

Your customer protections as a small business customer will also include:

clear and set time frames for receiving and paying your energy bills
complaints handling arrangements
price protections
clear and reasonable disconnection procedures.

Under the NECF, all on selling operations are regulated by the Australian Energy Regulator. For more information contact the Australian Energy Regulator.

[top of page]

Information for energy retailers and distributors

The NECF commenced on 1 February 2013 in South Australia and is a national regime for the sale and supply of electricity and gas by retailers and distributors to retail customers. It is a significant step towards a simplified regulatory regime for retailers and distributors.

The NECF deals primarily with the following matters:

the retailer-customer relationship and associated rights, obligations and consumer protection measures
distributor interactions with customers and retailers, and associated rights, obligations and consumer protection measures
retailer authorisations
compliance monitoring and reporting, enforcement and performance reporting.

Regulation under the NECF

Under the NECF, the Australian Energy Regulator will take over the responsibility for regulating energy retailers from the Essential Services Commission of South Australia (ESCOSA), except for functions such as the administration of the Residential Energy Efficiency Scheme. The Australian Energy Regulator will also administer an energy price comparison service for electricity and gas.

The NECF regulates the sale and supply of energy through a set of national rules. The Australian Energy Market Commission is the responsible rule making body for these rules.

NECF legislation

South Australian NECF implementation instruments

South Australia applied the NECF via the instruments outlined below, taking effect from 1 February 2013.

National Energy Retail Law (South Australia) (Implementation) Amendment Act 2012

The National Energy Retail Law (South Australia) (Implementation) Amendment Act 2012 applies the National Energy Retail Law as a law in South Australia. It also provides for transitional provisions to enable a smooth transition to the NECF as well as containing necessary modifications to South Australia's application of the National Electricity Law and National Gas Law resulting from NECF implementation.

In commencing the National Energy Retail Law (South Australia) (Implementation) Amendment Act 2012 the following provisions inserted into the National Energy Retail Law (South Australia) Act 2011 by section 4 have been suspended: section 18, 21, 28(2)(a), 35(5), 35(8), 37(5) and 37(8). See the South Australian Gazettal Issue dated 31 January 2013, Number 8.

The key provisions of National Energy Retail Law (South Australia) (Implementation) Amendment Act 2012 are:

The National Energy Retail Law will, in relation to electricity, only apply to electricity supplied via the interconnected national electricity system within the meaning of the National Electricity Law.
It ensures smooth transition of current energy contracts to the new regime under the NECF.
A retailer may impose a fee for late payment of a bill on the condition that the fee does not exceed the reasonable costs of the retailer in recovering an overdue amount and that the customer does not have an open complaint in relation to their bill.

National Energy Retail Law (Local Provisions) Regulations 2013

The key provisions of the National Energy Retail Law (Local Provisions) Regulations 2012 are:

Regulation 5 prescribes 160MWh per annum as the upper consumption threshold for electricity for determining whether a business customer is large or small.
Regulation 6 nominates the following retailers as local area retailers for all small customers in South Australia pursuant to section 11 of the National Energy Retail Law:
- AGL South Australia for electricity
- Origin Energy Retail for gas
Regulation 7 imposes the service standards that retailers must use best endeavours to meet in relation to responding to written and telephone enquiries for small customers.
Regulation 8 declares what is considered to be an extreme weather event for the purposes of Part 6 of the National Energy Retail Rules.
Regulation 9 prescribes the time frames retailers must adhere to when arranging for the re-energisation of premises that have been de-energised for non-payment.
Regulation 11 permits the use of prepayment meter systems in South Australia, as required by section 56(2) of the National Energy Retail Law.

Statutes Amendment (National Energy Retail Law Implementation) Act 2012

The Statutes Amendment (National Energy Retail Law Implementation) Act 2012 makes amendments to South Australia's Electricity Act 1996, Gas Act 1997 and Essential Services Commission Act 2002 consequential to South Australia's application of the NECF.

In commencing the Statutes Amendment (National Energy Retail Law Implementation) Act 2012, sections 13(1) and 30(1) have been suspended. See the South Australian Gazettal Issue dated 31 January 2013, Number 8.

The key provisions of the Statutes Amendment (National Energy Retail Law Implementation) Act 2012 are:

It provides for obligations on National Energy Retail Law retailers primarily contained in the new parts 6A in the Electricity Act 1996 and 5A in the Gas Act 1997. These obligations include participation in the ombudsman scheme and compliance with customer concessions scheme.

Electricity (General) Variation Regulations 2013 and Gas Variation Regulations 2013

National Energy Retail Law retailers are required to offer a market retail contract to small customers under which the National Energy Retail Law retailer agrees not to directly or indirectly charge a small customer fee for early termination.

Country Equalisaton Scheme

Retailers operating in South Australia will be required to abide by clause 8.2 of the Electricity Pricing Order. See the relevant South Australian Gazettal Notice page 4458.

South Australia's modifications to the National Rules

National Energy Retail Rules	Modification
Rules 16(2)(b)	Strike out ", unless the customer is a small market offer customer"
Rule 90	After subrule (3) insert: (4) A distributor of electricity is not required to comply with this rule if the duration of the interruption is less that 15 minutes. (5) Subrule (4) will expire on 30 June 2015.
Schedule 3, clause 8	After paragraph (c) insert: (d) We are also entitled to limit our liability for an act of omission done or made in bad faith or through negligence to $500,000 (indexed) in respect of claims by customers who purchase less that 30 MWh of electricity per annum or to $1,000,000 (indexed) in respect of customers who purchase at least 30 MWh of electricity per annum.
Schedule 2, clause 10.2	After paragraph (b) insert: (c) We are not required to give you notice if the planned interruption is less than 15 minutes.

National Gas Rules	Modification
Part 21	The National Gas Rules, insofar as they have effect as part of the law of South Australia, are modified so that Part 21 of those Rules does not apply in relation to any distributor or retailer in South Australia until 1 July 2013.

Industry Codes

The Essential Services Commission of South Australia (ESCOSA) will remain responsible for applicable Codes. These can be found on ESCOSA's website.

The Electricity (General) Regulations 2012 and the Gas Regulations 2012 prescribe that codes relating to metering and residential energy efficiency apply to National Energy Retail Law retailers.

South Australian ombudsman for energy

The Energy and Water Ombudsman (SA) remains the South Australian ombudsman relating to complaints about the sale and supply of energy to customers in South Australia.

[top of page]