One of the Commission’s statutory functions is to administer the licensing of energy retail, distribution, transmission and generation activities. Licensees are required to comply with the conditions of their licences and other obligations, to monitor their compliance and to report compliance breaches. The Commission may require licensees periodically to undertake independent audits of their compliance with their obligations.
The recent program of energy retail audits has been extended to licensed energy distribution businesses, following the publication of a Ministerial Order in June 2013 (the Clarification Order). This order clarified the Commission’s role of enforcing certain obligations relating to the Advanced Metering Infrastructure (AMI) rollout. The Clarification Order does not limit the scope of regulatory audits of energy distributors conducted in accordance with conditions of their licences, or future audits of other entities.
The Commission has reviewed its regulatory audit framework, to address issues that have arisen in the conduct of past audits and to ensure that the Commission has an effective audit methodology for the future. In April 2013, the Commission initiated a consultation on its revised Regulatory Audit Framework.
The Commission has now published its Final Decision and the revised Guideline No. 22 – Regulatory Audits of Energy Businesses.