News & Views

20th October 2017

Bring back a contestable works code: NECA

The National Electrical and Communications Association (NECA) has called for the NSW government to reintroduce a code to protect accredited service providers (ASP) in NSW, who are being left to fend for themselves in dealing with the electricity distributors.

The contestable works scheme in NSW gives customers the ability to choose which ASP connects them to the electricity supply. This competitive marketplace serves to reduce costs and time delays for NSW consumers being connected to the power grid.

“One of the main problems faced by ASPs is that there is no contractual nexus between the ASP and Distributed Network Service Providers (DNSP), meaning ASP have no course of redress against DNSPs when they suffer loss as a result of their negligence,” said NECA Chief Executive Officer, Mr Suresh Manickam.

“Often times ASP face significant financial costs when they are unable to connect customers that result from circumstances that were easily foreseeable by the DNSP,” said Mr Manickam.

“NECA advocates that the NSW government re-establish a code for contestable works, similar to the Code of Practice for Contestable Works, which lapsed due to regulation sunsetting and was not renewed or replaced.”

“The Australian Electricity Regulator (AER) recommended in 2010 that financial penalties be set in place for Distributors failing to achieve agreed timeframes for design certification and inspection of connection delays.”

“It also recommended that obligations be placed on Distributors as part of their licensing regime.”

“So although these issues have been well known for some time, the NSW government allowed the Code of Practice for Contestable Works to lapse without any consultation.”

“NECA will therefore be stepping up our advocacy on behalf of ASPs in NSW, most of whom are small-to-medium sized enterprises.”

“This includes advocating for a code with real teeth to be brought back in NSW to level the power imbalance between the three large electricity distributors and ASPs.”

“This should also result in a reduction in unnecessary costs and delays which are passed onto consumers in NSW, who are already suffering from cost of living pressures such as significant power price rises.” 

-ENDS-

Media enquiries and interviews

Andrew Jefferies

E communications@neca.asn.au

D 02 9439 8523

 

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