Compliance reviews are a tool available to the commission in its suite of compliance and enforcement powers.
Compliance Reviews
Overview
The purpose of compliance reviews
Compliance reviews are a key part of the commission's proactive compliance program to promote the long-term interests of Victorian energy consumers.
The commission can direct licensed energy businesses to undertake compliance reviews. A compliance review is a tailored assessment of an energy business' compliance with particular obligations in Victoria's energy rules and laws.
Compliance reviews are an integral part of the commission's strategy to ensure consumers are protected under Victoria's energy regulations. They provide an impartial and objective assessment of how energy businesses are complying with certain rules. Energy business' obligations include those in legislation, the commission's codes of practice and licence conditions.
Outcomes of compliance reviews
Address areas of potential concern
Address areas of potential concern about an energy business' compliance, including key parts of their operation.
Transparency and accountability
Increase the transparency and accountability of the industry by focusing on the areas where consumer harm may be occurring.
Facilitate targeted engagement
Engagement with energy businesses enables the examination and resolution of specific issues, which can result in improvements in industry-wide compliance practices.
Independent reviewers
The energy business must nominate an independent reviewer to conduct the compliance review. The reviewer must be approved by the commission before the compliance review commences.
Compliance reviews give us flexibility to approve the appointment of a reviewer with the required skills and experience relevant to the review. In some cases, the commission may approve a legal or compliance firm, rather than an audit firm.
Featured activities
We directed three retailers to appoint an independent reviewer to conduct a compliance review on disconnection processes.