As part of the merger arrangements for Verve Energy and Synergy on 1 January 2014, the EGRC Regulatory Scheme was put in place to impose requirements on the new merged entity. These requirements include ring-fencing, business segregation, transfer pricing and non-discriminatory wholesale electricity trading.
The ERA is required to review the operation of the EGRC Regulatory Scheme for the purpose of assessing its effectiveness at least once each year and deliver a report to the Minister for Energy based on its review, including any recommendations we may have for improvements.
The ERA also has an investigation function. The Auditor General conducts annual audits to ensure that Synergy has complied with the requirements of the EGRC Regulatory Scheme. Any non-compliance reported by the Auditor General must be investigated by the ERA. Depending on the outcome of that investigation and the nature of the non-compliance, the ERA may impose a civil penalty.