The Electricity Generation and Retail Corporation (EGRC) regulatory scheme was put in place to manage the merger of Verve Energy and Synergy, which became the Electricity Generation and Retail Corporation, trading as Synergy, on 1 January 2014.The regulatory scheme includes requirements for ring-fencing, business segregation, transfer pricing, non-discriminatory wholesale electricity trading and the provision of standard products.
Since inception, the ERA has reviewed the operation of the EGRC regulatory scheme every year and prepared a report for the Minister for Energy that assessed the effectiveness of the scheme and made recommendations for improvement.
Following publication of the fourth EGRC regulatory scheme review, the State Government changed the timeframe of the review from annually to every two years.
Review of Synergy's Regulatory Scheme 2018-2020
The fifth review of the EGRC regulatory scheme covered the calendar years 2018, 2019 and 2020 following changes to the scheme review requirements. On 31 August 2021, the ERA published a discussion paper for stakeholder consultation. The ERA took stakeholders’ views into account when preparing the final report.
The report was delivered to the Minister for Energy on 17 December 2021 and it was tabled in Parliament on 5 April 2022.
The ERA recommends that the maximum spread be reduced from 20 per cent to 15 per cent in July 2022, and to 10 per cent in July 2023. The phased transition would provide Synergy time to improve its pricing method while still allowing Synergy a reasonable profit on transactions.