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 business segregation, non-discriminatory wholesale electricity trading and the provision of standard products. The purpose of the regulatory scheme is to:
- Mitigate EGRC’s potential to exercise market power
- Level the playing field
- Facilitate competition.
Effectiveness reviews
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 2019, the State Government changed the timeframe of the review from annually to every two years.
Compliance audits
In August 2024, the Minister for Energy amended the EGRC Regulations to require the ERA to audit Synergy’s compliance with the non-discrimination obligations and approved wholesale arrangements of the EGRC scheme every financial year. The Auditor General continues to audit Synergy’s compliance with other aspects of the EGRC Regulations.
Upon completing the audit, the ERA must form an opinion as to whether Synergy has complied with the relevant regulations, and provide a report on the audit, including the ERA’s opinion and details of any identified non-compliances, to the Minister for Energy. The ERA may also investigate any non-compliances and undertake enforcement action.