Small Claims Compensation Scheme - Electrical Infrastructure Failure

Consultation has concluded

Have your say on a proposed small claims compensation scheme for electricity customers in South Australia.


What’s being decided?

We are proposing amendments to the National Energy Retail Law (Local Provisions) Regulations 2013 to establish a small claims compensation scheme in South Australia.

The scheme will enable household and small business electricity customers to file small claims for compensation from electricity distributors for property damage due to electrical infrastructure equipment failure.

South Australia will be the first jurisdiction in Australia to establish a small claims scheme under the National Energy Customer Framework.

We are seeking community and stakeholder feedback on the proposed regulations and will use this feedback to finalise the proposed amendments.


Background

Electrical infrastructure failures that damage electrical appliances, often due to high-voltage surges, have resulted in costs to households and small businesses. Customers who have not been at fault are currently unable to recover compensation from their electricity distributors.

Under the National Electricity Law, electricity distributors – including SA Power Networks (SAPN) – can deny compensation claims if they have met their network inspection and maintenance obligations. Under the Law, SAPN are not required to compensate claimants where they have not been, or cannot be shown to be, negligent or having acted in bad faith.

A rise in the number of non-compensable incidents has highlighted the need to activate this scheme in South Australia. This would supplement existing consumer protections, including:

  • SAPN's current claims process for compensation when they have been negligent or acted in bad faith
  • The Energy and Water Ombudsman SA (EWOSA) complaint resolution process; and
  • SAPN's Guaranteed Service Legal obligations under the Essential Services Commission of South Australia (ESCOSA)


Get involved

Find out more by reading the following documents:

Provide your feedback on the draft regulations by 11.59pm ACDT on Sunday 27 October 2024 by:


What are the next steps?

We will consider your feedback to finalise the amendments to the National Energy Retail Law (Local Provisions) Regulations 2013. The updated regulations will be available on this page once they are finalised.

Have your say on a proposed small claims compensation scheme for electricity customers in South Australia.


What’s being decided?

We are proposing amendments to the National Energy Retail Law (Local Provisions) Regulations 2013 to establish a small claims compensation scheme in South Australia.

The scheme will enable household and small business electricity customers to file small claims for compensation from electricity distributors for property damage due to electrical infrastructure equipment failure.

South Australia will be the first jurisdiction in Australia to establish a small claims scheme under the National Energy Customer Framework.

We are seeking community and stakeholder feedback on the proposed regulations and will use this feedback to finalise the proposed amendments.


Background

Electrical infrastructure failures that damage electrical appliances, often due to high-voltage surges, have resulted in costs to households and small businesses. Customers who have not been at fault are currently unable to recover compensation from their electricity distributors.

Under the National Electricity Law, electricity distributors – including SA Power Networks (SAPN) – can deny compensation claims if they have met their network inspection and maintenance obligations. Under the Law, SAPN are not required to compensate claimants where they have not been, or cannot be shown to be, negligent or having acted in bad faith.

A rise in the number of non-compensable incidents has highlighted the need to activate this scheme in South Australia. This would supplement existing consumer protections, including:

  • SAPN's current claims process for compensation when they have been negligent or acted in bad faith
  • The Energy and Water Ombudsman SA (EWOSA) complaint resolution process; and
  • SAPN's Guaranteed Service Legal obligations under the Essential Services Commission of South Australia (ESCOSA)


Get involved

Find out more by reading the following documents:

Provide your feedback on the draft regulations by 11.59pm ACDT on Sunday 27 October 2024 by:


What are the next steps?

We will consider your feedback to finalise the amendments to the National Energy Retail Law (Local Provisions) Regulations 2013. The updated regulations will be available on this page once they are finalised.

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