EMA bares proposed changes to electricity regulatory framework

It launched a public consultation from 1 February to 3 March 2023.

The Energy Market Authority (EMA) is seeking to improve its electricity retailer regulatory framework to strengthen consumer protection.

The proposed measures include requiring electricity retailers to have a paid-up capital or tangible net worth of at least $1m to ensure that they are credible and have sufficient financial standing, it said in a statement

It is also looking at requiring all retailers to seek approval to appoint Key Appointment holders to ensure they are led by fit and proper individuals.

EMA is proposing to impose hedging requirements to strengthen retailers’ resiliency amidst market volatility for a stable retail market.

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Retailers imposing early termination charges on consumers may be required to similarly compensate consumers in the event of early termination to enhance their protection against premature contract termination.

The agency launched a public consultation from 1 February to 3 March to seek comments and feedback on the proposed improvements.

The Ministry of Trade and Industry said in October 2022 that the EMA will launch guardrails that will strengthen the competitive market structure and ensure that the country is fit for energy transition, which includes the enhancement of the regulatory framework for electricity retailers.