CEC Solar Code Of Conduct Reauthorised

The Australian Competition and Consumer Commission has granted re-authorisation to the Clean Energy Council for its Solar Retailer Code of Conduct.

A solar business must meet the requirements set out in the Solar Retailer Code of Conduct as part of becoming a CEC Approved Solar Retailer (ASR). You can learn more about the difference between ASRs, accredited installers and CEC members here.

The CEC lodged an application with the ACCC for re-authorisation of the Code in May. While the Code is to be replaced by the New Energy Tech Consumer Code (NETCC) that was approved by the Australian Competition Tribunal in September, it will remain in play during a transition period. Retailers who are signatories of the Code will become signatories of the NETCC.

The ACCC published its draft determination in August, which contained some added conditions. This was followed by another consultation period.

With this now done and dusted, the main changes in the final version are amendments to the application process, privacy provisions and the sanction process used in relation to breaches of the Code.

Application Rejection And Appeals

Currently, if an applicant is rejected from joining program, the business has to wait three months from the date of rejection before a new application can be assessed. If this was followed by another rejection, there would be a 6 month wait and if rejected a third time, 12 months. These decisions were final – there was no appeals process.

That’s changed in the re-authorised Code. Unsuccessful applicants will need to wait one month on the first rejection, two months on the second and three months on the third. An appeals mechanism for unsuccessful applicants has also been introduced, where appeals will be heard by the Code Review Panel or its appointed delegate. This won’t be cheap, at $750 a pop (non-refundable).

Privacy Amendments

Amendments to the Solar Code’s privacy provisions relating to clauses 2.2.12 and 2.2.13 have been implemented as recommended by the Office of the Australian Information Commissioner. The OAIC expressed concern the first currently allow instances where the consumer has not opted-in for future marketing and the second makes the need to seek a consumer’s consent to receive marketing material at the discretion of the business. Under the reauthorised code, signatories must seek the consumer’s consent.

Terminating Signatories

While this has been previous practice, the re-authorised Code mandates the Code Administrator consults with the Code Review Panel prior to invoking clause 3.6.4 to terminate a signatory. Code 3.6.4 comes into play where serious, wilful, systemic or repetitive non-compliance detrimental to consumers is identified.

New Businesses

Another amendment making the final cut is the ability for the CEC to waive the requirement that applicant retailers must have been operating for at least 12 months before being accepted as an Approved Solar Retailer, in a situation where a retailer can provide further details to demonstrate relevant industry experience.

Approved Solar Retailer – A Problematic Program

While the decision to become a signatory to the Solar Code is still voluntary per se, the ACCC acknowledges it has become “virtually essential” in order for a retailer to stay in business in some jurisdictions – because it is the only way to supply solar power systems under some government incentives. Examples are Victoria’s solar rebate and South Australia’s Home Battery Scheme.

Another significant issue – some solar installers have been accepted into the program that shouldn’t have been, or have behaved in a way since being accepted that breaches the Code and without prompt and appropriate action. This has taken the shine off the Approved Solar Retailer badge.

SolarQuotes founder Finn Peacock has previously commented there are now more than a thousand ASRs, and plenty he wouldn’t recommend to a friend.

“.. by working with state governments to make their scheme de-facto mandatory, they’ve had to be less fussy about who they let in, and I consider the badge to be almost worthless,” says Finn.

Minor amendments to the Code in relation to monitoring and enforcement include an update to the existing ‘breach matrix’ with the ‘severity’ levels for three types of breaches increased and two decreased. But the Code Administrator can also lower a breach’s severity level during an investigation.

Signatories are also required to notify the Code Administrator if the control/ownership of their business changes. Failure to do so, or if it is found the changed business doesn’t have sufficient systems in place for ongoing compliance, will result in Approved Solar Retailer status being revoked.

There are also some more requirements with regard to offering ‘alternative finance arrangements’, such as “buy now, pay later” (BNPL) in terms of supplying consumers with information. Finn wrote at length about BNPL, but in relation to the NETCC, early this year.

The ACCC’s determination will come into force on 11 December 2020, unless an application to review is lodged by 10 December 2020 – and the re-authorisation lasts until 31 July 2023. You can read the full ACCC determination here.