Tweaks to consumer data right rules effective from Tuesday will allow energy companies to shield their trial products for two years from the scheme’s data sharing obligations in a bid to encourage more innovation.
The longer than expected exemption was announced alongside streamlined consent and data collection processes by Assistant Treasurer Stephen Jones as part of his “reset” of the economy-wide data sharing scheme.
The energy sector’s trial product exemption applies to new products being rolled out to up to 2,000 customers and will last 24 months. It is double the current thresholds for CDR’s pioneer banking sector but still well below what energy companies had asked for.
Uptake of CDR has been slow, with delays to the passage of legislation, a pause on rolling out the scheme to new sectors, and disagreements on the way forward between representatives of data holders and data recipients.
Treasury consulted on the new rule changes between August and September as a part of a “reset” to drive uptake by businesses and consumers.
The draft rule changes proposed an exemption to the CDR for energy products in a trial or pilot period that lasted no longer than 12 months and included no more than 1,000 customers, similar to an exemption in place for the banking sector.
The exemption is aimed at removing a perverse disincentive to trial new innovative products because CDR also introduces new data sharing and security obligations.
Earlier consultation had suggested that the CDR rules take a principle-based approach to trial products, but Treasury opted for clarity on the scope of the exemption to streamline compliance.
While the trial conditions are broader than initially proposed, they fall short of the five-year, 5,000 customer limit the Australian Energy Council wanted.
The industry group, representing energy retailers, argued in a submission that the proposed trial conditions were “too narrow to encourage proper product and service innovation” amid the “significant energy transformation” from fossil fuels to renewables.
The group said major reforms are also underway to manage mass uptake of consumer energy resources like solar panels, batteries, and electric vehicles, adding to the regulatory mix.
In a statement on Tuesday, Mr Jones said the rule change will allow for innovation and “supports the unique nature of energy contracts”.
He said the new rule changes — which also include long sought simplification of consenting to data sharing and less barriers on the actual sharing — will help get the CDR on a “more sustainable footing”.
“The government is working with stakeholders to ensure we introduce changes that represent value-for-money,” the statement said.
“Treasury will undertake further consultation with stakeholders on proposed amendments to improve business consumer participation in the CDR.”
FinTech Australia chief executive Rehan D’Almedia said the “CDR rule changes announced today will help move the needle on CDR adoption, and follows a strong push from our membership to make it easier for consumers to give their consent and to streamline operational processes”.
The government is looking to resume the rollout of the CDR scheme to new sectors in mid-2026, beginning with non-bank lenders.
The CDR for the energy sector currently only applies to the National Electricity Market, which leaves out Western Australia and the Northern Territory.
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