Consumer Data Rights in Energy: Do You Really Need It? This Will Help You Decide!

On 26 November 2017, the Australian Government announced the introduction of Consumer Data Rights (CDR) in Australia. CDR would be implemented in phases starting with banking, through energy and later telecoms sectors.

The reforms are designed to give Australians greater control over their data in a bid to:

  • Encourage competition between service providers. The competition will in turn bring better commodity prices and encourage innovation.

Implementation of CDR commenced In July 2019 when the first Open Banking APIs went live. Open Banking has seen progress within a few months after commencement.

From competition and to allowing Fintechs access to customer banking data to create faster more personalized and innovative services, Open banking is a force to reckon in the banking sector. This further explains the large number of Fintech unicorns that have emerged in Australia.

Consumer Data Rights in Energy

With the CDR for the banking sector having commenced successfully, the focus is now shifting to the energy sector. The AEMO gateway will be used to facilitate energy data access. In the energy sector, CDR aims to open up access to consumer data held by energy service providers.

This will in turn give consumers control over their energy usage and preferences in their pursuit of better energy deals.

For any organization, CDR brings additional privacy challenges and new obligations that they’ll need to comply with. There’s, however, a better way for organizations to look at it- through business lenses!

Through Business Lenses

As a passed legislation, CDR is an Australian Law. Energy Service provides and startups cannot, therefore, ignore it.

But is it just an obligation for businesses?

The answer is a big NO if you look it through the business lenses i.e looking at the possible use cases and drawing opportunities out of them.

CDR Energy Use Cases

Consider the possible use cases of Consumer Data Rights in energy.

  • A tailored dashboard of providers’ accounts and services,
  • Government financing for solar installations and electric vehicle charging stations as well as other sustainable climate action goals.
  • Consolidation of bills payment services,
  • Tailored switching and recommendation services anchored upon account maintenance services.

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CDR Opportunities

From the above use cases, we can deduce the following potential opportunities for companies and startups:

A better side gives you access to tonnes of consumer data held by third parties that you can use to make informed growth decisions.

  • Growth opportunity — This comes when small businesses gain control over their energy consumption and preferences. According to a statement by Hon Josh Frydenberg MP, “A small business would be over $7,000 better off in South Australia and over $3,000 better off in Victoria or New South Wales from a similar switch.”

Final Thought

The Consumer Data Rights is a build upon the Government’s other important energy industry reforms including the default market offer price cap and the reference price. CDR is a more orchestrated reform that seeks to give consumers control over their energy data, promote fair competition, and foster innovations in the energy sector.

If viewed through the business eyes, CDR use cases in energy is a pool of opportunities. Startups can tap into these opportunities by aligning their growth strategies with CDR. Open Banking birthed several Fintech unicorns, CDR in energy carries the same potential and even more. Are you ready?

Now is your chance to help shape the future of CDR!

The opportunity is now to envisage what the future could be for energy data applications. Startupbootcamp is looking for startups, data professionals, university students, & teenpreneur to pitch ideas of what potential use cases can be. No software needed — just great ideas and a short presentation could WIN you $1000 sponsored by Centre for New Energy Technologies (C4NET)!

Our expert panel including industry leaders from Australian Energy Market Operator, Open Data Australia and ELDO will first explore the current trends and opportunities of CDR in Energy, discussing Energy Data Designation and future Energy Framework Rules consultations and projections for the future at an insight session on July 23rd.

At this session, you will be told how to submit your idea and a few days later the top 6 submissions will be selected to pitch live at a seperate pitch event where the winner will be selected to take home the $1,000 prize money. Any startup companies pitching will also be eligible for an AWS voucher.

Have you got an innovative idea or company that uses data for consumer benefit? If so, we would love to hear from you. Register to attend here and help us shape the future of CDR!

Don’t forget to give us your 👏 !

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Trevor Townsend

CEO Startupbootcamp Australia Founder, Board Member and Startup Investor: Energy, FinTech and Sports.