Consumers are in the spotlight as the Australian Energy Regulator (AER) announces reforms to the way consumer interests will be included in setting electricity and gas network prices.
The AER has established its Consumer Challenge Panel to assist us in making decisions on energy network costs that reflect the long term interests of consumers. The AER has appointed thirteen members to the challenge panel for an initial three year term. The AER has also released a draft guideline on how energy service providers should engage with their consumers.
“Our announcements today are an important step in moving Australia towards an improved regulatory regime that will ensure consumers pay no more than is necessary for a safe and reliable supply of electricity and gas,” AER Chairman Andrew Reeves said.
“The AER sought funding to create the challenge panel which will sit within the AER to help us examine spending proposals from a consumer perspective. Members of the panel will provide advice on whether spending proposals are justified in terms of the services to be delivered to consumers and whether they are in their long term interests,” Mr Reeves said.
The challenge panel formed a key component of the Council of Australian Governments’ energy reform agenda agreed to on 7 December 2012.
“Members of our challenge panel possess vast local and international expertise, which they will use to provide consumer perspectives that challenge network businesses’ spending proposals,” Mr Reeves said.
The AER has also published a draft consumer engagement guideline—the first in a series of guidelines to be published as part of the Better Regulation program. The guideline assists electricity and gas network service providers to develop consumer engagement strategies and approaches to apply across their business. It will also help them to prepare spending proposals that reflect the long term interests of their consumers.
“Consumer engagement is an important tool in increasing the accountability of network businesses to the community they serve. The guideline is an important step in aligning network services with the long term interests of consumers,” Mr Reeves said.
”The goal is for regulatory proposals from network service providers to be based on genuine consumer priorities. In order to achieve this, consumer engagement must be integrated throughout these network businesses,” Mr Reeves said.
Further information
The Australian Energy Regulator’s Better Regulation program will also deliver improved approaches to assessing spending proposals from network service providers and setting the return they may earn on network investments. The AER sets the charges for electricity networks and for most gas networks in the eastern and southern Australian states.
The thirteen members appointed to the CCP are:
- Ms Jo De Silva
- Mr Hugh Grant
- Mr David Headberry
- Mr Mark Henley
- Ms Bev Hughson
- Mr Adrian Kemp
- Ms Ruth Lavery
- Mr Bob Lim
- Ms Fiona McLeod
- Mr Bruce Mountain
- Dr Gillian Owen
- Mr David Prins
- Ms Robyn Robinson
There is further information on the AER’s Consumer Challenge Panel and its members on the challenge panel web page.
The AER invites stakeholders to provide comments on our draft consumer engagement guidelines. Information on how to make a submission is available on the consumer engagement guidelines' webpage.
Further information on the Better Regulation program is avaliable on the Better Regulation web page.