The AER is establishing a Consumer Challenge Panel as part of its approach to enhanced engagement with consumers and their representatives. This forms part of our Better Regulation program and is a key component of the Council of Australian Governments’ energy reform agenda agreed on 7 December 2012.
This Panel of experts will be appointed to provide advice and input to the AER on network businesses’ revenue determinations and the Guidelines that set out our approach to this work.
Members of the Panel will have a breadth of expertise, including energy and /or regulatory expertise and an ability to bring a strong consumer perspective.
Role of the panel
The role of the Panel is to:
- assist in ensuring that the consumer view is more fully considered as part of our decisions on energy network revenue determinations
- assist the AER in challenging the network businesses on their spending proposals and how these have been informed and shaped by the businesses’ own customer engagement
- liaise with the AER’s Customer Consultative Group (as constituted under the National Energy Retail Law) and other consumer representatives to ensure it can identify key issues of concern; provide an effective consumer focus in network revenue determination processes; and build capacity so these representatives can more effectively contribute to future network revenue determination processes
- provide advice on consumer perspectives to other organisations (such as SCER, AEMC) as requested.
Establishing the Panel will provide enhanced consumer input into some of the more complex, technical issues that are considered during network revenue determinations. The Panel’s views will also be helpful in assessing how well network businesses have engaged with their customers in developing their revenue proposals.
We expect the Panel to provide its views in determination processes on whether the proposed network expenditure is justified in terms of outcomes for customers and on whether the AER’s overall decision is in the long term interests of consumers.
Appointment of Panel Members
The AER will be calling for expressions of interest for suitable Panel Members in April 2013. Prospective candidates will be asked to consider the Panel Member’s Terms of Reference and to submit an application outlining their suitability, expertise and to address the selection criteria. Applications will be assessed by a Selection Panel and appointments made on merit. The Panel will be established by 1 July 2013.
Establishing the Panel will contribute to the AER’s role in improved regulatory framework focussed on promoting the long term interests of consumers and help ensure that customers are paying no more than necessary for a safe and reliable energy supply.
The AER will update the information on Consumer challenge panel page as further details of the Panel and appointment process are announced.