On 18 March 2011 the AER hosted its first Customer Consultative Group meeting for the year. The group was established in 2009 to advise the AER in relation to its functions affecting energy consumers. Membership provides organisations with the opportunity to inform the AER about issues affecting the groups they represent.
In an opening address, the AER Chairman Mr Andrew Reeves noted the AER has almost concluded its first cycle of revenue or price determinations for electricity distribution networks under the National Electricity Rules. The cycle will be completed when the Tasmanian business, Aurora, submits its proposal in May 2011. The AER has also completed its first cycle of determinations for transmission networks (apart from the Murraylink and Directlink interconnectors) under the current rules.
The Chairman said this made it an opportune time for the AER to take stock of its experiences with the regulatory regime and consider what changes are necessary to better meet the regime’s underlying objective—to promote efficient investment in and use of electricity services for the long term interests of consumers. The AER is therefore reviewing the National Electricity Rules framework under which the determinations were made. Any proposal for Rule changes arising from this review will be put to the Australian Energy Market Commission under the normal process. The AEMC would consult with industry and community stakeholders on any proposed changes to the Rules. The AER will also consider ways to enhance efficiency incentives on network businesses and ways to improve the administrative efficiency of decision making processes.
The meeting went on to cover a range of agenda items, including:
- the impact of network prices on retail bills
- the development of information sheets to educate consumers on their rights and responsibilities in the retail market
- the AER’s draft guidance on approving retailers’ customer hardship policies under the National Energy Customer Framework
- the development of national performance reporting on matters affecting energy customers.
Consumer groups also raised issues for discussion, including:
- the AER’s role in educating consumers about energy issues
- engagement with consumer groups on jurisdiction specific issues
- the merits review process for network determinations
- the AER’s involvement in jurisdictions’ implementation plans for the National Energy Customer Framework.
The Customer Consultative Group meets up to three times a year and has nine current members—Australian Council of Social Service, Australian Council on the Ageing, Australian Industry Group, Brotherhood of St Laurence, Consumer Action Law Centre, Consumer Utilities Advocacy Centre, Public Interest Advocacy Centre, South Australian Farmers Federation and UnitingCare Wesley Adelaide.