Introduction As the AER, we regulate network businesses and apply the national electricity and gas laws and rules. In regulating network businesses we aim to promote efficient investment and operation of services in the long term interests of consumers. In 2012 the AEMC introduced important changes to the National Electricity Rules (NER). The AEMC rule changes were in response to a proposal we submitted to address weaknesses in the regulatory framework that limited our ability to reject high expenditure forecasts. The rule changes set out a new framework which allows for a balanced assessment between the need for efficient investment by energy networks to provide reliable energy supply, with the need to minimise costs to consumers. An important aspect of the rule changes was an increased emphasis on consumer engagement to address the lack of focus on consumer participation in the energy industry. The new rules require network service providers to indicate the extent of their consumer engagement in their regulatory proposals and require us, when making revenue determinations, to take into account the extent of the network service providers’ consumer engagement. We initiated the Better regulation program to draw together these reforms and feed them into our regulatory processes. The Better regulation program involved: Extensive consultation on seven new guidelines that outline our approach to assessing network businesses' expenditure proposals and determining electricity network revenues. Establishing a Consumer Reference for our guideline development work, to help consumers engage across the broad spectrum of issues considered. Establishing a Consumer Challenge (appointed 1 July 2013) to advise us on whether network business' proposals are justified in the services to be delivered to customers. Improving our internal technical expertise, systems, and engagement with stakeholders. The CRG was established to be a dedicated forum for consumer groups to have input into the Better regulation guideline development. We established the CRG to reflect our commitment to strengthen consumer engagement in energy markets and regulatory processes. The CRG was intended to provide valuable information to consumer groups and incorporate consumer input into guideline work. This paper provides information on how the CRG was established, operated and assesses the CRG as a program for consumer engagement. The assessment is informed by: a written survey conducted with AER Directors involved in the CRG feedback from staff involved in the CRG analysis of minutes from CRG meetings written and oral submissions received from CRG members written survey conducted with CRG members and follow up feedback sessions conducted via to discuss answers to the survey.
Introduction As the AER, we regulate network businesses and apply the national electricity and gas laws and rules. In regulating network businesses we aim to promote efficient investment and operation of services in the long term interests of consumers. In 2012 the AEMC introduced important changes to the National Electricity Rules (NER). The AEMC rule changes were in response to a proposal we submitted to address weaknesses in the regulatory framework that limited our ability to reject high expenditure forecasts. The rule changes set out a new framework which allows for a balanced assessment between the need for efficient investment by energy networks to provide reliable energy supply, with the need to minimise costs to consumers. An important aspect of the rule changes was an increased emphasis on consumer engagement to address the lack of focus on consumer participation in the energy industry. The new rules require network service providers to indicate the extent of their consumer engagement in their regulatory proposals and require us, when making revenue determinations, to take into account the extent of the network service providers’ consumer engagement. We initiated the Better regulation program to draw together these reforms and feed them into our regulatory processes. The Better regulation program involved: Extensive consultation on seven new guidelines that outline our approach to assessing network businesses' expenditure proposals and determining electricity network revenues. Establishing a Consumer Reference for our guideline development work, to help consumers engage across the broad spectrum of issues considered. Establishing a Consumer Challenge (appointed 1 July 2013) to advise us on whether network business' proposals are justified in the services to be delivered to customers. Improving our internal technical expertise, systems, and engagement with stakeholders. The CRG was established to be a dedicated forum for consumer groups to have input into the Better regulation guideline development. We established the CRG to reflect our commitment to strengthen consumer engagement in energy markets and regulatory processes. The CRG was intended to provide valuable information to consumer groups and incorporate consumer input into guideline work. This paper provides information on how the CRG was established, operated and assesses the CRG as a program for consumer engagement. The assessment is informed by: a written survey conducted with AER Directors involved in the CRG feedback from staff involved in the CRG analysis of minutes from CRG meetings written and oral submissions received from CRG members written survey conducted with CRG members and follow up feedback sessions conducted via to discuss answers to the survey.
Assessment%20of%20the%20Consumer%20Reference%20Group.DOCX