The Australian Energy The Australian Energy RegulatorRegulator

Service provider consumer engagement guideline

30 April 2013

Progress to dateProgress to dateConsumer forums held in MarchInput included:

◦greater levels of consumer engagement◦best practice principles ◦commitment to continuous improvement◦integration of consumer engagement

throughout the organisation

2

Guideline objectiveGuideline objectiveAligning network services with long term

interests of consumers

◦Consumer engagement ‘...is an important tool in increasing the accountability of network businesses to the community they serve...’

◦The AER wants to be ‘confident that a business’s proposal will deliver the services consumers want’. Consumers need a real opportunity to affect that proposal.

3

Quotes from AER Chairman, Andrew Reeves speech to CEDA, 23 April 2013

Guideline overview*Guideline overview*Four ‘components’

1. Best practice principles2. Targeting engagement3. Delivery4. Results

* Please note that this is preliminary work and the guideline is still under development. The guideline and

explanatory statement will require AER Board approval. Therefore, all preliminary work and drafts may be subject to change.

4

Best practice principlesBest practice principlesDraft version of principles attachedSupporting elements reflect at a practical

level the objective of each principle

5

Targeting engagementTargeting engagementExamples include:

◦Price v. reliability tradeoffs◦Tariff setting and tariff design (incl. Time of use

and critical peak tariffs)◦Setting reliability targets/standards◦Demand hot spots◦Alternatives to capital investment

• Prioritising consumer and business issues within operating environment

6

DeliveryDeliveryHow consumers will be engaged

◦Action plan or engagement strategy

◦Communication with consumers

◦Align plans with best practice principles and

target areas

◦Monitoring and reporting arrangements

◦Evaluation and review

7

ResultsResultsHow the business will use information from

consumersEvidence of consumer engagement in:

◦ Regulatory proposal/access arrangement

◦ Business as usual processes/operating environment

◦ Application to....?

8

Next StepsNext StepsConsumer Reference Group – MayPublish draft guideline and explanatory

statement – June/July

9

Questions?Questions?

Feedback and comments are invited. Please email:

consumerengagement@aer.gov.au Or phone Moston Neck on 07 3835 4669

10