Rule change proposal – economic regulation of Network Service Providers

This submission outlines PIAC‘s response to the Australian Energy Market Commission’s (AEMC) Consultation Paper on proposed changes to the National Electricity Rules (NER) regarding the economic regulation of network service providers (NSPs). PIAC’s submission focuses on the proposal put forward by the Australian Energy Regulator (AER), specifically discussing an NSP’s ability to lodge submissions on their own proposals and the identification and use of confidential information. PIAC submits that the NER should place the onus on NSPs to provide all important information as early as possible in the regulatory process, rather than having the option of waiting until they make submissions on their own proposals. This would allow stakeholders and regulators more time to effectively examine these extremely complicated issues. PIAC also argues that the NER should be amended to discourage NSPs as much as possible from claiming that some information in their regulatory proposals is commercial in confidence. In PIAC’s view, these changes would assist consumer advocates to make informed decisions about allocating their resources to meaningfully engage in electricity network price setting processes. PIAC’s submission highlights the importance of transparent, efficient and accessible processes in setting network prices – given that network costs make up approximately 50% of the electricity charges faced by NSW consumers.