NewReg - a joint initiative of the Australian Energy Regulator (AER), Energy Consumers Australia (ECA) and Energy Networks Australia- is identifying innovative ways to better deliver value in electricity network prices for customers.
NewReg involves identifying and testing a range of alternative approaches to put energy consumers’ priorities at the centre of energy network decision-making and regulation.
The objective is to improve efficiency and effectiveness of network regulation to increase consumer trust and confidence in the process, as well as deliver the outcomes consumers most value.
- New Reg: Towards Consumer-Centric Energy Network Regulation - Approach Paper - March 2018
- New Reg: Towards Consumer-Centric Energy Network Regulation - Directions Paper - March 2018
- Consultation launched on new approach to network regulation - Media Release 23 March 2018
NewReg to be trialed by AusNet Services
The Australian Energy Regulator (AER), Energy Consumers Australia (ECA) and Energy Networks Australia have released NewReg, an alternative regulatory approach to be tested via a trial with Victorian distribution network AusNet Services.
The trial involves the formation of a Customer Forum to represent the network’s residential, small business, commercial and industrial customers and consultation will happen in parallel with the trial to enable stakeholders to contribute to its development in ‘real time’.
In the trial, the network will seek to reach agreement on its revenue proposal with the Forum before it is submitted to the AER. Once the revenue proposal is submitted, the AER will still make a determination in the long-term interests of consumers, within the existing rules.
The trial requires the network to reach agreement with its consumers on its revenue proposal prior to it being submitted to the AER. This could mean some AER decision processes are streamlined or expedited, as long as the proposal meets the long-term interests of consumers. Key elements include, the network agrees its revenue proposal with a body specifically established to represent the perspective of that network’s residential, small business, commercial and industrial customers.
The outcomes of each stage of the trial will be examined and reviewed through stakeholders and community consultation. This will enable feedback to be incorporated and modifications to the trial to be made in real time.
If successful, the outcomes of the trial and consultation could then be formalised through changes to the NER or NGR via a rule change request to the AEMC.