Authorities have studied the views and preferences of energy customers in the Australian Energy Regulator’s (AER) revenue determinations. 

An initiative called ‘New Reg’ was set up in 2017 in partnership between the AER, Energy Networks Australia (ENA) and Energy Consumers Australia.

It sought to test an alternative way of developing an energy network’s revenue proposal through consumer engagement.  

Cambridge Economic Policy Associates (CEPA) was commissioned to evaluate New Reg and its report has provided insights into how energy networks may better involve customers in the development of their regulatory proposals. 

Commentary by the AER, trial participants, and other stakeholders, demonstrated confidence that many of the positions agreed to by AusNet Services and the Customer Forum were in the long-term interest of consumers, the CEPA report found.  

AusNet also reported that the trial profoundly influenced its broader company culture, leading to an increased awareness of the importance of effective consumer engagement.  

The trial also achieved some success in its objective of enhancing consumer confidence in the regulatory review process, with the report indicating representatives of the Consumer Forum, AusNet and the AER had all expressed confidence in the outcome.  

The lessons from the trial, as detailed in CEPA’s report, are relevant for both consumers and networks in their future engagement. The trial has now closed. 

“This trial represents an ambitious attempt to develop an alternate revenue setting process that includes and empowers consumers and works for their benefit,” Energy Consumers Australia Chief Executive Officer Lynne Gallagher said. 

“We are currently seeing many welcome advances in consumer engagement across network businesses, but this approach offered something different. 

“As an official participant in the process, the Customer Forum had access to independent, expert advice. This gave the Forum a level of agency and influence that is an undeniable step forward for engagements of this type.”