As networks play an increasingly important role in facilitating an efficient energy transition, we need regulation that puts better consumer outcomes at the centre of decision making.
Simply determining whether a service should have competitive or regulated delivery is too simplistic. And it’s no longer reasonable to assume competition, by its nature, promotes the interests of consumers. Network regulation needs to be able to shape the most efficient and equitable path forward, integrating an appropriate role for efficient network services and competitive service delivery.
That’s why our response to the AEMC’s Electricity Network Regulation Review (ENRR) Package 1 consultation paper recommends the review starts by establishing a framework for intended consumer outcomes first. We also recommend adopting durable principles – like beneficiary pays – which can be consistently applied to achieve them.
We need to build a regulatory framework and approach which can ensure the mix of regulation, competition and market incentives best delivers the desired outcomes for consumers.
This approach would make regulation both more consistent and flexible enough to adapt to new technology and market changes.
What’s next?
The AEMC will hold its first public forum on August 18 to discuss Package 1 and 2 of the ENRR, and two related rule change requests. A second public forum will be held in October, and a final report will be published in December 2026. The AER is also reviewing a suite of the guidelines it uses to implement network regulation and engagement with competition. We submitted to this process and will similarly engage to advocate for a consistent focus on better consumer outcomes.
