PIAC responded to two draft rules concerning changes to intervention mechanisms (ERC0289) and removal of intervention hierarchy (ERC0291).
We highlight any compensation process should be transparent, consistent, reduce unnecessary costs to consumers, allocate risks to those best placed to manage them, recover costs from those who benefit, and not discourage the provision of necessary market services.
We recommend a review of intervention mechanisms and intervention hierarchies no more than 2 years after the implementation of this rule change. This review should be public, transparent and allow input from stakeholders, including consumer representatives.
We respond further to aspects of each rule change.
