Submission to AER Incentivising and measuring export services performance

PIAC made a submission to the Australian Energy Regulator’s (AER) Incentivising and measuring export services performance consultation paper.

In this submission we recommended against the use of financial incentives to promote the delivery of export services given these could inappropriately reward service providers while doing little to address the issues and services that consumers value most. PIAC expressed support for the development of a reputational incentive to facilitate the development of robust performance measures and highlight the presence and location of export constraints.

PIAC put forward that a reputational incentive should increase transparency on system limitations and their impact on the availability or use of distribution services with a view to promoting efficient investment in, operation and use of networks for export services in the long-term interests of consumers.