Following a recent review of our consumer panels, we have revised the scope of the CCP to place greater emphasis on constructively challenging the AER to ensure decisions reflect the long-term interests of consumers.
The updated Terms of Reference provide full details on the CCPs’ scope, including key areas of interest.
Go to the Terms of Reference
This shift in focus reflects the increasingly complex nature of network revenue proposals, which are now commonly characterised by significant proposed uplifts in capital and operating expenditure.
These proposals raise critical issues for consumers, including:
- the scale and type of network augmentation,
- tariff design,
- service classification,
- demand forecasts and risk allocation.
Renewed objectives
In this environment, we require the CCP to provide independent and expert advice on the key issues affecting consumers in regulatory proposals.
The CCP may also provide targeted advice on whether consumer views are appropriately reflected in the solutions to those key issues and the extent to which the engagement on those areas was presented in a balanced and comprehensive way.
CCP members will be expected to provide independent advice on specific areas of regulatory proposals, provide independent review of network business-led stakeholder panel engagement and help ensure consumer perspectives are clearly tested in the AER’s decision-making.
In doing so, the CCP will challenge both network proposals and the AER’s assessment of them, supporting robust determinations that are in the long-term interests of consumers.
How CCP members will be deployed
The AER will use a targeted and flexible approach to deploying CCP members on regulatory determinations, to maximise coverage of key consumer issues.
We anticipate assigning CCP members to determinations using four deployment options. The option used will depend on the circumstances of each reset and where CCP input is likely to add the most value.
| | Full engagement | Targeted scope (standard) | Staged scope | Thematic scope |
|---|
| Nature of involvement | CCP engaged broadly across pre‑ and post‑lodgement phases | CCP engaged selectively on pre‑lodgement and focused on advice and challenge post‑lodgement | CCP engaged intensively at nominated stages only | CCP engaged on priority or emerging consumer issues across multiple determinations |
|---|
| Primary value | Comprehensive coverage across the reset process | Targeted, high‑value advice and challenge on key issues | Deep, focused insight at critical decision points | Strategic insight on cross‑cutting or systemic consumer issues |
|---|
How the CCP supports the AER
The CCP will advise the AER on consumer engagement and technical matters relevant to regulatory determinations.
Examples of how the CCP may support the determination process include:
- Significant increases in network-related costs: advising whether a network business has clearly explained the costs and benefits of its revenue proposal to consumers.
- Complex revenue proposals: identifying key issues emerging through consumer engagement and providing technical advice to the AER.
- Network business consumer engagement: summarising key issues and points of contention, and advising on any concerns with the engagement.
- Range of consumer views: summarising differing consumer views that emerged through engagement and how they are reflected in the revenue proposal.
How CCP advice is considered
CCP members perform an advisory role. The AER is not obliged to act on CCP advice but will give it due weight and consideration.
We will explain the reasons for our decisions and provide feedback to Panel members on how their views and advice were considered.
