The AER is considering whether to make a Small Scale Incentive Scheme for Customer Service. The Scheme would reward Electricity Distribution Network Service Providers (DNSPs) for improving their customer service, or penalise them if service deteriorates. We consider that this could improve the incentives available for DNSPs to recognise the value of customer service.
On 17 December 2019, the AER published the draft Customer Service Incentive Scheme (CSIS). The CSIS sets out a framework for evaluating incentives that DNSPs will develop in consultation with their customers. The objective of the this flexible design is to align DNSPs' incentives with their customers' preferences.
Submissions on the draft CSIS closed on 14 February 2020.
The impetus for this consultation is the 'New Reg' Trial. The Trial is a joint initiative between the AER, ENA, ECA and AusNet Services. AusNet Services is conducting the trial of the New Reg process in the development of its regulatory proposal for the 2021-26 period. As part of this trial AusNet has negotiated a proposed customer service incentive scheme which it has put to the AER. Further details on AusNet’s consultation, including opportunities to be involved in the consultation can be found on AusNet Services website. For further information on the AER's consultation on New Reg process please see Consultation on New Reg.