DMS contacts

I hope that this email finds you well and not too snowed under by all the changes. Spring is here and I thought that I would take the opportunity to update you on my progress and ask for some feedback to prioritise my time. I have not attached every item referred to – please email me if you want further information on any items.

At the end of the email please respond to me on your thoughts on training attached.

Disputes and DRP action

We have not had any disputes since my last report in June 2009 when the Wemen dispute was finalised. Since that time:

  • The AEMC finalised its Compensation Guidelines for compensation due to the application of administered pricing taking into account the of an Advisory panel established by me as Adviser comprising of Geoff Swier, Greg Thorpe and Jim Truesdale (NZ). The AEMC compensation guidelines can be found on the AEMC website. If you are having difficulty let me know and I can send a link.
  • The decision in the gas dispute between TRUenergy, VENCorp and others has been finalised. The panel comprised of Sir Anthony Mason (chair), Tony Fitzgerald and Geoff Swier. The DRP also handed down a costs determination which awarded costs against the applicant. This is under the MSOR which is different from the Electricity Market Rules. The determination as well as the costs determination are the subject of an appeal to the Supreme Court of Victoria. It will be heard on 4 December 2009.
    • This is the first appeal from a DRP determination. I will keep you posted as it may provide some useful guidance on the scope of appeals from a DRP.
  • I have continued to update the website and have some further ideas for the web and DMS contact training (see below).

Update of the DMS contacts

I have continued to update the contacts. Please take the time to log in and ensure the contact for your organisation remains current. If there are changes please email through the changes or call me.

Update of Pool

In June I asked for suggestions particularly from Queensland on prospective members for the pool. If you log onto the dispute resolution portion of the AER website you will see that I have updated the pool and added photographs and CV’s.

Thanks so much to those of you who sent me suggestions. You will see from the list that all the pool members who have experience sitting on a DRP have accepted reappointed.

We now have a Sir Anthony Mason, AC (Tony) Fitzgerald, Geoff Swier and John Clarke all having had experience chairing panels. This greatly extends the experience within the pool and provides participants with a range of choices in the establishment of a DRP for a particular dispute or another purpose such as advisory panel under the Rules.

In addition, having had the benefit of a number of meetings with potential pool members, I have the pleasure of appointing additional members to the pool. All of these people have a depth of experience in the market. The new additions are:

  • Sibylle Krieger (NSW). Many of you will know her from Clayton Utz in Sydney where she was a partner and worked in electricity and telecommunications sectors. She also sits on IPART and has just completed an MBA.
  • Geoff Swier (VIC) who brings a depth of industry experience, has an understanding of economics, was a part time member of the AER and an associate Commissioner of the ACCC (2005-8).
  • Bob Graham (QLD) (CV not yet on the web). Bob has many years of experience working within generation and has acted as Dispute Resolution Expert, resolving four disputes about the application of performance standards to particular power stations where NEMMCO and the power station owner could not agree on the application of the market rules.

I look forward to working with them and am delighted with the depth of industry experience that they add to the pool.

Update of DRP contract

In preparation for the DRP in the Wemen dispute the parties reviewed and amended the standard contract with the DRP, making amendments to bring the references in the contract into line with the NER version 28. The legal advisers have kindly agreed for that contract to be published as a guide for future disputes. This will be loaded onto the site together with Bob’s CV over the next weeks.

Meeting with DMS contacts in Brisbane

On 29 July I had a meeting at Energex in Brisbane and hopefully you received a copy of the agenda. One of the most interesting items on the agenda was the presentation by Richard Raymond, whom many of you know. Richard is, amongst other things the DMS contact for Energex and a longstanding player in the market. Richard presented on how he shares information on disputes with internal Energex stakeholders. Anyone wanting more information on this please feel free to email or call me and I will arrange it.

Orientation training

I had foreshadowed in June that as well as meetings in Queensland and ACT I was planning to meet the DMS contacts in other States. I spoke to most of the Queensland DMS contacts by telephone. I understand that with the changes to the market everyone is extremely busy. The feedback from the 2 DMS meetings is that a refresher on the dispute resolution process, the role of the DRP and processes generally would be useful. A number of people felt that a face to face workshop would be extremely valuable. As well as a presentation it would allow for interactive dialogue and networking. Attached is an expression of interest form for such a forum. Please return it to me by COB 11 September.

If this training takes place face to face it would serve the additional purpose of being a DMS contact meeting.

If it does not I will meet with NSW and VIC DMS contacts later in the year.

Next activities

The dispute resolution process is by its nature flexible. Having now had a number of DRP processes, there are some steps in the process that are beginning to emerge as consistently and useful. I have documented these and I am in the process of preparing some user notes for participants in a DRP process which are designed to make the process more predictable and user friendly without curtailing the flexibility it affords participants. I expect to be able to detail this in my next report. If you have any thoughts on aspect of the DRP process for which you would like more transparency please let me now.

A couple of people have called to say they have difficulty finding the dispute resolution material on the web. I have added an easy link to my signature below.

I look forward to hearing from you.

Cheers

Shirli Kirschner
National Electricity Market Dispute Resolution Adviser