Limited Merits Review

Work Stream: Energy Market Reform
Council Priority Issue: 6. Assessing existing market mechanisms and regulatory frameworks (including governance of network regulation) to ensure facilitation of adequate, efficient, and timely investment in, and operation of, generation and networks.
Project: Limited Merits Review of Decision-Making in the Electricity and Gas Regulatory Frameworks
Timeline: Completed

14 December 2012 – December 2013

Key Documents: EMRWG Bulletin #21

Statutes Amendment (National Electricity and Gas Laws — Limited Merits Review) Bill 2013

Competition and Consumer Regulations 2010 (February 2014)

Consultation Draft Legislation for the National Electricity and Gas Laws (June 2013) (PDF)
NOTE: Working draft – for consultation only

Competition and Consumer Regulations (June 2013) (PDF)
NOTE: Working draft – for consultation only

Decision Regulatory Impact Statement (June 2013) (Word / PDF)

Consultation Regulatory Impact Statement (December 2012) (Word / PDF)

Submission Template (December 2012) (Word)

Statement of Policy Intent (December 2012) (Word / PDF)

Overview: Under the National Electricity Laws and National Gas Laws, there is a legislative requirement for the Ministerial Council on Energy (MCE) to undertake a review of the limited merits review regime by 2015. SCER (as successor to the MCE) agreed on 9 December 2011, to bring the review of the   limited merits review regime forward with a view to having any recommendations in place prior to the next round of regulatory determinations. On 7 March 2012, an Expert Panel of Professor George Yarrow (Chair), Dr John Tamblyn and the Hon Michael Egan (“the Panel”), commenced the review. The Final Report was published on 9 October 2012, and is   available here.

This work stream entailed testing the Panel’s recommendations with a view to finalising the policy position and, if necessary, amending the relevant legislation before the end of 2013.

Detail: This work stream aimed to identify and implement any necessary changes to the merits review framework through:

  • a Regulation Impact Statement process, entailing a formal consultation period;
  • publishing the final SCER policy position; and
  • drafting and consulting on any necessary legislative amendments.

The Statutes Amendment (National Electricity and Gas Laws – Limited Merits Review) Bill 2013 was passed through South Australia’s Parliament in November 2013.

Background: Under the National Electricity Laws and National Gas Laws, there is a legislative requirement for the MCE to undertake a review of the limited merits review regime by 2015. SCER (as successor to the MCE) agreed on 9 December 2011, to bring the review of the limited merits review regime forward with a view to having any recommendations in place prior to the next round of regulatory determinations. On 7 March 2012, an Expert Panel of Professor George Yarrow (Chair), Dr John Tamblyn and the Hon Michael Egan, commenced this review. The Panel’s Final Report was published on 9 October 2012, and is available here.
Terms of Reference: N/A
Process and Timelines: Completed
Supporting Documentation: The Panel’s reports are available here.
Consultation and Submissions: Written Submissions – Consultation Draft Legislation The consultation draft legislation for the National Electricity and Gas Laws and the Competition and Consumer Regulations were released on 26 June 2013. These are working drafts and for consultation only. They do not reflect the settled position of SCER or officials. Submissions from interested stakeholders on the recommendations provided on the Consultation Draft Legislation were required by close of business on Friday 12 July 2013.

All submissions will be made available from this website unless stakeholders have clearly indicated that a submission should remain confidential, either in whole or in part.

Public Forum – Consultation Draft Legislation

A public forum on the consultation draft legislation on the Limited Merits Review amendments was held at the Melbourne Airport on Friday 28 June 2013 from 9.00am to 11.00am. For more details click here.

Regulation Impact Statement

Submissions from interested stakeholders on the recommendations provided in the Regulation Impact Statement were required by close of business Friday 8 February 2013.

All submissions will be made available from this website unless stakeholders have clearly indicated that a submission should remain confidential, either in whole or in part.

Submissions

To access the comprehensive table of submissions, please click here.

Australian Competition &     Consumer Commission – Joint Submission with the Australian Energy Regulator PDF
Australian Pipeline Industry     Association PDF / PDF
ATCO GasAustralia PDF / PDF
Consumer Action Law Centre PDF / PDF
Consumer Utilities Advocacy Centre PDF / PDF
Darach Energy Consulting Services PDF
Energy Networks Association PDF / PDF
Envestra PDF
Economic Regulation Authority PDF
Energy Supply Association of Australia PDF
Energy Users Association of Australia PDF
Financial Investor Group PDF
Grid Australia PDF
Independent Pricing and     Regulatory Tribunal PDF
Jemena PDF / PDF
Public Interest Advocacy Centre PDF
Major Energy Users PDF / PDF
United Energy & Multinet Gas PDF
Previous Consultation and Submissions: Please refer to the Panel’s review here.
Contact: scer@industry.gov.au