Limited Merits Review
Review of the Limited Merits Review Regime. The purpose of the mechanism was to provide parties affected by energy regulator decisions with recourse to a review mechanism. There were limits placed on this mechanism, aimed at avoiding revisiting decisions. This mechanism is being reviewed.

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: Review of the Limited Merits Review Regime
Timeline: Commenced on 7 March 2012 and expected to be completed by 30 September 2012.
Key Documents: Terms of Reference (Word / PDF)
Consultation Paper (Word / PDF)
Consultation Paper Two (Word / PDF)
Interim Stage One Paper (Word / PDF)
SCER Bulletin #1 (Word / PDF)
Overview:  On 9 December 2011, the Standing Council on Energy and Resources (SCER) agreed to bring forward the legislated review of the limited merits review regime. On 22 March 2012, SCER announced that an expert panel consisting of Professor George Yarrow as chair, Dr John Tamblyn and the Hon. Michael Egan had been established to undertake this review.
 
Background:  A limited merits review regime was introduced into the National Electricity Law (NEL) on 1 January 2008 and the National Gas Law on 1 July 2008. The purpose of the mechanism was to provide parties affected by the decisions of the energy regulator – primarily transmission and distribution network businesses – with appropriate recourse to a review mechanism. There were limits placed on this mechanism, aimed at avoiding revisiting decisions which have been reached after extensive consultative processes, and minimising uncertainty.In establishing the limited merits review regime SCER’s predecessor the Ministerial Council on Energy (MCE) agreed that a review of the effectiveness of the regime would be required. The review was to be undertaken within the first seven years of the commencement of the relevant merits review provisions. The intention of the review was to assess how the merits review regime had operated since its commencement.On 9 December 2011, SCER agreed to bring forward the legislated review of the limited merits review regime.On 22 March 2012, SCER announced that an expert panel consisting of Professor George Yarrow as chair, Dr John Tamblyn and the Hon. Michael Egan had been established to undertake this review.
Terms of Reference: Terms of Reference (Word / PDF)
The Review Panel: Professor George Yarrow
Professor George Yarrow is Chairman of the Regulatory Policy Institute, Oxford; an Emeritus Fellow of Hertford College, Oxford University; and a Visiting Professor at the Newcastle University Business School. He is also currently a member of the Ofwat (the England and Wales water regulator) Future Regulation Advisory Panel, and a director of the company Davison Yarrow Ltd. At various times he has been a member of the UK’s Gas and Electricity Markets Authority, an economic advisor to Ofgem and the Civil Aviation Authority, and a member of the Republic of Ireland’s Aviation Appeal Panel. He is an expert on competition law and policy, with experience in virtually every aspect of regulatory policy over the past twenty five years.

The Hon. Michael Egan
The Hon. Michael Egan has been Chancellor of Macquarie University since February 2008. He is also Chairman of Australian Fisheries Management Authority Commission, Chairman of the Centenary Institute of Cancer Medicine and Cell Biology and Chairman of the Newcastle Coal Infrastructure Group Pty Ltd. Mr Egan is a former Treasurer and Minister for Energy in the NSW Government.

Dr John Tamblyn
Dr John Tamblyn recently retired as the Chairman of the Australian Energy Market Commission. He has had an extensive career in the regulation of public utility services, including positions as Chairman of the Essential Services Commission (Victoria) and Regulator General (Victoria). He has also held senior positions in the Australian Competition and Consumer Commission. He is a member of the Solar Flagship Council advising the Commonwealth on funding towards the construction of large scale solar projects and has also been appointed to an Expert Panel advising the Tasmanian Government on options for improving the performance of the Tasmanian electricity supply industry.

Process and Timelines:  The review will be conducted through a two stage process:
  •           Stage One will provide an overview of how the limited merits review regime has operated to date in the electricity and gas sectors against the original policy intent; and
  •           Stage Two will present recommendations to SCER on whether amendments are required to better deliver against the objective of the review mechanism.

The Terms of Reference provides for the following timeline:

  •          Review commences March 2012;
  •          Targeted consultation in May 2012;
  •          Stage One report to be provided to SCER by 30 June 2012;
  •          Consultation on Stage One report in July 2012; and
  •          Stage Two report to be provided to SCER by 30 September 2012.

This timing recognises the relevance of related workstreams that are ongoing, including work being undertaken by the Australian Energy Market Commission (AEMC) and the Productivity Commission.

Supporting Documentation: SCER Bulletin #1 (Word / PDF)
Consultation and Submissions:  The review will offer opportunities for all stakeholders to provide input into the process. To receive updates regarding consultation, please email the review Secretariat to be added to the mailing list: LMR.Secretariat@ret.gov.au.The Panel’s consultation papers will be published on this site, as will all non-confidential submissions. The indicative timeline for these papers and submissions is below.  
Milestone Date
Preliminary consultation paper released: 30 March 2012
Target date for receipt of initial views: 13 April 2012
Consultation Paper Two released: 27 April 2012
Interim Stage One report provided to SCER Senior Committee of Officials (SCO): 30 April 2012
First round consultation – public forum: 9 May 2012 (Sydney)
Target date for submissions on Stage One issues: 1 June 2012
Final Stage One report provided to SCER and Panel statement concerning its approach to Stage 2 issues published by: 30 June 2012
Second round consultation – public forum: July 2012 (date and location to be advised)
Interim Stage Two report provided to SCER SCO by: 31 August 2012
Final Stage Two report provided to SCER by: 30 September 2012

 

Interim Stage One Paper of the Limited Merits Review Regime

This report has been prepared by an independent panel and does not necessarily reflect the views of the SCER or its senior officials. This document frames some of the issues that will be considered as part of the review, and provides some initial information and overview of the operation of the limited merits review regime to date, to aid stakeholder engagement in the review process.

Interim Stage One Paper of the Limited Merits Review Regime (Word / PDF)

Preliminary Consultation Paper

The Panel welcomes any submissions relating to, but not limited to, the issues raised in its Preliminary Consultation Paper.

Consultation Paper (Word / PDF)

Consultation Paper Two

Consultation Paper Two builds upon the preliminary statement of issues and questions, to help facilitate discussions with stakeholders.

Consultation Paper Two (Word / PDF)

Stakeholders are encouraged to raise specific matters as early as possible in the Review process to enable the Panel to give them the fullest possible consideration. The members of the Panel are keen to start hearing views on the various underlying issues at an early stage and initial submissions need not be detailed.

Consultation Paper Two is based on the Panel’s consideration of responses to its request for initial views on the Preliminary Consultation Paper, released on 30 March 2012. The Panel would welcome any more substantive submissions by 1 June. However, both formal and informal submissions will be accepted at any time.

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

All submissions can be emailed to the Review of the Limited Merits Review Secretariat at: LMR.Secretariat@ret.gov.au

Alternatively, submissions can be mailed to:

Attn: Review of Limited Merits Review Secretariat
Energy and Environment Division
Department of Resources, Energy and Tourism
GPO Box 1564
Canberra ACT 2601

  Public Forum   To be confirmed.
  Submissions
APA Group PDF / PDF
Australian Pipeline Industry Association PDF
Consumer Action Law Centre PDF / PDF
PDF
Consumer Utilities Advocacy Centre PDF / PDF
PDF
Energy Networks Association PDF / PDF / PDF
Ergon Energy PDF / PDF
ETSA Utilities CitiPower Powercor Australia PDF
Energy Users Association of Australia PDF
Financial Investor Group PDF
IPART PDF
Jemena PDF
Major Energy Users Inc. PDF
PDF
National Competition Council PDF
SP AusNet PDF
Total Environment Centre PDF

 

Contact:  LMR.Secretariat@ret.gov.au
 
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Limited Merits Review
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