1. The Australian Energy Regulator Service provider consumer engagement guideline 30 April 2013

2. Progress to date Consumer forums held in March Input included: ◦ greater levels of consumer engagement ◦ best practice principles ◦ commitment to continuous improvement ◦ integration of consumer engagement throughout the organisation 2

3. Guideline objective Aligning network services with long term interests of consumers ◦ Consumer engagement ‘... is an important tool in increasing the accountability of network businesses to the community they serve...’ ◦ The AER wants to be ‘ confident that a business’s proposal will deliver the services consumers want ’. Consumers need a real opportunity to affect that proposal. 3 Quotes from AER Chairman, Andrew Reeves speech to CEDA, 23 April 2013

4. Guideline overview* Four ‘components’ 1. Best practice principles 2. Targeting engagement 3. Delivery 4. Results * Please note that this is preliminary work and the guideline is still under development. The guideline and explanatory statement will require AER Board approval. Therefore, all preliminary work and drafts may be subject to change. 4

5. Best practice principles Draft version of principles attached Supporting elements reflect at a practical level the objective of each principle 5

6. Targeting engagement Examples include: ◦ Price v. reliability tradeoffs ◦ Tariff setting and tariff design (incl. Time of use and critical peak tariffs) ◦ Setting reliability targets/standards ◦ Demand hot spots ◦ Alternatives to capital investment Prioritising consumer and business issues within operating environment 6

7. Delivery How consumers will be engaged ◦ Action plan or engagement strategy ◦ Communication with consumers ◦ Align plans with best practice principles and target areas ◦ Monitoring and reporting arrangements ◦ Evaluation and review 7

8. Results How the business will use information from consumers Evidence of consumer engagement in: ◦ Regulatory proposal/access arrangement ◦ Business as usual processes/operating environment ◦ Application to....? 8

9. Next Steps Consumer Reference Group – May Publish draft guideline and explanatory statement – June/July 9

10. Questions? Feedback and comments are invited. Please email: consumerengagement@aer.gov.au consumerengagement@aer.gov.au Or phone Moston Neck on 07 3835 4669 10