Response to issues paper exempt selling regime madeleine kingston

Disconnection of heated water supplies as a composite product hardly fits this definition.

32^ Essential Services Commission 2012 Harmonization of the Energy Retail Code and Guidelines with the National Energy Customer Framework (NECF) Consultation Paper December 2012 ref C/12/37632

http://www.esc.vic.gov.au/getattachment/6e7f7cd5-64a1-46c3-a8f7-467124b3a0f9/Consultation-Paper-Harmonisation-of-Energy-Retail.pdf

last viewed 21 January 2013

33^ The Version of the Essential Services Commission Energy Retail Code that was analyzed as one of my previous and current Appendices to the Exempt Selling Regime Revised Guideline and previously the Exempt Selling Regime Issues Paper (2^nd August 2010) was v6. As part of the process of Harmonization of Energy Retail Codes and Guidelines with the National Energy Customer Framework, the ESC Published a Consultation Paper in December 2012, for which responses are due by 1 February

Time constraints right now preclude me from analyzing the astonishing document purporting to be harmonized with the NECF pursuant to the National Energy Retail Laws (and the National Retail Rules

34^ I cannot agree with the ESC on many issues regarding the a commitment to avoid of reduction of protection compared with the NECF within the NERL and NERC, especially with regard to the bizarre Bulk Water (BHW) provisions, put in place when John Tamblyn was Chairperson of the ESC. Mr. Tamblyn subsequently became Chairperson of the AEMC, and now provides ‘expert advice’ in all kinds of contexts, including the proposed SCER Limit Merits Review initiative still open for stakeholder feedback till 8 February 2013

The harmonized draft of the Energy Retail Code v11 reflects what the ERC believes to be the Victorian Government’s policy position – which means the DPI a government body the subject of deep scrutiny by the Victorian Auditor-General regarding decision-making and oversight of the mandated advanced smart meter roll-out.

The document purports to reflect consistency in regulation between States and on a national basis. It appears to miss the mark so my allegation about failure to avoid conflict and overlap between regulatory schemes under s15 of the ESC Act 2011 stands.

Promoting consistency between the electricity and gas industries may be a fine goal but impractical when it comes to distorting the meaning of embedded and deed customer beyond recognition whilst ignoring trade measurement provisions existing and intended, residential tenancy provisions (with the mistaken belief that VCAT should handle all complaints despite the limits of its jurisdiction concerning third parties; and despite continuing erosion of enshrined consumer rights

An unaddressed policy and regulatory breach occasioning detriment to many thousands of Victorian residents I, including in multi-tenanted dwellings, a group heavily impacted by the AER’s Exempt Selling policies. My dealings over an almost 2-year period with the DPI, ESC and EWOV in the matter in which I was a nominated representative for a disadvantaged end-consumer of heated water (rather than direct supply of gas, who was billed by the host retailer (not the landlord) and was unable to obtain just redress, since VCAT deals only with direct disputes between Landlord and Tenant, not disputes between tenant and third parties, including billing agents, meter readers and other such parties providing a range of services directly to the Landlord by agreement (or line forcing whichever applies) but not with the residential tenant

Current complaints and redress options are sorely deficient and will not improve even if EWOV’s Constitution has seen changes to accommodate complaints arising against Exempt Selling Market Participants

35^ 8 Constitution EOWA found at

http://www.ombudsman.wa.gov.au/energy/doc/EIO_Constitution_Nov_08.pdf

last viewed April 2010

http://www.ombudsman.wa.gov.au/energy/index.htm

http://www.ombudsman.wa.gov.au/energy/publications/charter.htm

http://www.ombudsman.wa.gov.au/energy/making_complaints/can_and_cannot_investigate.htm

last viewed 19 January 2013

36^ This implies embedded-type situations, including BULK HOT WATER services provided to landlords and body corporate entities (not to residential tenants despite improper contractual imposition; and a host of other services not covered by an energy licence. No licence that I am aware of provides for ‘hot water services” “internet services” other bundled services unrelated to direct provision of energy being gas or electricity where flow of energy is demonstrable – see definition in NECF package. The same restrictions of jurisdictional limitations apply to other industry-specific ombudsman schemes

37^ Regardless of ownership of water infrastructure assets, a gas distribution system cannot possibly include a hot water flow meter. Gas does not pass through a water meter of any description. A hot water flow meter measures water volume not heat, In multi-tenanted dwellings where a single gas-fired or electricity-fired boiler tank is supplied with heat through a single gas or electricity meter; the supply of such energy is to the Owners’ Corporation (body Corporate entity) not the end-user of heated water, the heating component of which cannot be measured by legally traceable means; whilst the water is not owned by the supplier of alleged heated water even if water infrastructure is owned by a distributor or retailer or their servants, contractors or agents, in-house, related body or other third party agent, licenced or otherwise. Therefore s46 of state and territory gas and electricity acts are inappropriately applied to end-users of heated water where that water is supplied from a communal boiler tank and reticulated in water services pipes.

38^ Hot water flow measures are not part of the gas distribution system and are not mentioned in any instruments save for the ESC Energy Retail Code, which has its own discrepant interpretation of meters

39^ Services provided by metering data providers and/energy retailers such as heating of communal boiler tanks serving various parties via water service pipes; billing activities etc. are commercial activities and reflect direct contractual relationship between those third parties and the Landlord or Owners’ Corporation. Failure to clarify the contractual issues will continue to lead to detriment, poor redress if at all confusion and eroded confidence by market participants and consumers.

40^ Appendix 1 Energy Action Group (2004) Report on the Essential Services Commission Energy and Water Ombudsman Victoria Response to Retailer Non-Compliance with ‘Capacity to Pay Requirements of the Retail Code, appended to submission to Ministerial Council on Energy Standing Committee of Officials by the Energy Action Group on the 2006 Legislative Package and the Consumer Advocacy Arrangements

http://www.ret.gov.au/Documents/mce/_documents/EnergyActionGroup20070123103540.pdf Appendix 1

41^ EAG Report on the Essential Services Commission Energy and Water Ombudsman Victoria Response to Retailer Non-Compliance with Capacity to Pay Requirements of the Retail Code. September 2004

http://www.ret.gov.au/Documents/mce/_documents/EnergyActionGroup20070123103540.pdf

see Appendix 1 Appendix 1 Energy Action Group (2004) Report on the Essential Services Commission Energy and Water Ombudsman Victoria Response to Retailer Non-Compliance with ‘Capacity to Pay Requirements of the Retail Code, appended to submission to Ministerial Council on Energy Standing Committee of Officials by the Energy Action Group on the 2006 Legislative Package and the Consumer Advocacy Arrangements (another EAG non-Advocacy Panel funded submission to the MCE

last viewed 19 January 2013 http://www.ret.gov.au/Documents/mce/_documents/EnergyActionGroup20070123103540.pdf

Included by me as an appendix to numerous consultative arenas

42^ Gas Distribution Code v9

http://www.esc.vic.gov.au/getattachment/21ffea1a-d308-4baa-9d8d-4589fd999e08/Gas-Distribution-System-Code-version-9.pdf last viewed 21 January 2013

I note and record my ongoing concerns regarding appropriate interpretation by the Victorian ESC as unelected economic regulator of essential services in Victoria, closely associated with policy-maker Department of Primary Industries Victoria (DPI), and with the industry-funded complaints scheme known as EWOV with the most limited jurisdiction; and despite its incorporation as a separate legal identity, nonetheless accountable pursuant to statutory enactments; of all energy provisions, including but not limited to the Gas Industry Act 2001, the Gas Industry (Residual Provisions) Act 1994 (at the time or privatisation of energy assets in Victoria)

43^ 9 Regardless of ownership of water infrastructure assets, a gas distribution system cannot possibly include a hot water flow meter. Gas does not pass through a water meter of any description. A hot water flow meter measures water volume not heat, In multi-tenanted dwellings where a single gas-fired or electricity-fired boiler tank is supplied with heat through a single gas or electricity meter; the supply of such energy is to the Owners’ Corporation (body Corporate entity) not the end-user of heated water, the heating component of which cannot be measured by legally traceable means; whilst the water is not owned by the supplier of alleged heated water even if water infrastructure is owned by a distributor or retailer or their servants, contractors or agents, in-house, related body or other third party agent, licenced or otherwise. Therefore s46 of state and territory gas and electricity acts are inappropriately applied to end-users of heated water where that water is supplied from a communal boiler tank and reticulated in water services pipes.

44^ 12 Taken from Hawkless Report (commissioned for CAV) (2006) Utility Metering Regs under the NMA

45^ Pardon me yet again. Do the authors of the Hawkless Report really understand legal traceability principles; or indeed the legal implications or consumer implications of some of the recommendations made? Alternatively do the authors of the Hawkless Report, despite good intentions understand the principles of legal traceability in measurement of goods such as gas and.ro electricity pursurant to the spirit letter and law and/or proposed provisions under National Measurement provisions; the NMI being the sole authority on legal metrology in relation to measurement?

46^ Order in Council Electricity Industry Act 2000 Exemption Order under s17 (of the Electricity Industry Act 2000 (the Act) effective 1 May 2002 links shown below accessed 2010 but no longer obtainable. I am providing .pdf copies made when last accessible as a separate Appendix It was never the intent of the Minister for this Order to be used for anything more than incidental unintended or technical breaches of the standard licensing provisions. His letter to the ERSC dated 21 March 2006 notes that the exemption process was recently used to facilitate small scale distribution and selling activities, which was not consistent with the intended use of such instruments

http://www.esc.vic.gov.au/NR/rdonlyres/695EF0E8-FBEB-4B42-879F-B233058DFAF0/0/PublicforumSmallScaleLicensing20060914.pdf

http://www.esc.vic.gov.au/NR/rdonlyres/9EC969C8-B301-4BD9-8E62-4A8042085616/0/MinisterLetterMarch06.pdf

http://www.esc.vic.gov.au/NR/rdonlyres/E0479D36-BC99-4563-9D1B-58D064BCBE13/0/GeneralOrderMay02.pdf

47^ See Gary Bugden, Arrow Asset Management case will have implications for the whole of Australia http://www.mystrata.com/doc-store/Arrow-Asset-Management.pdf

48^ See Francesco Andreone SC, (2009 and (2011) The Implications of the Arrow Asset Management Case presented by the author at the Strata and Community Title in Australia for the 21^st Century III Conference in 2011 with acknowledgement to Gary Bugden

49^ Gary Bugden The Arrow Asset Management case has implications for the whole of Australia last viewed 21 January 2013

http://www.mystrata.com/doc-store/Arrow-Asset-Management.pdf

50^ Shah, D. V. et al (2007) The Politics of Consumption/The Consumption of Politics The Annals of the American Academy of Political and Social Science 2007; 611; 6 Introduction to Conference of the title name organized by the University of Wisconsin October 2006.Key themes citizen-consumers; competitive consumption; civic engagement; lifestyle politics; materialism; political branding; socially conscious consumption; taste cultures

51^ Energy Action Group [EAG] Submission to the MCE Legislative Package (with Appendix 1)

http://www.ret.gov.au/Documents/mce/_documents/EnergyActionGroup20070123103540.pdf

52^ EAG submission to MCE Legislative 2006 Package (archived) ibid

53^ Appendix 2 Deidentified Case Study

Included in my previous submission of 2 August 2010 to the AER Exempt Selling Regime http://www.aer.gov.au/node/382

http://www.aer.gov.au/sites/default/files/Submission%20-%20Issues%20Paper%20-%20Madeleine%20Kingston.pdf

Residential Tenant in Multi-Tenanted Dwelling of the type that the AER envisages granting exemptions (older 2-building block of flats each with a single gas meter providing heat for water reticulated in WATER SERVICE PIPES not gas or electricity conduits, together housing 10 groups of tenants but probably at least four times as many actual parties impacted by energy, tenancy and other provisions

Also discussed at length in submissions dated April and June respectively to the AER Jemena (JGN) Gas Access 2010-2015, the subject of Merits Review before the ACT No 5 of 2010, determined in 2011, and subject to a Revised Determination by the AER dated 30 June 2011. My attempt to gain standing to bring forward certain matters not raised by either the Appellant nor the AER was unsuccessful on the basis of “insufficiency of interest” Under the current legislative restrictions this does not surprise me; but I am sure there are other factors relating to culture and political pressure. A review of how the Limited Merits Review [LMR] system is working is a current focus of the Standing Committee for Energy and Resources housed within the Department of Resources Energy and Tourism Secretariat [DRET]

54^ Madeleine Kingston submission to Treasury’s Unconscionable Conduct Issues Paper 2009 http://archive.treasury.gov.au/documents/1707/PDF/Madeleine_Kingston.pdf

55^ http://archive.treasury.gov.au/documents/1676/PDF/Unconscionable_Conduct_Issues_Paper.pdf

56^ As discussed by Energy Action Group (EAG) in its Brief Comment to the Ministerial Council on Energy (MCE) Legislative Package 2006, and Consumer Advocacy Arrangements.

That EAG submission of 2006 also discussed the EAG Report on the Essential Services Commission Energy and Water Ombudsman Victoria Response to Retailer Non-Compliance with Capacity to Pay’ Requirements of the Retail Code (September 2004) commenting on the total lack of triangulation

http://www.ret.gov.au/Documents/mce/_documents/EnergyActionGroup20070123103540.pdf

This is a document that I have frequently cited from and enclosed it as one of multiple appendices with my Submission to the Treasury’s Unconscionable Conduct Issues Paper December 2009, as well as to numerous other arenas including the Productivity Commission’s Enquiry into Australia’s Consumer Policy Framework found at http://www.pc.gov.au/_data/assets/consumer/subdr242;

in several components preamble subdr242; subdr242part1; subdr242part2; subdr242part3; subdrpart4 http://www.pc.gov.au/__data/assets/pdf_file/0006/89196/subdr242part4.pdf

subdr242part5 all published online; subdrpart5 (specifics of selected harmful provisions not published by PC but updated and restructured version published by the MCE (archive) in my two part response to the NECF Consultation RIS Part 1 (October 2009; and Part 3 (December 2009), the substance of which were also submitted to the Productivity Commission Performance Benchmarking of Australian Business Regulation

http://www.pc.gov.au/__data/assets/pdf_file/0006/83958/sub007.pdf

57^ Energy Action Group [EAG] Brief Submission to MCE Legislative Package 2006

http://www.ret.gov.au/Documents/mce/_documents/EnergyActionGroup20070123103540.pdf

58^ Energy Action Group 2006) to MCE Legislative package and appendix, ibid

http://www.ret.gov.au/Documents/mce/_documents/EnergyActionGroup20070123103540.pdf

59^ EAG (2004) and (2006) ibid

60^ Sylvan L What Do Consumers Do for Competition?

http://www.accc.gov.au/content/item.phtml?itemId=564996&nodeId=77a5ecd100d38d96a0e50a6d1fca0ae2&fn=Update%2015%20pp12-24.pdf; last viewed 15 January 2013

Louise Sylvan a former Deputy Chair of the Australian Competition and Consumer Commission of which the AER is ostensibly an integral part despite the entire tab for all costs for staffing etc being met by the AEMC – see the MOU between the ACC-AER-AEMC. By the way I am especially concerned about alleged breaches pursuant to the Competition and Consumer Act 2010

Louise Sylvan is the Chief Executive Officer of the Australian National Preventive Health Agency. 

She was a Commissioner of the Productivity Commission since 2008 and previously Deputy Chair of the Australian Competition and Consumer Commission where she was appointed for her expertise in consumer affairs

President of Consumers International, Louise is well known for enhancing consumer rights across a range of areas including health, food safety, financial services, and in competition and consumer policy.

Louise chaired the OECD's work on Economics for Consumer Policy, and currently serves on the federal government's Australian Statistics Advisory Council to the ABS. She chairs Bush Heritage Australia and serves as a member of the Board of the new Social Enterprise Fund Australia. She was formerly Deputy President of the Council of the Medical Foundation of the University of Sydney, and on the UNSW Board of the Diplomacy Training Program, established by The Hon Jose Ramos Horta. Other memberships include six years on the Australian Prime Minister's Economic Planning Advisory Council, the E-Commerce Advisory Council and the Self-Regulation Task Force. 

Louise has a BA and MPA from universities in her homeland, Canada. She immigrated to Australia in 1983

61^ Fair Markets Confident Consumers http://archive.treasury.gov.au/contentitem.asp?ContentID=1484

62^ Submission by Carol O’Donnell to the Treasury Paper

http://archive.treasury.gov.au/documents/1501/PDF/Carol_O'Donnell.pdf

63^ Hansard Economic Reference Committee 8 August 2012 Effects of the global financial crisis on the Australian banking sector

http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;db=COMMITTEES;id=committees%2Fcommsen%2F112965af-6f32-4291-aa97-a23457bc2a37%2F0006;query=Id%3A%22committees%2Fcommsen%2F112965af-6f32-4291-aa97-a23457bc2a37%2F0001%22

Peter Kell, previously Deputy Chair ACCC, now Commissioner at the ASIC (prior to join ACCC was Chairperson of CHOICE, at which time I extensively cited from speeches given by him, including Holding Corporations to Account, and “Keeping the Bastards Honest” (Pardon his French)

And Michael Saadat Senior Manager, Deposit Takers and Issues, ASIC

This segment refers to Tonto Home Loans Australia Pty Ltd Inow Firstmac) and Permanent Trustee Company Ltd

64^ David Tennant (2006) “The Dangers of Taking the Consumer out of Consumer Advocacy.” A Speech delivered by David Tennant, then Director of Care Inc Financial Counselling Service at the 3^rd National Consumer Congress hosted by Consumer Affairs Victoria Melbourne 16 March 2006

Represents a direct rebuttal of the position of Chris Field who also presented a paper at the same event

65^ David Tenant responds to Chris Field’s Discussion Paper Consumer Advocacy in Victoria.

66^ The four headings are utilized throughout section 1 of the Discussion Paper, to introduce and then summarize the author’s identified priorities.

67^ Kell, Peter (2006) Consumers Risk and Regulation. Speech at National Competition Council, Melbourne

68^ Andreone, F (2011) Strata and Community Title in Australia for the 21^st Century III Conference: The Implications of the Arrow Asset Management Case.” Paper presented for Griffith University in its bi-annual conference following the decision of the New South Wales Supreme Court decision in Community Association DP No 2701800 Arrow Asset Management Pty Ltd & Ors (2007) NSWSC 527 delivered by McDougall J on 30 May 2007

69^ Gary Bugden's name has been associated with strata titles since 1973. In the past 30 years he has actively participated in all sectors of the industry - as a strata manager, specialist lawyer, academic, development consultant, government consultant, author, commentator and law reformer. The breadth and depth of this experience has resulted in him being described as Australia's leading authority on strata titles. He practiced extensively in structured land titles and common interest subdivisions throughout Australia and the Asia-Pacific region. He undertook projects for the World Bank in Vietnam and Cambodia and was external consultant to the Vietnamese Government on its 1994 land law reforms. Following extensive overseas travel and research in the early 1980's, he pioneered air space development in Australia and was the driving force behind the introduction of community titles to this country. He was the external consultant to the Queensland Government on the 1997 community titles legislation.

That legislation was innovative in its departure from a generic regulatory approach to a more project specific approach. Gary has authored 3 loose-leaf services, a loose-leaf book and 3 other books on strata and community title management. He was a part time lecturer in strata titles at a Sydney Law School for some 9 years, served as National Editor of the Australian Property Law Bulletin for many years and has presented well over 200 papers at conferences and seminars both in Australia and overseas.

He retired from legal practice 5 years ago but has maintained his involvement in the industry through his writings, speaking engagements and strata related company directorships.

70^ I acknowledge Andrew Downie’s useful Competition Glossary and definitions

http://www.the-civil-lawyer.net/2011/04/competition-glossary.html

71^ See for instances the claims and interpretations made by Institute of Body Corporate Managers.

http://www.ocv.org.au/pdfs/Guideline_ElectricityOnSelling.pdf

72^ Australian Competition and Consumer Act 2010 http://www.austlii.edu.au/au/legis/cth/consol_act/caca2010265/

see especially Objects and Interpretation, and note that electricity and gas are goods not services; that there are national measurement provisions and tenancy provisions to consider (see Draft Harmonization of Energy Retail Codes and Guidelines with the National Energy Customer Framework December 2012

73^ See Gavin Dufty’s VCOSS Congress paper “Who Makes Social Policy : The rising influence of economic regulators and the decline of elected governments; Just Policy: A journal of Australian Social Policy Issue 33 (Oct 2004)”

http://search.informit.com.au/documentSummary;dn=184354024841796;res=IELHSS

Rebuttal of the paper by John Tamblyn presented at the World Regulator’s Forum in Rome

Policy and Research Unit, St Vincent de Paul VCOSS Congress Paper 2004; rebuttal of John Tamblyn’s Paper presented to the World Forum on Energy Regulation, Rome, Italy 5 – 9 October 2003, Concurrent Overview Session 5 “Are Universal Service Obligations Compatible with Effective Energy Retail Market. Victoria’s Experience to Date.”

^ See also Tamblyn HJ (2004) Tamblyn J (2004) “The Right to Service in an Evolving Utility Market National Consumer Congress” 15-16 March 2004 Park Hyatt, Melbourne

74^ Including my August 2010 submission to the AER Exempt Selling Regime Issues Paper; the JGN Draft Gas Access Determination and Merits Review (initial Hearing; standing); MCE SCO arenas, Productivity Commission, Treasury and Senate Committees and Senate Select Committees

75^ See component submission Madeleine Kingston (2008) to the Productivity Commission’s Review of Consumer Policy Inquiry 2007-2008 http://www.pc.gov.au/__data/assets/pdf_file/0006/89196/subdr242part4.pdf (April)

76^ Services provided by metering data providers and/energy retailers such as heating of communal boiler tanks serving various parties via water service pipes; billing activities etc. are commercial activities and reflect direct contractual relationship between those third parties and the Landlord or Owners’ Corporation. Failure to clarify the contractual issues will continue to lead to detriment, poor redress if at all confusion and eroded confidence by market participants and consumers.

77^ Appendix 1 Energy Action Group (2004) Report on the Essential Services Commission Energy and Water Ombudsman Victoria Response to Retailer Non-Compliance with ‘Capacity to Pay Requirements of the Retail Code, appended to submission to Ministerial Council on Energy Standing Committee of Officials by the Energy Action Group on the 2006 Legislative Package and the Consumer Advocacy Arrangements

http://www.ret.gov.au/Documents/mce/_documents/EnergyActionGroup20070123103540.pdf Appendix 1

78^ EAG Report on the Essential Services Commission Energy and Water Ombudsman Victoria Response to Retailer Non-Compliance with Capacity to Pay Requirements of the Retail Code. September 2004

http://www.ret.gov.au/Documents/mce/_documents/EnergyActionGroup20070123103540.pdf

see Appendix 1 Appendix 1 Energy Action Group (2004) Report on the Essential Services Commission Energy and Water Ombudsman Victoria Response to Retailer Non-Compliance with ‘Capacity to Pay Requirements of the Retail Code, appended to submission to Ministerial Council on Energy Standing Committee of Officials by the Energy Action Group on the 2006 Legislative Package and the Consumer Advocacy Arrangements (another EAG non-Advocacy Panel funded submission to the MCE

last viewed 19 January 2013 http://www.ret.gov.au/Documents/mce/_documents/EnergyActionGroup20070123103540.pdf

Included by me as an appendix to numerous consultative arenas

79^ The intent of which was misinterpreted and distorted by the ESC. See Letter dated 21 March 2006 to re Small Scale Energy Distribution and Reselling from the then Minister The Hon. Theo Theophanous:

“As you will be aware, licence exemption Orders (which are made on Ministerial recommendation) are primarily designed to address incidental, unintended or technical breaches of the standard licensing provisions. Although the exemption process has been recently used to facilitate small scale distribution and selling activities, this is not consistent with the inte4nded use of such instruments. (at p1)

“Whilst some recent exempt Orders have dealt with small scale arrangements, this should be regarded only as a temporary measure, pending the development of more appropriated regulatory instruments. The Government would prefer not to rely on exemption Orders as the primary regulatory instrument for these embedded customer situations.” (at p1)

In any case the Order only applies to Electricity not gas. The ESC has conceded this in its Final Report on the small scale licencing consultation undertaken by them.

In my view the AER has erred in the mistaken belief that theoretical conditions that would be extremely hard to monitor will offer either protection or certainty. The potential for abuse has already been amply demonstrated.

80^ See for instances the claims and interpretations made by Institute of Body Corporate Managers.

http://www.ocv.org.au/pdfs/Guideline_ElectricityOnSelling.pdf

81^ AEMO submission 1st July AEMC to ERC-0092

82^ Integral Energy submission 7th July to AEMC -ERC0092

83^ Victorian_Auditor-General_Nov_2009_Report_Advanced_Metering_Infrastructure_Roll-Out_Full_Report_111109_AMI_Full_Report.pdf ( A damning report referring to poor governance, leadership and decision-making regarding the economic, technical case and compromised consumer protection issues

84^ Queensland Auditor-General's 2007 Report Executive Summary

85^ Madeleine Kingston Addendum Submission 4 June2010 (with 14 appendices) Jemena Gas Access Determination

86^ Madeleine Kingston Submission 1 July 2010 to AEMC ERC0092 Provision of Metering Data Service Provision and Clarification of Metrology Procedures, Draft Decision (6 May 2010)

87^{ 1[1]} “The proposed staffing arrangements will allow the AER and AEMC to be provided with the best available expertise from the ACCC, other regulatory bodies and elsewhere.”

88^ See Dufty, G (2004). Who makes social policy? – The rising influence of economic regulators and the decline of elected Governments. VCOS Congress Paper 2004 as frequently cited in my various attempts to engage within the public policy and even Merits Review arenas.

ADD LINK

Author and social researcher Gavin Dufty. Policy and Research Unit, St Vincent de Paul VCOSS Congress Paper 2004; rebuttal of the philosophical position expressed in John Tamblyn’s Paper presented to the World Forum on Energy Regulation, Rome, Italy 5 – 9 October 2003, Concurrent Overview Session 5 “Are Universal Service Obligations Compatible with Effective Energy Retail Market. Victoria’s Experience to Date.”

^ See also Tamblyn HJ (2004) Tamblyn J (2004) “The Right to Service in an Evolving Utility Market National Consumer Congress” 15-16 March 2004 Park Hyatt, Melbourne

John Tamblyn was formerly Chairperson of the Essential Services Commission Victoria (OESC), then Chairperson of the Australian Energy Markets Commission [AEMC], and now “Expert Adviser” on energy policy, Merits Review, Rule Change, you name it.

By the way, as an aside as a mere consumer I do not necessarily view qualifications, perceived standing (or not) and impressive history of senior management positions either in government or commercial enterprise sufficient to foster confidence in decision-making or recommendations. A viewpoint is a viewpoint. Many experts of ostensibly high caliber make flawed decisions

In raising significant social policy issues that had surfaced during the review of effectiveness of retail competition in the Victorian energy market and review of the Victorian gas and electricity code, Gavin Dufty’s paper explores:

“The potential and real impact economic regulators have on shaping and redirecting elected governments’ social policy objectives.”

Mr. Dufty notes that “there is lack of awareness of and respect for the role and mandate of the State Government in setting and delivering social and other objectives within the democratic process. His VCOSS paper analyses the hidden agenda in policies adopted by the Essential Services Commission, resulting in “withdrawal from the traditional basic protections delivered via universal service.”

The scheme adopted was to fall back on “residual markets” through retailer of last resort arrangements {RoLR} whereby a retailer opts to inherit vulnerable consumers where no one else would, or in the event of market failure. The RoLR would be financially compensated in such circumstances but the universal safety net protections would become obsolete and inaccessible.

Mr. Dufty eloquently attacks a conceptualized approach by the Essential Services Commission that is used merely to address market failure instead of maintain overall consumer protections for Victorian consumers. The risks to consumers of such a strategy are enormous and encourage retailers to abandon all but the “most profitable customers.”

Explains Mr. Dufty, “In effect the ESC is proposing to increase costs for many who are already disadvantaged purely to stimulate competition with little to no regard for the social impacts.”

As noted by Gavin Dufty, Policy and Research Unit, St Vincent’ de Paul in his 2004 VCOSS Congress paper the reviews that had been undertaken by the Essential Services Commission to that point had “resulted in their entry into the arena of social policy making,” with the consequence of detrimental impact upon low income and disadvantaged Victorians, in direct contradiction of the policy direction and programs of the elected State Government.

Mr. Dufty notes that

“there is lack of awareness of and respect for the role and mandate of the State Government in setting and delivering social and other objectives within the democratic process. His VCOSS paper analyses the hidden agenda in policies adopted by the Essential Services Commission, resulting in “withdrawal from the traditional basic protections delivered via universal service.”

The scheme adopted was to fall back on “residual markets” through retailer of last resort arrangements {RoLR} whereby a retailer opts to inherit vulnerable consumers where no one else would, or in the event of market failure. The RoLR would be financially compensated in such circumstances but the universal safety net protections would become obsolete and inaccessible.

Mr. Dufty eloquently attacks a conceptualized approach by the Essential Services Commission that is used merely to address market failure instead of maintain overall consumer protections for Victorian consumers. The risks to consumers of such a strategy are enormous and encourage retailers to abandon all but the “most profitable customers.”

Explains Mr. Dufty, “In effect the ESC is proposing to increase costs for many who are already disadvantaged purely to stimulate competition with little to no regard for the social impacts.”

As noted by Gavin Dufty, Policy and Research Unit, St Vincent’ de Paul in his 2004 VCOSS Congress paper the reviews that had been undertaken by the Essential Services Commission to that point had “resulted in their entry into the arena of social policy making,” with the consequence of