Future Challenges
In progressing changes to existing regulatory regimes and extending the application of independent regulation to areas previously administered by Government, it will be important to retain and build on those aspects of existing regimes that have worked well. In particular, it will be important to avoid changes that are administratively more time consuming, costly and complex.
In the interests of greater certainty, there is a need for regulatory arrangements to become more settled. With the costly judicial and merits reviews that have taken place over recent years and with the precedents that have been established as a result of these reviews, significant changes to regimes risk increased uncertainty and the loss of the contributions made by courts and review bodies. Proposals for change also need to be mindful of the factual evidence in support of change and the adequacy of analysis purporting net benefits.
The Authority considers that sufficient discretion with clearly enunciated objectives needs to be available to the regulator to adequately address the specific circumstances of individual cases. While prescriptively codifying rules may provide greater certainty and improve timeliness, such benefits may be lost where there is insufficient flexibility to accommodate individual circumstances.
As mentioned previously, the reform process stemming from the Productivity Commission's review of the gas access regime has been progressed by the Ministerial Council on Energy during 2005–06 and the implementation of reforms will continue into the new financial year. The exposure draft of the proposed reforms to the national electricity and gas access regimes are expected to be available for comment early in 2006–07 and a revised national gas law is anticipated to be introduced early in 2007.
In addition to its continuing role and the need to further improve the regulatory services provided by the Authority, a significant challenge will be to review, understand and implement the reforms planned for the future.
After having successfully completed three major inquiries referred to the Authority by Government, the likelihood of further inquiries including in areas that will be new to the Authority will also be a challenge for the future.
In relation to administrative matters, the Authority is challenged by the proposed restructuring of support services which have in recent times been provided to the Authority by the Department of Treasury and Finance under a service level agreement. It is understood that these services will be transferred to the Office of Shared Services by the middle of 2006–07. The transfer of services will involve implementing new systems which on account of the Authority's complex funding and financial compliance arrangements are expected to involve a considerable amount of activity, possibly extending over a number of years.