This Rule implements a streamlined, single stage dispute resolution process under which all matters arising from the application of the Regulatory Test (previously heard by the Dispute Resolution Panel) will be heard directly by the AER.  Disputes will be subject to clearly defined timeframes and the new process will move to limit the kinds of issues that can be heard by the AER and the parties permitted to raise them.

Background

The Commission received a Rule change request from the MCE regarding reform of dispute resolution process for the Regulatory Test on 12 October 2005. A notice was published under section 95 of the NEL on 23 December 2005 commencing initial consultation on the Rule change proposal. Submissions in response to the MCE proposal were due by 24 February 2006.

The Commission issued a draft determination on this Rule change proposal under section 99 of the NEL on 20 April 2006.

In making the draft Rule, the Commission adopted the changes to the dispute resolution process as outlined by the MCE in its Rule proposal, and made a number of modifications to the proposal as drafted in order to address issues raised by submissions and identified by the Commission in its analysis. The draft Rule aims to improve the clarity and practical implementation of the dispute resolution process. These modifications do not alter the intent of the MCE’s proposal.

Submissions in response to the draft Rule closed on 2 June 2006.

The Commission gave notice under s102 of the NEL on 29 June 2006 of its final Rule determination. The Commission also made the National Electricity Amendment (Dispute Resolution for Regulatory Test) Rule 2006 No. 10 under section 103. The modifications made to the MCE proposal that were incorporated into the draft Rule were maintained with one additional amendment permitting the AER to extend the deadline for resolution of disputes pursuant to obtaining the consent of parties to the dispute. The Rule commenced operation on 1 July 2006.