RPI ANZ launches in Sydney

On Tuesday, 13 November, the Regulatory Policy Institute launched its Australia and New Zealand affiliate, the Regulatory Policy Institute Australia and New Zealand (RPIanz). As event sponsors, the launch was held at the Sydney offices of Gilbert + Tobin (G+T). G+T partner Luke Woodward, along with Professor George Yarrow (former Chair, RPIeurope), Dr Rob Nicholls (Senior Lecturer, UNSW Business School) and Philip Davies (Council Member, RPIeurope; Head of Competition and Regulation, Sydney Water) will be appointed board members of the RPIANZ.

The theme for the launch was – ‘Competition in Regulated Markets: Fostering Innovation or Failing to Deliver’, with Professor Yarrow launching the seminar and Dr Fred Hilmer (RPI, Distinguished Fellow) providing keynote observations. This was followed by a panel session chaired by G+T partner Luke Woodward with panellists Dr Ron Ben-David (Chair, Essential Services Commission (Vic)), Dr Peter Boxall (Chair, Independent Pricing and Regulatory Tribunal) and Nevenka Codevelle (Group Executive Governance, Risk & Legal, APA Group; Chair, Energy Charter Industry Working Group). Professor Yarrow and Mr Davies closed the launch

Professor Yarrow kicked off the event by explaining the key driving force behind the RPI in developing an understanding of regulatory policies, the importance of confidentiality in RPI discussions, and stressing that the RPI is just as centred on research as it is on events such as today’s.

Professor Hilmer, the RPI’s first Australian Distinguished Fellow and architect of the National Competition Policy, then gave keynote remarks, reflecting on the last 25 years in Australian regulatory policy. Some of the themes raised by Professor Hilmer included the need for better political input and policies with respect to carbon, a need to rethink privatisation in the context of state monopolies and price surveillance as regulatory solutions, and the rise of new markets such as digital platforms.

Luke Woodward then introduced the three panellists and set the scene for the panel session (Luke Woodward’s opening remarks). Luke noted the loss of public faith and trust in competition in critical service markets, and questioned where this will lead, and who is to blame.

Dr Ben-David’s presentation framed the issue through the concept of a ‘nonsumer’ market – a market in which purchases are involuntary, consumption is inelastic, product substitutes are lacking and services are homogenous. Dr Ben-David stressed the lack of consumer choice over their consumption of energy, and the need for responsibility-based regulation and fairness in retail energy markets.

Ms Codevelle reframed the issue as relating to people and trust. As Chair of the Energy Charter Industry Working Group, Ms Codevelle stressed the need for a collaborative, consultative, customer centric and principles-based approach (rather than a regulatory approach) to regaining public faith in the energy sector.

Dr Boxall questioned whether there was a need to re-regulate retail energy for the sake of ‘nonsumers’. He argued that energy consumers exercise choices, such as how much to buy and what time of the day to buy it. Dr Boxall presented the results of studies examining varied energy usage amongst households and the key drivers of usage, arguing that prices have similar impacts in energy markets as they do in other markets. Dr Boxall ended his presentation with a caution against further retail energy price regulation.

A panel Q&A followed the presentations. Prof Yarrow then brought the seminar to a close, with some closing remarks from Philip Davies on the future of the RPIANZ.

Supporting reports:
Fairness in the age of competition by Dr Ron Ben-David (Chairperson, Essential Services Commission).