NO.066

Joint Press Release

Treasurer and Minister For Industry Tourism and Resources

APPOINTMENT OF MEMBERS TO THE AUSTRALIAN ENERGY REGULATOR

We are pleased to announce the appointments of Mr Edward Willett and Mr Geoffrey

Swier as members of the new Australian Energy Regulator (AER).

Mr Willett is appointed on a full time basis for a term of approximately two

and half years and Mr Swier is appointed on a part time basis for a three year

term. These appointments will commence on 30 June 2005.

Mr Willett and Mr Swier will join Mr Steve Edwell, the inaugural Chair of the

AER, at the commencement of the AER’s operations on 1 July 2005. The AER

will initially assume responsibility for regulatory, monitoring and enforcement

functions of electricity transmission.

Mr Willett is a member of the Australian Competition and Consumer Commission

(ACCC) specialising in energy and telecommunications matters. He is an economist

with broad experience in economic regulation, and in developing and implementing

economic and competition policy. He will remain a member of the ACCC during

his appointment to the AER.

Mr Swier is currently a Director of Farrier Swier Consulting, with expertise

in energy sector reform and market development. He has an extensive background

in providing advice on microeconomic reform policy and regulation. By virtue

of his appointment to the AER, Mr Swier will become an associate member of the

ACCC. In accordance with the Australian Energy Market Agreement 2004, the appointment

of Mr Swier was made following consultations with the States and Territories

and only after a majority of support for the appointment had been obtained.

The AER is a new independent national body which will be responsible for economic

regulation and rule enforcement in Australian energy markets. It will play a

central role in the Ministerial Council on Energy’s energy market reforms

to streamline energy regulation and reduce complexity within an enhanced framework

of accountability. This reform will particularly benefit energy businesses or

investors who seek to operate in different jurisdictions and will greatly contribute

towards achieving a truly national, competitive and efficient energy market.

Background

The AER has been established under the Trade Practices Act 1974 as a constituent

part of the ACCC. The AER will operate within a new regulatory framework which

has been agreed by the Ministerial Council on Energy (MCE) and endorsed by the

Council of Australian Governments (COAG). Further information on the AER and

the MCE’s energy market governance reforms is available at www.mce.gov.au.

The MCE, on 20 May 2005, announced that the new Australian Energy Market Commission

and the AER, would commence their functions under the new National Electricity

Law and Rules from 1 July 2005 (see MCE Energy Market Reform Bulletin Number

40). The AER will initially assume responsibility for electricity transmission

regulatory, monitoring and enforcement functions. Such functions were previously

conferred on the National Electricity Code Administrator and the ACCC. COAG

has agreed that other functions, such as the regulation of electricity distribution

and retail businesses (other than retail pricing) and regulation of the gas

industry, will be transferred to the AER over the next eighteen months.

MELBOURNE

30 June 2005

Contact: Amanda Kennedy

03 9650 0244