The Panel is constituted under the amended AEMC Establishment Act (the Act). The following is a summary of relevant provisions of the Act.

Functions and objectives
The Panel has the following functions:

1. to identify areas of research that would be of benefit to consumers of electricity or natural gas (or both);
2. to develop, and submit for the approval of the MCE, guidelines for the allocation of grants for consumer advocacy projects and research projects for the benefit of consumers of electricity or natural gas (or both);
3. to prepare, and submit for the approval of the MCE, annual budgets for the allocation of grants for consumer advocacy projects and research projects for the benefit of consumers of electricity or natural gas (or both);
4. to determine (subject to the approved guidelines and the approved budget) how grants for consumer advocacy projects and research projects for the benefit of consumers of electricity or natural gas (or both) are to be allocated;
5. to prepare, and submit for the approval of the MCE, guidelines for the assistance of applicants for grants for consumer advocacy projects and research projects for the benefit of consumers of electricity or natural gas (or both);
6. to publish on the Panel's website and in other appropriate ways the results of research supported by a grant under Part 4 of the Act and other research of interest to consumers of electricity or natural gas (or both);
7. to perform other functions conferred on the Panel by the National Energy Laws or the Jurisdictional Energy Laws or by this or any other Act or law;
8. to perform any other function that is reasonably incidental to any of the foregoing.
   

The Panel may, in performing its functions with respect to the allocation of grants—

1. initiate its own research projects to be funded through the provision of grants;
2. invite or accept applications for grants from other persons or bodies.
   

The objectives of the Panel in performing its functions are—

1. the Panel must have regard to any relevant objectives set out in a National Energy Law; and
2. the Panel must seek to promote the interests of all consumers of electricity or natural gas while paying particular regard to benefiting small to medium consumers of electricity or natural gas.

Membership of the Panel
The Panel consists of a chairperson and four other members appointed by the Minister on the recommendation of the MCE. The chairperson and members must be persons who are recommended for appointment as such by the MCE on the basis that together they have knowledge, experience or abilities of the following kinds:

1. knowledge of the energy sector;
2. an ability to assess funding applications against specified criteria;
3. experience in public interest advocacy;
4. an ability to assess proposals for energy sector research that would benefit consumers of electricity or natural gas.

Meetings of the Panel
The chairperson may convene as many meetings of the Panel as is considered necessary for the efficient conduct of its affairs. If the Panel so determines, it may meet by a telephone, video or other form of conference. To the extent the Panel's procedure is not prescribed by provisions of the Act (or the regulations), the Panel may regulate its own procedure.
The Panel has developed statements of guidelines for the regulation and conduct of its meetings that include information on standards of conduct for Panel members, meeting rules, and the approval process for applications for funding.

Panel funding, and criteria and guidelines for grant allocation

Annual budget

Each year the Panel must undertake consultation with stakeholders on its budget for the next financial year by-

1. publishing a draft of its proposed budget on its website for at least four weeks before it finalises the proposed budget for submission to the MCE; and
2. taking reasonable steps to bring the draft to the attention of persons who, in the Panel's assessment, are likely to be interested in the grant funding proposed to be available under the budget; and
3. inviting submissions on its proposed budget, when publishing the draft under paragraph (a) or taking steps under paragraph (b), from interested persons over a period (of at least four weeks) specified by the Panel.

The budget determined as a result of consultation must be submitted for the approval of the MCE by 31 October in the year preceding the financial year. The budget covers—

1. administrative costs associated with the work of the Panel, including the remuneration of Panel members and the costs of employing its staff; and
2. the allocation of available funding to advocacy and research projects.

The Panel must furnish a copy of its proposed budget to the AEMC at the same time as it submits that budget to the MCE.
The administrative costs budget must deal with the allocation of administrative costs between—

1. costs relating to the performance of the Panel's functions relevant to consumers of electricity; and
2. costs relating to the performance of the Panel's functions relevant to consumers of natural gas; and
3. costs relating to the performance of the Panel's functions relevant to both consumers of electricity and consumers of natural gas.

The advocacy and research budget must deal with the allocation of grants between—

1. consumer advocacy projects for the benefit of consumers of electricity; and
2. research projects for the benefit of consumers of electricity; and
3. consumer advocacy projects for the benefit of consumers of natural gas; and
4. research projects for the benefit of consumers of natural gas; and
5. projects in research or consumer advocacy for the joint benefit of consumers of electricity and consumers of natural gas.

The Panel must, in preparing a budget—

1. seek to maximise the amount of funding available for the allocation of grants by keeping administrative costs associated with the work of the Panel to a minimum; and
2. ensure that money that is proposed to be made available for research projects initiated by the Panel does not exceed 25% of the Panel's project funding budge; and
3. clearly distinguish between—
   1. money that is proposed to be made available for research projects initiated by the Panel; and
   2. money that is proposed to be made available for research projects put forward by other persons or bodies.
   The MCE may approve the budget with or without amendment.

Funding for advocacy and research projects and the administrative costs of the Panel

The AEMC and NEMMCO are to be responsible for funding the advocacy and research grant funding and administrative costs of the Panel, as set out in the approved budget, on the basis that—

1. the AEMC will be responsible for costs relevant to consumers of natural gas; and
2. NEMMCO will be responsible for costs relevant to consumers of electricity; and
3. both bodies will be jointly responsible for costs relating to both consumers of electricity and consumers of natural gas (on the basis that the budget will specify the division of costs between the two bodies).

The amounts to be provided by NEMMCO and the AEMC must be held by the AEMC in a separate account; and may be paid by the AEMC to meet the administrative costs associated with the work of the Panel, and for the making of grants.

Criteria and guidelines for grant allocation
The Panel is required under the Act to develop and undertake consultation on guidelines for the allocation of grants for consumer advocacy projects and research projects and guidelines for the assistance of applicants for funding and submit the final version for the approval of the MCE. The criteria for grant allocation determined by the MCE and promulgated in the form of regulations under the Act are as follows-

1. There should be diversity in the allocation of funding after taking into account—
   1. the number and range of consumers who may benefit from the relevant projects; and
1. the nature of the interest represented across the projects; and
2. the issues to which the projects will relate,

while recognising (from a general perspective) the Panel's objectives under the Act.

2. A project intended to benefit consumers of electricity should—
   1. relate to the development, design or operation of, or policies associated with, the national electricity market or the retailing of electricity, or relate to other issues covered by the National Electricity Law or the National Electricity Rules; or
2. directly relate to an aspect of the responsibilities of the Australian Energy Regulator, the AEMC or NEMMCO under the National Electricity Law or the National Electricity Rules; or
3. have some other relevance to the national electricity market or the retailing of electricity, when viewed as a whole.
3. A project intended to benefit consumers of gas should—
   1. relate to the development or operation of gas pipelines, or policies associated with obtaining access to gas pipelines, or relate to other issues covered by the National Gas Law or the National Gas Rules; or
   2. directly relate to an aspect of the responsibilities of the Australian Energy Regulator or the AEMC under the National Gas Law or the National Gas Rules, or the responsibilities of the Economic Regulation Authority under that law or those rules in Western Australia; or
   3. have some other relevance to the national gas market or the retailing of gas, when viewed as a whole.
4. An application for funding must relate to an issue that is relevant to a material number of consumers.
5. There is an expectation (but not a strict requirement) that a successful applicant for funding will fund a share of the costs of the project himself or herself (which may be achieved by the applicant gaining access to other sources of funds, or by the applicant making a contribution to the project by providing staff, facilities or other resources).
6. An applicant for funding must furnish a project plan that includes—
   1. an outline of the objectives of the project; and
   2. information identifying whether the project is intended to be for the benefit of consumers of electricity, consumers of natural gas, or both consumers of electricity and consumers of natural gas; and
   3. a proposed budget; and
   4. the amount of funding sought from the Panel.
7. A successful applicant for funding must, as a condition of a grant, be willing to agree—
   1. to maintain, and to make available to the Panel on request, appropriate records, accounts and reports concerning the expenditure of funding provided by the Panel for the purposes of the relevant project; and
   2. to furnish to the Panel—
      1. as soon as is reasonably practicable after receiving a written request from the Panel during the course of the relevant project; and
      2. in any event, within 2 months after the completion of the relevant project,
      a report that sets out—
      3. a comprehensive description of the objectives of the project; and
      4. the issues that have been considered for the purposes of the project; and
      5. the outcomes that have been achieved in connection with the project; and
      6. the costs and expenses associated with the project.