Conflicts of Interest

The Commission considers that a robust and transparent approach to disclosure of interests is essential to preserve the integrity of the decision making of the Commission in the performance of its statutory functions and to ensure that persons with energy sector experience and knowledge are available to serve the Commission.

The Australian Energy Market Commission Establishment Act 2004 of South Australia sets out a statutory regime for ongoing disclosure of conflicts of interest for Commissioners at meetings of the Commission. The law requires the Commission and the Commissioners:

to identify interests that may fall within a "direct or indirect" interest that could conflict with the proper performance of the Commissioner's functions;

to manage conflicts of interest if they arise in relation to matters being considered at a meeting of the Commission;

to disclose any interest of a Commissioner at a meeting of the Commission;

to record any disclosure of a conflict of interest by a Commissioner in the minutes of the Commission meeting;

to make a decision about the appropriate action to be taken (if any);

to record any decision about the appropriate action to be taken (if any) in the minutes of the meeting of the Commission.

The practice at Commission meetings is for a standing agenda item that invites declarations by Commissioners of any conflicts of interest in relation to the matters under consideration at the meeting. The AEMC has established processes to put into effect the requirements set out above. Additionally where information becomes available that indicates it is possible that a perception of a conflict of interest might arise the same processes are applied.

Third parties who have concerns about possible conflicts of interest are invited to raise those concerns with the Chief Executive Officer.

The Commission also recognises a broad public interest in adopting a policy of open disclosure about arrangements put in place by each of the Commissioners for the ongoing management of conflicts of interest. Each of the 3 Commissioners makes the statement set out below in relation to those arrangements.

Dr John Tamblyn, was appointed as the full time Chairman of the AEMC by the Governor of South Australia on 2 June 2005. Dr Tamblyn was nominated for that appointment by the States and Territories Ministers who are members of the Ministerial Council on Energy (MCE). Dr Tamblyn was, immediately prior to taking up this role, the Chairman of the Essential Services Commission of Victoria.

Dr Tamblyn is appointed in a full time capacity and has no conflicts which require management.

Mr Ian Woodward was appointed by the Governor of South Australia on 20 June 2005 as the inaugural part-time Commissioner nominated by the Minister of the Commonwealth who is a member of the Ministerial Council of Energy. The appointment is for a 5 year period to 19 June 2010.

Mr Woodward has previously been the Chief Executive of the Australian Gas Association, and Group General Manager, Corporate Development, AGL. He is currently a part-time executive consultant at Macquarie Bank Limited. He also undertakes other consulting and lecturing assignments in the arena of leadership and strategic communication which during the past twelve months have included executive education programs for Columbia Business School and professional development programs for the Asian Development Bank.

Mr Woodward makes the following statement about the arrangements he has put in place to manage (perceived or actual) conflicts of interest between his current roles:

As a part-time employee of Macquarie Bank I do not involve myself in matters on behalf of the Bank or its clients that are within the jurisdiction of the AEMC.
I am subject to the Bank's rigorous compliance policies and procedures including Confidentiality, Conflicts and Chinese Wall arrangements; and am consequently "ring-fenced" from transactional and advisory work which may be undertaken by Macquarie Bank which is relevant to the jurisdiction of the AEMC.
Any potential involvement in projects relating to the energy sector, which are not within the jurisdiction of the AEMC, in any location, would be disclosed to the Chairman of the AEMC before undertaking such a project to ensure no potential conflict arose.
All other consulting and lecture activities are outside of energy sector matters with a specialist focus on leadership and strategic communication in a professional development and business education context. These are subject areas not relevant to jurisdiction of the AEMC.
Confidential information obtained either in my capacity as a Commissioner or a consultant will not be disclosed or used for purposes other than the proper purposes.