Energy Market Transformation Bulletin No. 06 - Work Program Update
The Energy Council continues to develop policy responding to the energy market's transition. At the November 2017 meeting, Energy Council was provided updates on a number of work streams.
For information on the updates, please click on the Bulletin below.
The Health of the National Electricity Market Report
The Energy Security Board (ESB) reports to the COAG Energy Council. Each year the ESB will deliver a Health of the National Electricity Market report to the COAG Energy Council that will track the performance of the system, the risks it faces, and the opportunities for improvement.
On 20 December 2017, the ESB delivered the inaugural Health of the National Electricity Market Report. The Report assesses the present health and outlook for the NEM.
National Energy Productivity Plan Annual Report 2017
This Annual Report covers the second in a 15-year plan and shows that the NEPP has continued to progress well. Throughout 2017, measures across the work plan have advanced and many have achieved significant outcomes. There has also been wider progress in energy policy and jurisdictional measures which will contribute strongly to energy productivity and NEPP objectives.
Report on the National Energy Guarantee
Ministers met in Hobart on 24 November 2017 to discuss the National Energy Guarantee.
The covering letter from the Energy Security Board to the Hon Josh Frydenberg can be found below, as well as the Report on the National Energy Guarantee.
15th Energy Council Ministerial Meeting
Ministers met in Hobart on 24 November 2017 to discuss their top priority - ensuring reliable and affordable supply of electricity whilst working towards a lower emissions future.
Further outcomes of the meeting can be found in the Communique below.
Energy Market Transformation work program
The Energy Market Transformation work program, which commenced in early 2016, aims to ensure regulatory frameworks are fit for purpose to cope with the effects of emerging technologies and to enable consumers to benefit from innovative services while mitigating any risks. It aims to ensure regulatory frameworks are flexible enough to support a successful transition of the electricity market to a future characterized by more and increasingly decentralized supply options.
Further information on the key work streams identified in the work program is outlined below.
National Energy Guarantee Modelling
The Hon Josh Frydenberg has written to the Energy Security Board regarding the additional modelling for the National Energy Guarantee.
National Energy Guarantee
In October 2017 the Energy Security Board provided the COAG Energy Council with advice on changes to the National Electricity Market and legislative framework.
Binding Rate of Return Guideline
On 14 July 2017, the COAG Energy Council agreed to implement a binding guideline for the rate of return components of the Australian Energy Regulator’s regulatory determinations for electricity and gas and the Western Australian Economic Regulation Authority’s regulatory determinations for gas network businesses
Consumer participation in revenue determinations and associated regulatory processes – Consultation Paper on Consumer Resourcing
In July 2017, the COAG Energy Council agreed to consult on options to improve resourcing available to consumer groups to support more effective engagement in the Australian Energy Regulator’s revenue determinations and access arrangement decisions under the national electricity and gas laws and rules.