Consultation on National Energy Guarantee Legislative Amendments
Publication date: Wednesday, 15th August 2018.
The COAG Energy Council consulted on an exposure draft of the proposed changes to the National Electricity Law that would implement the National Energy Guarantee (Guarantee).
The draft Bill, prepared by the Energy Security Board based on the Final Detailed Design of the National Energy Guarantee, was considered by the COAG Energy Council on 10 August 2018. The draft Bill sets out:
Who is liable under the emissions reduction and reliability requirements
The key aspects of the emissions and reliability requirements
The compliance and penalty framework
The additional functions and powers of the Australian Energy Market Commission (AEMC), the Australian Energy Regulator (AER), and the Australian Energy Market Operator (AEMO) to support the implementation of the Guarantee and
A new emissions objective, applicable to the emissions requirement, to guide rule-making by the AEMC and the exercise of related functions and powers by the AEMC, AEMO and AER.
There would also be consequential amendments to the National Electricity Rules and National Electricity (South Australia) Regulations. Commonwealth legislation will also be required in relation to certain matters. The Bulletin available below provides further information about the draft Bill and the process.
Consultation on policy options
In addition to the draft Bill, The Energy Security Board has developed alternative policy options for activating the reliability obligation. These options have been developed in response to concerns raised by Ministers at the 10 August 2018 COAG Energy Council meeting that a reliability gap could emerge at any time across the 10 year forecast period. Submissions on the reliability obligation policy options have now closed.