Media Contact
Carl Kitchen, 0401 691 342 
Jun 20 2022

AEC supports work on capacity mechanism

The peak body for power generators and retailers, the Australian Energy Council says it supports the Energy Security Board’s work on a capacity mechanism.  

The AEC’s Chief Executive, Sarah McNamara said, “We welcome the emphasis on any capacity mechanism being technology neutral so it can deliver the best outcomes.   

“The AEC believes any capacity mechanism needs to support existing plant, as well as new plant. Our preference remains for neutrality between the two, but we will consider the draft proposal.  

“We would be concerned if there are jurisdictional carve outs to the mechanism, which could lead to it being much less effective in supporting the energy transition.  

“The AEC’s position is strongly against lowering the energy market price cap as it is contrary to the ESB and COAG’s previous position on the energy market itself remaining the main investment signal. 

“Whilst capacity mechanisms exist in many places, there have been many challenging issues, arguments and repeated adjustments. Introducing one into a 25-year-old energy-only market will be anything but straightforward. For that reason, we support the ESB's efforts in working through what are difficult issues and will continue to assist their work.  

“We look forward to providing a detailed response to the ESB and contributing to the discussion on the best form of a mechanism,” said Ms McNamara.  

About the Australian Energy Council 

The Australian Energy Council is the peak industry body for electricity and downstream natural gas businesses operating in the competitive wholesale and retail energy markets. AEC members generate and sell energy to 10 million homes and businesses and are major investors in renewable energy generation. The AEC supports reaching net-zero by 2050 as well as a 55 per cent emissions reduction target by 2035 and is committed to delivering the energy transition for the benefit of consumers.

Related News


AEMO’s future plan reflects profound energy shift

The peak body for generators and retailers, the Australian Energy Council, said the market operator's Integrated System Plan (ISP) highlights the profound disruption occurring in the grid.

Jun 30 2022

AEC says the lifting of market suspension is the right move

The peak body for power generators and retailers, the Australian Energy Council says the lifting of the suspension of the National Electricity Market is a welcome announcement.

Jun 22 2022

Generator bidding during NEM crisis

The peak body for power generators, the Australian Energy Council said claims of power generators seeking to profiteer from recent market conditions were wrong.

Jun 17 2022
Do you have a question or comment for AEC?

Send an email with your question or comment, and include your name and a short message and we'll get back to you shortly.

Call Us
+61 (3) 9205 3100