Electricity market assessment needs a credible policy solution

The most important role of government in fixing Australia’s electricity market woes is to establish efficient and durable national energy policy, the energy industry said today.

A new national review of the adequacy of generation supply in the National Electricity Market by the Australian Energy Market Operator (AEMO) will recommend what role governments should play in supporting new investment.

Australian Energy Council Chief Executive Matthew Warren said the most important role for government was to implement credible national energy policy that would enable the investment required.

“When governments directly intervene in markets they risk crowding out businesses and chilling investment,” Mr Warren said.

“We welcome the Federal Government working to resolve the energy crisis which has been brewing for the past decade.

“The first best solution is a policy platform that re-opens energy infrastructure for business. 

“The review of the security of the National Electricity Market by the Chief Scientist, Dr Alan Finkel, provided a workable blueprint to solve this policy challenge.”

About the Australian Energy Council

The Council represents 21 major electricity and downstream natural gas businesses operating in competitive wholesale and retail energy markets. These businesses collectively generate the overwhelming majority of electricity in Australia and sell gas and electricity to over 10 million homes and businesses.

Media contact             Carl Kitchen                0401 691 342