The Australian Energy Council said the release of the National Energy Guarantee (NEG) discussion paper is an important step towards achieving a workable energy and carbon policy framework for the energy industry.
The AEC’s Chief Executive Matthew Warren said “the discussion paper provides important options to deliver reliability and emissions reductions as we transform the electricity sector.
“Importantly the paper retains the existing market designs and contracting arrangements. This will enhance the NEG’s ability to deliver new investment to lower emissions without compromising reliability.
“The de minimis approach to existing electricity markets proposed by the Energy Security Board follows the backing of the National Electricity Market (NEM) by the International Energy Agency (IEA) overnight.
“The current market design is not the problem. The independent review from the IEA has found the NEM remains an effective platform to deliver the transformation, providing there is further reform of policies and markets rules.”
“The Energy Security Board has correctly identified that the central benefit of getting the NEG settings right is that they will provide much-needed certainty for market participants so they can make long-term investment decisions.
“The next steps outlined in the discussion paper offer the means to get the all-important design details right.”
“The AEC looks forward to working closely with the ESB to ensure effective development of the NEG, so that it can win industry, COAG and bipartisan backing.”
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.
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