Joint Statement on the National Electricity Market Review

Our organisations, representing peak industry bodies across the electricity value chain, have backed the consultative process undertaken by the Federal Government-appointed expert panel as providing the best opportunity to reach coherent and enduring energy policy that will deliver the energy transition beyond 2030.

Strong and enduring energy policy, focused on delivering the services the system needs, and supporting the needs of households and businesses, is critical to drive confidence and encourage investment and productivity gains given the central role of energy supply to economic activity.

The National Electricity Market wholesale market settings review panel has consulted widely and openly on the best way forward and what reforms might be needed. Its detailed work on the back of that process comes at a critical juncture and is vitally important to the shape of the energy market following the conclusion of the Capacity Investment Scheme. This review has provided an opportunity to develop market signals that will allow the energy industry and consumers to take the energy transition forward.

Ahead of the next Energy and Climate Change Ministerial Council meeting, we urge the Federal and state governments to get behind a national approach informed by the panel’s work.  Australia needs a consistent, agreed and pragmatic approach that facilitates efficient investment across the supply and demand side of our energy system to deliver economy-wide productivity advantages and ensure the energy transition can be delivered cost effectively.

The reshaping of our electricity system predominantly with renewable generation, backed by pumped hydro, battery storage, gas generation and consumer energy resources, like rooftop solar, home batteries and smart appliances, is challenging but comes with significant opportunities.

Whilst there is more work to be done on the detailed design, the expert panel’s draft report represents a path forward as well as an opportunity for genuine collaboration between Federal and state governments and the energy sector more broadly, to deliver optimal policy and outcomes for all energy users.