Whats Up? Energy Market Developments and Issues, July 2013 from a - PowerPoint PPT Presentation

What’s Up? Energy Market Developments and Issues, July 2013 from a CONSUMER perspective Mark Henley UnitingCare Australia

Recap NEM (National Energy Market) The national energy market was established over a decade ago, creating a single electricity network from Cairns to Ceduna, including Tasmania. There are 3 main institutions to manage the market. 1. AEMO, Australian Energy Market Operator 2. AEMC, Australian Energy Market Commission (Rule Maker) 3. AER, Australian Energy Regulator With active involvement, at policy level of SCER, Standing Committee in Energy and Resources

Mud map of Regulation Structure

Later 2012, National Activity Many Processes, many submissions, little sleep: • Energy White Paper • Productivity Commission • AEMC Rule change re Network Regulation • Senate Inquiry • Review of Limited Merits Review • Power of Choice • COAG statement • National energy consumer advocacy body • Energy Efficiency programs (not Greenstart), HESS, LIEEP, etc. Maybe NESI

Key Themes • Greater Consumer Engagement needed in regulation • Aspects of Market not working ‘in best long term interests of consumers’ • Major focus on Network regulation – New Rules – AER to use it’s powers more effectively – Merits Review process needs change

Recent / Current Developments • AER “Better Regulation” program • Limited Merits Review Regulation Drafted • AEMC Rule Change: Annual Network Pricing Arrangements • NECF now Tas, ACT, SA and NSW. “Energy Made Easy” comparator site established • AER “Consumer Challenge Panel” established • National consumer body work commenced

Emerging Processes - Market • AER Better Regulation draft guidelines out in August, final versions published in November. • AER first “Affordability” Report, late 2013 • AER Hardship program review. • Tariff rule changes / considerations • NECF becoming more national? • National consumer body establishment • Increased consumer engagement

Emerging Issues - Political Possible Change of National Government, and different SCER: • Removal of Carbon Price • Separate AER from ACCC • State Governments more say in AER / AEMC? • Reduction in support for renewable generation? • Reduced attention to Demand Management • Maybe action on PV? • Possible changes in concessions • Uncertain futures re energy efficiency programs

Emerging Issues - Consumers • Time of Use / Cost reflective pricing • PV and network tariff impacts • Capacity Tariffs? • Greater network / consumer engagement – Risk of consumer vs consumer set ups • Many network regulation processes • More thinking re Reliability / Cost trade offs for consumers

Emerging Issues – Advocates • Many, many processes all going at once • National Consumer body developed / imposed? • Wedges - Green vs Consumer - Average vs disadvantaged consumer • Consumer Challenge Panel • Future Roundtables / role and future of Roundtable • New relationships: – Minster national, Jurisdictional Ministers, DRET, AER, AEMC, AEMO, environmental orgs, KGB

Critical Questions for US • Do we want to better (and strategically) organise ourselves? • Do we want to work together? • Green + ‘consumer’ + disadvantage? • What issues do we want to influence? • Links to consumers? Credibility? • What are our essential relationships? United or Divided?

Last Time … For reference if needed

An overview – not comprehensive • “Better Regulation” – AER (wait for Bev) – follows on from network reg rule change • Power of Choice Implementation – AEMC • NECF Implementation - AER • Limited Merits Review - SCER • National consumer body consultation - SCER • Reliability Standards – AEMC • SCER: Network Forecasting Error - AEMC • Energy Efficiency - DCCEE • Etc (including Rule change re Generator Market Power) - AEMC

Key Themes? • Affordability • Consumer Engagement • Demand side, eg energy efficiency • Network regulation • Sanctity of the Market

Consumer Engagement

Better Regulation