Energy Market Reform

Australia’s stationary energy supply system underpins the efficient operation of the national economy and is vital to maintaining and improving the community’s living standards.

esaa develops rational policy positions relating to competitive energy market design and operation and efficient economic regulatory frameworks.

To ensure Australia enjoys the full benefits of energy market reform, esaa policies and advocacy activities support:

• the development of open, competitive national energy markets free from distortions as the cornerstone of Australia’s stationary energy supply system
• economically efficient regulation of the monopoly parts of the system to facilitate competitive market outcomes, timely efficient investments and reliable energy supply

Since the early 1990s, the energy market reform component of national competition policy has been transforming Australia’s stationary energy system from integrated state- and territory-based public monopolies into competitive national supply and retail markets complemented by the efficient national regulation of monopoly network prices and services.

Over the past five years, the Australian Energy Market Commission, the Australian Energy Market Operator and the Australian Energy Regulator have been established as the national authorities with responsibility for the rule-making, operation and regulation of Australia’s electricity and gas markets.

However, the national competition policy reform program established in the mid-1990s remains incomplete. Prices in competitive retail markets continue to be regulated by most state and territory governments and outstanding elements of the national competition reforms remain to be implemented.