The following section pertaining to energy market reform in Australia, highlights the important aspects of the energy market in the country. In addition to the proper usage of energy, protecting the surrounding, creating market, competitive prices, investments, reform programs, role of the government all are taken into account in the program associated with energy market reform in Australia.
The governing bodies:
The Council of Australian Governments or the COAG in the year 2001 launched the Ministerial Council on Energy or MCE to look after matters related to energy market reform in Australia. The main aim of the formation of the MCE was achieving benefits pertaining to the environment as well as the economy. The Ministerial Council on Energy governs the various policies for the proper implementation of the energy market reform in Australia.
Objective of energy market reform in Australia:
The main aim of the the reform is ensuring sustainability in the production of energy, prosperity as well as security in the country by energy market reform in Australia. It has been estimated that energy demand would escalate by approximately 50 percent fourteen years from now. This would in turn require an investment of AU$37 billion.
Other aims of energy market reform in Australia include attracting investment for exploring as well as developing various energy resources in the country.
Also included in the list of priority is rendering protection to the ecology and simultaneously availing economic benefits.
Developing latest know how and transparent technologies are also on the cards of the Australian government.
The energy market reform in Australia also monitors that the supply of energy does not get disrupted and to try and minimize the same.
Development of energy markets where energy prices are competitive.
The judicious use of energy in the country.
The aim was also to make the energy tax base efficient. Rent taxes pertaining to offshore programs.
In the year 2004, energy market reform in Australia, which was formulated by the MCE or Ministerial Council on Energy were documented in “Australian Energy Market Agreement”. This reform was worked out for a period of three years. However, in the year 2006, this particular program was further extended and included demand management as one of the aspects of energy market reform. Introduction of electricity meters was also a part of the reform. Due to energy market reform in Australia, the Energy Reform Implementation Group was established to look into matters related to structures of energy markets, financial market operations, transmission grids.
Governance pertaining to energy market reforms were carried out by the establishment of the:
- Australian Energy Regulator Australian Energy Regulator was entrusted with the responsibility of regulation of prices, enforcement of norms, regulation of the market, surveillance.
- Australian Energy Market Commission On the other hand, Australian Energy Market Commission was entrusted with the responsibility of framing rules as well as developing markets.
The reforms also laid stress on the active participation of the consumers. Increasing consumer awareness was one of the goals aimed at.
The Trade Practices Act 1974, an economic regulation governs accessibility to the energy markets. The procedure followed in energy market reform in Australia is therefore characterized by a policy base, which is strong; industrial development, applying the appropriate technologies; making consumers more active in reform programs.
Last Updated on : 26th June 2013