Nexa Advisory Submission- Select Committee Energy Planning and Regulation

Nexa Advsiory emphasises the issues with the current governance which is outdated and reactive, unable to keep pace with new technologies, business models, and consumer preference- slowing down the energy transition.

There is broad agreement that Australia’s energy market governance is not fit for purpose.

Debate on how to deliver best practice governance of the energy market has been ongoing for many years.  Stakeholders across the industry – including consumers, governments, investors, and market participants. Highlighting that change has been reactive rather than strategic, and too slow and incremental.

Summary of recommendations:

  1. State and Federal Energy Ministers should publish a renewed Strategic Energy Plan (SEP).
  1. Set refreshed Statements of Expectations for the AEMC, AER and AEMO: These should be reviewed annually to ensure they are strategically aligned, with the performance of the market bodies regularly reviewed and monitored against them.
  2. Establish an independent review of the Boards of the AER, AEMC, AEMO and Energy Consumer Australia: to ensure alignment with the strategy, clarity of roles, that they have the right mix of skills and knowledge, and are appropriately independent.
  3. Establish a new, independent consumer voice: representing the interests of new energy consumers within policy and decision-making.
  4. Undertake an independent review of the role and performance of electricity distribution networks, considering:
    • their role in facilitating the transition;
    • their ability to adapt their business models to facilitate the integration of CER; and
    • how existing governance arrangements and regulatory oversight ensure value for energy consumers.
  5. Improve the representation of innovators / investors: within the governance of each market and regulatory body, with transparency of how this is included in decision-making.
  6. Social Licence: Emphasize the importance of incorporating consumer perspectives in decision-making to build trust and social licence within the community.

You can read our full submission here:Nexa Advisory – Select Committee EPR Submission