How can government policy provide long-term stability in the NEM?

In April, the federal government released its Energy White Paper (EWP) laying out a framework for the future of the NEM.

Alongside evolving policies to match the changing energy landscape for electricity generators, networks and retailers can also expect a changing operating environment. The federal government aims to obtain timely, cooperative action on energy policy management from the states and territories, but there is still much uncertainty on whether the COAG process can deliver on this agenda.

Whatever one’s view, there is no escaping the fact that the NEM is currently over-supplied with generation capacity in a big way. Resolving this issue involves ensuring future power supply is robust, efficient and cost-competitive.

Power supply is one of the most discussed issues today in Australian policymaking, with potential to avoid harsh impacts on the economy, jobs and community welfare.

Government policy is thus critical in providing long-term stability for the energy market. The release of the EWP in the current climate is only the first step in achieving this, with the next being more positive discourse between all stakeholders including governments and industry.

At the 2nd annual NEM Future Forum 2015, being held from 24-26 June in Sydney, energy program director Tony Wood from the Grattan Institute will bring perspective to these critical issues on government policy in the NEM.

Wood will address how government policy requirements, such as avoiding regulation inconsistencies between various state and federal levels, can bring the energy market into long-term stability. He will also identify how policies surrounding market transparency might encourage potential investment in the sector, and will give his insights into a key question currently facing corporations and government alike: whether or not privatisation will achieve a more efficient and cost-effective electricity production.

At Australia’s Energy Future roundtable last month, Wood was quoted by the Australian Financial Review as saying, “I think one of the challenges we’ve had in Australia is that our policy structures have got behind the markets. Fifteen years ago, the policy drive was ahead of the market as we went down the competition and reform route… Our policies in this country have fallen behind consumer choices, technology and markets. The challenge is to turn that round.”

If you work within the Australian east coast electricity sector, this is a not-to-be-missed opportunity to meet senior-level professionals from right across the industry to have a better understanding of possible future developments within the NEM.

For more information, go to www.questevents.com.au/content/nem-future-forum-2015-conference-australia.

Image credit: ©iStockphoto.com/snvv