Release of ESB Post 2025 Paper Just The Beginning
Emily Wood | August 26, 2021
Leading advocate for large commercial and industrial energy users, the Energy Users’ Association of Australia (EUAA), congratulates the Energy Security Board (ESB), led by Chair, Dr Kerry Schott AO, for their tireless efforts to develop a comprehensive report on options for the future design of our National Energy Market (NEM).
“This is an incredibly complex space notwithstanding the issues surrounding transition in our energy markets,” said EUAA Chief Executive Officer (CEO), Mr Andrew Richards. “We congratulate Kerry and her entire team who have worked tirelessly to develop a plan that aims to balance the many competing needs and priorities of a very broad group of stakeholders.”
“And while we welcome the work already undertaken, we recognise that there is still more to do – including deep stakeholder consultation and detailed analysis of the options presented – before key reforms can be implemented.”
The EUAA has been actively involved in consultation with the ESB through its work on the Post 2025 Market Design over the past few years and looks forward to reviewing the ESB’s final paper in detail once it is released.
“The EUAA and its members look forward to continuing to work with the ESB, State and Federal Governments, regulatory bodies and industry colleagues to develop a balanced approach to the energy transition that delivers outcomes that are in the long-term interests of consumers.”
While the EUAA has expressed strong views on many aspects of future energy market design, we remain open to exploring detailed design and analysis of options. For example, we remain open to the prospect of some form of capacity market but are yet to be convinced on the immediate need for such a dramatic change to the NEM.
“If we are to move ahead with some form of capacity market then significant work still needs to be done on design of the mechanism and consideration of other complimentary changes to the NEM that will be required,” said Mr Richards.
In relation to transmission and access, the EUAA will continue to push for fairer cost and risk allocation of future network assets such as Renewable Energy Zones (REZ).
And on system strength, the EUAA will continue to pursue the principles of do no harm and causer pays. “Specifically, the EUAA believes those that are causing system strength to diminish have the responsibility to rectify the problem and not just push all the cost and risk onto consumers who have neither caused emerging system strength issues or have any means to resolve the problem,” added Mr Richards.
The EUAA is the peak body representing Australian industrial and commercial energy users. EUAA membership covers a broad cross section of the Australian economy including significant retail, manufacturing and materials processing industries. Combined EUAA members employ over one million Australians, pay annual energy bills in the many billions of dollars and support the development of a lasting national energy and climate change plan that puts downward pressure on electricity and gas costs.
Media Contact: Emily Wood 0421 042 121
