Queensland Government works with COAG Energy Council on market reforms

The Queensland Government has agreed on a national direction for energy reform to address emerging challenges for the gas and electricity markets.

Attending today’s Council of Australian Government’s (COAG) Energy Council meeting Minister for Energy, Biofuels and Water Supply Mark Bailey, raised a number of challenges affecting Queenslanders in the supply and use of these vital energy sources.

“Major progress has been made in responding to changing market conditions of higher use of renewable energy, higher distribution rates of household solar and the introduction of battery storage technology,” Mr Bailey said.

“We also agreed to significant gas policy reform and have appointed an independent Chair, Dr Michael Vertigan to work with industry leaders from a technical perspective,” Mr Bailey said.

Mr Bailey said it was clear from recent reports by the Australian Energy market Commission and the Australian Competition and Consumer Commission that governments must maintain momentum in the gas market reform process.

“Given our abundant gas resources and the importance of this sector this work is particularly important for Queensland.

"We need to ensure that reforms that can be made in the shorter term, including improving availability of information such as gas reserves, developing the northern and southern gas supply hubs and implementing pipeline capacity trading,” Mr Bailey said.

“Today’s meeting shows that the COAG Energy Council is on the front foot in responding to these market changes and is focussed on ensuring the efficient and safe operation of Australia’s energy markets, and ensuring good sustainable outcomes for consumers.”

Mr Bailey supported the Energy Council’s considered response to the latest issues in South Australia.

“Recent events in South Australia are issues for the National Electricity Market (NEM) as a whole, and States and Territories must work together in the interests of a national market,” Mr Bailey said.

“Jurisdictions must ensure both the costs and benefits of options are well assessed, including the impact on consumers across the NEM, and that increased costs are not unnecessarily pushed into the system.

“The Queensland Government’s establishment of an independent expert panel to provide advice on credible pathways to achieving 50 percent renewable energy target by 2030 is a clear demonstration of our commitment to assess both the costs and benefits of different market structures.

Mr Bailey led Council’s discussions on the Energy Market Transformation work program.

“I am pleased Ministers have today agreed to the release of three consultation papers on battery registration, stand-alone communities and consumer protection for behind the meter solutions.

“Following the release of these papers we’ll undertake community and industry consultation to ensure we create a future-driven regulatory framework.

COAG Energy Council will next meet in Melbourne on 2 December 2016.

“On the second day of summer, this meeting will be an important opportunity for Governments to review progress on system security issues, and to consider the AEMO and AEMC recommendations,” Mr Bailey said.

Mr Bailey will host the Queensland Energy Industry Stakeholder Forum on 26 October 2016 to get Queensland industry and consumer feedback onintergovernmental reforms ahead of the December Council meeting.

ENDS

Media contact: Amy Hunter - 0423 651 484