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NEG Report: Nuts and bolts of Energy Guarantee are locking into place

"The release of a detailed design document on the National Energy Guarantee is welcome progress in finalising an essential reform," Australian Industry Group Chief Executive Innes Willox said today.

"To get power prices down we need more supply, and to get investment in supply we need a convincing and durable policy framework on electricity, reliability and emissions. The National Energy Guarantee remains the best hope of delivering that.

"While big political issues remain to be resolved between the Commonwealth and the States over questions like emissions targets, these arguments won't matter unless the technical design is solid. The Energy Security Board has given us a lot of confidence with their approach to date. They've included energy users as well as suppliers in their Technical Working Groups and they have been listening to feedback and acting on it.

"Ai Group and our members will study the latest design closely and provide suggestions for improvement where necessary. One issue that will be important to resolve is whether an opt-out from the reliability obligation for large energy users, as currently proposed, should be replaced with an opt-in arrangement. Either way, the outcome needs to support a competitive market for electricity where the long-term interests of energy users are met.

"Industry, electricity suppliers, and the wider community all have a stake in the success of the National Energy Guarantee and in ending a decade of policy uncertainty. We will do our part to get an outcome in August that delivers what we need on price, reliability and emissions," Mr Willox said.  

Media enquiries: Tony Melville – 0419 190 347