DOCSLIB.ORG

Embedded Generation Project – Final Report

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Embedded Generation Project – Final Report Embedded Generation Project – Final Report Energy Networks Association November 2015 Disclaimer This document is intended for public distribution. Marchment Hill Consulting, its partners, employees and agents neither owe nor accept any duty of care or responsibility to such persons, and shall not be liable in respect of any loss, damage or expense of any nature which is caused by any use they may choose to make of this report. The information outlined herein is proprietary and its expression in this document is copyrighted, with all rights reserved to Marchment Hill Consulting. Any form of reproduction, dissemination, copying, disclosure, modification, distribution and/or publication of this document without express written permission from Marchment Hill Consulting is strictly prohibited. Table of Contents Executive Summary ......................................................... 1 Abbreviations used in this report ................................................... 12 1 Background ........................................................ 15 2 Scope and approach.............................................. 17 2.1 Scope ......................................................................... 17 2.2 Approach .................................................................... 17 2.3 Document maps ............................................................. 18 3 Technical impact assessment ................................... 20 Note on authorship ................................................................... 20 3.1 Introduction ................................................................. 20 3.2 Technical constraints and network impacts ............................ 21 3.3 Options for mitigating network impacts and risks ..................... 61 3.4 Options for maximising network benefits ............................... 97 3.5 Australian Standards gap analysis ...................................... 146 4 Regulatory impact assessment ................................ 160 Note on authorship ................................................................. 160 4.1 Introduction ............................................................... 160 4.2 The National Electricity Customer Framework ....................... 160 4.3 Non-National Electricity Customer Framework states .............. 162 4.4 Cost of connection ....................................................... 165 5 Commercial impact assessment ............................... 168 Note on authorship ................................................................. 168 5.1 Introduction ............................................................... 168 5.2 Commercial impacts ..................................................... 169 5.3 Valuation framework .................................................... 181 5.4 Commercial opportunities .............................................. 194 5.5 Implications for the network service provider business model .... 210 6 Policy and regulatory options ................................. 213 Note on authorship ................................................................. 213 6.1 Introduction ............................................................... 213 6.2 Key technical findings ................................................... 213 6.3 Key regulatory and commercial findings .............................. 218 7 Recommendations ............................................... 227 Note on authorship ................................................................. 227 7.1 Introduction ............................................................... 227 7.2 Enabling technologies and pricing ..................................... 228 7.3 Enabling business models ............................................... 233 7.4 Enabling partnerships .................................................... 235 Appendix A – Survey responses ......................................... 237 Appendix B – Analysis of embedded generation/distributed energy resources uptake and network impact forecasting techniques ....... 250 Introduction ......................................................................... 250 Review of methodologies .......................................................... 250 References ........................................................................... 257 Appendix C – Maximising network benefits: overview of relevant literature ..................................................................... 262 Photovoltaics and storage ......................................................... 262 Diesel, gas, steam and hybrid generation systems............................. 265 Embedded Generation Project - Final Report Executive Summary One of the most significant technical, regulatory and commercial challenges faced by the electricity industry to date is the continued uptake of embedded generation (EG)1. This has involved integrating EG into Australian electricity distribution networks, while maintaining the required levels of quality, safety, reliability and security of supply. The Energy Networks Association (ENA) has launched the Electricity Network Transformation Roadmap (NTR) project to identify the preferred transition which the electricity network industry must make in the next decade, to be ready to support better customer outcomes under a diverse range of long-term energy scenarios. This includes investigating and assessing the impacts of continued EG growth on Australian electricity network service providers (NSPs) and determining how EG integration can be undertaken in a way that is beneficial for both customers and NSPs. This report is a foundational piece for the NTR project, and is scoped to provide an overview of the key technical, commercial and regulatory impacts of EG. It looks at the opportunities EG presents for NSPs, how regulatory and policy options can be pursued to address the impacts, and how customers can receive greater value as either consumers, producers or prosumers2 of electricity. The report takes a proactive approach to new technologies and services. It has been prepared with the overarching principle that networks should actively develop industry-wide solutions, including integrating new technologies, to serve the long-term interest of their customers. Audience This report is intended to be released as a public document. It has been prepared on behalf of the ENA and its members in a process that has included extensive stakeholder consultation, input and review. Its public release is intended to help advance the customer’s ability to benefit from efficient and effective network operation through economic integration of EG, and seamless service offerings in EG related markets. Objectives The objectives of this report are to: investigate and assess the technical, regulatory and commercial impacts of continued growth in EG on Australian distribution and transmission networks 1 An embedded generating unit is defined as ‘a unit that generates electricity at a customer’s premises and is connected to a distribution system’. It includes, but is not limited to, micro-embedded generation units, electrical energy storage and electric vehicles. 2 A prosumer is defined as a customer who both produces electricity (via an embedded generator, which can be supplied to the grid) and consumes electricity from the grid. A consumer is a customer who only consumes electricity from the grid. 1 Embedded Generation Project - Final Report identify potential policy and regulatory options that the ENA and its members should consider in response to these impacts, to ensure the safe, reliable, affordable and efficient operation of the electricity network in the long-term interests of customers develop a high-level commercial framework to value EG and assess the commercial opportunities for NSPs. Approach In preparing this report, Marchment Hill Consulting (MHC) and the CSIRO undertook a desktop review of relevant literature, a survey of ENA members to gather views regarding the impact of EG on their network, and in-depth interviews to gather further insights. Workshops were held with the ENA and its members to test initial hypotheses, generate additional ideas, and review and refine the report’s findings and recommendations. Draft sections of the report were also distributed to the ENA and its members for review and feedback prior to completion of the final report. Authorship The authorship of this report was shared between CSIRO and MHC. CSIRO focused on the technical impacts of EG, while MHC focused on the commercial and regulatory impacts. All policy and regulatory options and recommendations have been developed by MHC and represent their views only. Limitations The report has the following key limitations: It is necessarily broad in scope. Its intention was to set out the broad landscape as a background to further work by the ENA and its members, and it therefore addresses a range of topics and highlights areas for further work for which there were neither time nor resources to investigate further. ENA member views were gathered through a survey and a selection of interviews, however, the results do not necessarily represent the views of ENA or all relevant NSP stakeholders. The impact of EG often varies considerably between NSPs, which could be due to factors such as different EG penetration levels, network asset conditions and peak demand levels. Wherever possible, we have attempted to highlight the variability of key findings between networks, but note that not all findings and recommendations will
Load more

Recommended publications
  • Report of the AUDITOR-GENERAL on the GOVERNMENT's ANNUAL
    V I C T O R I A Auditor-General of Victoria Report of the AUDITOR-GENERAL on the GOVERNMENT’S ANNUAL FINANCIAL STATEMENT 1996-97 Ordered by the Legislative Assembly to be printed VICTORIAN GOVERNMENT PRINTER No. 65 - Session 1996-97 1997 ISSN 1327-6905 ISBN 0 7306 9295 7 Contents Page PART 1 EXECUTIVE SUMMARY ______________________________ 1 Overview 3 Summary of major findings 5 PART 2 AUDIT OPINION ON STATEMENT ______________________ 13 PART 3 OPERATING RESULT AND FINANCIAL POSITION ________ 21 PART 4 ASSET SALES _____________________________________ 31 PART 5 REVENUE _________________________________________ 93 PART 6 EXPENDITURE _____________________________________ 119 PART 7 ASSETS OF THE STATE _____________________________ 147 PART 8 LIABILITIES AND COMMITMENTS _____________________ 157 Aggregate liabilities of the State y 159 Borrowings y 161 Unfunded superannuation liabilities y 176 Other employee entitlements y 179 Payables and other liabilities y 180 Contingent liabilities of the State y 206 Other financial commitments of the State y 221 PART 9 REVIEW OF GIPPSLAND WATER ______________________ 225 Report of the Auditor-General on the Government’s Annual Financial Statement, 1996-97 iii PART 1 Executive Summary Report of the Auditor-General on the Government’s Annual Financial Statement, 1996-97 1 Overview My Report on the Government's Annual Financial Statement for the year ended 30 June 1997 outlines the results of the annual audit of the Statement, including an analysis of the operating result achieved in the year and the State's assets and liabilities at year-end, together with the privatisation of government business enterprises and the sale of surplus and underutilised properties.
    [Show full text]
  • Electricity Safety (Electric Line Clearance) Regulations 2010
    i PROPOSED ELECTRICITY SAFETY (ELECTRIC LINE CLEARANCE) REGULATIONS 2010 Regulatory Impact Statement (FINAL 15/02/10) This Regulatory Impact Statement (RIS) has been prepared in accordance with the Subordinate Legislation Act 1994 to facilitate public consultation on the proposed Electricity Safety (Electric Line Clearance) Regulations 2010. A copy of the proposed regulations is provided as an attachment to this RIS. Public comments and submissions are invited on the proposed regulations. All submissions will be treated as public documents. Written comments and submissions should be forwarded to: Mr Andrew Padanyi Legal Officer Energy Safe Victoria PO Box 262 Collins Street West VIC 8007 email: [email protected] and must be received no later than 5pm on Tuesday 25 May 2010. ii Frontispiece © State of Victoria, Energy Safe Victoria 2010 This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1986. This regulatory impact statement was prepared for Energy Safe Victoria by Tim Harding & Associates in association with Rivers Economic Consulting. Disclaimer: This publication may be of assistance to you, but the State of Victoria and its employees do not guarantee that the publication is without flaw or is wholly appropriate for your particular purposes and therefore disclaims all liability for an error, loss or other consequence that may arise from you relying on any information in this publication. iii Summary Introduction In Victoria, contact between overhead electric lines and trees can have dire consequences, including bushfires, electrocutions and power loss. Such events can result in deaths, injuries and economic loss.
    [Show full text]
  • 2018 Retail Energy Competition Review
    FINAL REPORT 2018 Retail Energy Competition Review 15 June 2018 Reference: RPR0007 Final Report Inquiries Australian Energy Market Commission PO Box A2449 Sydney South NSW 1235 E: [email protected] T: (02) 8296 7800 F: (02) 8296 7899 Reference: RPR0007 Citation AEMC, 2018 Retail Energy Competition Review, Final Report, 15 June 2018, Sydney. About the AEMC The AEMC reports to the Council of Australian Governments (COAG) through the COAG Energy Council. We have two functions. We make and amend the national electricity, gas and energy retail rules and conduct independent reviews for the COAG Energy Council. This work is copyright. The Copyright Act 1968 permits fair dealing for study, research, news reporting, criticism and review. Selected passages, tables or diagrams may be reproduced for such purposes provided acknowledgement of the source is included. Executive Summary The Retail Energy Competition Review is an annual report that provides an update on the state of competition in the retail energy market and the outcomes that consumers are achieving. It is an important tool for mapping progress and change over time, and in identifying emerging industry issues that require further analysis or action to address. Overview This year’s review found that while competition in the retail energy market continues to evolve, it is currently not delivering the expected benefits to consumers. After a period of stable or improving customer satisfaction, levels of residential and small business consumer confidence and satisfaction with retail energy market have declined significantly over the last year. In particular: • consumers have generally experienced substantial increases in retail energy prices.
    [Show full text]
  • (Chair) April 2008
    THIRTY-SEVENTH PARLIAMENT REPORT 13 REPORT OF THE STANDING COMMITTEE ON ENVIRONMENT AND PUBLIC AFFAIRS IN RELATION TO A PETITION ON CONSUMER UTILITY HARDSHIP IN WESTERN AUSTRALIA Presented by Hon Sheila Mills MLC (Chair) April 2008 STANDING COMMITTEE ON ENVIRONMENT AND PUBLIC AFFAIRS Date first appointed: 17 August 2005 Terms of Reference: The following is an extract from Schedule 1 of the Legislative Council Standing Orders: “1. Environment and Public Affairs Committee 1.1 An Environment and Public Affairs Committee is established. 1.2 The Committee consists of 5 members. 1.3 The functions of the Committee are to inquire into and report on - (a) any public or private policy, practice, scheme, arrangement, or project whose implementation, or intended implementation, within the limits of the State is affecting, or may affect, the environment; (b) any bill referred by the House; and (c) petitions. 1.4 The Committee, where relevant and appropriate, is to assess the merit of matters or issues arising from an inquiry in accordance with the principles of ecologically sustainable development and the minimisation of harm to the environment. 1.5 The Committee may refer a petition to another committee where the subject matter of the petition is within the competence of that committee. 1.6 In this order “environment” has the meaning assigned to it under section 3(1), (2) of the Environmental Protection Act 1986.” Members as at the time of this inquiry: Hon Sheila Mills MLC (Chair) Hon Paul Llewellyn MLC (from 14 November 2007) Hon Bruce Donaldson
    [Show full text]
  • The Regional Effects of Pricing Carbon Emissions: an Adjustment Strategy for the Latrobe Valley
    Centre for Strategic Economic Studies: Adjustment Strategy for the Latrobe Valley THE REGIONAL EFFECTS OF PRICING CARBON EMISSIONS: AN ADJUSTMENT STRATEGY FOR THE LATROBE VALLEY FINAL REPORT TO REGIONAL DEVELOPMENT VICTORIA SALLY WELLER PETER SHEEHAN JOHN TOMANEY NOVEMBER 2011 Centre for Strategic Economic Studies: Adjustment Strategy for the Latrobe Valley © SALLY WELLER, PETER SHEEHAN, JOHN TOMANEY THIS WORK IS COPYRIGHT. APART FROM ANY USE AS PERMITTED UNDER THE COPYRIGHT ACT 1968, NO PART MAY BE REPRODUCED FOR COMMERCIAL PURPOSES WITHOUT THE PRIOR WRITTEN PERMISSION OF THE AUTHORS. REQUESTS AND ENQUIRIES CONCERNING REPRODUCTION SHOULD BE ADDRESSED TO THE CENTRE FOR STRATEGIC ECONOMIC STUDIES, VICTORIA UNIVERSITY, PO BOX 14428, MELBOURNE, VICTORIA 8001. AN APPROPRIATE CITATION FOR THIS REPORT IS: WELLER, S., SHEEHAN, P. AND TOMANEY, J. (2011) THE REGIONAL EFFECTS OF PRICING CARBON EMISSIONS: AN ADJUSTMENT STRATEGY FOR THE LATROBE VALLEY. REPORT TO REGIONAL DEVELOPMENT VICTORIA. CENTRE FOR STRATEGIC ECONOMIC STUDIES, VICTORIA UNIVERSITY. NOVEMBER. i Centre for Strategic Economic Studies: Adjustment Strategy for the Latrobe Valley EXECUTIVE SUMMARY This report examines the social and economic impacts that a carbon price is likely to produce in Victoria’s Latrobe Valley and in the wider Gippsland region. The Latrobe Valley, the brown-coal rich area that generates most of Victoria’s electricity, is acknowledged as one of the principal areas likely to be affected adversely by the introduction of a carbon price in 2012 and the planned introduction of carbon trading in 2015. The report’s content is based on a review of reports and submissions on the regional effects of emissions-reduction policies, interviews with key stakeholders in the Latrobe Valley, detailed analysis of ABS Census data and critical examination of other statistical data.
    [Show full text]
  • ANNUAL REPORT 2017-2018 Australian Energy Market Commission Level 6, 201 Elizabeth Street Sydney NSW 2000
    Australian Energy Market Commission ANNUAL REPORT 2017-2018 Australian Energy Market Commission Level 6, 201 Elizabeth Street Sydney NSW 2000 30 September 2018 The Hon Dan van Holst Pellekaan MP Minister for Energy and Mining GPO Box 974 Adelaide SA 5001 Dear Minister Australian Energy Market Commission annual report 2017-2018 I am pleased to present the Australian Energy Market Commission 2017-2018 annual report. This report is prepared in accordance with Section 27 of the Australian Energy Market Commission Establishment Act 2004 (SA). John Pierce CHAIRMAN Contents 48 ORGANISATION Reports on our commitment to stakeholder engagement and our people as well as internal management systems, governance including audit and risk assessment and the role of Commissioners and the 4 EXECUTIVE REPORT executive team. Includes the performance 50 Our stakeholders summary, Chairman’s message 54 Our people and Chief Executive’s message, 57 Governance and how energy markets are 24 WORK PROGRAM governed. Reports on the output of our 62 FINKEL ACTION 4 How energy markets are work program, detailing the rule governed making process and reviews Our action to implement the undertaken during the year as 6 Performance summary recommendations of the well as our strategic priorities. independent review into the future 8 Chairman and Chief Executive Explains our core business and message security of the national electricity activities of the Reliability Panel. market. 14 OVERVIEW 26 Overview of our work program 27 Rules and reviews 70 RULES AND REVIEWS Who we are, what we do, our leadership and how we work 30 Managing rule making Index providing summaries of all timeframes work undertaken this year.
    [Show full text]
  • Victorian Government Library Service
    Library: Departments of Premier & Cabinet Treasury & Finance Level 5, 1 Macarthur Street East Melbourne Victoria 3002 . „ / DX 210759 MM0 ° Ph: 03 9651 5660 Fax: 03 9651 5659 Email: [email protected] • /v'iiMMMnii * * Office of the Regulator-General,* Vic. JOINT DEPT. INFO. CENTRE 2 7 NOV 1997 LEVEL 3 1 MACARTHUR STREET E. MFI BOURNE VIC. 3002 ANNUAL REPORT 1996-1997 * * ** Office of the Regulator-General,* Victoria ISSN: 1327-6964 © 1997 Office of Regulator-General, Victoria. 13 October 1997 The Hon Roger M Hallam, MLC Minister for Finance Parliament House MELBOURNE Vic 3002 Dear Minister Annual Report 1996-97 I have pleasure in presenting the Office of the Regulator-General's Annual Report for the year ended 30 June 1997. The year presented a number of challenges which the Office's executives and staff met in a most professional manner. I know the outgoing Regulator-General would wish me to acknowledge their contribution and to publicly thank them for it. The report has been prepared in accordance with the Government's guidelines and is an accurate account of the Office's third year of operation. Yours sincerely JOHN C. TAMBLYN Regulator- General CONTENTS Page 1. The Year Under Review by the Outgoing Regulator 8 New Regulator-General 8 New mandate 9 Other mandates 9 Anticipated mandate 9 Focus on electricity 9 Positive outcomes Need for regulatory vigilance Risk of regulatory dependency Water 14 Operational audits Licensing of non-metropolitan urban water authorities Grain handling and storage 17 Port services 18 Rail 18 APEC Regulators' Forum 20 Acknowledgments 20 Customer input Industry input Other agencies The Office's staff 2.
    [Show full text]
  • Government Trading Enterprises Performance Indicators 1991-92
    ISSN 1327 - 1822 This work is not copyright. It may be reproduced in whole or in part provided suitable acknowledgment is included. The Industry Commission acts as the Secretariat for the Steering Committee on National Performance Monitoring of Government Trading Enterprises. The Industry Commission is amalgamating with the Bureau of Industry Economics and the Economic Planning Advisory Commission to form the Productivity Commission, which will continue the role of Secretariat for the Committee. Secretariat Steering Committee on National Performance Monitoring of GTEs c/- Industry Commission LB 2 Collins Street East Post Office Melbourne VIC 8003 Level 28 35 Collins Street Melbourne VIC 3000 Telephone: (03) 9653 2100 or Freecall: 1800 02 0083 Fax: (03) 9653 2199 E-mail: [email protected] http://www.incom.gov.au Steering Committee on National Performance Monitoring of Government Trading Enterprises This is the fifth annual report of the Steering Committee for National Performance Monitoring on Government Trading Enterprises (GTEs). It covers the period 1991–92 to 1995–96. As Chairman of the Steering Committee, I am pleased to report that the reform of GTEs is continuing to deliver benefits both to customers and to governments. Real prices of services continued to fall across most GTEs last year — real prices have now been falling since 1991–92. Assessing the quality of service provided by GTEs is as important as measuring financial performance. I am concerned that many GTEs do not provide adequate information about service quality. However, the limited information available suggests that service quality within most sectors is improving, but very slowly.
    [Show full text]
  • AEMC ANNUAL REPORT 2019-2020 — 1 Our Vision for the Australian Energy Market Is Long Term
    2019 – 2020ANNUAL REPORT Australian Energy Market Commission Level 15, 60 Castlereagh Street Sydney NSW 2000 30 September 2020 The Hon Dan van Holst Pellekaan MP Minister for Energy and Mining GPO Box 974 Adelaide SA 5001 Dear Minister I am pleased to present the Australian Energy Market Commission’s 2019-2020 annual report. This report is prepared in accordance with Section 27 of the Australian Energy Market Commission Establishment Act 2004 (SA). Merryn York ACTING CHAIR EXECUTIVE REPORT Contents 2 10 17 OVERVIEW STRATEGIC Executive report Strategic overview Our organisation Includes the performance summary, A strategic overview of our work in Who we are, what we do, our Chairman and Chief Executive’s the year under review focussing on leadership and how we work message and strategic overview the AEMC’s five priority work areas How energy markets are governed 3 Strategic overview 10 Our organisation 17 How we work 3 National energy objectives 20 Performance summary 4 Our mission, vision and values 21 OUR ORGANISATION Chair and Chief Executive Message 6 What we do 22 Managing rule making timeframes 25 Working with the Energy Security Board on market development 26 Organisation charts 29 Our stakeholders 39 Our people 42 Governance 44 50 86 122 REVIEWS AND RULES Rules and reviews Financial performance Statutory reports Index providing summaries of all Provides audited financial Under section 27 of the Australian work undertaken this year statements for the AEMC Energy Market Commission Establishment Regulations 2005 we must include specific reports which PERFORMANCE FINANCIAL are provided here together with a compliance index Compliance 146 STATUTORY REPORTS AEMC ANNUAL REPORT 2019-2020 — 1 Our vision for the Australian energy market is long term.
    [Show full text]
  • Report on Ministerial Portfolios May 1998
    V I C T O R I A Auditor-General of Victoria REPORT ON MINISTERIAL PORTFOLIOS MAY 1998 Ordered to be printed by Authority. Government Printer for the State of Victoria No. 13 - Session 1998 ISSN 1033 2960 ISBN 0 7306 9300 7 May 1998 The President The Speaker Parliament House Melbourne, Vic. 3002 Sir Under the authority of section 15 of the Audit Act 1994, I transmit my Report on Ministerial Portfolios. The Report also contains a section on the Parliament of Victoria. This Report completes the cycle of my auditing activities in relation to the 1996-97 financial year. Yours faithfully C.A. BARAGWANATH Auditor-General Contents Foreword vii PART 1 EXECUTIVE SUMMARY 1 1.1 Major findings ............................................................................. 3 PART 2 PARLIAMENT OF VICTORIA 11 2.1 Parliament of Victoria ............................................................... 13 PART 3 AUDIT OF MINISTERIAL PORTFOLIOS 17 3.1 Education ..................................................................................19 Maintenance backlog at schools 21 Capital expenditure and asset management at Swinburne University of Technology 31 Development of university IT systems - The CASMAC project 38 3.2 Human Services ........................................................................ 51 Department of Human Services tendering procedures 53 Management of Residents’ Amenities Funds 60 3.3 Infrastructure ............................................................................75 Privatisation of bus services 78 Public transport revenue
    [Show full text]
  • Shaping Utility Regulation: Seminal Court and Tribunal Decisions
    Shaping utility regulation: Seminal court and tribunal decisions Twelfth ACCC Regulatory Conference Legal session – 29 July 2011 Harriet Gray Doctoral candidate The ANU College of Law Why this topic? 1999 2011 1st conference 12 th conference No. of cases 3 Over 160 2 Brought to you by … Table 1 Table 2 Telco 29% 1995-99 4% Pt IIIA Gas 29% 2000-04 27% Telco & Elec 25% gas Pt IIIA 16% 2005-09 53% Energy Prices Surv 1% 2010-curr 16% 3 1 1. Objectives • Re Michael & Vodafone : Replicate the economically efficient outcomes that would be expected in a competitive market • 2008 Conference: Objectives really do matter eg Pilbara 4 2. Policy development • Cth Constitution s 51(xxxi): Acquisition of property on just terms • Telstra (2007): Is a Cth access regime an acquisition of property? • ICM Agriculture (2009): Implications for State policy makers? 5 3. Form of regulation TXU v Vic ORG (2001): CPI-X X = expected X = smooth allowed gain in efficiency revenue across regulatory period 6 2 4. What assets should be regulated? • industry-specific regimes: less contentious than Pt IIIA • Part IIIA declaration: – States protecting turf eg Freight Victoria & Services Sydney – Vertically separated: hurdle drops (past monopolistic behaviour) eg Virgin Blue – Vertically integrated: hurdle rises eg Pilbara • sensible access seeker develops Plan B • fail: criteria (a) (won’t promote competition) & (b) (commercially feasible even if economically inefficient) 7 5. Regulatory process GasNet (2003): • no one correct figure • regulator must accept proposal if it passes minimum statutory hurdle 8 6. Non-price SKIP (scope of the service eg Seven Network (2007)) 9 3 7.
    [Show full text]
  • The National Electricity Market: a Case Study in Microeconomic Reform
    NATIONAL ELECTRICITY MARKET A case study in successful microeconomic reform NATIONAL ELECTRICITY MARKET A case study in successful microeconomic reform Economic growth and prosperity One of the enduring stories of to a significant degree, involves a microeconomic reform has been the continuing process of structural change. National Electricity Market (NEM). Of employment opportunities moving In celebrating that achievement we from one industry to another, from acknowledge the many hundreds of one place to another. Of investment leaders: politicians across jurisdictions who responding to changing patterns recognised the need and benefits of change of consumer demand and changes and set the direction; officials and people in relative prices brought about by within the sector who worked together innovation, new technologies and the to make it possible; international experts opportunities for improved productivity. who contributed their ideas; and everyone in the electricity industry who helped This process cannot be centrally directed us learn how to make it work in practice. or planned. But that does not mean the process, and its consequences, are not in The NEM has proved to be a sustainable need of being led or managed in order to reform – capable of being built upon and produce sustainable benefits for consumers. a fundamentally important input to the performance of the Australian economy. We know this process as ‘microeconomic reform’. While broader in scope, the In this, the fifteenth anniversary year of ‘reform agenda’ in the 1990s had a NEM commencement, we commissioned particular focus on capital intensive utility KPMG to interview those involved in the services such as energy, communications, market’s evolution in order to identify the transport and water: that is, the non- lessons of their experience.
    [Show full text]