The Ministerial Council on Energy, chaired by the Minister for Resources, Energy and Tourism, Martin Ferguson AM MP, met in Canberra today, agreeing to:
- A forward work plan to address implementation of the Carbon Pollution Reduction Scheme (CPRS) and the Renewable Energy Target (RET) in the energy market
- A review of energy market frameworks be undertaken in light of the impact on electricity supplies of the extreme heat wave of 29-31 January 2009
- An assessment be undertaken of energy market readiness (prudential and related financial arrangements) for commencement of the CPRS and the RET
- A work program be developed to give effect to the COAG national principles for feed-in tariffs for renewable energy (fair market value)
The MCE also noted that the Energy Technical and Safety Leaders Group will soon release its Harmonisation of Energy Supply Industry Technical and Safety Regulation Discussion Paper for stakeholder consultation.
Minister Ferguson said: "The MCE has a heavy and important workload to ensure the ongoing reliability, security and affordability of Australia's energy supply and the integrity of the national energy market.
"I appreciate the cooperation and hard work of my State and Territory colleagues in this endeavour and I am pleased with the good progress that continues to be made."
Presentations were made to the MCE by the Australian Energy Market Commission, the Department of Climate Change, and industry stakeholders to inform discussion about implementation of the CPRS and the RET in the national energy market.
The Australian Energy Regulator reported to the meeting on the progress of consultation about its draft weighted average cost of capital (WACC) determination for energy networks.
Minister Ferguson said:"I am pleased the AER is undertaking a thorough consideration of the issues raised in submissions before it."
The National Electricity Market Management Company also reported to the meeting on the electricity supply issues that occurred last week in Victoria and South Australia.
Minister Ferguson said: "While the recent blackouts in were predominantly caused by heat-related infrastructure failures such as blown fuses in the distribution network and high voltage transmission lines 'tripping', the MCE agreed today to ask the AEMC to review energy market frameworks in light of these events."
Communique available at www.mce.gov.au.