The Australian Minister for Resources and Energy, Martin Ferguson today met his State and Territory counterparts for the first time as Minister to progress Australia's energy future.
Mr Ferguson chaired his inaugural meeting of the Ministerial Council on Energy where Ministers made a number of important decisions towards implementation of the Council of Australian Governments (COAG) national energy policy framework.
Mr Ferguson said that despite becoming Minister less than two weeks ago he was determined to press ahead with today’s meeting in Perth.
“The Prime Minister has clearly stated the Government’s commitment to drive forward the COAG reform agenda. Energy market reform is an important part of that agenda.
"Energy market participants have waited too long for the establishment of the Australian Energy Market Operator, further development of the national gas and electricity markets and rollout of electricity Smart Meters.
"With Labor governments in every jurisdiction, I see a tremendously exciting opportunity for Australia's governments to cooperate on securing a sustainable, competitive and reliable energy supply for Australia's future", the Minister said.
"I intend to provide the national leadership to make that happen."
Today’s meeting agreed to:
- establish a minimum functionality for electricity smart meters ahead of the planned national roll out;
- an implementation plan for the establishment of the Australian Energy Market Operator, including an independent process for appointment of a board of directors;
- request the Australian Energy Market Commission to commence a review of competition in the retail electricity and gas markets in South Australia;
- include provisions establishing the gas market Bulletin Board in the National Gas Law, to be introduced into SA Parliament in early 2008;
- adopt a more realistic timeframe of September 2009 for the introduction of legislation to bring non-economic distribution and retail regulation under the national framework; and
- provide a report to the Council of Australian Governments on the MCE’s progress in implementing energy market reforms.
Minister Ferguson said the Council's agreement to establish a National Minimum Functionality for smart meters was a major step toward a consistent national approach, particularly with Victoria and New South Wales accelerating their roll-out plans.
"Inconsistent approaches between jurisdictions and different sectors of industry could create major roll-on costs to consumers and potentially limit new services and competition", the Minister said.
"In early 2008, Council will consider review differing market and consumer circumstances to ensure that Smart Meters are implemented only where benefits outweigh costs."
Minister Ferguson congratulated the Council on progress of the National Electricity Law Amendments and National Gas Law, saying this significant microeconomic reform would have a positive impact on the Australian energy market.
He acknowledged concerns about the relative immaturity of the gas market and said he would be keeping a close eye on performance of the new gas market arrangements.
“A strong and effective market is critical to attract the substantial investment required to meet Australia's energy needs.
“It is up to us to make Australia’s energy market the best in the world.”
Further information on these initiatives, the Ministerial Council on Energy and latest meeting Communiqué can be found at www.mce.gov.au
Media contact: Philip Noonan (Travelling with Minister) 0418 697 907
Tracey Winters (Canberra) 0407 099 104