21 Nov 2019 | Media Release
The COAG Energy Council must address Australia’s beleaguered eastern energy markets at its meeting in Perth tomorrow with the goal of restoring conditions for a competitive marketplace over further government intervention.
The Australian Chamber’s chief economist Ross Lambie said Federal and State and Territory Governments share responsibility for the current problems the country is experiencing.
“Despite the Federal Government taking a range of actions over the last year to address affordability and reliability issues in electricity and gas markets, it is the COAG Energy Council who has the overarching responsibility and policy leadership for reforms in Australia’s energy markets – the buck stops with them,” Dr Lambie said.
Dr Lambie said Australia already has the necessary institutions (COAG Energy Council, Energy Security Board, Australian Energy Market Commission, Australian Energy Regulator, and the Australian Energy Market Operator) to ensure electricity and gas markets deliver cost effective energy to consumers.
“For these energy market institutions to perform as intended, they, along with energy producers and consumers, need clear and consistent policy direction from Energy Ministers,” he said.
“Without that direction policy uncertainty will continue to delay investment and governments will see the need to directly intervene.
“We are at a critical juncture in the history of Australia’s eastern energy markets.
“Through the COAG Energy Council effectively carrying out its responsibility and leadership role, Australia can reclaim the benefits of markets in delivering reliable and affordable energy to households and business both now and into the future, in what will be an increasingly carbon-constrained economy.
“Alternatively, we can continue down the road towards greater government intervention in our energy markets to deal with ongoing inadequate investment and the associated policy and market failures.”
Dr Lambie said that while the latter approach may ultimately deliver the reliability and environmental outcomes that Australians are seeking, it was “doubtful” it could provide the level of benefits to consumer welfare that would be achieved by restoring conditions for competitive electricity and gas markets.
“In that world, the cost of energy for households and business, and the broader economic implications are issues that persist.”
27/06/2022
Giving pensioners the choice to return to the workforce would be a boost for Australian businesses struggling to find staff. Australia’s largest and most representative...
21/06/2022
Manufacturers are benefitting from a strengthening of demand in the Australian economy, but are facing supply headwinds and escalating costs that are the most challenging...
17/06/2022
The meeting of National Cabinet in Canberra today signals a renewed and bipartisan impetus from Australia’s leaders to overcome chronic workforce shortages, languishing productivity growth...
15/06/2022
The Fair Work Commission’s decision to increase minimum wages by 5.2 per cent and award wages by 4.6 per cent will hit those industries which...
7/06/2022
The Reserve Bank’s decision to hike the cash rate for a second time in two months by 50 basis points from 0.35 to 0.85 per...
7/06/2022
Australia’s largest and most representative voice for business, the Australian Chamber of Commerce and Industry, is urging consumers to support local goods this Australian Made...
31/05/2022
The Albanese Government’s ministry reflects a strong mix of experience and fresh talent for the Australian business community. “ACCI welcomes the new federal ministry and...
30/05/2022
The Australian Chamber of Commerce and Industry (ACCI) has congratulated Peter Dutton on his election as Liberal leader, and David Littleproud as Nationals leader. The...
26/05/2022
Australia must reach consensus on a plan for affordable and reliable power generation that balances domestic energy security and facilitates emissions reduction. Released today, the...
22/05/2022
The Australian Chamber of Commerce and Industry, the nation’s largest and most representative business network, congratulates Anthony Albanese and his team on the election of...
11/05/2022
In its submission to the Fair Work Commission’s annual wage review, the nation’s peak business network, the Australian Chamber of Commerce and Industry, has backed...
3/05/2022
The Reserve Bank’s decision to lift the cash rate to 0.35 per cent reflects the interrelated challenges of rising inflation, supply chain bottlenecks, and acute...
29/04/2022
The Australian Chamber – Tourism is urging both parties to commit to measures that will assist in the recovery, and capitalise on the potential, of...
20/04/2022
The further easing of close contact isolation rules for household contacts in NSW and Victoria will ease the crippling workforce shortages that are hampering business...
19/04/2022
A commitment from a re-elected Coalition government to extend new greenfields agreements to six years is an important step towards genuine and structural workplace reform...
13/04/2022
Australia’s largest and most representative voice for business, the Australian Chamber of Commerce and Industry, today launched its campaign Back Australian Business, coinciding with the federal...
11/04/2022
The union movement’s rehashed casualisation scare campaign puts Australian small businesses and jobs at risk. “This election, Australians deserve better than the ACTU’s false claims...
2/04/2022
Australian businesses are set to reap the rewards of strengthened ties with India following the Phase One Agreement of the Australia-India Economic Commercial and Trade...
29/03/2022
Tonight’s budget will continue to rebuild Australia’s tourism industry; notwithstanding continued labour pressures are hampering the sector’s recovery. “The Government’s commitment to tourism has been...
29/03/2022
Tonight’s budget will continue to build capacity in the economy; however, business has been left with a long road to recovery without significant reform to...