But Mr Nagle has added that, in a welcome development, policy-makers and governments are beginning to recognise the contribution that the energy networks sector makes in providing all energy consumers with a reliable and growing energy network in Australia.
"The problem with the reform processes implemented under National Competition Policy is that the interests of major incumbent energy producers and large energy consumers have always been perceived as paramount" Mr Nagle told delegates at the conference this morning.
"That is, the regulated energy delivery assets-distribution and transmission-have been treated more as 'doormats' to the reform process over the past years. Their interests have been treated with indifference or subjugated to the benefit of others in the energy chain.
"The quid pro quo of energy distribution network and transmission owners allowing the reform process to impact on their control over access to their assets, was the delivery of an efficient and light-handed regulatory regime with fair and predictable rules generating reasonable rates of return on those assets.
"An excessive focus on achieving short-term price falls for large energy consumers, however, appears to have become the de-facto, sole policy objective in the reform process, and all other interests seem to have been subjugated to that objective.
"That is, the interests of the regulated distribution and transmission sectors have been seen by policy-makers as secondary, and merely part of the delivery tool for lower access prices in the short-term.
"Thankfully, policy-makers and governments are now beginning to recognise the medium to long-term value to energy consumers of having a more appropriate policy and regulatory environment for the energy networks sector-and the AGA welcomes this.
"Such an environment will help ensure that Australia's energy consumers can enjoy the medium and long-term benefits of having access to a reliable and growing energy infrastructure network.
"From the downstream gas sector's point of view, the Productivity Commission's current review of the gas access regime, and CoAG's Energy Market Review and national energy policy development process, have been very welcome developments in this regard.
"We hope and expect that these processes will continue to see further recognition and support of the critical role that energy networks play in delivering energy daily to Australian industries, businesses and householders.
"The AGA set out deliberately a few years ago to achieve two particular outcomes-first, to obtain a greater degree of recognition from policy-makers that the circumstances of regulated assets need to be more explicitly considered as part of the energy policy mix; and second, that specific and significant changes need to be made in the regulatory instruments applying to the downstream gas sector.
"The AGA's move to focus an increasingly large part of its resources on achieving these outcomes has been a reflection of our strong concern with energy market reform to date, and this focus has helped achieve some substantial progress with regards to improvements in downstream gas sector policy and regulatory approaches.
"The creation of a new Energy Networks Association-which will be unambiguously tasked with seeking these outcomes on behalf of both gas and electricity network asset owners-will be a critically important next step in progressing a major rethink of the way the energy networks sector is viewed and treated within the energy market reform process."
