ELECTRICITY

States agree to national energy system

AUSTRALIAS federal, state and territory energy ministers have agreed on a framework for a single ...

States agree to national energy system

The issue was resolved at the 10th meeting of the Ministerial Council on Energy in Hobart on Friday.

The legislation for transferring state retail functions to the national regime will be completed by the end of the next year with the transfer of regulation of distribution networks to the national regime to follow by January 2007, according to federal resources minister Ian Macfarlane.

“We do have process that will see a consistency at a national level in the way that we price the cost of moving electricity from one part of the country to another, or the way we price moving gas from one part of the country to another,” he said.

The ministers also agreed to release a draft paper on the Productivity Commission Review of the Gas Access Regime by 30 November 2005, before a final decision by December 7.

The paper includes a proposed new objects clause for the gas access regime, a change to the coverage criteria to regulate gas pipelines only where there is a material increase in downstream and upstream competition, a model for more light handed regulation and measures to promote new greenfield gas projects.

The final response will be incorporated into the new national gas legislative package to be introduced next year.

Following the December 2005 response, ministers have agreed to implement their decision on greenfield gas pipeline incentives by June 30 next year. The MCE has also agreed to establish an expert panel to advise on a model for a common revenue and network pricing across the energy market.

The next meeting of the MCE will be held in the Northern Territory in May next year.

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