National Energy Guarantee Draft framework released

Share on twitter
Share on linkedin
Share on facebook

The National Energy Guarantee (NEG) was announced by the Federal Government in April. This followed on from the recommendations made in the Independent review into the future security of the National Electricity Market: Blueprint for the future (Finkel review).

National Energy Guarantee Framework - a hanging light

Photo by Adrián Tormo on Unsplash

By Anne Wardell, Senior Lawyer & Regulatory Specialist, Compliance Quarter

An important element of how the NEG will operate is the framework which will underpin the system.

The National Energy Guarantee Draft framework

On 15 June 2018 the Energy Security Board (ESB) released a Draft Detailed Design of the National Energy Guarantee: Consultation Paper (Detailed Design). Dr Kerry Schott AO, Chair of the ESB, said in a media release that the Detailed Design ‘provides the next level of detail about how the emissions and reliability components of the Guarantee mechanism are proposed to work in practice. It builds on the high-level design considered by the COAG Energy Council in April 2018’.

Dr Schott went on to say that:

“The ESB has benefited from deep and helpful engagement from stakeholders and considered expert input and is on track to present a final design to the COAG Energy Council in August 2018.”
“The draft Detailed Design of the Guarantee responds to the clear message from the Australian community, business and governments about the need to integrate energy and climate policy in a way that improves affordability and ensures a reliable power system that is reducing carbon emissions in a well-managed manner. To improve affordability, we are proposing specific measures to ensure liquidity and transparency in wholesale electricity markets to strengthen competition.”
“All State and Territory renewable energy schemes will be able to operate alongside the National Energy Guarantee and contribute towards achieving the emissions reduction trajectory for the electricity sector.
“The ESB’s top priority now is to continue to engage with stakeholders about how we can further refine the mechanism with a view to bringing down prices, keeping the power on, and reducing the electricity sector’s emissions.”

The ESB are seeking submissions in relation to the Detailed Design and will be holding a public forum in Melbourne on 2 July 2018. The closing date for submissions is 13 July 2018.

The ESB will present a final detailed design to the COAG Energy Council on 10 August 2018.

Further information regarding the Detailed Design and the process for submissions is available on the COAG Energy Council website here. Also see our earlier article The National Energy Guarantee (NEG)—what we know so far.

We will provide a more detailed analysis of the Detailed Design proposed in future articles – for any feedback or assistance please contact our team by clicking here.

More to explorer

Technicians installing photovoltaic solar panels on roof of house.

Compliance Quarter’s Submission to the AER’s Review of the Compliance Procedures and Guidelines

On 11 April 2024, Compliance Quarter put forward its submission on proposed changes to the AER Compliance Procedures and Guidelines. The AER is reviewing its Compliance procedures and guidelines, which set out the manner and form in which energy businesses in jurisdictions that have adopted the National Energy Retail Law must submit compliance information and data to the AER. We argue that there should be consideration of measures to incentivise early reporting of potential breaches. These may, for example, take the

person wearing foo dog costume

Obligations of Energy Retailers Regarding Best Offer Information

Energy retailers in Victoria have specific obligations under the Energy Retail Code of Practice to provide clear information to customers about their ‘best offer’ – that is, the plan that would minimize the customer‘s energy costs based on their usage history. The objective is to ensure small customers can easily understand whether they are on the retailer‘s best plan for them and how to access the retailer‘s best offer if not. One of the significant challenges in the energy sector (as in banking and elsewhere) is that customers

low angle photo of sydney opera house australia

Guide to the National Energy Retail Rules

The National Energy Retail Rules (NERR) are a set of rules that govern the sale and supply of electricity and gas by retailers to consumers in Australia, alongside the related National Energy Retail Law (NERL). The NERR came into effect on 1 July 2012 in Tasmania, the Australian Capital Territory, and the Commonwealth. South Australia followed on 1 February 2013, New South Wales on 1 July 2013, and Queensland on 1 July 2015. The NERR do not yet apply in

Leave a Reply

Your email address will not be published. Required fields are marked *