In the two years since the AEMC first developed strategic priorities for energy market development, there have been considerable developments in the energy market and our work program. For example, we have seen a significant slowing in electricity demand growth, an increase in distributed generation, and progress in developing LNG export facilities in Queensland. We have updated the strategic priorities for energy market development in light of these developments.

In consultation with industry and consumers, the AEMC has developed three priorities which will help guide our advice to the Council of Australian Governments’ Standing Council on Energy and Resources and our approach to rule making. These are:

• strengthening consumer participation and continuing to promote competitive retail markets (“consumer priority”);
• promoting the development of efficient gas markets (“gas priority”); and
• market arrangements that encourage efficient investment and flexibility (“market priority”).

Consultation

The development of the strategic priorities involved extensive consultation with industry and consumers.

A discussion paper was published in April seeking stakeholder views on three proposed priorities. The paper can be found below.

Three workshops were held at the end of April and start of May in Sydney, Brisbane and Melbourne. A summary of discussions at the workshops can be found below.

We held a public forum in collaboration with the Australian Energy Research Institute at the University of New South Wales in August 2012. This forum provided an opportunity for a discussion between the AEMC and stakeholders on the challenges facing the energy market. Presentations were made by a range of stakeholders which can be accessed below.

Erratum

Some printed versions of this report contain an additional sentence at the foot of page 24 which does not appear in the online version below. This sentence was printed in error and should be disregarded.