I am pleased to announce the establishment of the Council of Australian Governments (COAG) Energy Reform Implementation Group (ERIG).
At its meeting on 10 February 2006, COAG agreed that, notwithstanding the important structural reforms undertaken under National Competition Policy and other COAG initiatives since the early 1990s, further reform of Australia's energy sector would yield significant efficiency and energy security benefits.
The COAG ERIG, consistent with the broader directions set by COAG and as outlined in the COAG Communique of 10 February, has been tasked with reporting to COAG before the end of 2006 with detailed implementation arrangements for: (i) achieving a fully national transmission grid including the most suitable governance and transitional arrangements having regard to COAG's objective of achieving a truly national approach to the future development of the electricity grid, the legitimate commercial interests of asset owners, and the need to promote investment that supports the efficient provision of transmission services; (ii) any measures that may be necessary to address structural issues affecting the ongoing competitiveness and efficiency of the electricity sector; and (iii) any measures that may be necessary to ensuring there are transparent and effective financial markets to support energy markets.
The COAG ERIG will be chaired by Mr Bill Scales AO. Mr Scales is the former Chair of the Industry Commission and was head of the Department of Premier and Cabinet in Victoria. He was also the Group Managing Director, Regulatory, Corporate and Human Relations at Telstra and is currently the Chancellor of Swinburne University, the Chairman of the Port of Melbourne Corporation and the Chairman of the Australian Safety and Compensation Council.
Mr Scales will be joined by Mr David Swift, Chief Executive of the Electricity Supply Industry Planning Council of South Australia, Mr Geoff Carmody, co-founder of Access Economics, and Mr Alan Rattray, former chair of the Southern Hydro Board. Panel members bring with them a high level of expertise and experience across the COAG ERIG's terms of reference.
Senior Australian Energy Market Commission and National Electricity Market Management Company officers will act as ex-officio observers on the COAG ERIG Panel, to provide expertise on the current physical and regulatory market structures and on current energy market reforms.
The COAG ERIG will be supported by a small Commonwealth-State secretariat and will consult widely with stakeholders. Further information on the COAG ERIG can be obtained from www.erig.gov.au.