The Council agrees that there is a need for more clarity around the role of AEMO in market development. The Council considers that AEMO should continue to have a role in market development given its specific market and system operation roles in electricity and gas. AEMO’s unique role enables it to provide important and strategic insights into market development issues which cannot be provided by other market participants. However, the Council recognises that it is important to ensure is clarity around how it engages and commissions AEMO to provide advice on market development matters. The Council considers that this clarity can be provided through a clear statement of AEMO’s role (see 5.2 below). That the Council issue an AEMO of role’ Agree The COAG Energy Council agrees to ‘statement – which clearly specifies AEMO’s core role, and Recommendation 5.2 and tasks SCO to create the includes processes for accessing AEMO’s expertise AEMO’s Statement of Role in consultation with AEMO. in market and systems operations and the arrangements under which it is able to undertake The COAG Energy Council welcomes the opportunity other activities. to clarify AEMO’s role through a statement of role. That all activities that AEMO undertakes outside its Agree The COAG Energy Council agrees to – core role should be provided on a fee-for-service or Recommendation 5.3 and notes that current other cost recovery basis and should, where arrangements are already aligned with this principle. feasible, be open to competition. That AEMO remain a not-for-profit company under Agree The COAG Energy Council agrees with – the Corporations Act 2001 and that the current recommendation 5.4. mixed ownership model of 60 per cent government and 40 per cent industry is retained. Chapter 6 Governance – Recommendations COAG Energy Council response That the membership of the AEMC be expanded Agree The COAG Energy Council agrees with – from three to up to five members, with the chair recommendation 6.1 subject to practical and at least two other commissioners appointed on arrangements. a full-time basis. The COAG Energy Council understands that the energy market landscape is rapidly changing and that the governance arrangements must keep up with the pace of change. The COAG Energy Council agrees with the Panel that it is important the AEMC have sufficient capacity amongst their Commissioners to fulfil their roles effectively. Increasing the number of Commissioners would allow a greater diversity of skills and experience to be brought on to the Commission and expansion of
The Council agrees that there is a need for more clarity around the role of AEMO in market development. The Council considers that AEMO should continue to have a role in market development given its specific market and system operation roles in electricity and gas. AEMO’s unique role enables it to provide important and strategic insights into market development issues which cannot be provided by other market participants. However, the Council recognises that it is important to ensure is clarity around how it engages and commissions AEMO to provide advice on market development matters. The Council considers that this clarity can be provided through a clear statement of AEMO’s role (see 5.2 below). That the Council issue an AEMO ‘statement of role’ which clearly specifies AEMO’s core role, and includes processes for accessing AEMO’s expertise in market and systems operations and the arrangements under which it is able to undertake other activities. Agree – The COAG Energy Council agrees to Recommendation 5.2 and tasks SCO to create the AEMO’s Statement of Role in consultation with AEMO. The COAG Energy Council welcomes the opportunity to clarify AEMO’s role through a statement of role. That all activities that AEMO undertakes outside its core role should be provided on a fee-for-service or other cost recovery basis and should, where feasible, be open to competition. Agree – The COAG Energy Council agrees to Recommendation 5.3 and notes that current arrangements are already aligned with this principle. That AEMO remain a not-for-profit company under the Corporations Act 2001 and that the current mixed ownership model of 60 per cent government and 40 per cent industry is retained. Agree – The COAG Energy Council agrees with recommendation 5.4. Chapter 6 – Governance Recommendations COAG Energy Council response That the membership of the AEMC be expanded from three to up to five members, with the chair and at least two other commissioners appointed on a full-time basis. Agree – The COAG Energy Council agrees with recommendation 6.1 subject to practical arrangements. The COAG Energy Council understands that the energy market landscape is rapidly changing and that the governance arrangements must keep up with the pace of change. The COAG Energy Council agrees with the Panel that it is important the AEMC have sufficient capacity amongst their Commissioners to fulfil their roles effectively. Increasing the number of Commissioners would allow a greater diversity of skills and experience to be brought on to the Commission and expansion of
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