PIAC lodged a submission to the Inquiry into impediments to business investment by the Federal Parliament’s Standing Committee on Economics. Affordable, sustainable and reliable energy services are an essential component of the quality of life for Australians. Without this, the detriment to residential, small business, commercial and industrial consumers – and, as a result, the broader Australian economy – is significant. To achieve this, energy policy and regulatory frameworks must balance providing appropriate protections for consumers now while not unnecessarily burdening businesses or stifling innovation for the future.
Innovation in technologies, business models and product or service offerings is vital to unlocking the full benefit of the transformation and sharing the benefits of affordable, sustainable and reliable energy supply throughout the economy. There is a role for governments, through agencies such as the Australian Renewable Energy Agency (ARENA) and the Clean Energy Finance Corporation (CEFC), to foster innovation and bring energy products and services through to a commercially viable stage. Further innovation could be fostered through the use of regulatory sandboxes. A regulatory sandbox is, broadly speaking, a framework within which innovators can test business ideas and products on a “live” market. While it remains under the relevant regulator’s supervision, the test is conducted without fear of enforcement actions in case it is determined that the innovation does not comply with existing regulations.
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