The Independent Review into the Future Security of the National Electricity Market provides an opportunity to recommend changes that support innovation in response to the transformation underway in Australian energy markets. Currently the energy market favours incumbents at the expense of competition from emerging players. In this submission PIAC outlines some systemic weaknesses of regulatory and market outcomes. In PIAC’s view, there is an urgent need to deregulate, consolidate and reduce complexity in order to enhance competition. PIAC believes partial changes are unlikely to address the systemic weaknesses, especially the unbalanced nature of the rule making. The changes must be accompanied by enhanced consumer representation, as well as making governance arrangements more democratic, transparent and accountable.
