The JEC made a submission to the Commonwealth Department of Climate Change, Energy, Environment and Water’s Review into he effectiveness of the Treasury Laws Amendment (Prohibiting Energy Market Misconduct) Act 2019 (Cth) (the PEMM Act).
We noted that a definitive determination of the effectiveness of the PEMM Act is likely to be difficult. Confidently determining the character and purpose of actions and actors in the energy market can be difficult, if not impossible as the market currently operates. This does not undermine the value of the PEMM Act provisions, but must be considered when assessing whether they are effectively delivering on their intent.
Notwithstanding these difficulties, the JEC strongly supports the continued existence of the provisions. The three provisions in the PEMM Act have an important function in signalling expected behaviour in the energy market to retailers, generators, gentailers, and market participants in the wholesale spot market. These provisions also have deterrence value beyond any practical role they may play. We consider it likely these provisions will become increasingly important as the energy system transition unfolds, and further reforms to market structures are implemented.
