Australian Energy Market Commission Chairman John Pierce has outlined the regulatory implications of the revolution in consumer choices, renewables, and electricity storage. His address was delivered today to the Australian Energy Week conference in Melbourne by AEMC Chief Executive Ms Anne Pearson.
“Our country’s regulatory model draws a distinction between the operating space that should be given over to competition and the space given to monopoly functions of networks” Mr Pierce said.
“The stakes are high in getting the right line between what is competitive and what should be regulated. Competition transfers risk from consumers to business when competing businesses bear the responsibility for their own good or bad investment decisions – and bear the responsibility for subsequent success or failure of their business models. It is only where competition cannot deliver consumer benefits that economic regulation should be contemplated.”