The Energy Security Board (ESB) has been tasked by the COAG Energy Council to develop advice on a long-term, fit-for-purpose market framework that could apply from the mid-2020s.
The ESB is required to recommend any changes to the existing market design or recommend an alternative market design by the end of 2020. The design must enable the provision of the full range of services to customers necessary to deliver a secure, reliable and lower emissions electricity system at least-cost. Any changes to the existing design or recommendation to adopt a new market design would need to satisfy the National Electricity Objective.
Any significant changes to the electricity market design would need to be well considered, including substantial input from stakeholders and detailed consideration of alternative market designs. Changes must be telegraphed well in advance to ensure there is minimal disruption to the forward contract markets for electricity.
If changes are required to deliver the desired market framework by the deadline of the mid-2020s, then consideration of any required changes should be concluded by the end of 2020 to enable sufficient time.