SACOME welcomes urgent action to address electricity crisis
The South Australian Chamber of Mines and Energy (SACOME) welcomes the decisions made at today’s COAG Energy Council meeting to move quickly towards urgent reform of our national energy systems.
The agreement to expedite the regulatory test for investment into new transmission assets, including the potential South Australia/NSW interconnector, by the end of this year is essential.
Jason Kuchel, Chief Executive of SACOME said “This critical piece of infrastructure would finally make the nations’ electricity market a true grid, as opposed to a linear string with SA reliant on a single interconnector and the associated risks to security of supply.”
SACOME also welcomes the decision to form a Gas Market Reform Group to increase transparency in gas markets, encourage greater flexibility of gas supply, better pricing and easier access to transport infrastructure.
Mr Kuchel said “We highly commend these gas market reforms, which are the most significant in two decades and reflect the government’s understanding of the essential role gas will play as a transitional fuel in the move towards lower emissions energy.”
SACOME with a delegation of industry met with Minister Frydenberg last week to discuss the current and future impact of escalating electricity prices on South Australian resources operators and developers. The directive of Energy Ministers to AMEC and AEMO to monitor and report on the integration costs of emerging technologies is welcomed. However, broader reforms to the NEM rules are required to manage the transitioning energy market.
“The opportunity to brief Minister Frydenberg on the serious implications for South Australian business and to provide him with the detail on impacts of skyrocketing electricity prices on our members’ activities has proven decisive in obtaining the agreement reached by Energy Ministers today.” Mr Kuchel said.
“Reform of the national electricity market and a South Australia/NSW interconnector are essential to reach the root cause of the problem, however these, together with gas market reform, are longer term solutions.
“South Australia must also find an urgent short term answer to enable business activity and industry to continue and ensure investment decisions are not halted.”
The South Australian Chamber of Mines and Energy (SACOME) welcomes the decisions made at today’s COAG Energy Council meeting to move quickly towards urgent reform of our national energy systems.
The agreement to expedite the regulatory test for investment into new transmission assets, including the potential South Australia/NSW interconnector, by the end of this year is essential.
Jason Kuchel, Chief Executive of SACOME said “This critical piece of infrastructure would finally make the nations’ electricity market a true grid, as opposed to a linear string with SA reliant on a single interconnector and the associated risks to security of supply.”
SACOME also welcomes the decision to form a Gas Market Reform Group to increase transparency in gas markets, encourage greater flexibility of gas supply, better pricing and easier access to transport infrastructure.
Mr Kuchel said “We highly commend these gas market reforms, which are the most significant in two decades and reflect the government’s understanding of the essential role gas will play as a transitional fuel in the move towards lower emissions energy.”
SACOME with a delegation of industry met with Minister Frydenberg last week to discuss the current and future impact of escalating electricity prices on South Australian resources operators and developers. The directive of Energy Ministers to AMEC and AEMO to monitor and report on the integration costs of emerging technologies is welcomed. However, broader reforms to the NEM rules are required to manage the transitioning energy market.
“The opportunity to brief Minister Frydenberg on the serious implications for South Australian business and to provide him with the detail on impacts of skyrocketing electricity prices on our members’ activities has proven decisive in obtaining the agreement reached by Energy Ministers today.” Mr Kuchel said.
“Reform of the national electricity market and a South Australia/NSW interconnector are essential to reach the root cause of the problem, however these, together with gas market reform, are longer term solutions.
“South Australia must also find an urgent short term answer to enable business activity and industry to continue and ensure investment decisions are not halted.”