The Council of Australian Governments (COAG) Energy Council met on 24 November 2017.
The following were discussed at the meeting:
- The National Energy Guarantee:
Dr Kerry Schott AO, Chair of the Energy Security Board (ESB), presented the National Energy Guarantee and the accompanying modelling report. All jurisdictions voting on the Guarantee supported progressing further extensive work on the design, including consultation in early 2018, except South Australia and the Australian Capital Territory. South Australia and the Australian Capital Territory requested that the COAG Energy Council model the Emissions Intensity Scheme and the Clean Energy Target alongside the Guarantee, but this was declined by the Council. The Council will consider the design of the Guarantee following work undertaken by the ESB in April 2018.
- The National Energy Market –
Ministers were updated on preparations for security of supply for summer 2017 following a report on the actions underway from the Chief Executive Officer of the Australian Energy Market Operator. The Chair of the Australian Competition Consumer Commission, provided an overview of the interim reports for the Electricity Supply and Prices Inquiry and the Gas Inquiry.
- Gas Market Reform –
Dr Mike Vertigan AC informed Council of the progress on the package of capacity trading reforms including standardisation of gas transportation contracts, proposed design of the capacity trading platform and proposed design of the secondary capacity trading reporting framework. Ministers agreed the full package of reforms to commence in March 2019. A review of the Northern Territory gas market will be conducted ahead of this. As well, Ministers noted the additional gas to be supplied under the Australian Government’s agreement with east coast LNG exporters means that export restrictions under the Australian Domestic Gas Security Mechanism will not be needed for 2018. The Council discussed the importance of delivering actions to support further commercial exploration and development of offshore gas resources and underground gas storage to deliver reliable and affordable gas supplies for domestic gas users.
- Resources Issues –
Ministers noted the issues highlighted by Western Australia regarding mine site rehabilitation financial obligations and associated interpretations within the Corporations Act and the Australian Accounting Board Standards. Ministers agreed that an investigation of a nationally consistent approach to these issues be undertaken by the Resources and Engagement Working Group which will report back to Ministers by mid-2018.
