Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Hansard source

Firstly, I thank the speakers who have contributed to this debate on the Australian Energy Market Amendment (National Energy Retail Law) Bill 2011. It is an important debate, as Senator Milne has pointed out. The bill sees the Commonwealth play an important facilitating role in implementing the cooperative legislative regime of the Council of Australian Governments—known as COAG—for regulating the relationship between energy retailers and their customers. This regime is the final major component of the national energy market reform program agreed by COAG in response to its 2002 Energy Market Review ‘Towards a Truly National and Efficient Energy Market’ and set out in the Australian Energy Market Agreement.

By way of an important aside, there is also a range of very important reforms under the COAG auspices that I have particular familiarity with and responsibility for in the area of what is known as the seamless national economy deregulation overseen by the Business Regulation and Competition Working Group, which I co-chair with my colleague the Minister for Finance and Deregulation, Senator Wong. It has 27 deregulatory projects across important parts of the economy to reflect national regulation as distinct from a somewhat fragmented and inefficient state and territory regulation. That has been agreed to by state and territory leaders in the Council of Australian Governments. Some important reforms that I have referred to from time to time are also being carried out under the auspices of COAG. In fact, more reform is being done in this area than we have seen in many decades.

By applying the national energy retail law as Commonwealth law the bill will help reduce the regulatory burden on energy retailers, open the market to greater competition and provide a stronger range of specific energy-consumer protections. This bill amends three Commonwealth acts. The Australian Energy Market Act 2004 as amended will apply the new national energy retail law set out in the schedule to the National Energy Retail Law ( South Australia ) Act 2011 (SA), and the rules and regulations made under it, as a law of the Commonwealth in Australia's offshore areas.

The Australian Energy Regulator and the Australian Competition Tribunal will have important roles in overseeing the proper operation of this legislative regime to ensure efficient and competitive outcomes in the energy market to protect the long-term interests of energy consumers. To this end, this bill amends the Australian Energy Market Act 2004 and the Competition and Consumer Act 2011 to explicitly allow the new national energy retail law to confer relevant functions and powers and impose duties on these two Commonwealth bodies. Under the national energy retail law, the regulation of all energy retail businesses, except in Western Australia and the Northern Territory, will be undertaken by the Australian Energy Regulator bringing the whole energy supply chain under national regulation for the first time.

The Australian Energy Regulator will oversee a robust compliance and enforcement regime across all participating jurisdictions in a manner that will contribute to the achievement of the national energy retail objective. It will also have a number of new approval functions. The amendments to the Australian Energy Market Act 2004 contained in this bill provide jurisdiction to the Federal Court to hear proceedings under the national energy retail law. This bill also amends the Administrative Decision ( Judicial Review ) Act 1977 to ensure that the administrative decisions of the Australian Energy Regulator under the national energy retail law are subject to appropriate rigorous judicial review.

In summary, the amendments in this bill represent a significant legislative step towards a truly national energy retail regime under a national energy regulator. This cooperative scheme will ensure that Australia enjoys strong energy customer protections and the benefits of competitive and efficient energy markets while minimising the regulatory burden on industry. I commend the bill to the Senate.

Question agreed to.

Bill read a second time.