I move:

That this bill be now read a second time.

The Australian Energy Regulator Inquiry Powers Bill 2026 establishes a new energy market inquiry framework for the Australian Energy Regulator, the AER. The bill reflects the intention to ensure that the AER has the tools necessary to monitor, analyse and respond to developments in energy markets that affect Australian households, businesses and the broader economy.

The market consequences of supply disruptions, infrastructure constraints, unpredictable fuel availability, international conflicts, changing global demand patterns or market conduct by individual entities can quickly flow through Australia's energy system and affect consumers.

The government must be able to respond quickly and effectively to such developments. To do so, it requires timely, reliable and independent information. This bill provides a mechanism to better support that objective.

This bill would establish a head of power to enable the AER to undertake inquiries at the direction or with the approval of the energy minister. Inquiries will enable swift responses to government reporting requirements in periods of market uncertainty, such as the Middle East conflict. This will help to ensure that Australian households are protected against electricity price shocks through periods of uncertainty. It will ensure that future energy policy is evidence based, proportionate and targeted and that any market interventions prioritise affordable energy for households and businesses while minimising unintended consequences for energy security and market function.

It will also improve overall the quality of energy monitoring and transparency beyond times of crisis. This inquiry function will enable the AER to investigate a wide range of energy market concerns and immediately respond to government direction where further oversight of market impacts is needed. These may include matters relating to competition, pricing, market conduct, supply chain issues, market efficiency, reliability, security and related services markets. This inquiry function would empower the AER to investigate unforeseen issues and monitor developments where there is a risk of adverse market or consumer outcomes.

The remit of the AER inquiries will be in relation to the supply of energy related goods or energy related services. This includes electricity, gas and fuels, and other goods required for the supply of electricity and gas. This definition is intentionally broad to provide flexibility for the energy minister to respond to future energy market concerns and adapt to an evolving energy landscape.

The bill expressly provides that the new inquiry framework does not limit the operation of part VIIA of the act. Part VIIA sets out the role and powers of the ACCC and other inquiry bodies in relation to undertaking price inquiries. This ensures that the existing inquiry and price surveillance functions available under that part continue to operate according to their existing terms. The bill therefore adds to the tools available under the act rather than replacing or restricting existing powers.

To initiate an inquiry, the energy minister would direct the AER with an energy market inquiry notice; which will define the scope and timing of the inquiry. This notice will include any directions from the minister to hold collected information publicly, or in private, or any other direction that the minister deems necessary. Alternatively, the energy minister may approve requests for the AER to conduct inquiries on their own initiative by written notice.

A key feature of the framework is that it builds upon existing legislative arrangements. Rather than establishing a new compulsory information-gathering regime, the bill allows the AER to utilise its existing information-gathering powers under the Competition and Consumer Act 2010. This approach avoids duplication, promotes consistency and ensures that existing safeguards continue to apply.

All inquiries would have reporting requirements, with the AER to report to the energy minister at the conclusion of the inquiry or over a time period or frequency of the minister's choosing. These reports are expected to be publicly available, although the energy minister has discretion to not publish reports.

The bill also supports effective regulatory coordination. Energy market participants are often required to provide information to multiple government agencies and regulators. The government is committed to reducing unnecessary duplication and regulatory burden wherever possible. Accordingly, the bill establishes a limited information-sharing framework.

The bill will strengthen the government's ability to understand developments affecting Australian energy markets. It will support timely analysis of emerging risks and opportunities. It will improve regulatory coordination. And it will ensure that governments are better equipped to make informed decisions in the interests of Australian households, businesses and energy consumers.

Debate adjourned.