Technology, and the increased choices it offers consumers, is changing the energy sector. In particular, technologies such as battery storage – which are able to provide multiple services – make it more difficult to draw the line between what is economically regulated and what is provided by contestable markets.
The Australian Energy Market Commission (AEMC) is currently consulting on two related rule change proposals, one launched by the COAG Energy Council and the other by the Australian Energy Council. Both rule change proposals seek to promote the development of competitive markets for new technologies that are capable of providing services in both contestable and regulated markets.
The AEMC published a consultation paper on the rule changes in December 2016. In February 2017, AGL made this submission in response to the consultation paper.