EPRA Enquiry Full Report Released

Senate committee finds a lack of accountability could mean Australia's energy system misses key objectives

20 December 2024 - A Senate committee has tabled its final report today into the planning and regulation of Australia's energy market revealing critical weaknesses in the governance, planning, and economic efficiency of Australia’s energy market. The report calls for urgent reforms to ensure Australia meets its 2030 and 2050 energy targets.

The Senate Select Committee on Energy Planning and Regulation in Australia was established in September 2024 to examine the institutional structures, governance, regulation, and operations of the Australian energy market. As the Chair of the Committee, Independent Senator David Van, stated on the final hearing day, “This inquiry was set up purely to find ways to do things better, such that we can achieve our goals as a nation far faster and far cheaper.”

The Committee sought to test if the energy system is being planned and governed in such a way as to promote efficient investment, operation and use of electricity services for the long-term interests of consumers. It sought evidence on how Australia may decarbonise as quickly as possible while maintaining price, quality, safety, reliability and security of supply of electricity.

Over five hearing days, during which more than 82 submissions were reviewed and over 35 witnesses across government, non-profits and think tanks provided testimony, the committee found that the existing governance and planning framework is not adequate in an ageing energy system that undergoing rapid change.

“While there have been excellent previous reviews, such as those led by Dr Vertigan and Professor Finkel, the energy system is evolving far faster than planning and governance can keep up with,” said Senator Van. “In order to successfully and swiftly decarbonise our electricity system we need whole of system plans, not just transmission, with the foresight to keep up with change and sound governance that ensures planning decisions are economically sound or are cancelled or adjusted as technology or costs change.”

The Committee heard evidence of deficiencies in the current planning and accountability arrangements including by way of example massive infrastructure projects such Project Energy Connect and HumeLink experiencing years of delays and billions of dollars in cost blowouts. More nimble ways to get more efficient transmission from renewable sources to demand centres, greater storage, demand side participation and consumer energy resources being co-optimised were given as more expedient measures.