Energy Policy Principles
Given all levels of government have responsibility for parts of Australia’s energy system, Australia’s energy policy framework needs to be adopted and implemented collectively and guided by a set of principles that reflect the following:
1. Energy is most efficiently delivered through well-functioning markets, supported by effective and efficient policy, regulation and processes.
2. The environmentally responsible development of energy resources should be supported by efficient and streamlined energy policies, regulation and processes.
3. Energy policies should:
- recognise that energy is critical to our economy, and that security of supply should be delivered cost effectively
- be stable and predictable to give the market confidence that long-term investment decisions can be made and adequate returns earned
- provide a level playing field for the market to invest and operate within, and they should be technology and fuel neutral
- support market-driven outcomes and timely market responses to changes in demand.
4. Government regulation should be minimal, efficient and justified against objectives.
5. Government interventions should be a last resort, targeted at identified market failures, and designed and implemented with least market distortion.
6. The objectives and principles of energy policy should be recognised in related policy development, such as environmental; and greenhouse gas emissions reduction policies.
7. Energy and greenhouse gas emission reduction policies should support Australia's economic growth and not compromise Australia's global competitiveness.
8. Australia's greenhouse gas emissions reduction measures should be capable of meeting our 2030 target.
9. Australia should renew its focus on research and development of technological advancements to support the lowering of emissions from all energy sources and on adaptation to manage the long-term impacts of climate change.