This legislation also provides a framework for a trade-off between environmental
flows and consumptive water. Changes in water resource availability may require
reconsideration of water made available for human uses and that set aside for the
environment. For example, if water availability declines due to climate change, the
relative allocation of water for consumptive versus environmental use will reflect a
complex mix of allocation rules which are contained within QLD’s legislation and
also the Water Plans themselves. In QLD, there are requirements so that water for
human needs and minimum environmental flow conditions are met before allocation
of water for general use, including for agriculture. Given the water management
principles and the hierarchy of water allocation in both NSW and QLD, agricultural
producers are often challenged by the complex State water management regulation
that constrains their access to water. With ongoing climate change risk and the fact
that agricultural producers are often ‘last in line’ for any water allocation creates a
necessity to undertake detailed planning and risk management to remain financially
viable and productive. In addition to the constraints imposed by State-based water
management regulation, there are further limitations imposed on agricultural water
use through the Federal Government water reform process.
7.5 National Electricity Regulation
In parallel to the developments in water management regulation, significant changes
occurred in the regulation of the electricity generation, transmission, distribution and
retail functions in the 1990s. Also, similarly to water, legislative powers concerning
electricity/energy reside with the States due to constitutional arrangements. Prior to
the National Competition Policy reform of the 1990s, Australia’s electricity market
consisted mostly of vertically integrated utility monopolies which were owned and
operated by the respective State governments (Crossley 2013). The National Competition Policy reform process ignited a broadscale restructure of the Australian
electricity market, including the separation of generation, transmission, distribution
and retail functions as well as a change to the regulatory structure governing the
electricity market. The main objective was to achieve greater market competition,
increased efficiency and transparency in order to improve the long-term interest of
consumers (Government of South Australia 1996). The National Electricity Market
(NEM) is the single largest electricity market in Australia, operating in QLD, NSW,
Australian Capital Territory, Victoria, South Australia and Tasmania (AEMO 2018).
The NEM is governed by the Australian Energy Market Agreement (2004) (COAG
Energy Council 2003) which is the national framework for the management and
supply of energy (both gas and electricity) in all Australian jurisdictions; however, to
date the active participants in the NEM remain the eastern States and Tasmania.
With the National Competition Policy reform of the 1990s and the move towards
more market-based approach to regulation, the NEM is considered an ‘unbundled’
electricity market with competition (be it limited) among generators and electricity
retailers. The transmission and distribution network service providers (TNSP and
94
S. Schulte et al.
flows and consumptive water. Changes in water resource availability may require
reconsideration of water made available for human uses and that set aside for the
environment. For example, if water availability declines due to climate change, the
relative allocation of water for consumptive versus environmental use will reflect a
complex mix of allocation rules which are contained within QLD’s legislation and
also the Water Plans themselves. In QLD, there are requirements so that water for
human needs and minimum environmental flow conditions are met before allocation
of water for general use, including for agriculture. Given the water management
principles and the hierarchy of water allocation in both NSW and QLD, agricultural
producers are often challenged by the complex State water management regulation
that constrains their access to water. With ongoing climate change risk and the fact
that agricultural producers are often ‘last in line’ for any water allocation creates a
necessity to undertake detailed planning and risk management to remain financially
viable and productive. In addition to the constraints imposed by State-based water
management regulation, there are further limitations imposed on agricultural water
use through the Federal Government water reform process.
7.5 National Electricity Regulation
In parallel to the developments in water management regulation, significant changes
occurred in the regulation of the electricity generation, transmission, distribution and
retail functions in the 1990s. Also, similarly to water, legislative powers concerning
electricity/energy reside with the States due to constitutional arrangements. Prior to
the National Competition Policy reform of the 1990s, Australia’s electricity market
consisted mostly of vertically integrated utility monopolies which were owned and
operated by the respective State governments (Crossley 2013). The National Competition Policy reform process ignited a broadscale restructure of the Australian
electricity market, including the separation of generation, transmission, distribution
and retail functions as well as a change to the regulatory structure governing the
electricity market. The main objective was to achieve greater market competition,
increased efficiency and transparency in order to improve the long-term interest of
consumers (Government of South Australia 1996). The National Electricity Market
(NEM) is the single largest electricity market in Australia, operating in QLD, NSW,
Australian Capital Territory, Victoria, South Australia and Tasmania (AEMO 2018).
The NEM is governed by the Australian Energy Market Agreement (2004) (COAG
Energy Council 2003) which is the national framework for the management and
supply of energy (both gas and electricity) in all Australian jurisdictions; however, to
date the active participants in the NEM remain the eastern States and Tasmania.
With the National Competition Policy reform of the 1990s and the move towards
more market-based approach to regulation, the NEM is considered an ‘unbundled’
electricity market with competition (be it limited) among generators and electricity
retailers. The transmission and distribution network service providers (TNSP and
94
S. Schulte et al.