The Panel concludes that the division of functions established by the current governance arrangements for Australian energy markets is fundamentally sound and that Australian energy market governance is amongst best practice internationally. Australia’s energy market governance relies on clearly specified and stable policy and appropriate regulatory objectives, delegation of some roles to specialist institutions and importantly, institutional separation.

In this overall structure, scope for improvement exists to adapt to the challenges foreshadowed by two themes that consistently emerged during consultations:

• the pace of change in the energy sector is arguably unprecedented; and
• a ‘strategic policy deficit’ exists which has led to diminished clarity and focus in roles, fragmentation and a diminished sense of common purpose.