Industry restructuring and reform continue to provide valuable opportunities to improve economic efficiency and benefit consumers. But the ongoing reform process presents considerable challenges for policy-makers and industry participants.

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Electricity Industry Restructuring And Reform

Successful and durable reform requires a well formed and articulated objective and buy-in from key stakeholders, including businesses, unions, regulators, and customers. And while increasing competition, or improving regulatory incentives, can lead to welfare gains, this should not be at the expense of vulnerable or disadvantaged customers.

Frontier has been an integral participant in a number of major restructuring programs in Australia. Our skill is in seeing the big picture, backing it up with robust analysis, and anticipating implementation issues to ensure they do not undo valuable reforms. Our ability derives from our team’s intimate knowledge of electricity market issues, practical reform experience, and our modelling capability.

Our work in industry reform

We oversaw major reform in New South Wales from 1999-2003, including the disaggregation of Pacific Power and implementation of full retail competition.

From 2008 to 2010 we helped design and implement further reforms to help the Government manage financial risks associated with its generation assets. In Western Australia between 1997 and 2004 we advised on market design, retail competition, metering arrangements, and industry structure, and market operation.

Consultants now at Frontier were integral to the electricity reform process in QLD between 1996 and 1998, including overseeing integration of the QLD system into the NEM.

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