Impacts of climate change policies on electricity retailers

In preparation for the final report of its Review of Energy Market Frameworks in Light of Climate Change Policies, the Australian Energy Market Commission (AEMC) has released a report prepared by Frontier Economics (Australia) on the impact of climate change policies on electricity retailers.

Frontier’s report, commissioned by the AEMC, discusses the implications of the proposed Carbon Pollution Reduction Scheme (CPRS) for electricity retailers in the National Electricity Market (NEM). The report focuses on the likely uplift in both the level and volatility of wholesale electricity prices in the NEM, and the potential strategies that an efficient retailer might use to manage the increased risks posed by the CPRS.

The AEMC’s Review will conclude with advice to the Ministerial Council on Energy in September 2009.

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