Australia’s economy was shaped by access to low-cost energy. But energy costs are rising and our comparative advantage in energy is weakening.
We need a balanced approach to energy policy. This Business Council of Australia report, Australia’s Energy Advantages, identifies five priority areas of reform, which are to:
- Improve the competitiveness of our energy resource sector by lowering the cost of production.
- Ensure access to our natural gas resources and improve information and trading in our gas markets.
- Improve the efficient operation of our electricity markets by moving to prices that reflect the cost of delivery to consumers.
- Underpin Australia’s liquid fuel security by continuing to support access to competitive and open domestic and international markets.
- Cost effectively manage our greenhouse gas emissions by driving investment in research and development (R&D) in technology, acting in tandem with the world and reducing emissions at least cost to the economy.
The Australia’s Energy Advantages report represents the Business Council of Australia’s submission to the federal government Energy White Paper process.
Delivering on these areas of reform will help maximise the value of Australia’s energy resources to the Australian people, but it will require bipartisanship and policy settings that stay the course.