On 9 December 2013, the Commonwealth, states and territories (the Parties) agreed to amend the Australian Energy Market Agreement.
The objectives of the Agreement are:
- the promotion of the long term interests of consumers with regard to the price, quality and reliability of electricity and gas services
- the establishment of a framework for further reform to:
- strengthen the quality, timeliness and national character of governance of the energy markets, to improve the climate of investment
- streamline and improve the quality of economic regulation across energy markets, to lower the cost and complexity of regulation facing investors, enhance regulatory certainty, and lower barriers to competition
- improve the planning and development of electricity transmission networks, to create a stable framework for efficient investment in new (including distributed) generation and transmission capacity
- enhance the participation of energy users in the markets including through demand side management and the further introduction of retail competition, to increase the value of energy services to households and businesses
- further increase the penetration of natural gas, to lower energy costs and improve energy services, particularly to regional Australia, and reduce greenhouse emissions
- address greenhouse emissions from the energy sector, in light of the concerns about climate change and the need for a stable long-term framework for investment in energy supplies.
The Parties entered into the Agreement on 30 June 2004 and agreed to amend it on 2 October 2011, 2 June 2006 and 2 July 2009.