Front Cover

The objectives of the Australian national electricity market are that it should be competitive, offer customers a choice of generators and retailers, and provide open access to the interconnected transmission and distribution network. It should not present barriers to entry, more or less favorable treatment of new entrants, bias towards a particular energy source or favoritism towards, or impediments to, intra- as opposed to inter-state trade. The core objective of the market rules, set out in the National Electricity Law and regulations and the Code, is to provide a light-handed and market-oriented regime of regulation that in turn allows the market to achieve its objectives. This article discusses the governance of the market, network planning and regulation, spot and contract markets, and supply reliability and security. To properly function the market relies on a deep and active contract market alongside the spot market and a close and dynamic relationship between spot and contract prices.