See extract from Communique:

"On energy market reform, considerable work is already in train through the Standing Council on Energy and Resources. COAG expressed concern over the recent substantial electricity price increases arising from factors including increases in transmission and distribution charges and requested energy ministers to focus current reviews of market regulation in the interconnected market on achieving efficient future investment which does not result in undue price pressures on consumers and business.

COAG noted the Taskforce’s advice that the current program of work is consistent with its original vision for an interconnected national electricity market. Nonetheless, noting the interest of governments, business and consumers in competitive markets, COAG asked the Taskforce to undertake further work and advise COAG in late 2012 on any additional action required to deliver a regulatory framework that promotes a competitive retail electricity market, including appropriate support for vulnerable customers, and efficient investment."

COAG noted the strong call by business for urgent and concrete action on energy market reform to help moderate the impact of high electricity prices on consumers and business, particularly the need for greater access to more flexible pricing. COAG endorsed the most comprehensive package of energy market reforms for jurisdictions in the National Electricity Market in a decade.

The reforms were developed and agreed by the Standing Council on Energy and Resources (SCER), with advice from the BAF Taskforce. In addition to agreeing to the recommendations from SCER and the BAF Taskforce, COAG agreed in principle to adopt the new best-practice framework for reliability standards (to be developed by the Australian Energy Market Commission and which give primacy to affordability for consumers at agreed levels of reliability and take account of regional considerations) and to transfer responsibility for applying the framework to the Australian Energy Regulator (AER), with a final decision by the end of 2013.