The electricity sector continues to evolve at a rapid pace, with the introduction of wholesale and retail competition in New South Wales, and continued progress towards a national electricity market. Concurrently, the regulatory framework is developing to meet this changing environment. A great deal of focus is being placed on the need to ensure that competition is not impeded by a lack of effective access to monopoly services.
The Tribunal has two main objectives in relation to the electricity sector: to increase competitive market forces, and to effectively regulate those parts of the industry which remain monopoly businesses. These Guidelines on embedded generation are important for both of these objectives. Embedded generation can increase competition in the wholesale market for electricity, and can also increase the competitive pressures on the network businesses. Nonetheless, regulation will continue to recognise that the networks remain, to a large extent, natural monopolies.
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