Submission: Orderly Exit Management Framework Draft Exposure Bill and Rule – June 2024

24 July 2024

To: Department of Climate Change, Energy, the Environment and Water (DCCEEW)
RE: Orderly Exit Management Framework Draft Exposure Bill and Rule – June 2024

Thank you for the opportunity for the Institute for Energy Economics and Financial Analysis (IEEFA) to provide input into the DCCEEW’s Orderly Exit Management Framework Draft Exposure Bill and Rule. IEEFA is an independent energy finance think tank that examines issues related to energy markets, trends, and policies. The Institute’s mission is to accelerate the transition to a diverse, sustainable and profitable energy economy.

IEEFA provided a comprehensive submission to the Energy Ministers of the National Electricity Market (NEM) jurisdictions on 2 February 2024. The focus of this submission was on the Orderly Exit Management Framework (OEMF) and its implications for the energy market. Overall, IEEFA’s view was that the OEMF has significant risks associated and should be avoided, and if it is implemented, it should be done so very carefully to prevent adverse impacts such as higher emissions, higher energy system costs and investor uncertainty. Since this submission, there have been limited changes to the design of the OEMF, so much of our original analysis of the framework remains relevant. IEEFA’s high-level view on the framework is reiterated below.
 

Regards,

Johanna Bowyer – Lead Analyst, Australian Electricity

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