|
This project
involved an evaluation of the Victorian electricity supply
industry (ESI) in order to identify restructuring opportunities
that would improve the performance of the ESI and provide
economic benefits to the people of Victoria. The project
focused on the introduction of competitive and market pressures
in the contestable sectors of the ESI, and regulatory incentives
in the non-contestable sectors.
Tasman reviewed
the structure of the Victorian electricity industry, which was
then dominated by the State Electricity Commission of Victoria -
a single integrated entity responsible for generation,
transmission, distribution and supply of electricity throughout
the state. Tasman proposed a new competitive structure that
would enable trading of electricity across an independent,
state-owned electricity grid.
Tasman assessed
the scope for competitive trading, proposed electricity trading
and pricing arrangements, advised on appropriate mechanisms for
providing subsidized services to low income customers, and
recommended a suitable regulatory structure to ensure fair
trading, service quality and security of supply. The
recommended industry structure was designed to enable Victorian
electricity companies to participate in a future integrated
national electricity market envisaged by the Federal
Government. Tasman assessed the likely costs and benefits
associated with restructuring, and designed an implementation
program with a detailed restructuring timetable. Much attention
was given to implementation and the process of change.
|
