How the sausage is made: assessing Australian policymaking practices in the energy sector

The energy sector is critical to the wellbeing of Australians and is going through major structural change.

Australia’s energy sector is facing a seismic shift, with the phase-out of coal and the integration of renewable energy sources transforming both Australia’s energy landscape and economy. To rise to the challenge and meet Australia’s bipartisan commitment to emissions reductions, large scale investment and fundamental changes in energy policy and systems are required.

Addressing these challenges is made more difficult by the complicated structure of energy policy governance and delivery in Australia, with responsibility inconsistently split between State and Commonwealth Governments and public and private providers. Given the high cost of inaction, there is an urgent need for a more coordinated, evidence-based approach to policymaking in the energy sector.

Our recommendations are as follows:

1. Improve transparency of energy policy decisions

Australian Energy Ministers should immediately publish businesses cases and supporting analysis of major State and Commonwealth energy policy and projects total investment on the Energy and Climate Change Ministerial Council (ECMC) website, or suitable equivalent public website.

2.  Improve energy sector governance in the medium-term

In the medium term, Australian governments should collaboratively reform the governance of the Australian energy sector to enable:

• an explicit role for the States and interjurisdictional policy coordination
• representation for energy consumers (business and residential)
• intergenerational and long-term considerations
• standardised, public analysis of State and Commonwealth energy policy and project proposals
• a common data collection system for energy systems and independent evaluation of all energy policy and projects
  

3. Improve the breadth of consultation and engagement

Australian Energy Ministers should immediately develop and commit to shared principles for consultation and engagement on State and Commonwealth energy policy and projects based on best-practice, and report annually on self-assessed compliance with principles on all major energy policy and projects.

4. Improve the regulation of lobbying

Australian governments should immediately adopt common minimum standards in regulation of
lobbying, including by publishing office-holder diaries (such as ministerial diaries), expanding the scope of lobbying regimes to cover all forms of lobbying, including by companies, and ensuring that lobbying regimes are properly enforced.