Post 2025 market design for the National Electricity Market (NEM)

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By the end of 2020, the ESB needs to recommend any changes to the existing market design or recommend an alternative market design to enable the provision of the full range of services to customers necessary to deliver a secure, reliable and lower emissions electricity system at least-cost. Any changes to the existing design or recommendation to adopt a new market design would need to satisfy the National Electricity Objective. This forward work plan was approved by the COAG Energy Council at its December 2018 meeting.

Any significant changes to the electricity market design would need to be well considered, including substantial input from stakeholders and detailed consideration of alternative market designs, and telegraphed well in advance of any change to ensure there is minimal disruption to the forward contract markets for electricity.

If changes are required to deliver a long-term, fit-for-purpose market framework by the mid-2020s, then consideration of any required changes should be concluded by the end of 2020 to enable sufficient time for the market to transition to the new market framework.

Further information regarding the scope of the project, governance arrangements and forward work program can be found in the document below. Any queries should be directed to info@esb.org.au.