Home' Future Building: The Australian Infrastructure Review : Volume 5 Number 1 Contents 76 futurebuilding Volume 5 Number 1
policy objectives. The Energy White Paper process
currently underway provides a unique opportunity
for policymakers to present a more integrated
'policy' narrative for electricity and gas markets,
and a smoother runway to a sensible future. Micro-
economic reform of Australia's east-coast energy
markets was appropriate for the time in which it was
implemented; however, times have changed.
Electricity pricing structures must be changed.
Pricing must become more cost-re ective through
'product market' reform. If we don't adopt such
product market reform, the decline in electricity
capacity utilisation and productivity will continue,
and our energy competitiveness will get worse.
At the same time, we need to accept that
changing energy generation technologies require us
to rethink both the design of our wholesale energy
market, and how best to integrate large- and small-
scale renewables so that the system is robust.
We need to take advantage of the opportunities
for distributed generation and storage, but we will
also need an ef cient and robust grid-based supply
chain for many decades to come. If we get this
reform right, consumers will bene t over the long
term. Not just households, but businesses, too. The
research I talked about earlier could become our
future if we make the right decisions -- a 10 per cent
real reduction in electricity prices is something that
would materially improve our energy productivity
and standard of living.
Fixing these issues will not be easy, but major
reform never is. To paraphrase a well-known
United States President's take on space exploration,
we should choose to tackle these problems,
not because they are easy, but because they
Jeremy Maycock, Chairman, AGL
Jeremy Maycock has been a Non-executive
Director of AGL Limited since 2006, and
Chairman since 2010. Mr Maycock is also
Chairman of Port of Brisbane Pty Ltd and a
Director of Nuplex Limited and The Smith
Family. Previously, Mr Maycock has been
Managing Director and Chief Executive Of cer
of CSR Limited and held senior management
positions in Australasia and South-East Asia
over 20 years with Swiss multinational
construction material group Holcim Ltd. His
commercial experience spans 39 years, with
his early career being with Shell Oil in the
United Kingdom and in New Zealand.
Electricity pricing structures
must be changed. Pricing must
become more cost-re ective
through 'product market'
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