PDF: 1917 KB - Infrastructure Australia

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PDF: 1917 KB - Infrastructure Australia

InfrastructureAustralia2.3 One economy, one set of rulesTable 4: Direct impacts of regulatory reformReform area Nature of change Direct impactTransmission reform increasing dispatchefficiency in the NEM, and further procompetitivereformImproved productivity in the use of allinputs in electricity generationNational infrastructure challengesElectricitygenerationElectricity supplyElectricity sectorgovernmentadministration costsGas supplyGas pipelinetransportRoad and railfreight transportPorts andassociatedinfrastructureRegulatory reformA more competitive and integratedNEM reducing the need for trade riskmanagementRegulatory governance reform reducinginvestment risk to participants in the NEMIncreased generator competition,transmission reform and demand-sidemanagement reducing electricity pricesRegulatory governance reform reducingretail compliance costsRegulatory governance reform reducinginvestment risk in electricity retailReducing unnecessary duplicationacross jurisdictionsRegulatory governance reform reducingcompliance costsRegulatory governance reform reducinginvestment riskRegulatory governance reform reducinginvestment riskReforms increasing the productivity of roadfreight infrastructureReforms increasing the productivity of railfreight infrastructureReforms increasing the productivity of portsand port handling servicesIncreased competition and investment inport services from incumbent port serviceproviders responding to existing capacityconstraints or market entrants investing innew infrastructureReduction in regulatory compliancecosts from reviewing existing regulations,improved gate-keeping mechanisms for newregulation, greater regulatory consistencyacross jurisdictions, reduced regulatoryoverlap and better measurement ofregulatory burdensImproved productivity in the useof labour and financial servicesby electricity generationLower required risk-adjusted rate of returnto capital in electricity generationReduction in economic rentthrough pro-competitive pricingin electricity generationImproved productivity in the use of allinputs in electricity retailLower required risk-adjusted rate of returnto capital in electricity transmission,distribution and retailImproved productivity in the use of allinputs in government regulation of theelectricity sectorImproved productivity in the use of allinputs in gas supplyLower required risk-adjusted rate of returnto capital in gas supplyLower required risk-adjusted rate of returnto capital in pipeline transportImproved productivity in the use of allinputs in road freight transportImproved productivity in the use of allinputs in rail freight transportImproved productivity in the useof all inputs in container ports andassociated infrastructureReduction in economic rentsthrough new economically efficientinvestment in container ports andassociated infrastructureImproved productivity in the use ofbusiness services in all industriesImproved productivity in the use of labourin all industriesImproved productivity in the use of capitalin all industriesSource: Adapted from Productivity Commission 2006, Potential Benefits of the National Reform Agenda: Report to the Council of AustralianGovernments, Canberra, pp. 22-2326 | Infrastructure Australia – Advising Government on Australia’s Infrastructure

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