Finkel’s Energy Security Board implemented

The Federal Government has implemented the Energy Security Board (ESB) as recommended by the Finkel review.

Dr Kerry Schott has been appointed the independent chair of the board, while Clare Savage will be deputy chair.

Established by the COAG Energy Council, the ESB will coordinate the implementation of recommendations from chief scientist Alan Finkel’s Final Report of the Independent Review into the Future Security of the National Electricity Market that were adopted by the council last month.

“In addition to coordinating the implementation of the Finkel Review the ESB will also deliver an annual Health of the National Electricity Market report to the COAG Energy Council that will track the performance of the system, the risks it faces, opportunities for improvement and affordability issues,” Federal Energy Minister Josh Frydenberg said.

“The commonwealth looks forward to working with Dr Schott and Ms Savage who bring extensive experience in both the private and public sector to their new roles.”

Energy Networks Australia CEO John Bradley said the board would be well led by the Dr Schott and Ms Savage.

”Dr Schott is an ideal appointment for the ESB chair. She is widely respected within the energy industry and has led systemic reforms in energy, water and other essential services,” Mr Bradley said.

“A transforming energy system needs strong, well-resourced and proactive energy market institutions, with a shared plan of action and accountability for clear milestones.”

Mr Bradley said the ESB would support better customer outcomes through coordination between the regulator, the rule maker and the market operator for a system-wide approach to energy security.

“It should provide a single point of accountability without duplicating the key responsibilities of market bodies which are also represented on the Board,” Mr Bradley said.

The Energy Security Board also includes the heads of the existing energy market governing bodies – the Australian Energy Market Operator, Australian Energy Regulator and the Australian Energy Market Commission.

The Finkel review recommended that after three years, consideration should be given to giving the Energy Security Board statutory functions.

In light of her appointment Dr Schott will resign from her role as TransGrid chair.