Energy Emergency Response in Australia Energy Security Branch 12th May 2016

What is energy security? Australian definition Adequate, reliable and competitively priced supply of energy to support economic and social development Adequate - sufficient energy Reliable - minimal disruptions Competitively priced - from perspective of energy users and energy suppliers

Australia’s approach to energy security Role of Government Establish the market rules Monitor and assess the markets Operate major electricity and gas markets Emergency response (planning, implementation)

Energy Emergency Policy The Department of Industry, Innovation and Science is responsible for energy emergency policy at the federal level Australia looks to the market to respond before government intervention, subject to the characteristics of the situation The Australian Government also works closely with State and Territory governments and the energy supply industry through various emergency committees to develop emergency response policies and plans, including: National Electricity Market Emergency Management Forum (NEMEMF) National Gas Emergency Response Advisory Committee (NGERAC) National Oil Supply Emergency Committee (NOSEC)

Electricity Emergency Response This is primarily a physical incident that can be dealt with by local resources without any additional assistance. A site or control room supervisor normally manages this level of incident as part of their normal job function. Level 1 – Local incident A local emergency noticeably affects the participants ability to deliver services. An operational line manager based at or near the control room generally manages theis type of incident. Level 2 – Local emergency Involves a single industry participant had has a moderate to severe impact on other industry participants. An executive Emergency Manager from the relevant NEM participant generally manages this type of emergency. Level 3 – Widespread emergency The impact of this emergency goes well beyond a single industry participant or jurisdiction. The overall system integrity is being impacted and requires a coordinated response of multiple industry participants. Level 4 – AEMO co-ordinated response The actual or potential impact of the power system emergency escalates to the point that a jurisdiction decides to intervene in normal market operations by use of its energy emergency powers. Level 5 – Jurisdictional direction

Natural Gas Emergency Policy National Gas Emergency Response Advisory Committee: Established by the Memorandum of Understanding (MOU) between the jurisdictions Regularly updates its Interruption to Supply Process Conducts regular discussion exercises Produces a Contingency Planning Report

National Liquid Fuel Emergency Framework Jurisdictional legislation – State/Territory Governments will respond in the first instance to an emergency within their boundaries Liquid Fuel Emergency Act 1984 (LFE Act) – equips the Commonwealth Government with the authority needed to manage a national liquid fuel emergency Intergovernmental Agreement – promotes effective coordination between Commonwealth and State/Territory Governments in implementing the LFE Act and National Liquid Fuel Emergency Response Plan (NLFERP) Council Of Australian Governments COAG Energy Council National Oil Supplies Emergency Committee (NOSEC)

National Liquid Fuel Emergency Response Plan Details the background policy and operational aspects of managing a national liquid fuel emergency Sets out roles and responsibilities for key stakeholders as well as agreed communications principles Includes statements about core operational policies including demand restraint, bulk allocation and retail rationing

Department of Industry, Innovation and Science Industry House 10 Binara Street Canberra City, ACT 2601, Australia Telephone +61 2 6213 6000