1. The future electricity industry starts when policy uncertainty stops! Brad Page Chief executive Officer

2. 2 Electricity Today Reliable energy source at the heart of economic and social activity. Low cost energy; essential service features Current asset value of $120 billion, built over 50+ years Centralised generation model; customer relatively uninvolved Emissive – 35% of Australia’s total

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4. 4 Electricity’s Opportunity Growth story not a rustbelt industry Low emission electricity vital for deep emission reductions – big asset changes New uses: transport, water, HVAC More electricity used but efficiently – serious challenge Intelligent grids, embedded generation and connected consumers

5. 5 The future Australian electricity industry

6. 6 3 Key Issues Commitment and clarity of purpose Efficient and enduring policy mechanisms Community engagement

7. 7 Commitment and clarity of purpose Emission reduction = huge investment Capital attraction is main issue; risk minimisation is close relative What is to be achieved and by when - commit Comprehend sectoral capability and limitations - rate of change not the ultimate objective is the issue Many measures = interface issues = risk

8. 8 Efficient and enduring policy mechanisms Water and oil problem – big investments don’t like short-term policy making Bi-partisan agreement necessary – critical issue Policy intervention only where markets will fail Transition period is challenging Capital enabling not capital destroying – stranding assets send poor signal

9. 9 Community engagement Time for honesty with the community Action = cost No global action = more cost Price signals are important to achieve behavioural change Energy consciousness as an auto-reaction

10. The future electricity industry starts when policy uncertainty stops! Brad Page Chief executive Officer