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The Commonwealth Budget delivered on 25 October forecasts that electricity prices will increase in the National Electricity Market by 20% by the end of this year and a further 30% next financial year – a potential cumulative increase of 56%. 

In addition, Federal Treasury expects retail prices of gas to increase by 20% this year and a further 20% in 2023-24. 

To reduce the impact of rising energy prices on South Australians, the Government has established a National Energy Crisis Committee of Cabinet, which will be supported by a Taskforce chaired by the Minister for Energy and Mining and the Department for Energy and Mining (DEM). 

A panel of energy market and economic experts are required to provide strategic advice on the issues contributing to energy price increases and potential policy options to reduce the scale of energy price increases. The procurement aims to establish contracts with multiple suppliers with sufficient capability, capacity, and expertise in energy markets (electricity and gas). 

DEM requires suppliers to have the following expertise and experience: 

• Expertise in the current functioning of the energy markets (including east coast gas markets and National Electricity Market (NEM)). 

• Knowledge and expertise of the South Australian energy systems and associated markets.  

• Experience in providing strategic energy market advice and developing energy policy. 

• Experience in providing energy market modelling and analysis. 

• Experience in preparing economic modelling and analysis for government agencies. 

• Experience in modelling and optimising energy systems 

Services required by suppliers as follows: 

• Energy market analysis to support decision making in relation to potential impacts on the National Electricity Market and contribution to the South Australian government’s energy market objectives. 

• Provide strategic advice underpinned by economic and econometric analysis on issues contributing to energy price increases. 

• Cost benefit analysis 

• Energy market analysis 

• Energy market modelling 

• Economic impact analysis 

• Contribute to the identification of potential policy actions to obtain a sustained reduction in the scale of energy price increases. 

• Identify risks associated with potential policy options. 

• Develop risk management plan for identified risks. 

• Assess market participant behaviour associated with potential policy options. 

• Provide strategic advice on market strategies, commercial strategies, and business models. 

• Provide consultancy and professional services to energy task force activities. 

Service providers will be engaged on a time and material basis by DEM. They will be required to provide their expertise as and when required to complete work packages. under the National Energy Task Force. 

3-6 suppliers will be selected for the panel.