Vic demands national energy rule overhaul

Victoria is demanding a change to national energy rules to allow for cheaper backup power.
Victoria is demanding a change to national energy rules to allow for cheaper backup power.

Victoria is demanding a change to national energy rules to lock in cheaper backup power during summer heatwaves.

The state government wants the Australian Energy Market Operator to be able to lock in long-term contracts for reserve power, rather than rely on year-by-year agreements.

Energy Minister Lily D'Ambrosio has asked for an exemption from the Australian Energy Market Commission, so the operator can negotiate agreements more than nine months in advance.

Victoria says it has long called for a change to national energy rules and is not willing to wait any longer.

Longer-term reserve power agreements would help prevent blackouts during summer heatwaves, Ms D'Ambrosio says.

"Securing longer-term reserve power is not a silver bullet," she said on Wednesday.

"But it's important we use everything in our arsenal to help (the market operator) balance our energy supply and demand during prolonged hot weather."

Australian Associated Press