More reforms needed in APEC energy sector: study
Monday, 3 September 2007
SYDNEY, Sept 2 (AFP): Pacific rim economies should reform their power sectors to minimise the impact of energy supply disruptions and oil price swings, a paper to be released at the annual APEC meetings here said.
The reforms should focus on making economies more resilient to these threats, said the paper prepared for top business executives attending the Asia-Pacific Economic Cooperation (APEC) forum.
With energy security emerging as a major concern and high on the agenda of the September 2-9 meetings, it was important for policy makers to understand the issues so they could be guided as they craft these reforms, it said.
"Energy security is a serious ongoing challenge to APEC and other economies. But far from implying a need to slow the process of energy reform, the challenge of energy security suggests that the reform process needs to be accelerated," the paper said.
"There is a risk that if energy security it not properly understood, and if the basis of policy formulation is not sound, then the benefits of power sector reform will be jeopardised."
The aim of the reforms should be the establishment of well- functioning energy markets, said the paper, prepared by Australia's Centre for International Economics.
This would ensure that alternative fuels developed in the future would be transparently priced and have wider economic benefits.
Crucial elements in these reforms would include breaking down the entire power structure into three: electricity generation, transmission, and wholesale and retail.
Electricity generation monopolies should be eliminated and a competitive market for power introduced, underpinned by appropriate institutional and regulatory arrangements, the paper said.
The reforms should focus on making economies more resilient to these threats, said the paper prepared for top business executives attending the Asia-Pacific Economic Cooperation (APEC) forum.
With energy security emerging as a major concern and high on the agenda of the September 2-9 meetings, it was important for policy makers to understand the issues so they could be guided as they craft these reforms, it said.
"Energy security is a serious ongoing challenge to APEC and other economies. But far from implying a need to slow the process of energy reform, the challenge of energy security suggests that the reform process needs to be accelerated," the paper said.
"There is a risk that if energy security it not properly understood, and if the basis of policy formulation is not sound, then the benefits of power sector reform will be jeopardised."
The aim of the reforms should be the establishment of well- functioning energy markets, said the paper, prepared by Australia's Centre for International Economics.
This would ensure that alternative fuels developed in the future would be transparently priced and have wider economic benefits.
Crucial elements in these reforms would include breaking down the entire power structure into three: electricity generation, transmission, and wholesale and retail.
Electricity generation monopolies should be eliminated and a competitive market for power introduced, underpinned by appropriate institutional and regulatory arrangements, the paper said.