Strategic context

Throughout our 2020-2021 strategic planning cycle, we have given great consideration to ensuring our Strategic Plan is as resilient as possible in an inherently uncertain future.

Our Commissioners, Executive Leadership Team and Strategy Development Team went through a process of gathering strategic intelligence about the Commission’s internal, sectoral, national and global context. We then applied methods of scenario planning experts such as Peter Schwartz, Richard Hames and Arie de Geus to identify the two most important uncertainties about our future context that this Corporate Plan must be resilient to. These uncertainties and their implications for the Commission are summarised below.

In undertaking this scenario planning we were mindful of our role. The Commission is one of four energy market bodies (including the Australian Energy Regulator, the Australian Energy Market Operator and Energy Consumers Australia) reporting to Energy Ministers. Energy Ministers set the strategic direction of the energy sector through the Strategic Energy Plan. The Strategic Energy Plan aims to provide clarity of direction for market bodies and participants in the transitioning energy system. The Commission is also a member of the Energy Security Board responsible for whole of system oversight for energy security and reliability to drive better outcomes for consumers.

Note

The uncertainties below are not our predictions of the future, nor the only uncertainties about the future we considered relevant in developing our plan. Rather they are the two key variables whose outcomes will have significant implications for our operating environment. They were used to test and validate the direction in our Strategic Plan, our objectives and what we will do to achieve them.

Uncertainly 1:

The level of coordination of Australia’s response to climate change.

Global and national economic, social, technological, and political trends are putting pressure on Australia to respond to climate change. While all nations and Australian jurisdictions are responding to this pressure, the extent of the response – by industry and governments – is uncertain.

Uncertainty 2:

The pace, nature and scale of disruption that new technologies will bring to the Australian energy sector.

New technologies are already disrupting the way we use, create, deliver, sell and store energy. This is certainly expected to continue, but at what rate of change, at what points along the energy supply chain, and what new technologies will be adopted is unknown. The uncertainties were used to map different scenarios and test our Strategic Plan against those futures. This gives us greater confidence that, despite uncertainty, our strategic objectives will help us deliver on our purpose of working for future productivity and living standards, by contributing to a decarbonising, affordable and reliable energy system for consumers.

Strategic context

Throughout our 2020-2021 strategic planning cycle, we have given great consideration to ensuring our Strategic Plan is as resilient as possible in an inherently uncertain future.

Note

Uncertainly 1:

The level of coordination of Australia’s response to climate change.

Uncertainty 2:

The pace, nature and scale of disruption that new technologies will bring to the Australian energy sector.

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Who we are

Strategic Identity

Where we want to be

Strategic Direction

The next 12 months

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