The chairman of Australian Gas Light Co (AGL) has called for the establishment of a national energy market in the country, saying that the present system – whereby the energy sector is regulated on a state-by-state basis, with different pricing regulations and regulatory controls applying in each state – increases risk and reduces efficiency.

The National Electricity Market (NEM) has been operating in Australia as a wholesale market for the supply of electricity to retailers and end-users since 1998, and is currently undergoing substantial reform. Progress has not, however, been as quick as was originally planned, particularly in the development of a national regulatory framework for retail and distribution.

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