Friday, 19 January 2024

Energy regulation disparities in remote Australia

 

Comparisons are odorous.

Much Ado About Nothing, Act three, Scene five.

 

This week, the journal Nature Energy published an extraordinarily important article titled Geographies of regulatory disparity underlying Australia’s energy transition (link here). Authored by researchers at the ANU, University of Melbourne, and Tangentyere Council in Alice Springs, the article lays out in in stark and disturbing detail how remote and Indigenous communities are structurally and systemically disadvantaged in terms of regulatory protections related to the ongoing – and arguably accelerating – energy transition towards reliance on renewable energy resources. What makes this research particularly important is the extraordinarily detailed levels of analysis that provide irrefutable evidence of the patters and extent of systemic disparities.

 

This research article is the latest in a series of pathbreaking research papers that have opened up a line of sight into the complex energy related challenges facing remote Australia as it confronts the consequences of climate change. I have previously published a post on earlier research by members of this research team (link here). See also references #8, #19, #52, #61, and #68 in the current article.

 

The abstract to the most recent article states the primary research finding, which focusses on:

the geographic and socio-demographic characteristics of settlements likely to be underserved by regulations to: protect life-support customers, guarantee service levels, clarify connection requirements for rooftop solar, require disconnection reporting and set clear and independent complaints processes. Assessing whether communities receive fewer than four of five protections, we find that Indigenous communities are 15% more likely to be underserved across multiple metrics and remote communities are 18% more likely to be underserved. 

 

As the authors note in their introduction, summarising the paper’s conclusions:

Our study identifies settlements with fewer extant legal protections for electricity services, mapping those at risk of further exclusion from the benefits of energy transition. We find that life support protections, guaranteed service levels and disconnection reporting that are ubiquitous for residential customers within urban and regional areas are often absent in remote settlements. Remote settlements and settlements with majority Indigenous population are respectively 18% and 15% more likely to lack comprehensive regulatory and legal protections compared with non-remote and non-Indigenous settlements.

 

The authors have undertaken an extraordinarily detailed level of analysis and produced a series of vivid maps that illustrate the geographical extent of disadvantage, but also the complex inconsistencies in regulatory coverage that permeate the energy system nationally. I strongly recommend readers access the full paper (it is open access), scan through the maps to get some sense of the geographical spread of the disparities in regulatory coverage, and read (at the very least) the Discussion section of the paper.

 

The following paragraph provides an insight into the extent of the analysis upon which the analysis rests:

We reviewed each of the 284 documents recording legal protections pertaining to 3,047 settlements across Australia as of 1 July 2022, including those small settlements with fewer than 200 people. Of these 3,047 settlements, the 51 settlements missing data on relative socio-economic advantage are included in mapping but not the subsequent statistical analyses. Our review indicates that an estimated 5 million Australians (approximately 20% of the population) are living in settlements where not all customers are guaranteed protections across the five dimensions of life support, rooftop solar connection, disconnection reporting, guaranteed service levels and clear and independent complaints processes.

 

The Discussion section of the article is essential reading and makes a number of arguments that have enormous force and merit. I have not sought to summarise the authors arguments in that section here, but in what follows I don’t seek to detract from them in any way. There are however two important additional points I would make that readers should consider when reading the research article.

 

The first relates to the argument the authors make about the rationale for removing energy regulatory disparities. The authors argue that regulatory disparities in the energy sector should be addressed because Indigenous peoples’ lands will be crucial to the nation’s energy transition — a point made in a recent seminar by Ciaran O’Faircheallaigh (link here) — and it is thus likely that they will at once be contributing to the nation’s energy transition while simultaneously missing out on full access to energy related services. This point is obviously correct, but as a rationale for addressing disparity it is in my view incomplete.

 

The systemic disparities afflicting remote and indigenous communities extend well beyond the energy sector and demand a more extensive and wide-ranging investment of public resources. Remote housing provision, water infrastructure, communications infrastructure, investments in quality services in educations, health and ecological services all demand greater attention, yet are not assisted by focussing solely on the desirability of a just energy transition. The policy rationale for addressing systemic and structural disadvantage must be found in a more comprehensive and dare I say it, a more radical rationale based around the notion that Australian citizens deserve to have equal access to citizenship ‘entitlements’. The power of this research is to demonstrate once again, and with extraordinary analytical rigour, that this notion has never applied across remote Australia, and the gap continues today with no obvious policy mechanism or commitment in place which will address it.  

 

The second argument that needs to be made, and which is only implicit in the analysis of the research article, is the role of the Commonwealth in the federation and under the Closing the Gap National Agreement. For the past decade, the Commonwealth has run dead on taking a robust role in pushing the states to deliver services to all Indigenous citizens. The 1967 referendum gave the Commonwealth power to legislate because the states and territories were not delivering across the board: in energy, housing, health, employment, essential services, communications and more.  Of course the Commonwealth should step up on energy disparities across the nation, and actively and proactively pressure the states and territories to address these systemic services deficits. As the paper notes, the Commonwealth lacks access to data that even measures these energy disparities (refer to footnote 70 in the Discussion section of the article). But, in line with my first point above, the Commonwealth should step up across the board in pressing the states to deliver equal levels of services, including regulatory arrangements to all citizens residents across remote Australia.

 

Next month, we will see the Productivity Commission’s final report on its Review of Closing the Gap (link here). Whatever that report says, the lens which will best give the best measure of the quality of the Commonwealth’s response to that forthcoming report will be the extent to which it decides to shift its approach: that is, away from being just one of the nine government parties to the Agreement (an assemblage that at present might accurately be likened to a clowder of cats whose only skill is in producing policy confusion and turmoil) and towards an approach which proactively adopts the role of ringmaster or overseer, focussed on ensuring consistent and policy relevant processes are applied to the management of the Closing the Gap Agreement.

 

Such a shift in approach would increase the likelihood that policy and program inputs are made accessibly transparent, that states and territories will be held accountable for and therefore that tangible outcomes are delivered across the Indigenous policy domain including in areas such as energy regulation. One obvious and simple example of the sort of change I am advocating would be for the Commonwealth to promulgate a template for the state and territory Implementation Plans under the agreement that radically simplifies their format and length to say five or ten pages (like a Cabinet submission), rethinks the decision that they are produced each year, and lays out a template that ensures that they become real working documents rather public relations exercises and interminable lists of supposed actions and activities. At present these Implementation plans are a joke, and if they are not fixed, the National Agreement will be a joke.

 

Moreover, the Commonwealth should substantively acknowledge that there is more to Indigenous disadvantage than focussing on 19 closing the gap targets and broaden its current approach to the Priority Reforms at the core of the National Agreement (especially Priority Reform 3) to ensure a tangible focus on issues such as energy regulation shortfalls across remote Australia.

 

The pathbreaking research at the centre of this post has opened a window onto a previously hidden vista of systemic regulatory disparity in relation to access to and the provision of energy, but simultaneously reinforces out nation’s ability to ignore and live with continuing and much broader systemic disparities between remote and non-remote Australians. This is what structural exclusion looks like.

 


The citation for the article discussed above:

White, L.V., Riley, B., Wilson, S. et al. Geographies of regulatory disparity underlying Australia’s energy transition. Nature Energy (2024). https://doi.org/10.1038/s41560-023-01422-5

 

19 January 2024

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