1. Keynote Address APEx 2008 Dr Dan Norton Chairman - NEMMCO

2. The Association of Power Exchanges and NEMMCO extend their appreciation to the following major sponsors for their support of the Conference. Gigawatt Sponsor Megawatt Sponsors

3. The Association of Power Exchanges and NEMMCO extend their appreciation to the following sponsors for their support of the Conference: Kilowatt Sponsor Harbour Cruise Dinner Sponsor Conference Dinner Sponsor

4. 4 Australia’s National Electricity Market covers the Eastern and Southern interconnected electricity system Scale 01,000km

5. 5 Australian Market Successes  Reduced wholesale prices in most jurisdictions  Efficient investment in generation and supply reliability maintained  National system operation  Retail transfer activity one of the highest in the world  Victoria, South Australia and Queensland currently experiencing about 20-25% churn in retail customers  NSW at about 13% churn  IEA have given a good report  Australia has one of the most transparent and competitive electricity markets in the world –New entrants face minor barriers –Robust 3 rd party access –For most part there is sufficient diversity of supply to mitigate market abuse

6. 6 Participants Generators Market Customers(Retailers) Participant End Use Customers Network Operators Traders National Electricity Law AEMC National Electricity Market Rules ASIC NEMMCO AER Economic Reg and Rule compliance Power System and Market Operator Rule Maker NEM Regulation and Governance Ministerial Council on Energy Policy Making

7.  AEMO to commence operations on 1 st July 2009  AEMO will include:  All functions currently carried out by NEMMCO  All functions carried out by VENCorp in Victoria, Gas Market Company in NSW, Queensland retail gas market and REMCo in South Australia  Additional functions of:  National Transmission Planning  Bulletin board for gas  Short term forward market for gas Australian Energy Market Operator

8. Climate Change  Emissions Trading Scheme – Carbon Pollution Reduction Scheme  Major impact on base load coal fired generation  Increasing wind generation  Improved forecasting  Semi dispatch 8