Confidence in the market and the Regulator

To be effective, the Clean Energy Regulator must be seen to be taking timely decisions that are even handed, fair, documented, communicated to a consistent standard and based on the facts and the law. A strong governance framework has been implemented to support this aim. This includes the delegations framework and standard operating procedures for good decision making and a mechanism for Internal Decision Review.

More generally, confidence in the Clean Energy Regulator depends on clients knowing what they can expect in their dealings with the Regulator and client service being maintained at a consistent high standard. To this end, the Compliance, Education and Enforcement Policy was published early in the Clean Energy Regulator's operations. In the spirit of the published policy, the Clean Energy Regulator seeks to work with clients proactively to rectify issues, help them achieve voluntary compliance and achieve the best possible reporting and data outcomes.

The Clean Energy Regulator can help build confidence in the market by reducing the risk of fraud via the design and implementation of effective anti-fraud controls. The Clean Energy Regulator's Fraud Policy Statement outlines a systematic and stringent approach to the prevention and detection of fraud committed against the agency. This is further supported by strong internal fraud control measures, which the Clean Energy Regulator is continuing to strengthen in tandem with the staged implementation of the carbon pricing mechanism.

Information also helps build confidence in the market. While maintaining the necessary protections for confidential information, the Clean Energy Regulator intends to make the most of opportunities to do more than the legislated minimum to help the market develop efficiently. Continual disclosure, updated estimates and clearly 'telegraphed' final target setting (in the case of the Renewable Energy Target) will help markets to trade on fundamentals and not on fear.

International linking will bring another dimension to the market from the commencement of the flexible price period in 2015. The Clean Energy Regulator is working proactively with the Department and with its counterparts in Europe to ensure the system for oneway linking with Europe is in place when required.