Industry-led Electricity Contract Co-Design

The industry-led Working Group has been convened by the Australian Government Department of Climate Change, Energy, the Environment and Water (DCCEEW) and AusEnergy Services Limited (ASL).

The Working Group brings together specialists from across the energy ecosystem to co-design the initial set of electricity contracts that will form the basis of the Electricity Services Entry Mechanism (ESEM) and potentially the Market Making Obligation (MMO).

Working group members

• Tom Arnold, ACEN Australia
• Ally Bonakdar, NAB
• Paul Curnow, Akaysha Energy
• Stephanie Easton, Iberdrola Australia
• Paul Grzinic, Aurora Energy
• Nick Hawke, Clean Energy Finance Corporation
• Declan Kelly, Flow Power
• Andrew Mulder, RWE
• Jialin Shen, Ampyr
• Daniel Teng, Origin Energy
• Andrew Wilkins, SA Water

About the NEM Review

The Energy and Climate Ministerial Council (ECMC) commissioned the National Electricity Market wholesale market settings review (the NEM Review) to examine how wholesale market arrangements can support the transition to a renewable-based electricity system while maintaining resource adequacy and affordability.

The NEM Review’s final report, delivered in December 2025, included two key recommendations requiring standardised electricity contracts: the Electricity Services Entry Mechanism (ESEM) and the Market Making Obligation (MMO).

Following the success of the pilot co-design process undertaken as part of the NEM Review, the Review’s final report recommended that an industry-led co-design process should be convened to define the set of derivative contracts for use in these mechanisms.

Initial Co-Design Process

The initial co-design process will develop contract structures for use in the first ESEM tender, anticipated to occur in late 2027 subject to ECMC approval.

The process will run for up to 18 months from early May 2026, involving several in-person workshops and intersessional work including technical analysis and stakeholder consultation.

The Working Group for the initial contract co-design process will be supported by a Convening Group, comprised of representatives from the Commonwealth DCCEEW, ASL and in an observing capacity, the AER. Commonwealth DCCEEW has appointed L.E.K. Consulting as the independent facilitator of the Working Group, to support the design and delivery of the workshops and the broader co-design process. The Convening Group will oversee the Working Group's operations and provide administrative and resourcing support.

More information

For more information about the co-design process, selection criteria and process please refer to:

• Industry-led electricity contract co-design: Interim guidelines and procedures
• National Electricity Market Wholesale Market Settings Review – Final Report
• 2025 Pilot Co-design Process Outcomes
• Fungibility Fact Sheet

Further information can also be found on the Australian Government’s website.