Former chief scientist Alan Finkel warns Victoria’s revived State Electricity Commission (SEC) will need to proceed carefully to avoid crowding out private sector investment, as he joins former Telstra boss Andy Penn and the former regulator Audrey Zibelman overseeing the government-owned energy operator.

Victorian Premier Daniel Andrews announced on Tuesday a panel of six energy experts and business leaders to advise the government on bringing back the SEC, a key pledge from the November state election campaign.