The operation of the energy system and related energy markets is governed by a range of State and Territory legislation, including a national set of energy laws and rules and jurisdictional legislation, as well as guidelines, standards, and procedures.

Overview of regulatory instruments

Energy legislation

There are three overarching laws which are relevant to the national regulation of energy markets the:

• National Electricity Law (NEL)
• National Gas Law (NGL) and the
• National Energy Retail Law (NERL).

In this section you can find information about:

• the overall legislative framework for energy in Australia
• electricity legislation
• gas legislation
• retail legislation

Energy Objectives

All of the AEMC’s work must have regard to legislated national energy objectives:

• National Electricity Objective (NEO)
• National Gas Objective (NGO)
• National Energy Retail Objective (NERO)

Responsibilities

There are a number of bodies that are responsible for energy in Australia.

Under the governance structure created by the former Council of Australia the three market bodies the:

• Australian Energy Market Commission (AEMC)
• Australian Energy Regulator (AER)
• Australian Energy Market Operator (AEMO)

oversee the nation’s energy market and report to the Energy Ministers’ Meeting. Most recently, the Energy Security Board has taken a role in coordinating some activities of the three market bodies in order to implement recommendations of the Finkel Review.

Several other bodies including:

• Energy Consumers Australia
• State and Territoty regulators
• State and Territory ombudsmen

have roles in the energy sector.

AEMC has memoranda of understanding with many of the bodies under which information is shared between the AEMC and these bodies

Energy rules

The AEMC administrates the National Energy Rules for each set of relevant energy market arrangements:

• National Electricity Rules (NER)
• National Electricity Rules (NER) for the Northern Territory
• National Gas Rules (NGR)
• National Energy Retail Rules (NERR)

The AEMC also produces resources for stakeholders who regularly work within the framework of the energy rules.

Guidelines, standards and settings

The AEMC, and under its authority, the Reliability Panel, have obligations under the National Electricity Rules to make guidelines, standards and settings which facilitate the operation of the energy system.