Regulatory Framework

The Australian Energy Market Commission (AEMC) is the rule maker and developer for Australian energy markets. As a national, independent body they are responsible for the detailed rules for the National Electricity Market (NEM). To further support the development of these markets, the AEMC also provides strategic and operational advice to the Council of Australian Governments’ Ministerial Council on Energy.

The objective of the AEMC’s work is to ensure efficient, reliable and secure energy market frameworks which serve the long-term interests of consumers. Accordingly, the AEMC’s work reflects the view that effective competition at wholesale and retail levels, together with balanced regulation for transmission and distribution is the best way to deliver efficient, reliable and safe energy for electricity and gas consumers.

The National Electricity Objective, as stated in the National Electricity Law, is to promote efficient investment in, and efficient operation and use of, electricity services for the long term interests of consumers of electricity, specifically with respect to:

  • Price, quality, safety, reliability, and security of supply of electricity
  • The reliability, safety and security of the national electricity system.