Links to market governance and government agencies
The AEMC determines the policy environment and governance structures that shape the development of Australia’s energy markets, and sets the operating requirements for and obligations of market participants. The AEMC is responsible to the Council of Australian Governments (COAG) through the Standing Council on Energy and Resources. COAG is the peak intergovernmental forum in Australia, and its members are the Prime Minister, State and Territory Premiers and Chief Ministers, and the President of the Australian Local Government Association.
The AER oversees economic regulation and compliance with the National Electricity Law and Rules and the National Gas Law and Rules. The AER is accountable to the Commonwealth Government as a constituent entity of the Australian Competition and Consumer Commission, an independent Commonwealth statutory authority.
National Electricity Law
AEMO’s Electricity functions are prescribed in the National Electricity Law (NEL), while procedures and processes for market operations, power system security, network connection and access, pricing for network services in the NEM, and national transmission planning are all prescribed in the National Electricity Rules.
The NEL is contained in a Schedule to the National Electricity (South Australia) Act 1996 and has been adopted by each of the participating jurisdictions.
National Electricity Rules
The National Electricity Rules (Rules) provide the regulatory framework for market operations, power system security, network connections and access, pricing for network services in the NEM, and national transmission planning.
The Rules are made under the National Electricity Law (NEL).
In Victoria, the national arrangements for network connections are modified by assigning many network service provider roles to AEMO.
Among other things, the NEL and the Rules also provide for the protection of confidential information by AEMO, network service providers, and connection applicants.These provisions oblige all parties to protect confidential information, and permit certain information to be disclosed in certain circumstances.
National Gas Law
AEMO's gas functions are prescribed in the National Gas Law (NGL). The NGL is contained in a schedule to the National Gas (South Australia) Act 2008 and has been adopted by each of the participating jurisdictions.
National Gas Rules
The National Gas Rules (NGR) govern access to natural gas pipeline services and broader elements of natural gas markets. The NGR carries the force of the National Gas Law (NGL). The NGR sets out the processes by which the gas markets are operated, and the responsibilities and obligations of market participants.