Market bodies

Australia’s energy system is governed by a number of bodies and agencies that work together to ensure energy is delivered securely, reliably and at efficient cost to consumers.

At the centre of this framework are three national market bodies:

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

These bodies operate under the oversight of the Energy and Climate Change Ministerial Council (ECMC) and form part of a broader ecosystem that includes governments, consumer representatives and industry participants.

This governance model separates:

• Policy development (governments)
• Rule-making (AEMC)
• Market operation (AEMO)
• Regulation and enforcement (AER)

This separation supports transparent decision-making and efficient operation of Australia’s energy markets.

How the market bodies work together

Australia’s energy market operates through a coordinated framework:

• AEMC develops and amends the rules that govern the energy system
• AEMO operates the markets and power systems under those rules
• AER regulates the system and enforces compliance with the rules

While each organisation is an independent decision-maker, they work closely together to support the long-term interests of energy consumers.

Australian Energy Market Operator (AEMO)

AEMO is responsible for operating Australia’s electricity and gas systems and markets, ensuring supply and demand are balanced in real time and the system remains secure and reliable.

AEMO also provides planning and forecasting to support the future development of the energy system.

Australian Energy Market Commission (AEMC)

The AEMC is the rule-maker for Australia’s energy markets. It develops and amends the:

• National Electricity Rules (NER)
• National Gas Rules (NGR)
• National Energy Retail Rules (NERR)

The AEMC manages the rule change process, conducts reviews, and provides advice to governments on improvements to market frameworks.

Australian Energy Regulator (AER)

The AER is responsible for economic regulation and compliance in Australia’s energy markets. It:

• Enforces the rules set by the AEMC
• Monitors market performance and participant behaviour
• Regulates electricity networks and gas pipelines
• Oversees retail energy markets in applicable jurisdictions

Energy Consumers Australia

Energy Consumers Australia (ECA) represents the interests of residential and small business energy consumers.

ECA provides an independent consumer perspective in energy market development, helping ensure decisions are made in the long-term interests of consumers.

Supporting Australia’s energy transition

Australia’s energy system is undergoing significant transformation as new technologies, renewable generation and evolving consumer participation reshape the market.

The market bodies are supporting this transition by:

• Updating and evolving market rules and frameworks
• Maintaining system security and reliability
• Regulating market performance and consumer outcomes
• Supporting long-term system planning and investment

This coordinated approach helps ensure the energy system can adapt while continuing to deliver reliable and affordable energy.