The AER regulates energy markets and networks under national energy market legislation and rules. Its functions, which mostly relate to energy markets in eastern and southern Australia, include:
In the wholesale electricity and gas markets the AER monitors, investigates and enforces compliance with national energy legislation and rules.
We monitor participant bidding and rebidding, market dispatch and prices, network constraints and outages, demand forecasts and forecasts of production and capacity.
We also report on market activity, including:
Our compliance and enforcement strategy is set out in the Compliance and Enforcement – Statement of Approach.
For more information, visit our Wholesale markets pages.
The AER regulates electricity networks and natural gas pipelines by setting the maximum prices that the network owners can charge, or the maximum amount of revenue they can earn.
Network businesses submit proposals to the AER on their required revenues. We review the proposals and make decisions with reference to factors including:
Decisions generally apply for five years, and network businesses adjust their prices annually during the five year period.
For more information about how the AER regulates energy networks, you can visit our Networks & pipelines pages.
The AER regulates retail electricity and gas markets in jurisdictions that have commenced the National Energy Retail Law. The Retail Law commenced in Tasmania (for electricity customers only) and the Australian Capital Territory on 1 July 2012, South Australia on 1 February 2013, New South Wales on 1 July 2013 and Queensland on 1 July 2015.
Victoria will implement the Retail Law, subject to the resolution of state-specific issues.
The AER does not set retail energy prices, but it provides a price comparison website, Energy Made Easy, to help customers find the best energy offers for their needs.
Our other roles include:
For further information about the Retail Law and Rules, refer to the COAG Energy Council website.
For more information about the AER's retail functions and roles, visit our Retail markets pages.