The Australian Energy Regulator (AER) is Australia's national energy market regulator and an independent statutory authority. The AER is funded by the Commonwealth, with staff, resources and facilities, provided from the Australian Competition and Consumer Commission (ACCC). It was established under Part IIIAA of the Trade Practices Act 1974 and operates as a separate legal entity.
The AER operates under the Competition and Consumer Act 2010 (Commonwealth). Our functions are set out in national energy market legislation and rules, and mostly relate to energy markets in eastern and southern Australia. These functions include:
setting the prices charged for using energy networks (electricity poles and wires and gas pipelines) to transport energy to customers
monitoring wholesale electricity and gas markets to ensure suppliers comply with the legislation and rules, and taking enforcement action where necessary
publishing information on energy markets, including the annual State of the energy market report and more detailed market and compliance reporting, to assist participants and the wider community
assisting the ACCC with energy-related issues arising under the Competition and Consumer Act, including enforcement, mergers and authorisations.
The AER will assume new responsibilities in 2012 for regulating retail energy markets. The responsibilities are wide ranging and will include monitoring and enforcing compliance with the National Energy Retail Law; authorising retailers to sell energy; approving retailers’ policies for dealing with customers in hardship; administering a national retailer of last resort scheme, to protect customers and the market if a retail business fails; and reporting on retailer performance and market activity.
While the states and territories will remain responsible for regulating retail energy prices, the AER from 1 July 2012 will provide an online price comparison service for small customers.