Energy industry regulation

Energy legislation

The Australian Energy Market Agreement (as amended December 2013) sets out the legislative and regulatory framework for Australia’s energy markets. It provides for national legislation that is implemented in each participating state and territory.

South Australia is the lead legislator. Other jurisdictions introduce application legislation to give effect to the South Australian legislation.

Key energy market legislation includes:

Energy institutions

The Council of Australia Governments (COAG) Energy Council drives energy reform, including the harmonisation of regulatory arrangements.

The Australian Energy Market Agreement provided for two institutions to oversee Australia’s energy market:

  • The AER is the national economic regulator and the body responsible for monitoring and enforcing national energy legislation.
  • The Australian Energy Market Commission (AEMC) undertakes rule making and energy market development.

The Australian Energy Market Operator (AEMO) was established in 2009 to operate gas and electricity markets in southern and eastern Australia.

Energy Consumers Australia was established in 2015 as an initiative of the COAG Energy Council, to advocate on energy market matters of strategic importance and material consequence for energy consumers.