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:
- The National Electricity Law, a Schedule to the National Electricity (South Australia) Act 1996, establishes obligations in the National Electricity Market and for electricity networks. The Law is supported by the National Electricity Rules and National Electricity (South Australia) Regulations.
- The National Gas Law, a Schedule to the National Gas (South Australia) Act 2008, establishes obligations for gas pipelines, gas wholesale markets and a gas market bulletin board. The Law is supported by the National Gas Rules and National Gas (South Australia) Regulations.
- The National Energy Retail Law, a Schedule to the National Energy Retail Law (South Australia) Act 2011, regulates the supply and sale of energy to retail customers. The Law is supported by the National Energy Retail Rules and National Energy Retail Regulations.
- Part IIIAA of the Competition and Consumer Act 2010 (Cth) establishes the Australian Energy Regulator.
- The Australian Energy Market Commission Establishment Act 2004 establishes the Australian Energy Market Commission.
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.