The AER has undertaken an analysis of the regulatory environment for electricity networks in the National Electricity Market.
This information paper looks at the historical context for the current framework and includes the AER’s observations on how the electricity system and regulatory framework are evolving. It provides context for assessing whether the current framework will remain resilient. It asks whether what and how we regulate still aligns with why we regulate as the system changes.
The paper covers the main phases of electricity industry and regulatory reform, the rationale for regulation, the key features of the current approach, what is regulated in the NEM, and how electricity networks may evolve over time.
This work will inform the AER’s future approach to ensuring the regulatory framework remains fit for purpose and engaging in broader reform processes, including the AEMC’s Electricity Network Regulation Review and relevant rule change processes.
Learn more about AEMC's Electricity Network Regulation Review