National framework
The national framework is best described in terms of the specialised roles assigned to particular bodies created to administer energy markets in Australia.
Ministerial Council on Energy
The Ministerial Council on Energy (MCE) is the national policy and governance body for the Australian energy market. The MCE comprises Energy Ministers from the Commonwealth, state and territory governments.
For more information on MCE, go to the Ministerial Council on Energy.
Australian Energy Market Commission
The Australian Energy Market Commission (AEMC) is an independent, national body responsible for rule-making, market development and policy advice for the national electricity and gas markets.
The AEMC reports directly to the MCE. The MCE may direct the AEMC to review the effectiveness of competition in a market for natural gas and/or electricity for the purpose of giving advice on retaining, removing or reintroducing retail price controls.
For more information on AEMC, go to the Australian Energy Market Commission.
Australian Energy Regulator
The Australian Energy Regulator (AER) is a separate legal entity and a part of the ACCC. The AER regulates the wholesale electricity market and is responsible for the economic regulation of the electricity transmission and distribution networks in the national electricity market (NEM). The AER is also responsible for the economic regulation of gas transmission and distribution networks and enforcing the national gas law and national gas rules in all jurisdictions except Western Australia.
For more information on AER, go to the Australian Energy Regulator.
Australian Energy Market Operator
The Australian Energy Market Operator (AEMO) is a new body formed by a decision of the Council of Australian Governments to strengthen the governance of energy market operation in the electricity and gas sectors.
It incorporates the electricity market operator functions of NEMMCO and the gas market functions of the Gas Market Company (GMC), Retail Energy Market Company (REMCo) and the Victorian Energy Networks Corporation (VENCorp).
For more information on AEMO, go to the Australian Energy Market Operator.