Market Institutions The three market institutions are the main vehicles by which the Energy Council governs the Australian energy markets. The AEMC is responsible for rule making and market development in respect of electricity and natural gas transmission and distribution networks and retail markets other than retail pricing. It is established under the Australian Energy (SA). While this is enacted in Market Commission Establishment Act 2004 South Australia, it requires the unanimous agreement of the Energy Council to amend. The AER is the principal regulator of energy in Australia. It enforces the electricity and gas rules and is responsible for the economic regulation of electricity and gas transmission and distribution networks and retail markets (other than retail pricing). The AER is established under the Competition and Consumer Act 2010 (Cth), which is enacted by the Australian Government. The responsibility for the AER rests with the Commonwealth, however the AER’s governance, functions, powers and duties are established under agreement of the Energy Council. AEMO is the system market operator of the NEM and the Victorian wholesale gas market, the operator of various gas markets and the national transmission planner. AEMO is a company limited by guarantee. It has two of members: government (60 per cent) and industry (40 per cent). Its corporate activities are governed by its Constitution and any obligations required by the Corporations Act 2001 (Cth). National Energy Governance Structure The interaction between the three energy market institutions and Governments is provided in the diagram below. Issues for Comment This paper provides some specific questions to guide stakeholder submissions. These questions are not exhaustive and stakeholders should feel free to raise any
Market Institutions The three market institutions are the main vehicles by which the Energy Council governs the Australian energy markets. The AEMC is responsible for rule making and market development in respect of electricity and natural gas transmission and distribution networks and retail markets other than retail pricing. It is established under the Australian Energy Market Commission Establishment Act 2004 (SA). While this is enacted in South Australia, it requires the unanimous agreement of the Energy Council to amend. The AER is the principal regulator of energy in Australia. It enforces the electricity and gas rules and is responsible for the economic regulation of electricity and gas transmission and distribution networks and retail markets (other than retail pricing). The AER is established under the Competition and Consumer Act 2010 (Cth), which is enacted by the Australian Government. The responsibility for the AER rests with the Commonwealth, however the AER’s governance, functions, powers and duties are established under agreement of the Energy Council. AEMO is the system market operator of the NEM and the Victorian wholesale gas market, the operator of various gas markets and the national transmission planner. AEMO is a company limited by guarantee. It has two of members: government (60 per cent) and industry (40 per cent). Its corporate activities are governed by its Constitution and any obligations required by the Corporations Act 2001 (Cth). National Energy Governance Structure The interaction between the three energy market institutions and Governments is provided in the diagram below. Issues for Comment This paper provides some specific questions to guide stakeholder submissions. These questions are not exhaustive and stakeholders should feel free to raise any
Issues%20Paper%20MASTER-%20April%202015_1.docx