What is the AEMC?

The Australian Energy Market Commission (AEMC) is a national body, established under the Australian Energy Market Commission Establishment Act 2004 (South Australia).

In July 2005, the Council of Australian Governments (COAG), through its Ministerial Council on Energy (MCE), established the AEMC to undertake rule making and market development functions for the national energy markets.

The AEMC promotes the strategic longer-term design and development of energy markets through its functions of Rule making, market reviews, and policy advice.

The AEMC’s key functions under the NEL are to:

consider Rule change proposals and the effect that such proposals may have on the national energy market;
conduct energy market reviews and inquiries for the Ministerial Council on Energy (providing analysis and recommendations to inform policy making by the MCE); and
provide policy advice to the MCE as requested or on AEMC initiative.

The AEMC reports directly to the Ministerial Council on Energy (MCE). The MCE includes Commonwealth, State and Territory energy ministers, in addition to ministers from New Zealand and Papua New Guinea as observers. The MCE has the power to direct the AEMC to carry out reviews of the National Electricity Market (NEM) and the National Electricity Rules.

The MCE reported to the Council of Australian Governments (COAG) in December 2003 on major reforms to Australian energy markets. These and subsequent reforms are now endorsed by the COAG Australian Energy Market Agreement (AEMA), June 2006.

The AEMC has also entered into Memoranda of Understanding with other energy market bodies (NEMMCO, the NCC, the AER and the ACCC) to enhance communication and coordination in the development of the national electricity market.