What the AEMC does
The AEMC is responsible for rule making, market development and policy advice concerning both the National Electricity Market (NEM) and elements of natural gas markets.
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. Responsibility for retail price contrcol will be retained by states and territories unless they choose to transfer such arrangements to the AEMC and the Australian Energy Regulator (AER).
Electricity
The National Electricity Market (NEM) has been in operation since 1998. It is a wholesale market for electricity supply in the Australian Capital Territory and the states of Queensland, New South Wales, Victoria, Tasmania and South Australia. It delivers electricity to market customers on an interconnected power system that extends from Queensland to South Australia and includes a sea-bed cable between Tasmania and Victoria.
The NEM is governed by the National Electricity Law (NEL) and the National Electricity Rules. The Rules include details of the NEM’s technical and economic operation, covering the wholesale electricity market and the electricity network system.
Under the NEL when exercising its rule making functions, the AEMC must be satisfied that the proposed Rule will or is likely to contribute to the achievement of the national electricity objective. That objective is to promote efficient investment in, and efficient operation and use of, electricity services for the long term interests of consumers of electricity with respect to (a) price, quality, safety, reliability and security of supply of electricity; and (b) the reliability, safety and security of the national electricity system.
Gas
Eastern Australia’s domestic gas industry was established in the late 1960s with the development of the Cooper Basin (SA / Qld) and Gippsland Basin (Vic). Since that time there has been rapid expansion in production, transmission and consumption.
The National Gas (South Australia) Act 2008 introduced the National Gas Law (NGL) which commenced in all jurisdictions except Western Australia on 1 July 2008. The initial National Gas Rules commenced at the same time.
The AEMC is responsible for rule making, market development and policy advice concerning access to natural has pipelines services and elements of the broader natural gas markets.
Other functions
The AEMC is also responsible for making funding grants as directed by the Consumer Advocacy Panel and in accordance with the Australian Energy Market Commission Establishment Act 2004 and related Regulations.