On 25 June 2026, the Australian Energy Market Commission (AEMC) initiated the Electricity network regulation review (ENRR). The final terms of reference for the review are available on this project page. 

The ENRR will consider the important role of electricity network regulation in providing consumers with a low cost, reliable supply of electricity as the NEM transitions to a net-zero system. Network costs make up the largest component of power bills so ensuring the regulatory framework remains fit for purpose is critical to achieving outcomes in the long term interest for consumers.  

The Commission will undertake the Review in the form of two work packages:

• Package 1 will examine what services should NSPs provide in a regulated capacity, where should the boundary of regulation sit, and if NSPs engage in the delivery of contestable services, what market power mitigants should apply? This will include consideration of service classification, ring-fencing, as well as cost allocation and shared asset frameworks. A consultation paper on package 1 was published on 25 June 2026 under project code EPR0106 available here.
• Package 2 (this package) will examine how the framework can best support efficient service delivery, whether it provides for appropriate risk allocation between NSPs and consumers, and appropriately compensates NSPs for the risk they take, and whether regulatory processes are efficient and support positive consumer outcomes.

The AEMC will publish a consultation paper on package 2 in mid-August 2026.