Market Review: Open
Overview
On 25 June 2026, the Australian Energy Market Commission (AEMC) commenced package 1 of the Electricity Network Regulation Review (ENRR) that will examine the future of electricity network regulation. This package focuses on the service classification and ring fencing framework.
The Review 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.
The Commission will conduct the Review across two work packages
- Package 1 (this package) focuses on the service classification and ring fencing framework. It will examine what services should network service providers (NSPs) provide in a regulated capacity, where the boundary of regulation should 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, cost allocation and shared asset frameworks. The Review has been planned as a six-month sprint to determine key policy principles, concluding at the end of 2026.
- Package 2 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 consultation paper also covers two related rule change requests
The AEMC has received two rule change requests related to service classification for EVCI and ring-fencing. These two rule change requests also raise important questions about the role of networks and the boundaries of network regulation. Considering these rule change requests alongside the review will allow the Commission to assess them against a consistent set of policy principles and in the broader context of the evolving regulatory framework.
Read the fact sheet: The Electricity Network Regulation Review and related rule change requests here for more information.
The two rule change requests are:
- Clarifying distribution ringfencing in emerging energy markets (ERC0437), from Nexa Advisory which seeks to strengthen the ringfencing framework.
- Enabling DNSP led electric vehicle charging infrastructure (ERC0435), from Energy Networks Australia (ENA) which seeks to enable distribution network service providers to roll out kerbside electric vehicle charging infrastructure (EVCI) as a regulated service.
We are engaging with stakeholders in multiple ways
Effective stakeholder engagement and involvement is essential for a review of this nature.
We have developed a stakeholder engagement plan with a number of ways of engaging with stakeholders, including:
- A Senior Advisory Group to provide advice on strategic direction
- Staff level Working Groups from across the sector to engage regularly with the AEMC project team during the policy development process
- Public forums enabling both in person and online discussion to help shape policy development and for stakeholders to share and understand each other’s views
- We also welcome bilateral or multilateral engagement.
Key documentation from our public forums, the membership of our Senior Advisory Group and details of our working groups can be found in the Stakeholder engagement section below.
We thank those who attended our first hybrid forum on 18 August 2026 which covered both package 1 and package 2 of the ENRR, plus the two rule change requests that relate to the areas covered in package 1.
Next steps for package 1 of the review are as follows:
- The AEMC will host a second hybrid forum on 19 November 2026 (Melbourne CBD and online access), with an indicative start time of 10.30 am. Further information on the forum's content, timing, venue and registration will be provided once available.
- A final report will be published in March 2027.
We value stakeholder feedback and input and there will be future options and opportunities to provide feedback through the review process. Please use the contact project leader link on this page if you wish to contact the project team directly.