The AEMC has today announced it will undertake a Review to examine the future of electricity network regulation in the National Electricity Market (NEM).  

The Electricity Network Regulation Review will consider how trends like the ongoing growth in consumer energy resources (CER) and battery storage systems are changing the types of services that network businesses need to provide consumers going forward. 

It will also consider the important role transmission businesses have to play in keeping the system secure and the incentives for networks to deliver different types of security solutions, like synchronous condensers or contracts with third-party providers.

AEMC Chair Anna Collyer said this piece of work is timely and necessary. 

“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 of consumers,” she said. 

“Significant changes to the nature of both transmission and distribution businesses through the transition means we need to  consider whether the way network businesses are incentivised and rewarded under the regulatory framework remains appropriate, given these changing conditions, and with that, changing obligations.“

“With network regulation being a priority area for the AEMC, we will proactively 
self-initiate this Review as we consider it fundamental for consumers, and for the energy transition broadly.” 

The AEMC’s draft Terms of Reference for the Review, released today, indicate the AEMC will engage with a broad range of stakeholders to refine the scope of the work, before formally commencing the Review in mid-2026. 

The AEMC looks forward to working collaboratively with all stakeholder groups including consumer representatives, industry, and governments, on this important work in 2026.

Visit the project page for more information.  

Media: Jessica Rich, 0459 918 964, media@aemc.gov.au