The energy sector is constantly changing – now more than ever. This rapid change is people-driven and market-driven as new technologies move us away from a system of large, remote, power stations towards smaller, distributed generators. Our job is to facilitate structural change without putting cost burdens on households and the Australian economy that could be avoided with better planning and more efficient regulation.

The AEMC makes rules, undertakes reviews and provides the COAG Energy Council with advice on the design of regulatory and energy market arrangements that put consumers first.

The design work to reform the electricity market post 2025 that is being led by the Energy Security Board (ESB) is well underway.

As a key member of the ESB, we are very involved in this work and leading several workstreams.

We are also prioritising key rule changes that fit within our five priority areas of reform and the Energy Ministers'  Strategic Energy Plan.

Priority areas of reform

The AEMC is prioritising five key areas of policy reform so customers can access safe, secure reliable energy at the lowest possible costs as we transition.




Generator access and transmission pricing

A shift from large geographically concentrated to small geographically dispersed generation. This requires us to rethink how we plan and develop markets so we get investment in the right kit, in the right place at the right time to deliver reliable supply to customers. Read more.




Power system security

Power system services that were previously provided for free as a by-product of power generation are now not necessarily provided by new generation. This requires us to find new ways of procuring enough of the technical services to keep the power system secure. Read more.




Integrating distributed energy resources

Customers are increasingly adopting small-scale solar and energy storage technologies. This requires us to re-think how network infrastructure is used so customers and the grid can get the most out of these technologies. Read more.




Digitalisation of energy supply

The power system and market are increasingly underpinned by digital technologies that make it easier choose and control how, when and where power is delivered and used. We are increasingly focusing on embracing market frameworks so customers can reap the benefits of these technologies. Read more.




Aligning financial incentives with physical needs to deliver reliable supply

More variable demand from customers and more variable supply from generators makes forecasting a challenge and adds risk to operational and investment decisions. We are focused on maintaining the link between the physical needs of the system and the financial incentives facing market participants. Read more.

We are also changing the way gas pipelines are regulated to make it cheaper and easier to move gas around the market. Read more