The National Electricity Rules govern the operation of the National Electricity Market (NEM) . Changes to the National Electricity Rules are made by the AEMC.

The Rules are made by the AEMC under the National Electricity Law and have the force of law. They are amended by the AEMC or, in special and limited circumstances, by the South Australian Minister for Mineral Resources & Energy who is the Minister responsible for the AEMC to the Council of Australian Governments (COAG) .

In making the rules, the AEMC is required by law to apply the National Electricity Objective.

The National Electricity Rules exist so that market participants understand their rights and responsibilities, and there is appropriate regulation so that consumers do not pay more than necessary for their electricity.

The rules:

  • govern the operation of the wholesale electricity market - the market arrangements for the commercial exchange of electricity from the electricity producers (generators) through to the electricity retailers.
  • govern the economic regulation of the services provided by monopoly transmission and distribution networks
  • govern the way in which the Australian Energy Market Operator (AEMO) manages power system security
  • apply to those states and territories that are electrically connected – Queensland, NSW, ACT, Victoria, South Australia and Tasmania, collectively referred to as the National Electricity Market.

Chapter 5A of the rules, which sets out the rules regarding electricity connections for retail customers, is relevant to small customers.

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