There are three objectives which govern and guide the AEMC in all of its activities under the relevant national energy legislation.

National energy objectives

The National Electricity Objective (NEO)

The National Electricity Objective as stated in the National Electricity Law (NEL) is:

“to promote efficient investment in, and efficient operation and use of, electricity services for the long term interests of consumers of electricity with respect to:

  • price, quality, safety and reliability and security of supply of electricity
  • the reliability, safety and security of the national electricity system."

The National Energy Retail Objective (NERO)

The National Energy Retail Objective as stated in the National Energy Retail Law (NERL) is:

“to promote efficient investment in, and efficient operation and use of, energy services for the long term interests of consumers of energy with respect to price, quality, safety, reliability and security of supply of energy.”

The National Gas Objective (NGO)

The National Gas Objective as stated in the National Gas Law (NGL) is:

“to promote efficient investment in, and efficient operation and use of, natural gas services for the long term interests of consumers of natural gas with respect to price, quality, safety, reliability and security of supply of natural gas.”

Applying the energy objectives

In December 2016 the AEMC published a guide for stakeholders on how it applies the energy objectives called Applying the energy objectives. The guide explains:

  • the elements that make up the objectives
  • how we apply the objectives in our rule changes, reviews and advice to government
  • how we may only make a rule or a recommendation if it will or is likely to help achieve the energy objectives.