Legislation and regulation

AEMO operates within a comprehensive legislative and regulatory framework that governs Australia’s electricity and gas markets. This framework defines AEMO’s roles, responsibilities, and decision-making powers, and ensures the safe, secure and efficient operation of energy systems and markets.

Overview of the framework

Australia’s energy markets are governed by a combination of:

• National laws and rules – which establish the legal framework and detailed operational requirements
• Regulatory bodies – which set, monitor and enforce the rules
• Jurisdictional legislation – which applies national laws within individual states and territories

AEMO performs its functions within this framework, alongside other market bodies:

• Australian Energy Market Commission (AEMC) – makes and amends the rules
• Australian Energy Regulator (AER) – monitors compliance and enforces obligations
• Energy Ministers – oversee the national policy and legislative framework

For more detail on governance arrangements, see:

National energy laws and rules

The core legislative framework consists of three primary national laws, each supported by detailed rules:

Electricity

• National Electricity Law (NEL)
  Establishes the governance and regulatory framework for the National Electricity Market (NEM).
• National Electricity Rules (NER)
  Set out the detailed requirements for market operation, power system security and participant obligations.

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Gas

• National Gas Law (NGL)
  Governs access to gas pipelines and gas market arrangements.
• National Gas Rules (NGR)
  Provide detailed provisions for the operation and regulation of gas markets.

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Retail

National Energy Retail Law (NERL)
Regulates the supply and sale of electricity and gas to retail customers in participating jurisdictions.

National Energy Retail Rules (NERR)
Define the rights and obligations of retailers and customers.

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Western Australian electricity market

In Western Australia, AEMO operates within a separate legislative framework for the Wholesale Electricity Market (WEM), including:

• Electricity Industry Act (WA) and supporting regulations
• Electricity System and Market Rules (ESM Rules)

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Corporate and governance framework

In addition to energy market legislation, AEMO operates as a company under:

• Corporations Act 2001 (Cth)
• AEMO Constitution

These instruments define AEMO’s corporate governance, including the roles of the Board, members and directors.

How the framework works

AEMO’s responsibilities are set out in legislation and rules, and include:

• Operating electricity and gas markets
• Maintaining power system security and reliability
• Providing market and system information
• Supporting planning and forecasting

AEMO must perform these functions in accordance with the relevant laws and rules. Any discretion is limited by legislation and guided by the objectives set out in those laws.

Learn more

For further information, visit: