Title: Australian Energy Regulator (AER)
Language: English
Type: Website
Nature: Government Website
Published: September 2, 2021
Region: East Asia and Pacific
Country: Australia
Sector: Energy and Power
Keywords: Energy and Power, Energy and Power Core
Document Link(s):
Document Summary:
The AER regulates wholesale and retail energy markets, and energy networks, under national energy legislation and rules. Our functions mostly relate to energy markets in eastern and southern Australia.
Document Details:
The AER exists to ensure energy consumers are better off, now and in the future. Consumers are at the heart of its work, and it focuses on ensuring a secure, reliable and affordable energy future for Australia.It recognises that energy is an essential service for Australian households and businesses and a critical contributor to the long-term success of the Australian economy.
It regulates electricity networks and covered gas pipelines in all jurisdictions except Western Australia. It sets the amount of revenue that network businesses can recover from customers for using these networks.
It enforces the laws for the National Electricity Market and spot gas markets in southern and eastern Australia. It monitors and reports on the conduct of market participants and the effectiveness of competition.
The AER has a key role in enabling consumers to make informed choices about their energy supplier. This role includes ensuring consumers are empowered to access the best energy offer for their circumstances, as well as helping consumers resolve any problems. It also encourages energy businesses to prioritise consumer welfare.
It protects the interests of household and small business consumers by enforcing the Retail Law. Its retail energy market functions cover New South Wales, South Australia, Tasmania, the ACT and Queensland. The AER sets standing offer prices small business and residential customers pay in areas where there is no other retail price regulation – South Australia, New South Wales and south-east Queensland (Energex).
The AER Strategic Plan 2020-25 outlines its objectives, which are to:
- protect vulnerable consumers, while enabling consumers to participate in energy markets
- deliver efficient regulation of monopoly infrastructure while incentivising networks to become platforms for energy services
- effectively regulate competitive markets primarily through monitoring and reporting, and enforcement and compliance
- use its expertise to inform debate about Australia’s energy future and support the energy transition.
It is committed to engaging with consumers and their representatives, industry participants and peak bodies, and other stakeholders. It resources several consumer forums to give us advice. These bodies include the Consumer Challenge Panel (CCP), the Consumer Reference Group (CRG), and the Consumer Consultative Group (CCG).
Additionally, the AER assists the ACCC with energy-related issues arising under the Competition and Consumer Act 2010, including enforcement and mergers.
Updated: October 25, 2021