Who We Are

The Australian Energy Regulator (AER) regulates electricity networks and covered gas pipelines in all jurisdictions except Western Australia. We set the amount of revenue that network businesses can recover from customers for using these networks. We enforce the laws for the National Electricity Market and spot gas markets in southern and eastern Australia. We monitor and report on the conduct of market participants and the effectiveness of competition.

The Energy Innovation Toolkit is a new service. In February 2019 the Australian Energy Market Commission started researching a way to facilitate proof-of concept trials and “sandbox” (Energy Innovation Toolkit) arrangements to support innovative projects that offer benefits to consumers, while managing risks. The AEMC’s advice was finalised in March 2020, and the COAG Energy Council subsequently consulted on the proposed legislative and rule change package in September 2020. The consultation process has been completed, and the legislation has been introduced into the South Australian Parliament.

To give the most comprehensive and best guidance possible for innovation enquiries, and to best process trial requests, we have partnered with a number of energy agencies to deliver the Energy Innovation Toolkit. These are listed below.

The Australian Energy Market Commission (AEMC) is an independent statutory body that works for Australia's future productivity and living standards by contributing to a decarbonising, affordable and reliable energy system for consumers.

The AEMC is one of three market bodies responsible for energy in Australia, all of which report to the Energy National Cabinet Reform Committee (ENCRC) through the Energy Ministers’ Meeting. Additionally, the three market bodies also work together to advise the Energy Security Board (ESB). Its role is to manage the rule change process and to consult and decide on rule change requests made by others. It does this in accordance with processes set out in the law, the central focus of which is the long-term interests of consumers.

You can find out more about what the AEMC do here.

The role of the Australian Energy Market Operator (AEMO) is to manage the electricity and gas systems and markets across Australia, helping to ensure Australians have access to affordable, secure and reliable energy.

Ownership of AEMO was – and still is – shared between government and industry, with members representing federal and state governments, as well as generation and production, distribution, retail and resources businesses across Australia. AEMO has always operated on a user-pays cost-recovery basis, and it recovers all operating costs through fees paid by industry participants.

AEMO operates the electricity systems in the NEM and south-west Western Australia. This includes monitoring supply and demand, voltage and frequency, and managing planned and unplanned outages, and emergencies. It also operates Australia’s electricity and gas markets. Like the stock exchange, the markets allow energy or other energy-related services to be bought and sold in a competitive environment.

In Victoria, the Essential Services Commission (ESC) has responsibility for licensing, exemptions and customer protections in the retail energy market which in other NEM jurisdictions is the responsibility of the AER under the NERL and NERR. ESC also makes and enforces many rules and standards in its distribution codes with respect to the supply of energy. The ESC is responsible for licensing various activities including energy retail, energy distribution, electricity transmission, and electricity generation.

For the purposes of regulatory sandboxing the ESC will be able to consider applications for a trial waiver in place of a licence or licence exemption under the new framework. The ESC waivers can provide exemptions from section 16 of the Electricity Industry Act 2000 and section 22 of the Gas Industry Act 2001. Trial waivers granted by the commission may contain bespoke conditions that respond to the unique characteristics of the innovative activity or project that an innovator is proposing to trial in Victoria. Trial rule changes are not a feature of the Victorian sandboxing framework.

You can find out more about the ESC’s Sandboxing function here. You can find out more about the other roles and functions of ESC here.

ARENA is the Australian Renewable Energy Agency . It was established by the Australian Government on 1 July 2012. Its purpose is to support the global transition to net zero emissions by accelerating the pace of pre-commercial innovation, to the benefit of Australian consumers, businesses and workers.

You can find out more about what ARENA does here.