Australian Energy Market Commission
From Wikipedia, the free encyclopedia
The Australian Energy Market Commission was established in July 2005 to be the Rule maker for national energy markets. The AEMC is currently responsible for Rules and policy advice covering the National Electricity Market (NEM). This role does not currently include electricity distribution or retail regulation. It is expected that the AEMC will also take repsonbility for rule making for the Australian gas market.
The AEMC is a national body, established under the Australian Energy Market Commission Establishment Act 2004 (South Australia).
The process for making Rules is prescribed in the National Electricity Law (NEL) where the AEMC must only make a Rule where it is satisfied that the Rule will or does, achieve the National Electricity Market objective (NEM Objective). The NEM Objective, in section 7 of the NEL “is to promote efficient investment in and efficient use of electricity services for the long term interests of consumers of electricity with respect to price, quality, reliability and security of supply of electricity and the reliability, safety and security of the national electricity system.”
The AEMC promotes the strategic longer-term design and development of energy markets through its functions of Rule making, market reviews, and policy advice.
The AEMC’s key functions under the NEL are to:
- consider Rule change proposals and the effect that such proposals may have on the national energy market;
- conduct energy market reviews and inquiries for the Ministerial Council on Energy (providing analysis and recommendations to inform policy making by the MCE); and
- provide policy advice to the MCE as requested or on AEMC initiative.
The AEMC reports directly to the Ministerial Council on Energy (MCE). The MCE includes Commonwealth, State and Territory energy ministers, in addition to ministers from New Zealand and Papua New Guinea as observers. The MCE has the power to direct the AEMC to carry out reviews of the National Electricity Market (NEM) and the National Electricity Rules.
The AEMC has a Chairman, Dr John Tamblyn, and two part-time Commissioners, Mr Ian Woodward and Ms Liza Carver. All Commissioners have been appointed until 2010.
