Energy Market Governance
The COAG Energy Council (the Council) is a Ministerial forum made up of representatives of the Commonwealth, State, Territory and New Zealand governments. It has responsibility for monitoring and reforming national energy markets. This includes increasing the nationwide consistency of national energy market regulatory frameworks to reduce costs and improve energy sector efficiency. The Council’s terms of reference can be found here.
The role of the Council in energy market reform and the associated governance arrangements are set out the intergovernmental agreement known as the Australian Energy Market Agreement (AEMA), as amended December 2013. The AEMA can be found here.
The Council is supported in developing national energy market policy by the Senior Committee Officials (SCO). SCO is composed of senior officials from Council members and is chaired by the Commonwealth.
The Council has oversight of the three national market institutions responsible for the operation of national energy markets (including the National Electricity Market (NEM)). These are:
the Australian Energy Market Commission (AEMC) - the rule maker and market development adviser;
the Australian Energy Market Operator (AEMO) - the system operator; and
the Australian Energy Regulator (AER) - the economic regulator and rule enforcer.
A comprehensive review of energy market governance, the Review of Governance Arrangements in Australian Energy Markets, was completed in October 2015 and was considered by Ministers at the December 2015 Council meeting. For more information about the Review, click here.
The Council also works closely with:
Energy Consumers Australia (ECA) - advocate for the long-term interests of energy consumers; and the
National Offshore Petroleum and Environmental Management Authority (NOPSEMA) - regulators of safety, well integrity and environmental management for the offshore petroleum industry.
For more information about these institutions, follow the links below: