Regulatory proposal

Regulatory framework


Ausgrid is one of three electricity distribution networks operating within New South Wales.

Ausgrid operates under the National Electricity Law which sets out the regulatory framework governing electricity networks in the National Electricity Market (NEM). The National Electricity Rules are made under the National Electricity Law.

Consumer protections are also contained in the National Energy Customer Framework, including the National Energy Retail Law and Rules, which regulate the sale and supply of electricity and gas to retail customers.

The Australian Energy Market Commission (AEMC) is the body responsible for market development and making the Rules.

The Australian Energy Regulator (AER) monitors and enforces compliance with the Rules and is responsible for economic regulation of distribution and transmission networks. It determines the revenue required by Ausgrid to recover the costs of network investments and operations. Every five years, Ausgrid must submit proposals to the AER that explain our proposed capital and operating plans and what we believe the revenue requirements are to fund those plans.

There are a number of other institutions and regulatory authorities that have a role in relation to our operations. These include:

Responsible for system security in the NEM and operates the wholesale spot market for electricity and the wholesale gas markets.

Council of Federal and State ministers that sets and implements the policy agenda for energy market reforms in Australia.

The NSW government department responsible for setting NSW energy policy including licence conditions, contestability requirements and reporting.

The NSW jurisdictional regulator for network technical and safety licensing.

Monitors the safety of customer electrical installations and authorises accredited service providers (ASPs).

Monitors the safety of Ausgrid’s workplaces under the NSW Work Health and Safety Act and Regulations.

Environmental assessment of Ausgrid’s capital work proposals under the Environmental Planning and Assessment Act 1979 and relevant planning instruments. Local councils also play a role in the environmental assessment of some of Ausgrid’s capital work proposals.