Regulatory framework
Ausgrid is one of three electricity distribution networks operating within New South Wales.
Ausgrid's operations are governed by:
- The National Electricity Law, which sets out the regulatory framework governing electricity networks in the National Electricity Market (NEM)
- The National Electricity Rules and National Energy Retail Rules, made under the National Electricity Law
- The Australian Energy Market Commission (AEMC), who are responsible for market development and making the National Electricity Rules and the National Energy Retail Rules
- The Australian Energy Regulator (AER), who monitors and enforces compliance with the National Electricity Rules and the National Energy Retail Rules and is responsible for economic regulation of distribution and transmission networks. The AER also determines the revenue required by Ausgrid to recover the costs of network investments and operations. Every five years, Ausgrid must submit a proposal to the AER that explains our proposed capital and operating plans and what revenue we believe is required to fund those plans
- Consumer protections contained in the National Energy Customer Framework (which includes the National Energy Retail Law and National Energy Retail Rules), which regulate the sale and supply of electricity and gas to retail customers
Related bodies
There are a number of other institutions and regulatory authorities that have roles related to our operations. These include:
- Australian Energy Market Operator (AEMO) Responsible for system security in the NEM and operates the wholesale market for electricity and gas
- Federal Department of Climate Change, Energy, the Environment and Water (DCCEEW) Develops policies that provide national strategic direction on the energy transition
- NSW DCCEEW: Manages and delivers policies and programs to support the supply of reliable, secure and affordable energy
- Department of Primary Industries and Regional Development Sets strategic policies for NSW's energy resources
- Independent Pricing and Regulatory Tribunal (IPART) The NSW jurisdictional regulator for electricity network technical and safety licensing
- NSW Fair Trading Monitors the safety of customer electrical installations and authorises accredited service providers (ASPs)
- SafeWork NSW Monitors the safety of Ausgrid’s workplaces under the NSW Work Health and Safety Act and Regulations
- Energy and Climate Change Ministerial Council A council with representation from Federal, State and New Zealand ministers that works on issues of national significance and key reforms in the energy and climate change sectors
- Department of Planning, Housing and Infrastructure Involved in environmental assessments of Ausgrid’s capital work proposals under the Environmental Planning and Assessment Act 1979 and relevant planning instruments
- Local councils: Can play a role in the environmental assessment of Ausgrid’s capital work proposals