Decision Making Process

Any individual, group or organisation can lodge a rule change request or submission with the AEMC.1

The decision-making of the AEMC must have regard to the energy objectives when considering rule change requests (i.e. National Electricity Objective, National Gas Objective or National Energy Retail Objective).  In deciding whether or not to make a rule, the test we apply is to ask if the change is likely to promote efficient investment in, and efficient operation and use of, energy services for the long-term interests of consumers of energy with respect to price, quality, safety, reliability and security of supply of energy. The AEMC has published a  guide for stakeholders Applying the energy market objective that explains how we apply the energy objectives to a rule change or review

There are four stages in the process:

  1. Initial consideration of a rule change request
  2. Consultation on a proposed rule
  3. Draft rule determination
  4. Final rule determination

The standard timeframe under law for a rule change is approximately 6 months. In order to manage complex issues we generally conduct an initial period of analysis before commencing the rule change process. We can also extend the timeframe to provide, for instance, longer consultation periods and proper consideration of the issues and implications.

We may expedite the rule making process if the request is for a ‘non-controversial’ or ‘urgent’ rule (as defined in the national energy laws). The expedited process is 6 weeks from initiation.  There is only one round of consultation and a final determination.  The rule-making process can also be fast-tracked where there has been adequate previous consultation by a market regulatory body, including the AEMC.  The fast-tracked process is approximately 4 months from initiation.

Stakeholders are kept informed of AEMC decisions, public meetings and other news directly through email updates and via our website. All determinations, reports, supporting publications, submissions and the proceedings of expert panel meetings are published on our website.

 

 

 

1 There are some limited exceptions to this. See http://www.aemc.gov.au/Energy-Rules/National-energy-rules/Rule-making-process/Stage-1; http://www.aemc.gov.au/Energy-Rules/National-gas-rules/Rule-making-process/Stage-1