There are three objectives which govern and guide the AEMC in all of its activities under the relevant national energy legislation.

National energy objectives

The National Electricity Objective (NEO)

The National Electricity Objective as stated in the National Electricity Law (NEL) is:

“to promote efficient investment in, and efficient operation and use of, electricity services for the long term interests of consumers of electricity with respect to: 

  1. price, quality, safety, reliability and security of supply of electricity; and 
  2. the reliability, safety and security of the national electricity system; and 
  3. the achievement of targets set by a participating jurisdiction— 
    1. for reducing Australia's greenhouse gas emissions; or 
    2. that are likely to contribute to reducing Australia's greenhouse gas emissions.” 

The National Energy Retail Objective (NERO)

The National Energy Retail Objective as stated in the National Energy Retail Law (NERL) is:

“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:

  1. price, quality, safety, reliability and security of supply of energy; and 
  2. the achievement of targets set by a participating jurisdiction— 
    1. for reducing Australia's greenhouse gas emissions; or 
    2. that are likely to contribute to reducing Australia's greenhouse gas emissions.” 

The National Gas Objective (NGO)

The National Gas Objective as stated in the National Gas Law (NGL) is:

“to promote efficient investment in, and efficient operation and use of, covered gas services for the long term interests of consumers of covered gas with respect to:

  1. price, quality, safety, reliability and security of supply of covered gas; and 
  2. the achievement of targets set by a participating jurisdiction— 
    1. for reducing Australia's greenhouse gas emissions; or 
    2. that are likely to contribute to reducing Australia's greenhouse gas emissions.” 

Applying the energy objectives

In March 2024 the AEMC published an updated guide to ‘How the national energy objectives shape our decisions’. This guide provides transparency on the AEMC’s decision making. It explains how our decision making:  

  • accounts for the bigger picture 
  • applies the national energy objectives
  • assesses options to deliver outcomes for consumers.

It also includes an updated appendix on how the AEMC applies the new emissions component of the national energy objectives, including guidance from energy ministers on the value of emissions reduction. For further information on this appendix, see the relevant project page. 

Targets statement for greenhouse gas emissions targets 

Under the National Energy Laws, the AEMC must prepare and maintain a targets statement, stating the targets set by participating jurisdictions that are relevant for the emissions component of the national energy objectives.  

All entities that apply the national energy objectives (including the AEMC, AEMO and the AER) must, at a minimum, consider these targets when having regard to the emissions component of the energy objectives.  

The energy ministers, collectively or individually, may give a written direction to the AEMC on which targets to include or remove.  

The targets statement for greenhouse gas emissions page has further information on the targets statement and Ministerial communications.