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EnergyAustralia is one of four electricity distribution networks operating within a defined area of NSW. Each is required to comply with various Acts, regulations and licences governing the electricity industry.
Overview - energy industry reform
The electricity industry has undergone significant reform over the last decade. In the early 1990s, each state and territory operated vertically integrated utilities with little interconnection between electricity grids in different jurisdictions. This lead to inefficiencies and higher prices for some users. Recognising the potential benefits of introducing competition, the Council of Australian Governments (CoAG) agreed to reforms aimed at creating a fully competitive National Electricity Market (NEM). Core to the NEM was the establishment of a wholesale electricity market and interconnected electricity grid.
In order to facilitate the creation of a NEM, state authorities were separated into specialised entities (with competitive functions separated from monopoly functions) and corporatised. EnergyAustralia, as a combined distributor and retailer, was corporatised. Governments also implemented a system of third party access to distribution and transmission. The National Electricity Code (NEC) outlines the market operations, technical standards and third party access requirements.
In late 1998, the National Electricity Market officially commenced. The NEM is managed by the National Electricity Market Management Co Ltd (NEMMCO). It operates as a wholesale pool allowing electricity trade between generators and customers in NSW, VIC, QLD, ACT and SA. Find out more by visiting the NEMMCO website.
All these reforms were introduced to increase efficiency and encourage competition and innovation. For customers, this means lower prices and better service.
Energy industry regulating authorities
As one of Australia’s largest electricity distributors, there are Acts and regulations that impact on our distribution operations. Below is a list of of our regulating authories and their primary responsibility.
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 | Regulating authorities for our Network distribution business
.. | Area of responsibility | |
| National Electricity Code Administrator* (NECA)
| Administration of the National Electricity Code (NEC).
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| The National Electricity Market Management Company Limited (NEMMCO)
.. | Administration of the wholesale electricity market.
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| Independent Pricing and Regulatory Tribunal (IPART) | -Network use of system pricing & network development and Access under the National Electricity Code (NEC).
-Customer protection and contracts under the Electricity Supply Act 1995 and Electricity Supply (general) Regulation 1996.
-Monitoring or Network performance as part of licensing regime under the Electricity Supply Act 1995. | |
| Australian Competition and Consumer Commission (ACCC)
| -Network use of system pricing & network development and access under the National Electricity Code
-Oversight of national electricity code
-Pricing of transmission services (from large generators to distributors) | |
| Australian Energy Regulator (AER)
| The Australia Energy Regulator (AER) performs economic regulation of the wholesale electricity market and of the electricity distribution and transmission networks in the National Electricity Market (NEM). The AER is also responsible for the enforcement of the National Electricity Law and the National Electricity Rules. EnergyAustralia’s Cost Allocation Method as approved by the AER on 31 March 2008 | |
| Department of Energy, Utilities & Sustainability
| -Customer Protection and Contracts under the Electricity Supply Act 1995 and Electricity Supply (general) Regulation 1996.
-Monitoring or Network performance as part of licensing regime under the Electricity Supply Act 1995.
-Monitoring the safety of our Network under NSW Electricity Supply Act, 1995, & NSW Electricity Safety Act, 1945 and associated regulations. | |
| Workcover NSW | Monitoring the safety of our Network under NSW Electricity Supply Act, 1995, & NSW Electricity Safety Act, 1945 and associated regulations.
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| Dept of Fair Trading | Monitoring the safety of our Network under NSW Electricity Supply Act, 1995, & NSW Electricity Safety Act, 1945 and associated regulations.
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| Department of Infrastructure, Planning & Natural Resources | Environmental assessment of Network proposals under the Environmental Planning and Assessment Act, 1979 and relevant planning instruments.
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| All local councils | Environmental assessment of Network proposals under the Environmental Planning and Assessment Act, 1979 and relevant planning instruments.
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