Australian Energy Regulator

The AER, or Australian Energy Regulator, is a separate legal entity formed as a constituent part of the ACCC, which focuses on ensuring that the energy and gas market in Australia is operating fairly and efficiently.

• Incorporating a Consumer Challenge Panel, AER hopes to strengthen stakeholder engagement and increasing their participation in the activity of energy and gas retailers, wholesalers, and network suppliers.
• Customer confidence in the energy market is waning because of the complexity of the regulatory processes. These complexities have made it difficult for consumers and their representatives to participate therefore, to strengthen customer confidence by promoting engagement - network businesses must consult with their customers when they intend to develop new regulatory proposals.
• A major aspect of the AER is their aim to enhance their technical capacities and information systems. Improvements such as these can assist with their mission to increase stakeholder engagement, and build customer confidence, and enforce supplier compliance with a reporting regime.
• The Australian Energy Regulator (AER) is Australia’s national energy market regulator and an independent statutory authority funded by the Commonwealth, with staff, resources and facilities, provided through the Australian Competition and Consumer Commission (ACCC). Their operation focuses on five distinct program areas: Energy networks, Retail energy markets, Wholesale energy markets, compliance and enforcement, and publications and submissions.

Vision 

AER’s aim to make energy markets work better for consumers affects all aspects of their decision making because their vision is to ensure the long-term interests of consumers are protected. These interests include safety and reliability, price and quality. AER governs their activities by the objectives of the National Electricity Law, the National Gas Law and the Retail Law. Laws which aim to promote efficient investment , efficient operation, and fair use of energy services by suppliers on behalf of the consumers.

Differentiation

Strategic policies were set in place at AER following a period of community concern about whether energy markets are functioning efficiently and delivering services at reasonable prices. In response, the governmental entity undertakes a “Better Regulation Program” which aims to create and enforce compliance with a common approach to setting costs across electricity and gas network businesses. With one common approach they hope to define their power to amend and assess revenue proposals, while promoting better decisions with tools and incentives for businesses who invest efficiently. This has led to reviews across the every aspect of regulation, some of which are ongoing.

Philosophy

AER takes the stand against unfair practices and feels that suppliers must be regulated objectively, transparently, and on a consistent basis to protect the interests of consumers across Australia. They make timely decisions based on evidence and analysis alone, communicating honestly and directly, while taking care to always act respectfully.

Sustainability

By promoting efficient investment and operation of energy networks, AER plans for long term sustainability through consumer and stakeholder confidence and involvement. Ongoing investigation on compliance, and reporting on the efficiency and competition within the market, AER also has a “Retailer of Last Resort” policy to ensure consumers are not left without utilities, even in the event of a failed retailer.

Hardship

The Home Energy Saver Scheme (HESS) is an Australian Government program provided through community organisations to assist low income households having difficulty with meeting and paying for their energy needs. The program can assist by providing assistance with budgeting, advice on ways to reduce energy use, information on rebates and concessions customers may be eligible for,    advice on how to access no or low interest loans to purchase more energy efficient appliances. You can get more information by calling the HESS Helpline on 1800 007 001