The Australian Energy Regulator (AER) is the regulator of the wholesale electricity and gas markets in Australia. It is part of the Australian Competition and Consumer Commission and enforces the rules established by the Australian Energy Market Commission.
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The AER was established in July 2005. The next year all 13 bodies previously responsible for energy regulation had transferred responsibility to the AER. Decisions made by the regulator are subject to appeal.
Functions
The AER’s current functions are focused on regulating the natural monopoly transmission and distribution sectors of the national electricity market, monitoring the wholesale electricity market and enforcing electricity market rules. The AER's regulatory functions and powers are conferred upon it by the national electricity law and the national electricity rules.
Under the national electricity law and national electricity rules, the AER’s key responsibilities at the present time include:
Staff
The AER currently has three members who are statutory appointments, including a full-time chair. Mr Andrew Reeves is the Chair of the AER. Part IIIAA of the Trade Practices Act provides that one of the members of the AER must be a commissioner of the ACCC, with Mr Edward Willett appointed in this capacity. Ms Cristina Cifuentes is the AER member selected by the States and Territories. The chairman Andrew Reeves has been critical of the rules regarding how prices are determined saying there is a "systematic bias towards inflated forecasts".