AEMO is incorporated as a company limited by guarantee under the Corporations Act.
The ownership of AEMO is comprised of 60% by government members and 40% by industry members.
AEMO operates under the governance of a Board comprised of nine skills-based non-Executive Directors and the Chief Executive Officer.
The Board’s responsibilities include but are not limited to:
- oversight of the Company’s activities to achieve the objectives set out in the Constitution;
- setting the Company’s goals and strategy;
- determining the financial, operational, human, technological and administrative resources required by the Company to meet its objectives and goals;
- establishing and maintaining adequate and effective reporting lines and procedures, which enable all material matters and information to be identified and reported to the Board;
- approving Company budgets and monitoring compliance with financial reporting obligations;
- appointing the Managing Director;
- reviewing and assessing the performance of the Company’s management;
- establishing and approving the charters of Board Committees;
- establishing effective controls and procedures to enable risks to the Company to be identified, assessed and managed;
- monitoring compliance with legislative and regulatory requirements including occupational health and safety, equal opportunity, environmental, corporate governance and reporting obligations; and
- reporting to stakeholders of the Company.
The day-to-day management of the Company will be delegated to the Managing Director with support from Board Committees as appropriate. These delegations are documented.
AEMO operates within a broader market governance structure alongside the Australian Energy Market Commission (AEMC) and the Australian Energy Regulator (AER). The AEMC determines the policy environment and governance structures that shape the development of Australia’s energy markets and which set the operating requirements and obligations of market participants. The AER oversees economic regulation and compliance with the National Electricity Law and Rules and the National Gas Law and Rules. The AEMC is responsible to the Council of Australian Governments (COAG) through the MCE, while the AER is accountable to the Commonwealth Government as a constituent entity of the Australian Competition and Consumer Commission (ACCC).
The Board has approved various policies and procedures as part of its Corporate Governance Framework. This includes:
