Memorandums of Understanding (MOUs) & Legislation

AEMO was established by legislation passed in the South Australian Parliament which acts as lead legislator across AEMO’s five states and the ACT. The legislation applies to all jurisdictions in which AEMO will operate. It ensures that AEMO has the statutory ability to deliver market operation, planning and system management functions.

The National Electricity Law and National Electricity Rules govern the operation of the NEM, with the National Electricity Rules carrying the force of law.

The National Gas Law governs access to natural gas pipeline services and some broader elements of natural gas markets. The National Gas Rules cover operation of the National Gas Market Bulletin Board (which publishes pipeline capacity, forecast demand and market information), and the future operation of the Short Term Trading Market (which sets a daily wholesale price for natural gas).

The National Gas Rules are made under the National Gas Law, with South Australia acting as the lead legislator, and apply to all states under AEMO jurisdiction. Future amendments to the Rules will be undertaken by the AEMC in accordance with rule change procedures outlined in the National Gas Law, and once in place, will be regulated by the AER.

Memorandums of Understanding (MOUs) between the state governments define AEMO’s emergency powers for both gas and electricity markets.

Memorandum of Understanding - the Australian Energy Markets Commission and  the National Electricity Market Management Company 27 Aug 2007 | filename: 000-0247.pdf
Memorandum of Understanding - the Australian Energy Regulator and the National Electricity Market Management Company 25 Aug 2006 | filename: 000-0223.pdf