The Australian Energy Regulator is responsible for the economic regulation of gas and electricity transmission and distribution systems.

The Australian Energy Market Operator runs the system on a day to day basis. They manage the market for buying and selling energy and deal with energy flows around the system. The market operator makes decisions when the system is under strain about what emergency actions must be taken.

The Australian Energy Market Commission sets the rules that businesses operating in gas and electricity systems must follow. The commission also provides advice to the COAG Energy Council.

COAG Energy Council consists of the Energy Ministers from the Australian and all State and Territory Governments. It is the body that decides the overall structure that manages the energy sector.

The Victorian Government continues to play an important role in planning and supporting innovation that builds on our local advantages. It also promotes continued market reforms through the other national bodies

Transport energy is part of a global market and is managed separately.

Our stationary energy systemFigure: Our stationary energy system

Energy supply capacity

Although the Government no longer owns or operates energy generating assets, one of its primary objectives is to ensure the ongoing security of Victoria's energy supplies. A key feature of this role is to maintain Victoria's reputation as a reliable and stable State for energy investment. The Government also plays an important role in managing energy supply emergencies.

Statutory bodies

Australian Energy Market Commission
The AEMC is established under the Australian Energy Market Commission Establishment Act 2004 (South Australia). It is the rule-maker under the national scheme for regulation of the electricity wholesale market and is also responsible for market development at the national level.

Australian Energy Market Operator
AEMO is a company owned jointly by the jurisdictions (including Victoria) in the national electricity wholesale market. It operates the wholesale electricity pool and undertakes some planning of the interconnected transmission system.

Australian Energy Regulator (AER)
The AER is established under the Trade Practices Act 1974 (Commonwealth). It is the economic regulator for the national electricity wholesale market and electricity transmission and distribution networks.

Energy Safe Victoria (ESV)
ESV is established under the Energy Safe Victoria Act 2005. It is the regulator of electrical and gas safety in Victoria. During 2007, ESV will become the safety regulator for certain pipelines, as provided for in the Pipelines Act 2005.

Energy and Water Ombudsman Victoria (EWOV)
EWOV is the industry based consumer dispute resolution body. It handles user complaints against electricity, gas and water companies that cannot be resolved with the company concerned.

Essential Services Commission (ESC)
The ESC is established under the Essential Services Commission Act 2001. It is the economic regulator of the retail energy sector in Victoria and the licensing authority for persons who generate, transmit, distribute, supply or sell electricity or gas. The ESC is also the administrator of the Victorian energy saver incentive scheme.

Sustainability Victoria (SV)
Sustainability Victoria is the agency responsible for promoting the efficient use of water and energy resources in Victoria and for effectively managing waste. It works closely with industry, schools, State and local governments, community groups and individuals to encourage environmental sustainability.

Sustainability Victoria's functions include:

  • Promoting, and providing information and advice, about sustainable resource use to the Victorian community
  • Encouraging the development of renewable energy and energy efficiency industries in Victoria
  • Conducting, monitoring and evaluating research and programs on sustainable resource use.

Page last updated: 09/06/17