Corporate governance
At AEMO, we strongly believe that robust corporate governance helps to create value for our members and the wider community. These pages share processes and policies, as well as our annual reports, fees and budgets, and corporate plan.
AEMO at a glance
Australian Energy Market Operator Limited (AEMO) is the independent operator of Australia's two major electricity systems and associated wholesale and retail markets, the Victorian principal gas transmission system and wholesale market, and other east coast gas trading and retail markets.
AEMO’s purpose is to ensure secure, reliable, and affordable energy and enable the energy transition in the long-term interests of consumers. It is the system operator (keeping supply and demand securely balanced), market operator (administering wholesale and retail markets), national transmission planner (prepares the Integrated System Plan) and delivers key analysis and reporting across all markets.
Australian governments have established a cooperative framework for energy regulation. AEMO’s energy functions are conferred under co-operative legislative models in the east coast, and separate legislation for Western Australia’s Wholesale Electricity Market (WEM) and gas services information functions. AEMO and its subsidiary, AusEnergy Services Limited (ASL) also have roles under jurisdiction-specific instruments. AEMO conducts its functions within the objectives, principles and obligations codified in these energy laws and rules, under the ultimate policy direction of the Energy and Climate Change Ministerial Council (ECMC) established under the Australian Energy Market Agreement.
AEMO has no ownership interest in energy network infrastructure and operates on a not-for-profit basis, with costs fully recovered through participant fees that are set within frameworks provided for under energy legislation. Its structure and governance are intended to ensure day to day independence within the rules-based frameworks, with accountability to energy ministers collectively via the ECMC.
Energy market rule-making and regulatory functions are each undertaken by separate bodies – respectively the Australian Energy Market Commission (AEMC) and Australian Energy Regulator (AER) for east coast markets, and the Coordinator of Energy and Economic Regulation Authority (ERA) in Western Australia.
For more information on what AEMO does, see AEMO | What we do and AEMO’s latest Annual Report, Strategic Corporate Plan and Budget and Fees.
History
AEMO was originally called National Electricity Market Management Company Limited (NEMMCO), established in 1996 to manage the National Electricity Market (NEM) in the east coast states and territories. In 2009, energy market and system operation and planning functions from four other jurisdictional bodies were transferred to NEMMCO and it was renamed as Australian Energy Market Operator Limited. In addition to NEMMCO, AEMO’s predecessor bodies were the Victorian Energy Networks Corporation (Victorian electricity transmission planning and procurement, Victorian gas transmission system and market operator, Victorian and Queensland gas retail market operator, gas bulletin board operator), Electricity Supply Industry Planning Council (South Australian transmission planning), Gas Market Company (New South Wales/Australian Capital Territory retail gas market operation) and Retail Energy Market Company (South Australian retail gas market operation).
Since 2009, AEMO’s responsibilities have progressively grown. Additional functions conferred on AEMO include:
- Western Australia’s independent market operator and gas services information functions (2015)
- Independent system operator for the Western Australian South West Interconnected System (SWIS) and Western Australian gas retail market operator (2016)
- Independent market operator for the gas short term trading market (2010), gas supply hub (2014), and gas capacity trading and day ahead auctions (2019)
- Functions to support the establishment and operation of renewable energy zones under New South Wales electricity infrastructure investment legislation (2020) – with ASL established to carry out the separate role of Consumer Trustee
- East coast gas system reliability and supply adequacy functions (2023)
- Capacity investment scheme (CIS) administration (2023-24) - supported by ASL.
In 2025, AEMO’s former Victorian electricity planning and transmission procurement functions were transferred to VicGrid. AEMO provides power system analysis support and services to VicGrid under Victoria’s national electricity law application legislation.