Part 3Functions and powers of the Australian Energy Regulator

Part 3—Functions and powers of the Australian Energy Regulator 15—Functions and powers of AER (1) The AER has the following functions and powers— (a) to monitor compliance by— (i) Registered participants and other persons with this Law, the Regulations and the Rules; and (ii) regulated network service providers with network revenue or pricing determinations; and (iii) AEMO with this Law, the Rules, the Regulations or a transmission determination; and (b) to investigate breaches or possible breaches of provisions of this Law, the Regulations or the Rules, including offences against this Law; and (ba) without limiting paragraphs (a) and (b), in relation to a person undertaking a trial project under a trial Rule or trial waiver, to monitor the conduct and outcomes of the trial project and investigate breaches or possible breaches by the person of— (i) this Law, the Regulations and the Rules; and (ii) in particular— (A) in the case of a person undertaking a trial project under a trial Rule—the trial Rule and any requirements imposed by the AEMC under section 104B; and (B) in the case of a person undertaking a trial project under a trial waiver—the trial waiver and any conditions to which the trial waiver is subject; and (c) to institute and conduct proceedings— (i) against persons under section 61 of this Law or section 44AAG of the Competition and Consumer Act 2010 of the Commonwealth; or (ii) in respect of Registered participants under section 63 of this Law; or (iii) against persons under section 68 of this Law; or (iv) in relation to offences against this Law; and (d) to institute and conduct appeals from decisions in proceedings referred to in paragraph (c); and (e) to exempt persons proposing to engage, or engaged, in the activity of owning, controlling or operating a transmission system or distribution system from being registered as Registered participants; and (ea) to prepare and publish reports on the financial and operational performance of network service providers in providing electricity network services; and (eb) to approve compliance programs of service providers relating to compliance by service providers with this Law or the Rules; and (eba) to implement and administer the market liquidity obligation in accordance with the Rules; and (ec) AER wholesale market monitoring functions and AER wholesale market reporting functions; and (ed) to make a rate of return instrument; and (f) AER economic regulatory functions or powers; and (fa) AER trial waiver functions; and (g) any other functions and powers conferred on it under this Law and the Rules. (2) The AER has the power to do all things necessary or convenient to be done for or in connection with the performance of its functions. (3) However, the AER— (a) cannot make a transmission determination— (i) regulating the revenue AEMO earns or may earn; or (ii) regulating the price of electricity network services provided by AEMO unless the services are shared transmission services provided by means of, or in connection with, a declared shared network; and (b) cannot regulate by transmission determination or in any other way the price of any other service provided by AEMO, or the amount of any other charge made by AEMO. 16—Manner in which AER performs AER economic regulatory functions or powers (1) The AER must, in performing or exercising an AER economic regulatory function or power— (a) perform or exercise that function or power in a manner that will or is likely to contribute to the achievement of the national electricity objective; and (b) if the function or power performed or exercised by the AER relates to the making of a distribution determination or transmission determination, ensure that— (i) the regulated network service provider to whom the determination will apply; and (ii) any affected Registered participant; and (iii) if AEMO is affected by the determination—AEMO; and (iv) network service users or prospective network service users of the relevant services that the AER considers have an interest in the determination; and (v) any user or consumer associations or user or consumer interest groups that the AER considers have an interest in the determination, are, in accordance with the Rules— (vi) informed of material issues under consideration by the AER; and (vii) given a reasonable opportunity to make submissions in respect of the determination before it is made; and (c) in relation to making a relevant regulatory decision, specify— (i) the manner in which the constituent components of the decision relate to each other; and (ii) the manner in which that interrelationship has been taken into account in the making of the relevant regulatory decision. (2) In addition, the AER— (a) must take into account the revenue and pricing principles— (i) when exercising a discretion in making those parts of a distribution determination or transmission determination relating to direct control network services; or (ii) when making an access determination relating to a rate or charge for an electricity network service; and (b) may take into account the revenue and pricing principles when performing or exercising any other AER economic regulatory function or power, if the AER considers it appropriate to do so. (3) For the purposes of subsection (2)(a)(ii), a reference to a "direct control network service" in the revenue and pricing principles must be read as a reference to an "electricity network service". affected Registered participant means a Registered participant (other than the regulated network service provider to whom the distribution determination or transmission determination will apply) whose interests are affected by the distribution determination or transmission determination; user or consumer association means an association or body (whether incorporated or unincorporated)— (a) the members of which include more than 1 user, prospective user or end user; and (b) that represents and promotes the interests of those members in relation to the provision of electricity services; user or consumer interest group means an association or body (whether incorporated or unincorporated)— (a) that has, as an object or purpose, the object or purpose of representing and promoting the interests of users, prospective users or end users of electricity services; but (b) the members of which need not include a user, prospective user or end user. 17—Delegations Any delegation by the AER under section 44AAH of the Competition and Consumer Act 2010 of the Commonwealth extends to, and has effect for the purposes of, this Law, the Regulations and the Rules. 18—Confidentiality Section 44AAF of the Competition and Consumer Act 2010 of the Commonwealth has effect for the purposes of this Law, the Regulations and the Rules as if it formed part of this Law. See also Division 6.