Historic Energy Market Legislation Passed

Historic Energy Market Legislation Passed

A major milestone in the establishment of the Australian Energy Market Operator (AEMO) was completed yesterday when the South Australian Parliament, which serves as the lead legislator across the jurisdictions in which AEMO will operate, passed the legislation required for commencement.

The new legislation enables AEMO to assume the existing roles and responsibilities of its founding organisations NEMMCO, VENCorp, ESIPC, REMCO, GMC and GRMO and multiple new functions. These include infrastructure planning for both electricity and gas, and the establishment of a short term trading market for gas in NSW and South Australia.

The new constitution for AEMO has also been formally approved and will be adopted from 1 July. AEMO's membership will include both government and industry, with government holding 60% and industry collectively to hold the remaining 40%. Government members include the Queensland, New South Wales, Victorian, South Australian and Tasmanian state governments, the Commonwealth and the ACT.

The establishment of AEMO - on 1 July - marks a historical milestone in the evolution of the Australian energy market. For the first time in Australia's history, a national energy market operator will deliver an array of gas and electricity services across jurisdictions and communities.

Established by the Council of Australian Governments (COAG) and developed under the guidance of the Ministerial Council on Energy (MCE), AEMO will be run by a skills-based board chaired by Dr Thomas Parry. Mr Matt Zema was appointed Managing Director and Chief Executive Officer in September 2008.

AEMO will have offices in four states of Australia, electricity control centres in two of the states managing the National Electricity Market, and a gas control centre in Victoria to manage that state's wholesale gas market.

Further details on AEMO are available from the website www.aemo.com.au or the Information Centre on 1300 361 011.

ENDS

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SOURCE: Australian Energy Market Operator (AEMO)