Australian Minister for Climate Change and Energy Chris Bowen has announced a review of the governance arrangements of the Australian Energy Market Operator (AEMO)—the independent operator of Australia’s electricity and gas grids.
The review could see AEMO facing increased government scrutiny and the scaling back or removal of some of its responsibilities.
“Since it was established in 2009, AEMO’s functions as an independent market body have expanded. The energy landscape has also changed rapidly during this time,” the government said in a statement.
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“It is timely to review AEMO’s governance arrangements to ensure they remain fit for purpose both now and in the future.”
Nigel Ray PSM will lead the review with support from a Commonwealth-based secretariat.
Ray is expected to provide a report containing governance options to ECMC at its first meeting in 2026.
Minister Bowen said in a post on LinkedIn, “AEMO is a world class institution and we are well served by the experts who work there.
“As our energy system is evolving it makes sense to review AEMO’s governance model to ensure it is fit for purpose now and into the future.
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“Australia’s energy ministers have agreed to review the governance arrangements of AEMO to ensure they remain fit-for-purpose now and into the future, particularly in the context of other bodies of work the NEM Review, the Gas Market Review and proposed expansion of gas powers.”
The review secretariat will undertake consultation with key stakeholder groups, including the Commonwealth, state and territory governments, the Australian Energy Market Commission, the Australian Energy Regulator, industry participants, unions and consumer representatives on relevant matters.
The review will consider the recommendations of recent reviews and will avoid duplication of effort and findings where possible.
