The ministers supported an overhaul which will divide both the rule-making and enforcement arms of energy regulation into two groups despite the ACCC arguing for control of energy regulation.
A new body, the Australian Energy Market Commission, will determine how electricity is transmitted in each state and report to the relevant ministers.
A separate entity, the Australian Energy Regulator, will enforce the rules and be attached to the Australian Competition and Consumer Commission (ACCC).
The Australian Energy Regulator will oversee the wholesale and transmission side of the energy business. Another new body will make rules for the market. The new structure, to replace several bodies, must be formally approved by the states and the Federal Government.
The move will remove any potential conflict of interest in the current 12 regulators, both creating and enforcing energy rules by creating a centralised national body to oversee discrepancies between electricity grids.
