Theophanus said he was now prepared to vote for the proposal after federal Energy Minister Ian Macfarlane accepted a number of changes to the structure of the Australian Energy Regulator such as the addition of a second commissioner to the panel.

The new regulator will oversee the fragmented state electricity and gas systems and will help to attract much needed investment into the sector.

It will also be responsible for gas and electricity market regulation while the Australian Energy Market Commissioner will have responsibility for energy market rule making and market development.

Theophanus was seen as the sole remaining obstacle to a successful vote for the proposal at the Ministerial Council on Energy meeting to be held in Perth on December 11.