How we regulate the electricity and gas industries

We regulate through a combination of legislation, licences, and codes and guidelines.

We're responsible for:

• licensing businesses involved in supplying electricity and gas in Victoria
• establishing and maintaining codes and guidelines that outline the rules for the distribution of electricity and gas as well as retail energy sale in Victoria
• promoting and enforcing compliance with the codes
• reporting on the performance of energy businesses and on energy prices.

We don’t set energy prices, but we do set:

• the Victorian Default Offer, which provides Victorian consumers access to a fair electricity deal even if they are unable or unwilling to engage in the retail market.

We also conduct inquiries and studies on the electricity and gas industry as required.

The Minister for Energy is the portfolio minister for the Victorian electricity and gas industry.

Find out more about our current compliance and enforcement priorities.

We regulate certain Victorian businesses

These include:

• electricity generators, transmission companies, distributors and retailers
• gas distributors, retailers and transmission services.

We regulate these businesses through a combination of legislation and licensing conditions which include compliance with our codes and guidelines.

Part of our work involves promoting industry compliance. We do this by conducting compliance reviews or audits as part of our market performance and reporting work. We can also issue penalty notices and enforcement orders, and monitor undertakings from regulated businesses.

We regulate electricity and gas through two main pieces of legislation

The Electricity Industry Act 2000(opens in a new window) and Gas Industry Act 2001(opens in a new window) require us to promote the development of full retail competition and promote customer protections. Under these Acts, regulated electricity and gas businesses operating in Victoria must be licensed by us.

In some cases, an electricity generator, distributor or retailer may be eligible for an electricity licensing exemption.

Read more about how we regulate as a commission.

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