On 1 July 2026, The Australian Energy Regulator (AER) will become a standalone, non-corporate Commonwealth entity following the passing of the Competition and Consumer Amendment (Australian Energy Regulator Separation) Bill 2025 by the Australian Parliament.
The AER currently operates as a singular entity within the ACCC under financial law, sharing staff, resources and facilities. The ACCC chair has served as the accountable authority for both agencies. Under the new framework, the AER will have its own leadership, staffing, budget and strategic direction. The AER will have their own accountability authority under the Public Governance, Performance and Accountability Act 2013.
The reform responds to AER’s expanding role in regulating increasingly complex energy markets. The AER aims to enhance its ability to deliver focused, transparent and accountable regulations. Reviews such as the Vertigan Review (2015), Finkel Review (2017) and Edwards Review (2020) all recommended structural separation of the AER from the ACCC to enhance regulatory performance and governance.
Importantly, the AER’s core responsibilities, regulating electricity and gas networks, monitoring wholesale and retail energy markets, and enforcing national energy laws, will remain unchanged. Its decisions will still be subject to judicial review.
The separation aligns Australia’s energy regulatory framework with international best practice and has received broad support across government and industry. The ACCC has welcomed the change, acknowledging the benefits of a dedicated regulatory focus for the energy sector.
This structural reform marks a significant step in modernising Australia’s energy governance and ensuring the AER is equipped to meet future challenges in a rapidly evolving market.
The Francom Effect
As a company operating in the debt recovery space, particularly within energy-related accounts, the AER’s transition to an independent body is a significant development that is supported by Francom. An autonomous and strategically focused regulator will bring greater clarity and consistency to the energy market oversight, including hardship provisions and consumer protections. We anticipate that the separation will lead to more streamlined regulatory engagement and clearer compliance expectations, supporting fairer outcomes for customers and more efficient processes for service providers.
“Francom supports the AER’s transition to independence and the clarity it brings to energy regulation. This change allows the AER to concentrate more directly on the evolving challenges of the energy market. Importantly, it helps bring alignment with energy retailers on what our customers tells us about the use of energy products, billing protocols and financial assistance. For Francom, clearer regulatory direction enables us to collaborate more effectively with retailers and consumers, ensuring our services uphold both compliance and care. It’s a welcome step toward a more responsive and transparent energy landscape.”
– Georgina Antoun, CEO
References
How Brandon (2025). Bil to Split Energy Regulator from Consumer Watchdog Arrives. Innovation Aus. https://www.innovationaus.com/bill-to-split-energy-regulator-from-consumer-watchdog-arrives/
Wilson, Josh (2025). Competition and Consumer Amendment Bill 2025 – Second Reading. https://www.joshwilson.org.au/2025/10/30/competition-and-consumer-amendment-australian-energy-regulator-separation-bill-2025-second-reading/etition and Consumer Amendment Bill 2025 – Second Reading – Josh Wilson