Wrong priority during an energy crisis
Critics argued the bill puts effort into rearranging regulators instead of tackling the immediate problems households and businesses face from high electricity prices and reliability pressures.
Competition and Consumer Amendment (Australian Energy Regulator Separation)
Current status
This bill did not become law and is no longer proceeding.
Policy area
Climate, energy & environment
What does this bill do?
Australia’s energy regulator would be legally split from the ACCCThe competition and consumer watchdog that currently houses the AER and would keep providing some shared services during the transition. and run as its own Commonwealth body, with its board in charge of its governance and accountability.
Why was it introduced?
The AERThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance.’s powers and staffing had grown, but it was still legally tied to the ACCCThe competition and consumer watchdog that currently houses the AER and would keep providing some shared services during the transition., leaving the ACCCThe competition and consumer watchdog that currently houses the AER and would keep providing some shared services during the transition. Chair responsible and delaying long-standing review recommendations for an independent regulator. This bill legally separates the AERThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance., lets it run its own staff and governance, and preserves shared services and state and territory energy powers during the transition.
Broader context
Reviews had been recommending a more independent Australian Energy RegulatorThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance. for years before the government introduced this bill. The bill would legally separate the AERThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance. from the ACCCThe competition and consumer watchdog that currently houses the AER and would keep providing some shared services during the transition., but it did not complete the Senate stages before the parliament ended.
Key criticism
The main criticism was that splitting the Australian Energy RegulatorThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance. from the ACCCThe competition and consumer watchdog that currently houses the AER and would keep providing some shared services during the transition. is bureaucratic restructuring at the wrong time, when government effort should be focused on lowering power prices and improving reliability instead of changing agency machinery. That case was pushed most clearly by Coalition and Nationals speakers, while some supporters also said the reform still needed to prove it would deliver practical consumer benefits.
Who supported it?
Hon Josh Wilson MP introduced this bill. It was supported by Labor, Greens, some crossbench members; opposed by Liberal Party, Nationals, some crossbench members; and did not pass.
Introduced in House 20 Nov 2024
Passed House 06 Feb 2025
Failed in Senate 21 July 2025
Did not become law —
Did it become law?
No
The bill did not complete passage through Parliament.
Final passage
Did not pass
1 recorded vote before the bill stopped proceeding
Time before failure
243 days
From introduction to the final recorded step before the bill stopped proceeding
Meaning
What does this bill do?
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Australia’s energy regulator would be legally split from the ACCCThe competition and consumer watchdog that currently houses the AER and would keep providing some shared services during the transition. and run as its own Commonwealth body, with its board in charge of its governance and accountability.
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The Australian Energy RegulatorThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance. would hire its own public service staff and be led by its own chair, instead of relying on ACCCThe competition and consumer watchdog that currently houses the AER and would keep providing some shared services during the transition. staffing arrangements.
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The ACCCThe competition and consumer watchdog that currently houses the AER and would keep providing some shared services during the transition. could still provide the Australian Energy RegulatorThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance. with back-office help like IT, corporate services and office space so the split could happen smoothly and cost-effectively.
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The bill would keep the Australian Energy RegulatorThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance.’s state and territory energy powers working during the split by carrying over existing regulations until they are updated.
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Staff moving to the Australian Energy RegulatorThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance. would keep the ACCCThe competition and consumer watchdog that currently houses the AER and would keep providing some shared services during the transition. enterprise agreementThe workplace deal that sets pay and conditions for staff moving from the ACCC to the AER, so their pay is not cut. so their pay is not reduced by the separation.
Show source excerpts
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The Competition and Consumer Amendment (Australian Energy Regulator Separation) Bill 2024 (the Bill) will amend the Competition and Consumer Act 2010 (CCA) to legally separate the Australian Energy Regulator (AER) from the Australian Competition and Consumer Commission (ACCC) and establish the AER as a non-corporate Commonwealth entity (NCE) with the AER Board as its own accountable authority under the Public Governance, Performance and Accountability Act 2013 (PGPA Act).
Competition and Consumer Amendment (Australian Energy Regulator Separation) explanatory memorandum -
This section would provide that staff of the AER must be persons engaged under the Public Service Act 1999 (PS Act), that the AER Chair and APS employees constitute a Statutory Agency, and that the AER Chair is the Head of that Statutory Agency;
Competition and Consumer Amendment (Australian Energy Regulator Separation) explanatory memorandum -
This item would insert section 28A for the purpose of allowing the ACCC to provide support and resources to the AER, including corporate, information technology and the sharing of premises. The process of procuring and establishing corporate and technology resources is a time-consuming and often expensive process. This section would ensure that the separation of the AER from the ACCC is seamless and cost-effective and would allow the AER to access the necessary resources to perform its functions and responsibilities from the day that the Act comes into force.
Competition and Consumer Amendment (Australian Energy Regulator Separation) explanatory memorandum -
This item would provide that regulations made for the purpose of the definition of “State/Territory energy law” which concern provisions of a law of a State or Territory relating to energy, also have effect as if those regulations have been made for the purpose of the definition of “AER State/Territory energy law” in section 44AB of the CCA, as amended by the Bill. This proposed transitional item is consequential to the proposed amendments in item 4 of Schedule 1 to the Bill, which inserts a new definition of “AER State/Territory energy law”. This proposed item is necessary to ensure regulations and instruments where the definition “State/Territory energy law” continue to operate as if they have been made for the purposes of the definition of “AER State/Territory energy law”. This is required for the AER to continue performing its functions and exercising its powers during the transitional period, until such time as the relevant regulations are amended to reflect the amendments in this Bill.
Competition and Consumer Amendment (Australian Energy Regulator Separation) explanatory memorandum -
This item would allow for the continued application of the ACCC Enterprise Agreement to APS employees who are members of the staff of the AER and who had been covered by the ACCC Enterprise Agreement immediately before the commencement of the Bill. The proposed amendment in this item would be necessary to ensure that APS employees who are members of the staff of the AER currently covered by the ACCC Enterprise Agreement are not negatively impacted financially by the separation of the AER from the ACCC.
Competition and Consumer Amendment (Australian Energy Regulator Separation) explanatory memorandum
Context
Broader context for this bill
Reviews had been recommending a more independent Australian Energy RegulatorThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance. for years before the government introduced this bill. The bill would legally separate the AERThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance. from the ACCCThe competition and consumer watchdog that currently houses the AER and would keep providing some shared services during the transition., but it did not complete the Senate stages before the parliament ended.
- 2015
Vertigan Review urged a stand-alone energy regulator
A 2015 review of Australian energy market governance recommended re-establishing the Australian Energy RegulatorThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance. as a stand-alone body with full management and financial autonomy to strengthen its independence and effectiveness.
Competition and Consumer Amendment (Australian Energy Regulator Separation) explanatory memorandum ↗ - 2017
Finkel Review said the separation still had not been implemented
The 2017 Finkel Review noted that the earlier recommendation to structurally separate the AERThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance. from the ACCCThe competition and consumer watchdog that currently houses the AER and would keep providing some shared services during the transition. had not yet been carried out, while considering how cooperation and information-sharing could continue.
Competition and Consumer Amendment (Australian Energy Regulator Separation) explanatory memorandum ↗ - 2020
Energy Security Board review recorded ongoing governance concerns
A 2020 review of the Energy Security Board said many participants raised broader energy market governance issues, including the case for structurally separating the AERThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance. from the ACCCThe competition and consumer watchdog that currently houses the AER and would keep providing some shared services during the transition..
Competition and Consumer Amendment (Australian Energy Regulator Separation) explanatory memorandum ↗ - 20 Nov 2024
Bill introduced to legally split the AERThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance. from the ACCCThe competition and consumer watchdog that currently houses the AER and would keep providing some shared services during the transition.
The government introduced the bill to make the Australian Energy RegulatorThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance. a separate non-corporate Commonwealth entityA type of federal government body that sits inside the Commonwealth rather than being a separate company-like agency. with its own board, chair and staffing arrangements.
Parliamentary timeline ↗ - 06 Feb 2025
House of Representatives passed the bill
The bill cleared the House after the second reading was agreed to and the third reading passed, sending the AERThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance. separation proposal on to the Senate.
Parliamentary timeline ↗ - 21 July 2025
Bill lapsed at the end of Parliament
The proposal did not complete the parliamentary process and lapsed when the Parliament ended, leaving the legal separation of the AERThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance. from the ACCCThe competition and consumer watchdog that currently houses the AER and would keep providing some shared services during the transition. unfinished.
Parliamentary timeline ↗
Legislative route
How did it move through Parliament?
House Senate
Introduced 20 Nov 2024
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
Second reading opened 20 Nov 2024
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
Second reading debate 27 Nov 2024
The bill reached this recorded parliamentary step.
Sent to Federation Chamber for debate 27 Nov 2024
The bill reached this recorded parliamentary step.
Referred to Federation Chamber
Second reading debate 04 Feb 2025
The bill reached this recorded parliamentary step.
Second reading debate 06 Feb 2025
The bill reached this recorded parliamentary step.
Returned from Federation Chamber 06 Feb 2025
The bill reached this recorded parliamentary step.
Reported from Federation Chamber
House second reading agreed Aye 85 No 54 06 Feb 2025
Recorded vote: 85 to 54.
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
House third reading agreed 06 Feb 2025
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
Introduced 10 Feb 2025
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
Second reading opened 10 Feb 2025
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
Lapsed at end of Parliament 21 July 2025
The bill reached this recorded parliamentary step.
Key criticism
The main case against this bill
The main criticism was that splitting the Australian Energy RegulatorThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance. from the ACCCThe competition and consumer watchdog that currently houses the AER and would keep providing some shared services during the transition. is bureaucratic restructuring at the wrong time, when government effort should be focused on lowering power prices and improving reliability instead of changing agency machinery. That case was pushed most clearly by Coalition and Nationals speakers, while some supporters also said the reform still needed to prove it would deliver practical consumer benefits.
Criticism focused more on timing and practical payoff than on rejecting an independent AERThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance. in principle.
Restructure before policy clarity
Opponents said any separation should wait until government has a clearer plan for energy market design and reform, rather than changing institutions first and hoping that helps later.
Unclear consumer payoff
Some members who backed the bill still warned that a new structure, extra funding or more staffing would not by itself fix high energy bills, and wanted clearer proof the change would work in practice.
Further sources
Votes
Recorded votes
How the bill itself passed
These were the main recorded votes on the bill.
Carried House cleared second reading
Passed 85 to 54. Support came from Labor and Greens. Opposition came from Liberal Party and Nationals. Minor-party and independent votes were split.
Carried
House cleared second reading
Party Aye / No
Labor 65 / 0
Unknown 13 / 21
Liberal Party 0 / 21
Nationals 0 / 11
Independent 6 / 1
Greens 1 / 0
These are votes on the bill itself rather than amendment votes.
Parliamentary debate
Who spoke, and what they said
Start here — lead voices
Sponsor speech Supports
Josh Wilson
Josh Wilson supports the bill, saying it is a necessary reform that will give the Australian Energy RegulatorThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance. greater autonomy and better governance so it can handle its expanding role in the energy transition.
Read in Hansard ↗ Lead opposing voice Opposes
Ted O'Brien
O'Brien says the coalition will oppose the bill because, in the middle of an energy crisis, he thinks the government is wasting its effort on bureaucratic restructuring instead of fixing prices, reliability and the wider energy system.
Read in Hansard ↗ Lead supporting voice Supports
Dai Le
Dai Le supports the bill as a step toward a stronger, more accountable energy regulator that could help lower prices, but says the government still needs immediate action and clearer proof that the new structure will work.
Read in Hansard ↗ Lead voice Supports
Malarndirri McCarthy
Malarndirri McCarthy supports the bill and says it is a necessary reform to give the Australian Energy RegulatorThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance. proper independence, stronger governance and better control over its resources.
Read in Hansard ↗All speeches by bloc
Labor
3 speakers · 4 contributions · 3 support
Labor
3 speakers · 4 contributions · 3 support
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Malarndirri McCarthy ★ Malarndirri McCarthy supports the bill and says it is a necessary reform to give the Australian Energy RegulatorThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance. proper independence, stronger governance and better control over its resources.
“The bill is a necessary and forward-looking reform that helps achieve this priority theme.”
Read the full speech in Hansard ↗ -
Graham Perrett Graham Perrett supports the bill and says it fixes outdated energy-regulation governance by making the Australian Energy RegulatorThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance. a standalone body.
“I rise in support of the Competition and Consumer Amendment (Australian Energy Regulator Separation) Bill 2024. This bill resolves some longstanding issues with the current governance arrangements for energy regulation in Australia. It responds to the needs of the rapidly changing Australian energy market and also positions the sector for the future.”
Read the full speech in Hansard ↗ -
Josh Wilson ★ 2 contributions Josh Wilson supports the bill, saying it is a necessary reform that will give the Australian Energy RegulatorThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance. greater autonomy and better governance so it can handle its expanding role in the energy transition.
Hansard records 2 separate contributions by Josh Wilson on this bill. They are grouped here so the speaker is listed once.
Minister's second reading speech
Josh Wilson supports the bill, saying it is a necessary reform that will give the Australian Energy RegulatorThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance. greater autonomy and better governance so it can handle its expanding role in the energy transition. He argues the separation from the ACCCThe competition and consumer watchdog that currently houses the AER and would keep providing some shared services during the transition. will remove governance risks and improve the regulator's effectiveness.
“The bill is a necessary and forward-looking reform that helps achieve this priority theme.”
Read this contribution in Hansard ↗Second reading speech
Josh Wilson supports the bill, saying it will give the Australian Energy RegulatorThe national energy regulator being split off from the ACCC in this bill so it can run its own staff, budget and governance. greater independence and financial autonomy so it can better deliver cheaper, more reliable and more affordable energy for consumers. He also argues the reform was recommended before and should have been done earlier.
“The reform we're making with this bill, which was recommended, as I said, by three separate ministerial council processes to the previous government, will enhance Australia's energy market governance arrangements, allowing the AER to be responsible for its own resources and administrative arrangements and contributing to a strong and independent energy regulator that will ensure energy consumers across Australia are better off for many years to come.”
Read this contribution in Hansard ↗
Coalition
1 speaker · 1 oppose
Coalition
1 speaker · 1 oppose
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Ted O'Brien ★ O'Brien says the coalition will oppose the bill because, in the middle of an energy crisis, he thinks the government is wasting its effort on bureaucratic restructuring instead of fixing prices, reliability and the wider energy system.
“And so I am here to confirm that the coalition will be opposing the amendments to this bill, and we do so asking this government to think very clearly about what is happening in the real Australia and what is happening in households, in businesses and in regional Australia.”
Read the full speech in Hansard ↗
Minor parties and independents
1 speaker · 1 support
Minor parties and independents
1 speaker · 1 support
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Dai Le ★ Dai Le supports the bill as a step toward a stronger, more accountable energy regulator that could help lower prices, but says the government still needs immediate action and clearer proof that the new structure will work.
“Since my election I have repeatedly asked the government what it plans to do to bring down electricity prices and create certainty for consumers. I asked the government in August last year what fundamental changes it would make to the energy pricing mechanism and the broken electricity market. I'm glad to see they have now announced an energy expert panel to study the situation and recommend reforms, but we need actions now. I hope that, in setting this independent body up, working Australians will see their energy prices decrease.”
Read the full speech in Hansard ↗
Record
Full record
- Status
- Not Proceeding -- Collected from the APH bill page.
- Originating house
- House of Representatives
- 20 Nov 2024
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
- 20 Nov 2024
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
- 27 Nov 2024
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
- 27 Nov 2024
House · Referred to Federation Chamber
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
- 04 Feb 2025
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
- 06 Feb 2025
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
- 06 Feb 2025
House · Reported from Federation Chamber
Reported from Federation Chamber
The bill reached this recorded parliamentary step.
- 06 Feb 2025
House · Second reading agreed to
Recorded vote: 85 to 54.
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
- 06 Feb 2025
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
- 10 Feb 2025
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
- 10 Feb 2025
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
- 21 July 2025
Senate · Lapsed at end of Parliament
Lapsed at end of Parliament
The bill reached this recorded parliamentary step.