Throughout November 2025, the Australian Energy Regulator (AER) released a suite of reports that strengthen transparency, sharpen regulatory settings and equip Australia’s energy sector for a more complex, decentralised market heading into 2026.
Final price-responsive reporting guideline
The first notable release was the AER price-responsive reporting guideline, a key step in preparing the market for the growing influence of unscheduled price-responsive resources. These resources, ranging from household consumer energy assets to industrial load shifting technologies, are increasingly shaping demand forecasts and market efficiency.
Following the December 2024 Australian Energy Market Commission rule change, the AER is now required to monitor and report on how these resources respond to market signals and affect system outcomes.
Unscheduled price-responsive resources include household consumer energy resources (CER), home energy management systems operating traditional appliances, industrial sites with flexible demand, and small-scale generation and storage units. As these technologies scale, their collective behaviour can create forecast deviations and new market dynamics. The new guideline outlines how the AER will meet its expanded obligations, including the publication of an annual report analysing the impacts of these resources on market efficiency and emerging operational trends.
The AER will publish its first annual assessment by 31 December 2026, covering the 2025 to 2026 financial year. From then on, annual reporting will provide industry with visibility into how decentralised energy behaviour is reshaping the National Electricity Market.
2025 Rate of Return Annual Update
Alongside this, the AER released its 2025 Rate of Return Annual Update, providing current market data used to determine the allowed rate of return for regulated electricity and gas networks. The update supports ongoing stakeholder engagement in the development of the Rate of Return Instrument (RORI). This is a cornerstone policy that ensures network businesses can attract efficient investment while protecting consumers from unnecessary costs.
The latest dataset was prepared in line with the 2022 RORI, which outlines how the AER estimates the cost of equity and debt for regulated networks. Since committing in 2018 to publish annual updates, the AER has used these releases to bring transparency and stability to the rate-setting framework. With the 2026 RORI review already underway and a final decision expected in December 2026, this year’s update will help form the evidence base for the next regulatory cycle.
Eligible Experts’ report for the 2026 Rate of Return Instrument review
Rounding out November’s publications, the AER released the Eligible Experts’ report for the 2026 RORI review. Energy laws require that before drafting a new RORI, the AER must seek concurrent expert advice on key issues and methodologies. The appointed panel examined the themes raised in the AER’s August 2025 discussion paper, providing detailed analysis to guide the next stage of policy design.
To support stakeholder understanding, an online public forum will be held on 4 December 2025, where the Eligible Experts will present their findings and respond to pre-submitted questions. These submissions will inform the AER’s draft RORI, due for release in April 2026.