Compliance and enforcement outcomes are a key tool in the AER’s regulatory toolkit, which are deployed with the aim of ensuring that energy consumers are better off, now and in the future. Significant compliance and enforcement outcomes, including substantially higher penalties under the new penalty regime, have been delivered in 2021–22. These outcomes have both an important deterrent effect and an educative value to support compliance. Compliance with national energy laws ensures that important protections are delivered and rights are respected. It gives consumers and energy market participants confidence that energy markets are working effectively and in their long-term interests, so that they can participate in market opportunities as fully as possible while remaining protected from harms. The AER recognises that it is now more important than ever that the AER remains vigilant and takes timely and proportionate enforcement action when harms arise, as Australia's energy market transitions.

The release of this report coincides with recent significant challenges for the east coast energy market. These challenges have put a significant spotlight on energy security, reliability, and affordability in Australia. The AER is carefully considering the recent market events and will take necessary enforcement and compliance action in relation to identified breaches of the law and rules. The AER has settled its compliance and enforcement priorities for 2022–23, which sees most of the current priorities continued for a further 12 months and some updates to areas of focus, including in response to the recent market events.