AEMO operates on a cost recovery basis as a corporate entity limited by guarantee under the Corporations Act. AEMO fully recovers its operating costs through fees paid by market participants.
AEMO’s ownership structure is split between government and industry, with membership comprising 60 per cent government members and 40 per cent industry members.
AEMO is governed by a Board comprised of nine non-Executive Directors, who are appointed to meet a required skills matrix, and the Managing Director/Chief Executive Officer.
The Board’s responsibilities include but are not limited to:
- Oversight of AEMO’s activities to achieve the objectives set out in the Constitution.
- Setting AEMO’s goals and strategy.
- Determining the financial, operational, human, technological and administrative resources required by AEMO to meet its objectives and goals.
- Establishing and maintaining adequate and effective reporting lines and procedures, which enable all material matters and information to be identified and reported to the Board.
- Approving budgets and monitoring compliance with financial reporting obligations.
- Appointing the Managing Director.
- Reviewing and assessing the performance of the AEMO’s management.
- Establishing and approving the charters of Board Committees.
- Establishing effective controls and procedures to enable risks to AEMO to be identified, assessed and managed.
- Monitoring compliance with legislative and regulatory requirements including occupational health and safety, equal opportunity, environmental, corporate governance and reporting obligations.
- Reporting to AEMO’s stakeholders.
The day-to-day management of AEMO is delegated to the Managing Director with support from Board Committees as appropriate.
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