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Glossary of key terms

These are key terms you will find used on ERM's web site. You can refer back to this page at any time to refresh your memory. If you would like to see any other terms explained on this page, you can suggest them by contacting us here.

TERM	EXPLANATION
AEMC	Australian Energy Market Commission (AEMC). Responsible for rule making and aspects of market development.
AER	Australian Energy Regulator (AER). Controls the economic regulation of the electricity transmission sector and the spot market.
AEMO	Australian Energy Market Operator (AEMO).
Baseload generation (or generators)	Baseload generators operate constantly to provide the basic power needed to run our homes, schools, public infrastructure, and businesses. Baseload generators are supplemented by “peaking generators” (see below) during times of high demand.
Combined cycle generator	A combined-cycle generator is one of the most efficient generators. It produces power and heat from a fuel (gas), and then produces extra power from the heat and steam, making it twice as efficient as a traditional gas-fired power station.
Distribution network	The network that supplies power to your house. It includes the poles and wires you see outside homes and buildings.
Farmin	An arrangement where one oil operator buys in or acquires an interest in a lease or concession owned by another operator.
Interconnector	Connects the transmission and distribution pipelines between two states together.
NEM	National Electricity Market (NEM). Controls the National Power Grid and distribution network. NEM is a multi-state market (exc. WA and NT) that was formed in the early 1990s to help encourage consistency and deregulation in the industry. To date, it is still considered to be one of the world’s most progressive electricity market systems.
NEMMCO	National Electricity Market Management Company (NEMMCO). It is both the national electricity market and the power system operator. NEMMCO administers the market and ensures that all participating members are adhering to the laws and regulations.
Online/offline stations	Generation stations which have either commenced (online) or halted operations (offline).
Open-cycle generators	Produce electribity from one source (eg. gas) only.
Peaking generator (or peaking plant)	Are efficient generators used to generate additional electricity supply to help meet excess demands (i.e. winter nights, summer days, etc). Peak generators are generally gas-fired due to their efficiency and are used in addition to baseload generators.
Smart Meters	Provide real-time monitoring of power usage and have the intelligent capability to regulate price for consumption based on the time of day and season.
Upstream	Literally, this means "closer to the source". In gas-fired electricity terms, "upstream" means closer to original energy source (gas). In contrast, "downstream" means further away from the source (retail).

Fast Facts

Fast Facts

Transmission towers are the large electricity structures you often see outside cities and towns.
Energy companies can pay electricity generators up to $10,000 a megawatt hour during times of peak demand.
Electricity is a secondary energy source produced by converting other energy sources like the chemical energy in coal and gas.
Households pay a fixed price to energy companies for power, which protects us from sudden price changes on hot days.
The distribution network is made up of the poles and wires you see in cities and towns.
Power generation stations make power, which is then taken to customers on the transmission and distribution networks.
Retailers are the companies that sell electricity to the end customer, such as a household or business.