Market Reviews: Completed

On 31 July 2009, the Reliability Panel (Panel) submitted to the AEMC and published its Final Report on the template for generator compliance programs (template) in accordance with clauses 8.8.1 and 8.8.3 of the National Electricity Rules (Rules).  The Final Report represented the third stage in the Panel's review to develop the template.  

All enquiries on this project should be addressed to Charles Hoang on (02) 8296 7800.

Background 

Following the making of the National Electricity Amendment (Performance Standard Compliance of Generators) Rule 2008 No. 10 and its commencement on 23 October 2008, clause 8.8.1(a)(2b) of the Rules requires the Panel to determine and publish the template for generator compliance programs.

In accordance with clause 8.8.3(a)(6) of the Rules, the Panel is required to conduct the review to develop the template for generator compliance programs in accordance with clause 8.8.3 of the Rules.

In November 2008, the Commission provided Terms of Reference to the Panel requiring it to conduct this review as required under clause 8.8.3 of the Rules. The Terms of Reference was published with the Issues Paper.

On 22 January 2009, the AEMC Reliability Panel (Panel) published an Issues Paper on its review to develop the template for generator compliance programs. The Issues Paper represented the first stage of the consultation process being undertaken by the Panel.

The Panel welcomed submissions from stakeholders on the issues identified in the Issues Paper. In particular, the Panel sought stakeholder views on:

• are there benefits in adopting a set of compliance principles and what are these benefits in terms of meeting the Rules requirements for the template for generator compliance programs?
• if so, are the examples of compliance principles in Appendix A appropriate?
• are there benefits in adopting compliance program categories and, if so, what are these benefits in terms of meeting the requirements in the Rules for the template for generator compliance programs?
• is it necessary to draft guidelines for template for generator compliance programs and, if so, are the example guidelines in Appendix B appropriate?
• what should be covered in the scope of the template for generator compliance programs, how should it be structured and what should it contain?
• how prescriptive should the template for generator compliance programs be for each performance standard e.g. should test methodologies be included?
• how should the variation in individual performance standards and versions of the National Electricity Rules (Rules) be handled?
• whether the examples for developing the template for generator compliance programs in appendices A, B, C and D are appropriate to be incorporated into the Panel's template or what modifications should be considered?
• how can it be ensured that the template for generator compliance programs meets "good electricity industry practice" that would provide certainty for Generators as to what is required of their compliance programs? Stakeholders are invited to submit examples of existing compliance programs they consider would be appropriate in determining a best practice solution in formulating a template for generator compliance programs.
• having regard to the current processes for implementing the template for generator compliance programs already set in the Rules, what other implementation and transition issues may need to be addressed and how would these be put into effect?
• are there any other matters that should be considered important?

Submissions on the Issues Paper closed on 6 March 2009.

On 8 May 2009, the Panel published a Draft Report on its review to develop the template for public consultation in accordance with clause 8.8.3 of the Rules.  The Panel sought submissions on the draft template in section 4 of the Draft Report which incorporated the initial comments received on the Panel's Issues Paper.  The Draft Report represented the second stage in the Panel's review to develop the template.  Submissions on the Draft Report closed on 19 June 2009.

The Panel also held a meeting open to all Registered Participants to provide an opportunity for comments and questions on its draft template on 12 June 2009 at the AEMC's Sydney office.

The following key dates outline the consultation process leading up to the delivery of the Panel's Final Report to the AEMC on its template.