On 31 May 2010, the AEMC provided its Final Report for the Review of the Effectiveness of NEM Security and Reliability Arrangements in light of Extreme Weather Events to the MCE, in accordance with the Revised Terms of Reference for the Review. The Terms of Reference also specify that the MCE will decide whether this report should be published. View more
On 31 May 2010, the AEMC provided its Final Report for the Review of the Effectiveness of NEM Security and Reliability Arrangements in light of Extreme Weather Events to the MCE, in accordance with the Revised Terms of Reference for the Review. The Terms of Reference also specify that the MCE will decide whether this report should be published.
Background
On 28 April 2009, the Ministerial Council on Energy (MCE) directed the AEMC to conduct a review of the effectiveness of National Electricity Market (NEM) security and reliability arrangements in light of extreme weather events.
In the context of extreme weather events (such as droughts, heatwaves, storms, floods and bushfires), the MCE's request for advice, as stated in its Terms of Reference, directed the AEMC to:
- examine the current arrangements for maintaining the security and reliability of supply to end users of electricity and provide a risk assessment of the capability of those arrangements to maintain adequate, secure and reliable supplies;
- provide advice on the effectiveness of, and options for, cost-effective improvements to current security and reliability arrangements; and
- if appropriate, identify any cost-effective changes to the market frameworks that may be available to mitigate the frequency and severity of threats to the security and reliability of the power system.
On 1 June 2009, the AEMC submitted its First Interim Report to the MCE which outlined measures that are currently under consideration that would improve system reliability and security. On 14 August 2009, the MCE revised the Terms of Reference to require the AEMC to submit a Second Interim Report providing specific advice on the NEM reliability standard and the market settings to achieve that reliability standard. This Second Interim Report was to be provided by 18 December 2009.
The Revised Terms of Reference also extended the timing for the Final Report to 30 April 2010. This Final Report would report on any cost-effective changes that could be made to energy market frameworks to improve system reliability in the longer term and contribute to the more effective management of system reliability during future extreme weather events.
On 29 October 2009, the AEMC published the First Interim Report which was conducted in accordance with the original Terms of Reference provided by the MCE.
On 18 December 2009, the AEMC provided its Second Interim Report to the MCE in accordance with the Revised Terms of Reference for the Review. This Report specifically focused on information and advice sought by the MCE regarding the NEM reliability standard and market settings.
On 2 March 2010, the AEMC published the Second Interim Report. To facilitate stakeholder consultation for this review, the AEMC also published a consultation paper that outlined the key issues considered relevant to the Final Report for this Review.
To allow time for meaningful consultation, the AEMC wrote to the MCE requesting an extension to the submission date for the Final Report. The MCE agreed to this request and extended the submission date for the Final Report by one month to 31 May 2010.
All enquiries in relation to this review should be directed to Rory Campbell by telephoning 02 8296 7800.
View less