Market Review: Completed
The Australian Energy Market Commission (AEMC or Commission) reviewed reports on transmission system planning from the Australian Energy Market Operator (AEMO) and transmission network businesses, and determined that there was no need to exercise the last resort planning power (LRPP) for 2018.
On 14 February 2019, the Commission published the analysis and the considerations informing this decision.
The Commission concluded that transmission network service providers (TNSPs) are adequately considering inter-regional transmission constraints as part of their network investment planning.
The transmission network connecting Queensland, New South Wales, the Australian Capital Territory, Victoria, South Australia and Tasmania allows electricity to flow across the entire national electricity market (NEM). The inter-regional flow of electricity is fundamental to the NEM’s operation as a single market.
The LRPP is conferred on the AEMC under the National Electricity Rules. Its purpose is to ensure timely and efficient inter-regional transmission investment in the NEM for the long-term interests of consumers.
Under the LRPP:
- if there is a constraint that may significantly impact on the efficient inter-regional transportation of electricity in the NEM, and
- the AEMC identifies that there are no current processes or projects underway to address this constraint, then
- the AEMC has the power to direct one or more network service providers to apply the regulatory investment test for transmission (RIT-T) to project(s) that are likely to relieve that constraint.