Market Review: Completed
On 7 November 2017 the Australian Energy Market Commission (AEMC) published its decision on whether to exercise the last resort planning power for 2017.
The AEMC has decided not to exercise the last resort power as its analysis found that inter-regional constraints are already being considered by transmission network service providers in their 2017 transmission annual planning reports.
The last resort planning power is provided for in the National Electricity Rules. It allows the AEMC to require one or more network service providers to apply the regulatory investment test for transmission to augmentation projects that are likely to relieve a forecast constraint on a national transmission flow path.
The purpose of the power is to ensure timely and efficient inter-regional transmission investment when other mechanisms to provide for the planning of this investment appear to have failed.
The National Electricity Rules require the AEMC to report annually on the matters it has considered during the year in deciding whether to exercise the last resort planning power.