Market Review: Completed

Overview

On 20 December 2012 the Reliability Panel published the final report and the final revised guidelines for the review of guidelines for identifying reviewable operating incidents. Consistent with the requirements under the National Electricity Rules (NER), the final guidelines focus on reviewing incidents that could have a significant impact on the operation of the power system.
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<p>
On 20 December 2012 the Reliability Panel published the final report and the final revised guidelines for the review of guidelines for identifying reviewable operating incidents. Consistent with the requirements under the National Electricity Rules (NER), the final guidelines focus on reviewing incidents that could have a significant impact on the operation of the power system. To this end, the final guidelines introduce the concept of &lsquo;critical transmission elements&rsquo;. Incidents that impact critical transmission elements will need to be reviewed by AEMO. The revised guidelines come into effect on 1 April 2013. This provides time for AEMO to consult with stakeholders on the definition of critical transmission elements.</p>
<h2>
Background</h2>
<p>
The Reliability Panel (Panel) conducted a review of the guidelines for identifying reviewable operating incidents (guidelines) following a request from the Australian Energy Market Operator (AEMO) to amend the guidelines.&nbsp; These guidelines are applied by AEMO in determining when a power system incident is considered a &#39;reviewable operating incident&#39;. Under the National Electricity Rules (NER), AEMO is required to review these incidents and report its findings.</p>
<p>
Reviewable operating incidents are generally incidents that occur in the power system that could have a significant effect on the operation of the power system in terms of system security. The NER set out criteria to determine which operating incidents are &#39;reviewable&#39;. The guidelines provide additional clarity and certainty on the review requirements.</p>
<p>
On 31 January 2012, AEMO sent a letter to the Panel proposing the Panel consider amendments to the guidelines. In March 2012, the Australian Energy Market Commission requested that the Panel conduct a review of the guidelines to determine if amendments are required.</p>
<p>
Publication of an issues paper on 8 May 2012 was the first step in the Panel&#39;s review process. Stakeholder submissions on the issues paper were requested by 6 June 2012 and three submissions were received.</p>
<p>
In response to issues raised in stakeholder submissions, AEMO sent a revised proposal to the Panel on 30 July 2012 for the Panel&#39;s consideration in preparing its draft report.</p>
<p>
The draft report was published on 6 September 2012, which discusses issues raised by stakeholders in submissions and those raised in AEMO&#39;s revised proposal. The report proposed a series of amendments to the Panel&#39;s guidelines for stakeholder comment. This included amendments to the guidelines to improve the efficiency of the current review process for AEMO and market bodies involved in incident reviews.</p>
<p>
A public meeting was advertised for 24 October 2012, but subsequently cancelled due to low registration numbers. Instead, a teleconference for interested stakeholders was held on 1 November 2012. Notes on this teleconference are available on this website.</p>
<p>
Following consideration of the issues raised in submissions and at the teleconference, the final guidelines adopt the concept of critical transmission elements. Under the final guidelines, reviewable incidents will be those that affect critical transmission elements.&nbsp; &lsquo;Critical transmission elements&rsquo; will be defined by AEMO in consultation with stakeholders. The final guidelines also include a requirement that AEMO should review any other power system event not otherwise specified in the guidelines if it considers the event is of significance to the operation of the power system. Other minor amendments have also been made. These new guidelines take effect on 1 April 2013, which allows AEMO time to consult with stakeholders on the definition of critical transmission elements.</p>

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