Market Review: Completed
On 24 September, the AEMC published a final decision on amendments to its last resort planning power (LRPP) guidelines (the guidelines).
The LRPP is an oversight mechanism conferred on the AEMC. Its purpose is to ensure timely and efficient inter-regional transmission investment when other mechanisms to provide for this investment appear to have failed. We are required to report annually on the exercise of the last resort planning power. To date, the AEMC has not used this power.
In 2014, the AEMC noted its intention to review the LRPP guidelines which govern our consideration of whether or not the planning power needs to be exercised. The last guidelines review was undertaken in 2010.
The AEMC is making two sets of change to the guidelines. First, we are incorporating a description of the three stage process the AEMC follows when deciding whether to exercise the last resort planning power into the guidelines to provide more transparency and certainty to stakeholders. Second, we are making some “housekeeping” amendments to the guidelines.
On 23 July 2015, the AEMC commenced consultation on amendments to the guidelines. Submissions were due by 3 September 2015. One submission was received.