The Australian Energy Market Commission today published additional information on proposed reforms to the way generators access and use the electricity transmission network.
Today’s paper builds on our consultation paper published last month as part of our 2019 review into the coordination of generation and transmission investment. It provides further detail and context on the need for changes to the framework for transmission network access and charging to help address an increasingly congested grid while keeping costs to consumers as low as possible. Proposed changes are:
- reforms to access arrangements, including dynamic regional pricing to reflect where network congestion is happening in real time, as well the ability for generators to be able to buy firm rights to use the transmission network or be compensated if they are constrained off
- reforms to transmission charging arrangements, including those relating to inter-regional transmission. This includes looking at whether the cost of a particular interconnector is adequately attributed to the region which benefits from that interconnector.
We are seeking stakeholder submissions on the proposed reforms by 26 April 2019.
There will be further opportunities for stakeholder input on access and charging arrangements throughout the year, including public workshops.
We will shortly form a technical working group of experts from the market bodies, networks, generators and consumer groups to provide input into the proposed reforms and to help develop rule change requests needed to support the reforms. The notes from these meetings will be published on the project page for this review.
We have published a timeline that sets out the next steps for the review and how stakeholders can be involved. It also shows how the Commission will be developing draft rule changes on the proposed reforms. We aim to deliver the COAG Energy Council a final package of proposed regulatory changes in December 2019, to be submitted back to the Commission in 2020 for full assessment through the rule change request process.
Media: Prudence Anderson, Communication Director, 0404 821 935 or DL (02) 8296 7817.
This work is part of the AEMC’s broader package of changes to the regulatory framework to support new investment in transmission networks in line with AEMO’s Integrated System Plan. Other key reforms in the package are:
- streamlining the regulatory process for priority transmission projects – this is being progressed through rule change requests to the AEMC from the Energy Security Board
- supporting the seamless integration of large-scale energy storage systems – this will be progressed through a rule change request from AEMO
- embedding the Integrated System Plan in the regulatory framework through changes to the National Electricity Rules and National Electricity Law – this will be progressed by the Energy Security Board.
About the Integrated System Plan
AEMO’s Integrated System Plan, published in July 2018, sets out where and when network investment needs to happen to support the large amount of new generation connecting to the grid in the coming years.
The COAG Energy Council asked the Energy Security Board to work with the market bodies - the AEMC, AEMO and Australian Energy Regulator - to make the Integrated System Plan “actionable”.
The AEMC has developed a comprehensive reform package as part of that process. Our report on improving the coordination of investment in electricity generation and transmission, published in December 2018, sets out the nuts and bolts of how to deliver the Integrated System Plan. The report was developed in consultation with stakeholders and underpins the Energy Security Board’s vision for making the Integrated System Plan actionable.