The Australian Energy Market Commission (AEMC) has today released a draft determination proposing not to make a rule in response to a rule change request submitted by the Centre for Independent Studies (CIS).
The Commission's preliminary view is that changes to the National Electricity Rules are not required to address the three issues raised by the proponent.
The Integrated System Plan (ISP) is Australia's long-term electricity infrastructure roadmap, produced every two years by the Australian Energy Market Operator (AEMO).
It sets out a whole-of-system plan for the efficient development of the power system over at least a 20-year horizon, informing transmission investment decisions worth billions of dollars and shaping regulatory processes and jurisdictional planning programs across the National Electricity Market.
The CIS rule change request proposed changes in three areas: how the ISP treats uncertainty around jurisdictional emissions and renewable energy policies; whether the ISP should include a broader range of whole-of-system costs; and whether AEMO should be required to publish the cost impact of individual jurisdictional policies.
Jurisdictional policies and uncertainty
The AEMC’s preliminary view is that the current rules already allow AEMO to account for the possibility that targets may not be met on schedule.
The Commission considers that market bodies are not well placed to make judgements about the likelihood or feasibility of government policy targets - setting policy remains the responsibility of government.
If a jurisdiction does not want a target supported by the framework, it can direct the AEMC to remove it from the targets statement.
Whole-of-system costs and publication of information
The Commission's preliminary view is that the current rules already give AEMO sufficient flexibility to consider relevant costs, and that the ISP's purpose is to compare alternative development paths - not to account for every element of the electricity supply chain.
On the publication of individual policy costs, the Commission considers these fall outside AEMO's role. It supports the Productivity Commission's 2025 recommendation that an independent body assess the cost-effectiveness of emissions reduction policies - a more appropriate mechanism to achieve the transparency the proponent is seeking.
The Commission notes that what jurisdictions include on the targets statement has implications for the effectiveness of the ISP. Coordination between jurisdictions - particularly on near-term commitments - supports AEMO's planning and promotes an ISP that works in the long-term interests of consumers.
AEMC Chair Anna Collyer said the Commission's draft determination is open for feedback and that stakeholder views remain central to reaching a final position.
"The existing rules give AEMO what it needs. What they should not do is require a market body to judge which government policies are achievable - that is the role of elected governments, not market bodies.
"This is a draft determination and we want to hear from stakeholders before we reach a final view. We encourage anyone with an interest to make a submission." Ms Collyer said.
Submissions are due 28 May 2026.
Visit the project page for the Draft Determination and supporting materials.
About the AEMC
The Australian Energy Market Commission (AEMC) is an independent statutory body that advises Australian governments on energy market rules and conducts reviews of the energy sector. The AEMC's work is guided by the long-term interests of energy consumers, including reliable, safe and affordable energy.
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