The Australian Energy Market Commission (AEMC) has initiated a comprehensive package of work examining Australia's electricity transmission planning framework, combining a statutory review of the Integrated System Plan (ISP) with a rule change consultation.
The ISP, produced every two years by the Australian Energy Market Operator (AEMO), identifies electricity infrastructure investment required over at least a 20-year horizon that best supports the long-term interests of consumers as defined by the National Electricity Objective. This includes consideration of price, reliability, security and emissions reduction.
The ISP has become a foundational document informing transmission investment decisions worth billions of dollars, regulatory processes, and jurisdictional planning programs.
Today's package includes the terms of reference for the AEMC's statutory review of the ISP framework in addition to a consultation paper responding to a rule change request from the Centre for Independent Studies.
AEMC Chair Anna Collyer said the parallel approach enables holistic consideration of related issues.
"The ISP plays a central role in coordinating major transmission investment during an unprecedented transformation of our electricity system," Ms Collyer said.
"Given its broad influence, it is essential the framework remains fit for purpose and its methodology is robust. This package provides an opportunity to examine these questions systematically while considering stakeholder perspectives on interrelated issues."
ISP Review
The AEMC is required to complete a review of the ISP framework by 1 July 2027 under the National Electricity Rules.
The review will examine all aspects of the ISP framework under National Electricity Rules 5.16A, 5.22 and 5.23, including application of the Regulatory Investment Test for Transmission to actionable ISP projects, ISP content, methodology, governance and dispute resolution.
The AEMC will undertake early engagement with stakeholders following publication of the terms of reference to inform the scope of issues to be examined in the review.
A consultation paper formally initiating the review will be published in late December 2025.
Rule change consultation
The AEMC has also published a consultation paper examining proposed changes to how jurisdictional policies and system costs are treated in the ISP. The rule change request proposes changes to the ISP in three key areas:
- Treatment of jurisdictional policies: Whether the ISP's current approach to incorporating jurisdictional policies adequately accounts for uncertainty.
- Whole of system costs: Whether the ISP should include a broader range of costs
- Publication of information: Whether the information currently published regarding system costs provides sufficient transparency, or whether additional detail would better support stakeholder understanding.
Timeline and submissions
Written submissions on the rule change consultation paper are due by 6 November 2025. The AEMC will also seek feedback through public forums and industry briefing sessions.
We welcome early engagement from stakeholders who wish to discuss the ISP Review. Further information on the ISP Review can be found on the project page of our website. For the rule change request, more information can be found here.
Media: Jessica Rich, 0459 918 964, media@aemc.gov.au