The AEMC has released a consultation paper on how dedicated connection assets operate in the national electricity market.

A dedicated connection asset (DCA) is a privately owned and operated asset – such as a power line – that connects market participants with the shared transmission network at a single connection point.

Under the National Electricity Rules only one market participant can be financially responsible for any given connection point. However, multiple generators and/or large energy users can use the DCA to connect their facilities to the shared network.

The Australian Energy Market Operator (AEMO) has submitted a rule change request asking for the framework around these transmission connections to be clarified. AEMO has requested more clarity around the way the National Electricity Rules apply to DCAs in relation to:

  • registration requirements for DCA connected generators and/or large energy users
  • how performance standards are negotiated and enforced
  • issues around metering and settlement
  • calculating the amount of electricity lost as heat during the transmission process (transmission loss factors).  

AEMO has proposed to create additional connection points at the geographical location where a facility connects to a DCA. AEMO says adding these connection points while still keeping the common DCA connection point will ensure that key requirements under the National Electricity Rules apply to each connected party.

AEMO has also asked the AEMC to assess whether the current DCA third party access framework is still appropriate and supporting the best use of connection assets.

The consultation paper invites stakeholders to comment on these and other issues by 2 April 2020.


Media: Kellie Bisset, Media and Content Manager, 0438 490041 or (02) 8296 7813