The AEMC is extending the date for publishing the draft determination on the Five Minute Settlement rule change request until 30 March 2017. The extended timeframe will enable the AEMC to evaluate the complex issues raised in responses to the consultation paper and consider the implications of inter-related AEMC projects. It will also allow additional consultation with a large number of interested stakeholders.

This rule change request is being considered against the background of market transformation - with an increasing share of renewables in the generation mix and new energy services on offer. The request proposes a fundamental change to the price calculation in the wholesale electricity market. As observed by stakeholders in submissions on the consultation paper, the proposed rule change would have implications for the spot market, contract market, metering and IT systems. If the Commission makes a rule, a transition period may be necessary to manage impacts on IT systems and contractual positions for retailers, generators and the market operator.

The costs and benefits would accrue to most market participants, and ultimately impact on electricity prices for end users. It is important for the Commission to undertake a detailed assessment, informed by stakeholder feedback, of the materiality of the problem and how the proposed rule might affect market outcomes and participants.

We will provide opportunities for stakeholder input through public forums, meetings and other engagement activities as needed to support an open and comprehensive assessment process.

Stakeholders will be notified about opportunities for engagement through the AEMC’s weekly e-newsletter.

Media contact: Communication Manager, Prudence Anderson 0404 821 935 or (02) 8296 7817