The Australian Energy Market Commission (AEMC) today made a final rule to strengthen the governance arrangements for the reliability standard and settings, which underpin the secure and reliable supply of electricity to Australian consumers.
The reliability standard measures the adequacy of electricity generating systems to meet the demand of consumers, while the reliability settings provide price mechanisms that incentivise sufficient generation capacity and demand-side response.
Under the final rule, the reliability standard will be incorporated in the National Electricity Rules.
The Reliability Panel will continue to review the reliability standard and settings as part of its current four-yearly review process. Should the Panel recommend a change to the reliability standard or settings, it would request a rule change for consideration by the AEMC.
The Reliability Panel will also be required to develop reliability standard and settings guidelines that set out the principles and assumptions it will make when undertaking its four-yearly reliability reviews.
The Commission considers these arrangements should reinforce the Reliability Panel’s ongoing contribution to assessing and monitoring reliability in the National Electricity Market.
To improve transparency and flexibility of the Australian Energy Market Operator’s (AEMO) role in implementing the reliability standard, the final rule requires AEMO to develop reliability standard implementation guidelines.
The final rule is the same as the draft rule released for consultation in December 2014. The final rule was made in response to a rule change request from the COAG Energy Council and is effective from 26 March 2015.
For further information, contact:
Director: Elisabeth Ross, (02) 8296 7800
Communications Manager: Prudence Anderson, (02) 8296 7800