The Australian Energy Market Commission today made a new rule enabling the Australian Energy Market Operator to obtain better information on demand side participation from electricity market participants to inform its electricity load forecasts under the National Electricity Rules.
Currently, AEMO conducts voluntary surveys of electricity market participants about their knowledge of demand side participation in the electricity market. It appears that the quality of information obtained from the survey method is limited, potentially impacting the quality of AEMO's load forecasts.
The Commission’s new rule seeks to address this by requiring registered electricity market participants to provide information on demand side participation to AEMO, in accordance with guidelines. These guidelines must be developed by AEMO, in consultation with registered participants and interested stakeholders, providing these parties with an opportunity to actively engage with AEMO on the appropriate specification of the guidelines.
The information provided under the rule will be considered by AEMO when developing and using its load forecasts under the National Electricity Rules.
The publication of potentially better quality load forecasts by AEMO could better inform electricity market stakeholders of possible future outcomes. This could lead to potentially more efficient operational decisions and, ultimately, potentially more efficient investment decisions.
The final rule requires AEMO to develop and publish the guidelines by no later than 26 September 2016. A minimum three month transition period applies between the dates for publication, and commencement, of the guidelines.
This rule change is part of the Commission’s work to encourage greater demand side participation by consumers in Australia’s energy markets, based on the 2012 Power of Choice review which proposed a new framework for consumers to monitor, manage and adjust their electricity consumption.
Other Power of Choice rules already made include improving customer access to information about their energy consumption and making electricity network charges more reflective of individual consumer choices about their energy use. A draft determination was also made today to encourage greater competition in metering and related services. These reforms work together to give consumers more choice and control over their energy use and costs.
For further information, contact:
Communications Manager: Prudence Anderson, (02) 8296 7800