News Topic ID

Draft report published on Distribution reliability measures

19 June 2014

Distribution Reliability Measures: Draft Report Released for Comment.

19 June 2014

The AEMC today called for public submissions on its draft report on Distribution Reliability Measures. The report proposes the use of a consistent set of measures for reliability performance in electricity distribution networks. The report presents common definitions for distribution reliability targets and outcomes across the National Electricity Market (NEM).

The draft measures were developed in response to the COAG Energy Council's request for a national approach to reliability performance in distribution networks in line with recommendations made by the AEMC's Review of the National Framework for Distribution Reliability (September 2013).

Electricity networks are required to meet the reliability standards set by jurisdictions across the NEM. The costs of meeting those standards feed into system costs and ultimately affects the electricity prices paid by consumers. Currently different approaches are used by jurisdictions and the Australian Energy Regulator (AER) to determine how reliability should be measured.

The AEMC is proposing a consistent set of measure of reliability that would allow the AER to better benchmark reliability performance and improve its ability to determine revenues that are consistent with the efficient delivery of required levels of reliability.

Submissions on the draft report are due by 5pm on 18 July 2014.

For information contact:

AEMC Senior Director, Chantelle Bramley (02) 8296 7800

AEMC Director – Technical Specialist, Julian Eggleston (02) 8296 7800

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

Second working group meeting held of the optional firm access design and testing review

22 May 2014

The second meeting of the optional firm access design and testing working group was held on 1 May 2014. The agenda and a short summary of the meeting are available on the project page.

Final report published on Annual Market Performance Review 2013

07 May 2014

The Reliability Panel (Panel) undertakes an annual market performance review which examines the performance of the National Electricity Market in terms of reliability, security and safety of the power system. The Panel has published its final report on the review of performance in the 2012-13 financial year.

Final report published on Framework for open access and communication standards

10 April 2014

Smart meter open access and common communication standards

The AEMC today recommended open access and new communication standards for smart meters to help establish a competitive market for innovative electricity services.

Our Power of Choice Review said services supported by new metering technology could give consumers more choices on how to manage the level and cost of their power usage. The Open Access review proposes new communication standards so authorised service providers can offer new ways to make this happen.

Energy services of the future could offer consumers a wide range of flexible pricing options; weekly power-bill apps on smart-phones; washing machines and dryers that turn themselves on when power prices are at their lowest during the day; and off-peak charging arrangements for electric vehicles.

At the same time wireless communication of powerline faults across the distribution system would enable network operators to identify and repair problems more quickly - leading to more cost-effective operation and management of networks.

Under the Open Access Review recommendations for a new shared market protocol would provide a common language for communicating with smart meters in a low cost way

The availability of a shared market protocol could promote competition by reducing communication software development costs; reducing unnecessary meter replacement; and not inhibiting a consumer’s ability to switch retailers. In order not to stifle innovation, we also recommend the use of other communication protocols should be allowed.

We recommend that the market for energy services enabled by smart meters should be able to develop without further regulation at this time.

There are a number of interdependencies between this review and the rule change request that the Standing Council on Energy and Resources (SCER) submitted to the AEMC on expanding competition in metering and related services (the competition in metering rule change request). SCER’s ongoing considerations on the role of third party energy service providers in the National Electricity Market will also have an impact on our recommendations. We have developed an implementation plan for our recommendations, which takes into account these interdependencies. information sheet

Next steps

Recommendations have been submitted to energy ministers on the Standing Council on Energy and Resources for consideration.
We recommend that we would conduct a competition review of the energy services market in three years’ time.^{^[1]} The competition review would assess whether the market is operating as envisaged or whether some form of access regulation is required.

For information contact:

AEMC Chairman, John Pierce (02) 8296 7800

AEMC Chief Executive, Paul Smith, (02) 8296 7800

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

10 April 2014

[1] The competition review would be conducted three years after the commencement of any rules made under the competition in metering rule change.

First advisory panel meeting held of the optional firm access design and testing review

10 April 2014

The first meeting of the optional firm access design and testing advisory panel was held on 31 March 2014. The agenda and a short summary of the meeting are available on the project page.

Special adviser appointed for optional firm access design and testing review

10 April 2014

We have appointed Ross Bunyon as a special adviser to the Commission and the Advisory Panel on matters of stakeholder engagement. Ross has held a number of executive and board positions in the electricity and other industries.

AEMC recommends new rules to make switching retailers easier for customers

10 April 2014

The Australian Energy Market Commission (AEMC) today released its final report on its review of electricity customer switching arrangements in the National Electricity Market (NEM).

The report proposes improvements to the switching process to make it easier for consumers to act on their choice to change their electricity plans between different retailers; and support confidence in the integrity of market processes.

AEMC Chairman, Mr John Pierce, said the report’s final recommendations have been given to ministers on COAG’s Standing Council on Energy and Resources (SCER) and focussed on ways to improve both the timing and accuracy of customer transfers between retailers.

“We found that while most customers tend to experience retailer switching times of less than one month, a small proportion of customers still experience lengthy and at times inaccurate transfers,” Mr Pierce said.

“While a relatively small number of customers experience switching difficulties, it is important to strive for improvements so consumers can have confidence with the switching process; and find it easier to shop around for the best deal for them.

“At the moment, customers with a manually-read meter can generally only switch retailers after their meter has been physically read by a technician – and receipt of the meter reading information can potentially take up to three months, unless the customer pays a call-out charge to have their meter read sooner.

“The Commission has recommended a number of process improvements which increase obligations on parties involved in the transfer process, including retailers, to improve the consumer experience,” Mr Pierce said.

The recommendations are to:

give customers a choice to transfer retailers on the basis of estimated meter reads;
develop standards for data used in the customer transfer process;
require the Australian Energy Regulator to increase its reporting on the timing and accuracy of transfers;
require retailers to move quickly to restore arrangements for customers who have been wrongly transferred; and
introduce a periodic review of the effective operation of the customer transfer process by the Australian Energy Market Operator.

The report’s recommendations aim to facilitate the delivery of positive switching experiences for customers, meaning that customers would be more likely to continue to engage with the retail energy market in the long term. Our recommendations, therefore, promote greater customer choice in retail market engagements.

The AEMC has recommended that SCER propose rule changes to the AEMC to give effect to recommendations contained in our final report.

Our advice to SCER delivers on one of the AEMC’s recommendations under the Power of Choice review, which is currently being implemented by energy ministers. Power of Choice set out a substantial reform package for the NEM, focussing on giving consumers more opportunities to make informed choices about the way they use electricity, and manage expenditure.

Project plan and governance arrangements for optional firm access design and testing

08 April 2014

SCER has asked us to develop, test and assess the optional firm access model. We have now developed a set of governance arrangements for the project. Along with the Australian Energy Market Operator (AEMO) we have prepared a coordinated project plan. We are working closely with AEMO and we will coordinate our outputs over the course of the project to provide an integrated set of recommendations and to engage most efficiently with stakeholders.

First working group meeting held of the optional firm access design and testing review

31 March 2014

The first meeting of the optional firm access design and testing working group was held on 20 March 2014. The agenda and a short summary of the meeting are available on the project page.

Industry adviser appointed for peer review of optional firm access design and testing

31 March 2014

We have appointed Charles Popple as an industry adviser to undertake a peer review role for the optional firm access design and testing project. Charles has extensive experience of electricity industry reform from his time working with transmission businesses. Charles also provides advice to SP AusNet on other matters. We have processes in place to manage any potential conflicts of interest that may arise.

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