Rule Change: Completed
On 4 November 2010, the Commission gave notice under sections 311 and 313 of the NGL of the making of the final Rule determination and Rule for the Calculation of Interest for Gas Markets Rule change request.
The Rule as Made provides for the calculation of interest in the NGR to use a simple interest methodology. It also updates the definitions of ‘interest rate' and ‘default interest rate' to clearly identify the appropriate interest rate to be applied.
The Rule as Made is consistent with AEMO's description of its proposed Rule in its Rule change request.
AEMO's Rule change request sought to allow it to continue to calculate interest under the Declared Wholesale Gas Market (DWGM) Rules (Part 19 of the National Gas Rules (NGR)) using a simple interest methodology, as it did under the Victorian Gas Industry Market and System Operations Rules (MSOR). In proposing this amendment to the Rules, AEMO also requested to remove any ambiguity in the Short Term Trading Market (STTM) Rules (Part 20 of the NGR) and Natural Gas Services Bulletin Board (BB) Rules (Part 18 of the NGR) by clarifying that interest calculated under these Rules will also use a simple interest methodology.
In addition, as the definition of 'interest rate' and 'default interest rate' varied slightly between the DWGM Rules, STTM Rules and BB Rules, AEMO also sought to apply one definition of ‘interest rate' and ‘default interest rate' to all these Rules, to be centrally located in the NGR.
On 23 September 2010, the Commission gave notice under sections 303 and 304 of the National Gas Law (NGL) to initiate AEMO's Calculation of Interest for Gas Markets Rule change proposal under the expedited Rule change process as a request for a non-controversial Rule. No objections to this process were received, so the Commission assessed the Rule change request under the expedite process provided in section 304 of the NGL.
Submissions on the Rule change request closed on 21 October 2010. One submission was received.