Rule Change: Open
Overview
The Australian Energy Market Commission (AEMC) has published a draft determination to not make a draft rule in relation to a rule change request submitted by the Centre for Independent Studies, which proposed changes to the way the Australian Energy Market Operator (AEMO) develops the Integrated System Plan (ISP) and the cost information the ISP provides.
The rule change request sought changes to:
- how the ISP treats jurisdictional emissions/renewables policies and uncertainty
- require the inclusion of a broader range of “whole-of-system” costs
- require publication of additional cost information, including cost impacts of individual jurisdictional policies.
The Commission’s view is rule changes are not required to address the issues raised by the proponent
We consider the current rules already have sufficient flexibility to enable consideration of the risks raised by the proponent. We consider that the additional analysis and information proposed by the proponent:
- is inconsistent with the governance arrangements of the national electricity framework
- can already be considered under the current rules, or
- would increase costs and provide limited benefits.
The purpose of the ISP as set out in the National Electricity Rules (NER) is to set out a whole of system plan for the efficient development of the power system over at least a 20-year time horizon, to contribute to achieving the National Electricity Objective (NEO). This means that the overall purpose of the ISP is to contribute to the long term interests of consumers with respect to achieving targets on the targets statement, as well as price, quality, safety, reliability and security of the supply of electricity. This includes targets set by participating jurisdictions, including, emissions reduction targets, as well as renewable energy, electrification and energy productivity targets.
The Commission considers that the proposed rule would not, or would not be likely to, contribute to the NEO. It has therefore decided not to make a draft rule.
Submissions to the draft determination are due on 28 May 2026.
Background
The Centre for Independent Studies submitted a rule change request on 31 October 2024 to amend the NER.
The Commission published the consultation paper on 9 October 2025, and we received 18 stakeholder submissions. Submissions to the consultation paper can be found below.