Rule Change: Open

Overview

On 11 June 2020, the AEMC initiated a rule change request related to compensation following directions for services other than energy and market ancillary services in the National Electricity Rules (NER). ‘Other services’ may include, among other things, a direction for a battery to maintain a specified state of charge to maintain system security.
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On 11 June 2020, the AEMC initiated a rule change request related to compensation following directions for services other than energy and market ancillary services in the National Electricity Rules (NER). ‘Other services’ may include, among other things, a direction for a battery to maintain a specified state of charge to maintain system security.

The consideration of this rule change request is part of a wider Commission work program updating frameworks for interventions in the NEM.

Rule change request from AEMO

On 19 September 2019, AEMO submitted a rule change request for the NER to be amended in relation to the determination of compensation following directions for services other than energy and market ancillary services.

Currently, when a participant is directed to provide other services (something which has occurred infrequently until recently), they may be compensated under the “fair payment price” framework. Following this initial compensation process, if a directed participant is still out of pocket, it may lodge a claim for additional compensation through a separate second process. 

AEMO considers that this two-step process is an unnecessary delay in finalising compensation for directed participants and proposes an alternative one-step process, where the fair payment price and additional compensation can be determined at the same time. This may improve administrative efficiency of the compensation process.

Submissions from stakeholders are requested by 16 July 2020.

Links to other current intervention rule change processes

The AEMC is considering other rule change requests from AEMO dealing with aspects of the interventions framework. These are subject to separate rule change processes. For more information, see below:
 

Change to intervention mechanisms

Removal of intervention hierarchy

Compensation for market participants affected by intervention events

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Documentation

INITIATION

Proposal Documents

AEMC documents