The Australian Energy Market Commission (AEMC) released a consultation paper on 19 March 2026 that seeks stakeholder feedback on Improving Compensation Frameworks. The rule change requests seek to change the NEM compensation frameworks for administered pricing, directions, market suspension, and scheduling errors. 

We have consolidated three rule change requests 

The Australian Energy Market Operator (AEMO) submitted a rule change request on 1 December 2025 proposing changes to the compensation frameworks, mostly in line with the recommendations from the AEMC’s Review into electricity compensation frameworks (the compensation review). Tilt Renewables submitted two rule change requests on 14 March 2023. The first rule change would allocate capacity directions costs to consumers. The second change would impose a $0/MWh price floor on spot prices to compensate participants for scheduling errors. 

We have consolidated these rule change requests under section 93 of the National Electricity Law (NEL).

This rule change project follows our Review into compensation frameworks

The changes AEMO has proposed largely align with the recommendations our review made in December 2024. These changes, if implemented, sought to:

• ensure the compensation framework provides the right objectives and incentives
• provide clear and transparent methodologies
• streamline governance, reducing unnecessary complexity and inconsistencies
• provide predictable and administratively simple compensation regimes.

We are seeking stakeholder feedback on four major changes to:

• introduce a formal objective for directions compensation
• change the calculation and cost recovery of compensation claims
• change the compensation governance and process, and
• align compensation frameworks by re-structuring the NER.

Submissions to the consultation paper are due 30 April 2026

Written submissions responding to this consultation paper are welcome by 30 April 2026. These should be submitted via the Commission’s website, www.aemc.gov.au. Please use the project code ERC0425 when lodging a submission.