On 12 March 2026, the Australian Energy Market Commission (AEMC) published a draft determination and draft rule in response to three rule change requests that have been consolidated: 

• AEMO: Improving the NEM access standards – Package 2.
• Rod Hughes Consulting: Definitions of protection system requirements.
• Rod Hughes Consulting: Conditions for generator protection systems.

The draft rule, which is a more preferable draft rule, would update and improve the NEM access standards with a focus on managing the system security impacts of large inverter based loads.

Stakeholder submissions to the draft determination are due on 7 May 2026.

About the draft rule

The draft rule would:

• create a clear regulatory framework and tiering system for applying access standards to large load connections
• introduce new access standards for large IBL in relation to disturbance ride-through and managing instability
• update some other access standards that apply to load connections
• make other targeted improvements to the broader access standards framework.

The draft rule would support the secure and reliable operation of the power system by recognising the technical impact of large IBLs, helping to avoid increases in system costs that would otherwise be passed on to consumers. The application of the new and updated access standards would be commensurate with a load’s power system security impact, to minimise unnecessary technical and compliance costs.

By providing a clear and robust regulatory framework, the draft rule would improve transparency and streamline the connections process for large loads such as data centres, helping to support continued investment in Australia’s digital economy.

Background and context

In December 2023, the Australian Energy Market Operator (AEMO) completed its first review of the NEM access standards, which it must complete every five years. The access standards in the National Electricity Rules (NER) define the permissible range of technical requirements that connection applicants need to meet before being allowed to connect to the NEM. These standards need to be updated as our power system evolves to meet Australia's net zero target and, in turn, ensure the secure operation of the NEM.

Following the review, AEMO submitted two rule change requests to the AEMC in April 2024. 

• The first request (Improving the NEM Access Standards - Package 1) was progressed through the fast-tracked rule change process. The final determination and final rule were published on 22 May 2025.
• We are now considering AEMO’s second request (Improving the NEM Access Standards - Package 2) through a standard rule change process. 

The key driver of AEMO's Package 2 rule change request was the projected increase of large IBLs, such as data centres and hydrogen electrolysers. AEMO's review found that this projected growth could pose potential risks to the secure operation of the power system and that the existing customer access standards in Schedule 5.3 of the NER should be improved to better manage those risks.

The Commission consolidated two rule change requests from Rod Hughes Consulting (listed above) with AEMO's Package 2 rule change request because they are substantially related and can be considered more efficiently together. This will allow stakeholders to engage with the three rule change requests via one process.  

We published a consultation paper for the three rule change requests on 8 May 2025. Stakeholder submissions were due on 19 June 2025.

Stakeholders raised a number of issues in submissions to the consultation paper. Because of the complexity of these issues, we extended the date for the publication of the draft determination and draft rule to 12 March 2026. 

Technical working group (TWG) 

Submissions to the consultation paper expressed varied views on ways to address the potential power system security impacts from large load connections to the NEM. We note that industry understandings of load technology are in their early stages and warrant deeper analysis.

For this reason, we formed a TWG with interested stakeholders to engage in more detailed consultation and technical analysis of customer load interactions with system security before amending any rules. TWG meetings were held between October and December 2025, and the meeting materials are published below. We will notify stakeholders in advance if any additional TWG meetings are to be held after the draft determination is published.