Rule Change: Completed
Overview
The Commission has made a more preferable final rule, which improves the workability of the feedback loop assessment.
The final rule will promote a clear, consistent and predictable regulatory framework which is critical to the timely and efficient delivery of major transmission projects and to safeguard consumer interests.
Key features of the final rule include:
- Enabling the feedback loop to be assessed against the most recent Optimal Development Path (ODP) in a draft or final ISP.
- Requiring the AER’s CBA guidelines to provide guidance on the timing of feedback loop requests.
- Providing TNSPs with the flexibility to undertake concurrent feedback loop assessment and CPA processes.
- Supporting timely decision-making by requiring AEMO to complete its feedback loop assessment within specified timeframes.
- Including transitional rules which support the timely implementation of the final rule.
These changes are designed to improve the feedback loop assessment’s operation as a consumer safeguard by making it more efficient and transparent to ensure that the delivery of the ISP is in the long-term interests of consumers.
The final rule largely aligns with the draft rule with minor changes made to address the risk of project delays and ensure the smooth implementation of the final rule for stakeholders.
Background
On 29 June 2023 the AEMC received a rule change request from The Honourable Chris Bowen MP, Minister for Climate Change and Energy to amend the National Electricity Rules.
The Commission adopted a fast-track process in considering this rule change request, reflecting the extensive consultation carried out on the issues raised in the rule change request during the AEMC’s transmission planning and investment review.