Rule Change: Open

Overview

This rule change request from AEMO seeks to improve administrative processes related to compensation and settlement after AEMO intervenes in the market – for example, when directing a gas or diesel generator on to maintain system strength. This rule change request was submitted as two requests which were consolidated.
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This rule change request from AEMO seeks to improve administrative processes related to compensation and settlement after AEMO intervenes in the market – for example, when directing a gas or diesel generator on to maintain system strength. This rule change request was submitted as two requests which were consolidated.

Generators which have been directed by AEMO to provide services are paid compensation to ensure they are not out of pocket. Other participants affected by the intervention may also be compensated, for example, a generator whose output was constrained to minimise flow-on effects from the direction. Compensation is ultimately paid for by consumers. 

This proposed rule change from AEMO seeks to streamline the cost recovery process by aligning the timetables for compensation and settlement following an intervention. It also proposes to extend the deadline for participants to make additional claims following an intervention which would allow participants more time to assess the impact of intervention events.  

Consultation paper

On 4 April 2019 the AEMC published a consultation paper seeking stakeholder input on whether:  

  • the seven business day deadline for participants to calculate additional claims is too short, given directions have become more complex over the last two years
  • directed participants should be given the same amount of time as affected participants to submit additional compensation claims
  • the current intervention compensation and settlement timetables should be aligned. 

Submissions to the rule change request are due by 2 May 2019.

Expedited process

As this rule change request is considered non-controversial, the AEMC intends to assess the proposed rule under the expedited rule making process unless we receive a written request and substantive reasons not to do so from any person by 18 April 2019. 

Under an expedited rule making process, a final rule determination must be made within eight weeks of the initiation of the process.

The key dates are:

  • Commencement of this rule change process: 4 April 2019 
  • Submissions to the consultation paper to be received by (4 weeks): 2 May 2019 
  • Publication of final determination: 30 May 2019 

Background

On 17 December 2018 the Australian Energy Market Operator (AEMO) submitted two rule change requests:

  • Deadlines for additional compensation claims following market intervention
  • Alignment of intervention compensation and settlement timetables.

These rule changes seek to adjust provisions relating to market intervention and settlements. As a result, they were consolidated into one rule change request.

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Documentation