Rule Change: Open
On 21 August 2020, the AEMC received a rule change request from the Australian Energy Market Operator (AEMO) which seeks to address a number of issues relating to timing and uncertainty in administrative arrangements for the budgeting and charging of AEMO's national transmission planner (NTP) costs to transmission network service providers (TNSPs).
On 3 September 2020, the AEMC initiated the rule change request under an expedited rule change process with the publication of the consultation paper which seeks to facilitate the stakeholder feedback on the proposed changes.
Rule change request
The rule change request seeks to clarify and address missing administrative and transitional mechanisms in the National Electricity Rules (NER or rules) to facilitate the policy intent of the recent changes to the rules to implement the Integrated System Planning framework, which commenced on 1 July 2020.
The rule change request identifies four key issues related to the budgeting and charging of NTP function fees by AEMO to TNSPs:
- The rules do not provide for AEMO to recover in 2020-2021 the NTP function fees it expects to incur in 2020-21 (or which AEMO has already incurred in 2020-21 or in previous financial years but not yet recovered).
- The rules do not provide for TNSPs to include any NTP function fees in their 2020-21 transmission prices in Queensland, New South Wales, South Australia and Tasmania.
- There is a misalignment in the timing of AEMO’s budgeting process and the publication of TNSPs’ transmission pricing.
- There is uncertainty in the administrative arrangements around the recovery of NTP function fees in Victoria due to AEMO acting as both national transmission planner and TNSP.
It also proposes that NTP function fees be allocated to Co-ordinating Network Service Providers (CNSPs), rather than TNSPs.
Expedited (non-controversial) rule change
AEMO has requested that the rule change request be treated as non-controversial as the proposed changes will not have a significant effect on the NEM and are of a non-controversial nature.
The Commission has decided to use an expedited process as it considers the proposed rule is non-controversial. Specifically, the rule change request is narrow in scope and does not seek to change existing policy or to introduce new policy In addition, the proposed changes are largely of an administrative nature, designed to facilitate the original policy intent of the ISP Rule.
The key dates for stakeholders in this process are as follows:
- Initiation of rule change process and publication of this consultation paper: 3 September 2020
- Written requests not to use the expedited process to be received by: 17 September 2020
- Submissions to the consultation paper to be received by: 1 October 2020
- Publication of the final rule determination and final rule (if made): 29 October 2020