Rule Change: Open
This rule change request from the Australian Energy Market Operator (AEMO) proposes to make changes to the NER to address perceived disincentives to generators operating their plant in a frequency response mode during normal operation. The particular areas of focus relate to:
- the arrangements for the allocation of regulation service costs, known as 'causer pays'
- generators prioritising compliance with dispatch instructions over frequency response
- a perception that the NER requires generators to be frequency responsive only when they are enabled to provide a Frequency control ancillary service (FCAS).
On 19 December 2019 the Commission extended the period of time for making the draft determination to 24 September 2020 under section 107 of the NEL. This extension will allow the Commission to develop and consult on improved incentive arrangements for frequency control during normal operation.
Related rule change requests
This rule change request is one of three rule change requests that the AEMC has received in relation to primary frequency response and frequency control in the national electricity system.
On 19 December 2019 the Commission consolidated these two rule changes and published a draft determination and draft rule, Mandatory primary frequency response.
Frequency control work plan
This rule change is part of our Frequency control work plan which sets out a series of actions that AEMO, the AEMC and the AER are undertaking to review and reform the frequency control frameworks in the national electricity market.
On 3 July 2019 the AEMC received a rule change request from AEMO seeking changes to the NER to address perceived disincentives to generators operating their plant in a frequency response mode during normal operation.
On 19 September the AEMC published a consultation paper seeking stakeholder feedback on the proposal.
This consultation paper addresses the issues raised in all three of the rule change requests relating to primary frequency response.