Rule Change: Open
On 28 May 2020, the AEMC initiated the removal of intervention hierarchy rule change within the National energy rules (NER) through a fast-tracked process. A draft determination on the rule change will be published on 18 June 2020.
On 28 November 2019, AEMO submitted a rule change request to the AEMC proposing that the requirement for AEMO to exercise the Reliability and Emergency Reserve Trader (RERT) before issuing directions or instructions be removed from the Rules and replaced by a principle requiring AEMO to endeavour to minimise the costs and maximise the effectiveness of an intervention in the NEM.
The rule change request is being fast-tracked as stakeholder feedback on this issue was initially sought and received in 2019 as part of the AEMC’s Investigation into intervention mechanisms in the NEM. As such, the next step in the rule change process is a draft determination, which will be open to further stakeholder feedback.
AEMO’s rule change request reflects the AEMC’s recommendations in its Investigation into intervention mechanisms in the NEM review. The review recommended a number of changes to the interventions framework that aim to reduce market distortion and costs to consumers while maintaining efficient price signals and incentives for investors when AEMO intervenes in the market.