On 12 March 2026, the Australian Energy Market Commission (AEMC) published a consultation paper seeking stakeholder views on two rule change requests that propose to enhance the system security frameworks in the National Electricity Market (NEM). Submissions to the consultation paper closed on 16 April 2026.

The consultation paper was the first stage in the rule change processes for the two rule change requests:

• the Security framework enhancements rule change request (ERC0424) submitted by the Australian Energy Market Operator (AEMO) on 17 November 2025. 
• the Clarity and transparency in security frameworks rule change request (ERC0428), submitted by the Australian Energy Council (AEC) and the Clean Energy Council (CEC) on 21 January 2026.

On 18 June 2026, the AEMC consolidated these rule change requests, such that the issues will be considered through a single rule change process titled Security framework enhancements (ERC0424).

The AEMC also extended the time to make a draft determination on the consolidated requests due to the breadth and complexity of the issues raised. We plan to publish a draft determination on 15 October 2026.

The two security frameworks rule change requests

Both rule change requests raise problems with the ability of the current security frameworks to effectively and efficiently deliver a secure system. The problems raised reflect the perspectives of the system operator and industry participants on how the frameworks are operating in practice to date, particularly with respect to their experiences implementing updates to the frameworks made over the last five years.

• AEMO’s rule change request seeks changes to the system strength, inertia and network support and control ancillary services (NSCAS) frameworks. It proposes adjustments to procurement timeframes, the regulatory investment test for transmission (RIT T) process, and notice of closure obligations for generators, as well as options to address limitations with the NSCAS backstop mechanism.
• The AEC and CEC’s rule change request focuses on strengthening accountability and transparency in system security planning and service provision, including embedding principles in the Rules to elevate the 'actionability' of AEMO's annual Transition Plan for System Security, assigning responsibility for determining the 'efficient' level of services to be procured and increasing standardisation of procurement processes and service specifications.

Background

Efficient and effective system security frameworks are necessary to support the transition to a net zero energy system.

Maintaining a secure power system through the transition relies on effectively managing 'transition points' in the NEM, for example, the retirement of large thermal generators. Without this, consumers face the risks of an insecure system, resulting in increased market operator interventions and higher prices, or electricity supply interruptions.

To protect consumers against these risks, the system security frameworks in the National Electricity Rules aim to ensure timely procurement of the required security services ahead of system security issues arising, while also encouraging innovation in the provision of security services.