Rule Change: Completed

Overview

The key purpose of this rule change is to transfer certain provisions governing the daily settlement of wholesale natural gas trades from the National Gas Rules to the Short Term Trading Market (STTM) procedures. It gives the STTM market operator flexibility to change the time period available for buyers and sellers to vary their scheduled trades. It will enhance operational efficiency.
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<p>
On 13 October 2011, the Commission published its final rule determination, including a rule as made, following a rule change request submitted by the Australian Energy Market Operator (AEMO). This final rule determination will facilitate the transition of the market schedule variation (MSV) transaction window, an operational timing matter, from the National Gas Rules (NGR) to the Short Term Trading Market (STTM) procedures.</p>
<p>
The rule change request was received on 29 April 2011. It requested the removal of the timing provision for the submission of MSV transactions from the NGR, with the intention that an equivalent provision be inserted into the STTM procedures.</p>
<p>
The provision relates to the timeframe within which STTM trading participants must submit their MSV transactions to AEMO, as the STTM market operator for a gas day, in order for those MSVs to be included in the financial settlement for that gas day.</p>
<p>
The Commission has decided to make the Rule as proposed in the rule change request, with minor amendments to take account of transition requirements.</p>
<p>
Under the previous rules, any amendments to the MSV timing requirements were required to be processed by the AEMC under the rule change process. This rule will transfer responsibility for consideration of any future changes to this provision to the STTM market operator. The framework for managing changes to STTM procedures is set out in the NGR.</p>
<p>
The Commission considers that the rule as made:</p>
<ul>
<li>
enables the STTM market operator to manage the STTM procedure change process in a timely manner;</li>
<li>
avoids the inefficient use of the rule change process for what is effectively an operational matter;</li>
<li>
maintains a similar level of regulatory certainty for trading participants as currently provided under the rules; and</li>
<li>
enables the more operational aspects of the MSV mechanism to be managed under a single document and process.</li>
</ul>
<p>
The Commission considers that these benefits will help to minimise the impact on the market and participants&#39; costs and resources in effecting future changes (where required), while continuing to promote good regulatory practice.</p>

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