Rule Change: Completed

Overview

On 10 July 2007 the Commission published its Final Decision and last resort planning power guidelines (Guidelines). The Guidelines are substantially similar to the proposed Guidelines. The Commission has, however, adopted a number of the amendments suggested in submissions and has amended the proposed Guidelines to give effect to these suggestions.
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<p>
On 10 July 2007 the Commission published its Final Decision and last resort planning power guidelines (Guidelines). The Guidelines are substantially similar to the proposed Guidelines. The Commission has, however, adopted a number of the amendments suggested in submissions and has amended the proposed Guidelines to give effect to these suggestions. The key amendments are:</p>
<ul class="unIndentedList">
<li>
An amendment to clause 4.2 of the proposed Guidelines that requires the AEMC to publish on its website any request it makes to NEMMCO to appoint any additional members to the IRPC under clause 5.6.4(f) of the Rules.</li>
<li>
An amendment to clause 4.3 of the proposed Guidelines to provide that the terms of reference requesting advice from the IRPC in relation to the LRPP, include the findings of the AEMC in respect of the matters listed in clause 5.6.4(h) of the Rules, and any other relevant considerations.</li>
<li>
A new clause 4.5 requiring the AEMC to publish on its website any terms of reference in relation to a request to the IRPC for advice, and any extension of time and the reasons for the extension as agreed by the IRPC and AEMC.</li>
<li>
A new clause 7 that provides for confidential information to be treated in accordance with s 24 of the Australian Energy Market Commission Act (SA) 2004.</li>
</ul>
<p>
The Commission notes that it recently received a terms of reference from the Ministerial Council on Energy (MCE) to conduct a review into the development of a detailed implementation plan for a national electricity transmission planning function. The scope of work for the review may require the Commission to consider amendments to the Transmission Last Resort Planning Rule and/or the Guidelines. The Commission&#39;s report to the MCE is due in June 2008.</p>
<p>
<strong>Background</strong></p>
<p>
Following the making and commencement of the National Electricity Amendment (Transmission Last Resort Planning) Rule 2007 No.3 (LRPP Rule), on 15 March 2007 the Commission commenced consultation on its proposed Last Resort Planning Power Guidelines in accordance with the transmission consultation procedures in Rule 6A.20 of the Rules. Rule No.3 requires the Commission to develop and publish last resort planning power guidelines.</p>
<p>
Specifically, clause 5.6.4(o) of Rule No.3 requires the Commission to develop and publish guidelines with respect to:</p>
<ul type="disc">
<li>
the process to be followed by the Commission in exercising the last resort planning power;</li>
<li>
a request to NEMMCO to appoint additional members to the expert advisory panel;</li>
<li>
the advice to be provided by the expert advisory panel;</li>
<li>
the matters that the expert advisory panel and the Commission may consider in recommending or nominating a person as an appropriate directed party; and</li>
<li>
provision of information to the Commission in relation to the exercise of the last resort planning power</li>
</ul>
<p>
Clause 5.6.4(p) of Rule No.3 requires the proposed Guidelines to be published in accordance with the transmission consultation procedures set out in Rule 6A.20. The transmission consultation procedures require the Commission to:</p>
<ul type="disc">
<li>
publish the proposed guidelines with an accompanying explanatory statement and an invitation for written submissions;</li>
<li>
allow no less than 30 business days for the making of submissions; and</li>
<li>
within 80 business days of the proposed guidelines being published, publish its final decision and publish notice of the making of the final decision.</li>
</ul>
<p>
The proposed Guidelines address a number of matters that are important to the operation of the Rule, including:</p>
<ul type="disc">
<li>
the advice that the Commission may request from the expert advisory panel;</li>
<li>
the procedure for public consultation on the panel&#39;s advice;</li>
<li>
requests from the Commission for information to inform its decision making;</li>
<li>
public reporting on the exercise of the last resort planning power (LRPP); and</li>
<li>
nomination of a directed party.</li>
</ul>
<p>
On 15 March 2007, the Commission published its proposed Guidelines, and invited submissions on the proposed Guidelines by 1 May 2007. Copies of the submissions received are available below.</p>
<p>
On 10 July 2007 the Commission published its Final Decision and last resort planning power guidelines (Guidelines). The Guidelines are substantially similar to the proposed Guidelines. The Commission, however, adopted a number of the amendments suggested in submissions and amended the proposed Guidelines to give effect to those suggestions. The key amendments were:</p>
<ul class="unIndentedList">
<li>
An amendment to clause 4.2 of the proposed Guidelines that requires the AEMC to publish on its website any request it makes to NEMMCO to appoint any additional members to the IRPC under clause 5.6.4(f) of the Rules.</li>
<li>
An amendment to clause 4.3 of the proposed Guidelines to provide that the terms of reference requesting advice from the IRPC in relation to the LRPP, include the findings of the AEMC in respect of the matters listed in clause 5.6.4(h) of the Rules, and any other relevant considerations.</li>
<li>
A new clause 4.5 requiring the AEMC to publish on its website any terms of reference in relation to a request to the IRPC for advice, and any extension of time and the reasons for the extension as agreed by the IRPC and AEMC.</li>
<li>
A new clause 7 that provides for confidential information to be treated in accordance with s 24 of the Australian Energy Market Commission Act (SA) 2004.</li>
</ul>
<p>
The Commission noted that it recently received a terms of reference from the Ministerial Council on Energy (MCE) to conduct a review into the development of a detailed implementation plan for a national electricity transmission planning function. The scope of work for the review may require the Commission to consider amendments to the LRPP Rule and/or the Guidelines. The Commission&#39;s report to the MCE is due in June 2008.</p>
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