Rule Change: Open
On 8 October 2019 the AEMC received a rule change request from the Hon Lily D’Ambrosio MP, Minister for Energy, Environment and Climate Change, Minister for Solar Homes (Victoria), to amend the National Electricity Rules (NER).
The Minister is seeking a jurisdictional derogation for Victoria to allow the Australian Energy Market Operator (AEMO) to contract for emergency reserves under the reliability and emergency reserve trader (RERT) mechanism on a multi-year basis in that state. Specifically, the proposal would enable AEMO to procure long-notice RERT contracts of up to three years’ duration. The Minister proposes that the derogation expire on 30 June 2025, on the basis that it is a response to a short-term reliability problem in Victoria.
In submitting the derogation proposal, the Minister for Energy, Environment and Climate Change has requested the proposal be subject to the expedited rule making process on the basis that it is an ‘urgent rule’ as defined in the National Electricity Law (NEL). The Minister states that assessment of the rule change on an expedited basis is needed to allow the derogation to come into effect prior to the Victoria’s peak electricity demand this summer.
The Commission considers that this derogation request is a request for an urgent rule under the NEL and, therefore, has decided to use the expedited rule change process for the derogation proposal provided it does not receive any valid requests not to do so. Under section 96 of the NEL, a stakeholder may object to the Commission using the expedited process.
On 24 October 2019 the Commission published a consultation paper to facilitate consultation on the derogation proposal and to seek stakeholder submissions.
Consistent with the timelines and requirements for an expedited rule change process under the NEL, the key dates for stakeholder in this process are:
- Commencement of the rule change process: 24 October 2019
- Objections to the Commission’s decision that the derogation proposal is a request for an urgent rule (and be subject to the expedited process) to be received by: 7 November 2019.
- Submissions to the consultation paper to be received by: 21 November 2019
- Final determination and final rule published under an expedited process by: 19 December 2019.