National Electricity Rules Version 110

Historical Information

This version of the National Electricity Rules was current from 1 July 2018 to 12 July 2018.

National Electricity Rules Version 110
Status Information
This is the latest electronically available version of the National Electricity Rules as at 1 July 2018.
This consolidated version of the National Electricity Rules was last updated on 1 July 2018 as a result of the commencement of the following amendments:
Schedules 1, 2, 4, 5 and 6 of the National Electricity Amendment (Transmission Connection and Planning Arrangements) Rule 2017 No. 4
Schedules 1 to 7 of the National Electricity Amendment (Managing the rate of change of power system frequency) Rule 2017 No. 9
Schedules 4 to 9 of the National Electricity Amendment (Managing power system fault levels) Rule 2017 No. 10
Schedules 1 to 4 of the National Electricity Amendment (Generating system model guidelines) Rule 2017 No. 11
Schedule 2 of the National Electricity Amendment (Minor Changes) Rule 2018 No. 2
National Electricity Amendment (Reliability Panel governance arrangements) Rule 2018 No. 6
This consolidated version of the Rules reflects the initial Rules made by the SA Minister under section 90 of the National Electricity Law (NEL) as amended by:
Rules made by the South Australian Minister under sections 90A to 90E of the NEL; and
Rules made by the Australian Energy Market Commission under Part 7 Division 3 of the NEL.
Application of the National Energy Customer Framework related Rule
On 27 June 2012, the South Australian Minister made Rules relating to the implementation of the National Energy Customer Framework (NECF), including amendments to the National Electricity Rules under section 90D of the NEL in relation to small customer connections (Chapter 5A), Retail Markets including billing and credit support (Chapter 6B) and related provisions (NECF related rule).
The NECF related Rule commenced operation as a law of Tasmania, the Australian Capital Territory and the Commonwealth on 1 July 2012; South Australia on 1 February 2013, New South Wales on 1 July 2013 and Queensland on 1 July 2015.
On 1 July 2016, Victoria adopted the provisions of the NECF related rule that relate to small customer connections (Chapter 5A and related provisions). Victoria has not adopted the Retail Market provisions in Chapter 6B of the Rules.
The NECF related Rule does not apply in Western Australia or the Northern Territory until the National Energy Retail Law set out in the Schedule to the National Energy Retail Law (South Australia) Act 2011 is implemented as a law in that jurisdiction (clause 24, Part 11, Schedule 3 NEL).
The NECF related Rule can be found on the Australian Energy Market Commission's website under the 'National Electricity Rules', 'Rules made by the SA Ministers' tabs.
Provisions in force
All provisions displayed in this consolidated version of the Rules have commenced. As at the date of this consolidation the Australian Energy Market Commission has made the following Rules under Part 7 Division 3 of the NEL that have not yet commenced:
Schedule 1 of the National Electricity Amendment (Reinstatement of long notice Reliability and Emergency Reserve Trader) Rule 2018 No. 7 will commence on 13 July 2018.
Schedules 1 to 6 of the National Electricity Amendment (Five minute settlement) Rule 2017 No. 15 will commence operation on 1 July 2021.

TABLE OF CONTENTS
1.	Introduction	3
1.1	Preliminary	3
1.1.1	References to the Rules	3
1.1.2	Italicised expressions	3
1.1.3	[Deleted]	3
1.2	Background	3
1.3	Nomenclature of and references to provisions of a Chapter	3
1.3.1	Introduction	3
1.3.2	Parts, Divisions and Subdivisions	3
1.3.3	Rules, clauses, paragraphs, subparagraphs and other items	4
1.4	Effect of renumbering of provisions of the Rules	5
1.5	[Deleted]	5
1.6	[Deleted]	5
1.7	Interpretation	5
1.7.1	General	5
1.8	Notices	6
1.8.1	Service of notices under the Rules	6
1.8.2	Time of service	7
1.8.3	Counting of days	7
1.8.4	Reference to addressee	7
1.9	Retention of Records and Documents	8
1.10	[Deleted]	8
1.11	AEMO Rule Funds	8
2.	Registered Participants and Registration	13
2.1	Registered Participants	13
2.1.1	Purpose	13
2.1.2	General	13
2.2	Generator	13
2.2.1	Registration as a Generator	13
2.2.2	Scheduled Generator	14
2.2.3	Non-Scheduled Generator	15
2.2.4	Market Generator	16
2.2.5	Non-Market Generator	17
2.2.6	Ancillary services generating unit	17
2.2.7	Semi-Scheduled Generator	19
2.3	Customer	21
2.3.1	Registration as a Customer	21
2.3.2	First-Tier Customer	21
2.3.3	Second-Tier Customer	22
2.3.4	Market Customer	22
2.3.5	Ancillary services load	23
2.3A	Small Generation Aggregator	26
2.3A.1	Registration	26
2.3AA	Market Ancillary Service Provider	27
2.3AA.1	Registration	27
2.4	Market Participant	27
2.4.1	Registration as a category of Market Participant	27
2.4.2	Eligibility	28
2.4A	Metering Coordinator	28
2.4A.1	Registration as a Metering Coordinator	28
2.4A.2	Eligibility	29
2.5	Network Service Provider	30
2.5.1	Registration as a Network Service Provider	30
2.5.1A	Dedicated Connection Asset Service Provider	31
2.5.2	Market Network Service	32
2.5.3	Scheduled Network Service	33
2.5A	Trader	34
2.5B	Reallocator	35
2.6	Special Participant	36
2.7	Intention to Commence Activities or Functions	36
2.8	Registered Participant Rights and Obligations	37
2.8.1	Rights and obligations	37
2.9	Application to be Registered as a Registered Participant	37
2.9.1	Applications for Registration	37
2.9.2	Registration as a Registered Participant	37
2.9.3	Registration as an Intermediary	38
2.9A	Transfer of Registration	39
2.9A.1	Definitions	39
2.9A.2	Applications for Transfer of Registration	40
2.9A.3	Approval for Transfer of Registration	40
2.10	Ceasing to be a Registered Participant	41
2.10.1	Notification of intention	41
2.10.2	Ceasing Participation	43
2.10.3	Liability after cessation	43
2.11	Participant Fees	43
2.11.1A	Application	43
2.11.1	Development of Participant fee structure	43
2.11.2	Payment of Participant fees	46
2.11.3	Budgeted revenue requirements	46
2.12	Interpretation of References to Various Registered Participants	48
2A.	Regional Structure	53
Part A	Region change applications and region determinations by AEMC	53
2A.1	Introduction to Chapter 2A	53
2A.1.1	Definitions	53
2A.1.2	AEMC determination of regions	53
2A.1.3	Publication of regions by AEMO	53
2A.2	Region change applications	53
2A.2.1	A complete region change application	53
2A.2.2	Identifying a congestion problem	54
2A.2.3	Explanation of economic efficiency of proposed region solution	54
2A.2.4	Region change application must be technically competent	55
2A.2.5	Alternative congestion management options	55
2A.2.6	Previous application relating to congestion problem	56
2A.2.7	AEMO to provide information to intending applicants	56
2A.2.8	AEMC may refuse to accept incomplete applications	57
2A.3	Acceptance of region change application by AEMC	57
2A.3.1	Acceptance of a region change application by AEMC	57
2A.3.2	Preliminary consultation prior to acceptance of a region change application	58
2A.4	First round consultation on region change application	59
2A.4.1	Notice of first round consultation	59
2A.4.2	Right to make written submissions during first round consultation period	59
2A.4.3	Alternative region solution put forward by third parties	59
2A.4.4	Acceptance as a formal alternative region solution by AEMC	60
2A.5	Provision of supplementary economic analysis	61
2A.5.1	AEMC may direct provision of supplementary analysis	61
2A.5.2	AEMC may direct AEMO to provide information	61
2A.6	Region determinations	62
2A.6.1	AEMC powers to make a region determination	62
2A.6.2	Matters for consideration in making region determination	62
2A.7	Draft region determination and second round consultation	63
2A.7.1	Publishing of draft region determination	63
2A.7.2	Second round consultation	63
2A.7.3	Right to make written submissions during second round consultation	64
2A.8	Final region determination	64
2A.8.1	Final determination for region change	64
2A.8.2	Formal publication of region determination	64
2A.9	Miscellaneous matters for region change process	64
2A.9.1	AEMC may extend periods of time specified in Chapter 2A	64
2A.9.2	Consultation meeting in relation to region change application	65
Part B	Implementation of region determination	65
2A.10	Purpose and application of Part B	65
2A.10.1	Purpose of Part B	65
2A.10.2	Application of Part B	66
2A.11	Region Change Implementation Procedure	66
2A.11.1	Submission of draft Region Change Implementation Procedure	66
2A.11.2	Approved Region Change Implementation Procedure	66
2A.12	AEMO region change implementation functions	67
2A.12.1	General implementation functions	67
2A.12.2	Implementation functions referable to published implementation procedure	67
2A.12.3	Amendment of current or subsequent Regions and Loss Factors Publication	67
2A.13	Continuity of regions	67
Schedule 2A.1	Glossary for Chapter 2A	68
3.	Market Rules	73
3.1	Introduction to Market Rules	73
3.1.1	Purpose	73
3.1.1A	Definitions	73
3.1.2	[Deleted]	74
3.1.3	[Deleted]	74
3.1.4	Market design principles	74
3.1.5	Time for undertaking action	75
3.2	AEMO's Market Responsibilities	75
3.2.1	Market functions of AEMO	75
3.2.2	Spot market	76
3.2.3	Power system operations	76
3.2.4	Non-market ancillary services function	76
3.2.5	[Deleted]	77
3.2.6	Settlements	77
3.3	Prudential Requirements	77
3.3.1	Market Participant criteria	77
3.3.2	Credit support	77
3.3.3	Acceptable credit criteria	78
3.3.4	Acceptable credit rating	79
3.3.4A	Prudential standard	79
3.3.5	Amount of credit support	79
3.3.6	Changes to credit support	79
3.3.7	Drawings on credit support	80
3.3.8	Credit limit procedures and prudential settings	81
3.3.8A	Security Deposits	83
3.3.9	Outstandings	83
3.3.10	Trading limit	83
3.3.11	Call notices	84
3.3.12	Typical accrual	85
3.3.13	Response to Call Notices	85
3.3.13A	Application of monies in the security deposit fund	86
3.3.14	Potential value of a transaction	87
3.3.15	Trading margin	88
3.3.16	Limitation on entry of transactions	88
3.3.17	Scheduled prices	88
3.3.18	Additional credit support	89
3.3.19	Consideration of other Market Participant transactions	89
3.4	Spot Market	89
3.4.1	Establishment of spot market	89
3.4.2	Trading day and trading interval	90
3.4.3	Spot market operations timetable	90
3.5	Regions	91
3.5.1	[Deleted]	91
3.5.2	[Deleted]	91
3.5.3	[Deleted]	91
3.5.4	[Deleted]	91
3.5.5	[Deleted]	91
3.5.6	[Deleted]	91
3.6	Network Losses and Constraints	91
3.6.1	Inter-regional losses	91
3.6.2	Intra-regional losses	93
3.6.2A	Load and generation data used to determine inter-regional loss factor equations and intra-regional loss factors	96
3.6.3	Distribution losses	98
3.6.4	Network constraints	102
3.6.5	Settlements residue due to network losses and constraints	103
3.7	Projected Assessment of System Adequacy	105
3.7.1	Administration of PASA	105
3.7.2	Medium term PASA	106
3.7.3	Short term PASA	108
3.7A	Congestion information resource	111
3.7B	Unconstrained intermittent generation forecast	114
3.7C	Energy Adequacy Assessment Projection	115
3.7D	Demand side participation information	119
3.8	Central Dispatch and Spot Market Operation	121
3.8.1	Central Dispatch	121
3.8.2	Participation in central dispatch	123
3.8.3	Bid and offer aggregation guidelines	124
3.8.3A	Ramp rates	126
3.8.4	Notification of scheduled capacity	128
3.8.5	Submission timing	130
3.8.6	Generating unit offers for dispatch	130
3.8.6A	Scheduled network service offers for dispatch	132
3.8.7	Bids for scheduled load	134
3.8.7A	Market ancillary services offers	136
3.8.8	Validation of dispatch bids and offers	137
3.8.9	Default offers and bids	138
3.8.10	Network constraints	138
3.8.11	Ancillary services constraints	140
3.8.12	System scheduled reserve constraints	140
3.8.13	Notification of constraints	141
3.8.14	Dispatch under conditions of supply scarcity	141
3.8.15	[Deleted]	141
3.8.16	Equal priced dispatch bids and dispatch offers	141
3.8.17	Self-commitment	142
3.8.18	Self-decommitment	142
3.8.19	Dispatch inflexibilities	143
3.8.20	Pre-dispatch schedule	146
3.8.21	On-line dispatch process	148
3.8.22	Rebidding	149
3.8.22A	Offers, bids and rebids must not be false or misleading	151
3.8.23	Failure to conform to dispatch instructions	153
3.8.24	Scheduling errors	155
3.9	Price Determination	155
3.9.1	Principles applicable to spot price determination	155
3.9.2	Determination of spot prices	157
3.9.2A	Determination of ancillary services prices	158
3.9.2B	Pricing where AEMO determines a manifestly incorrect input	159
3.9.3	Pricing in the event of intervention by AEMO	161
3.9.3A	Reliability standard and settings review	162
3.9.3B	Reliability standard and settings review report	163
3.9.3C	Reliability standard	164
3.9.3D	Implementation of the reliability standard	165
3.9.4	Market Price Cap	165
3.9.5	Application of the Market Price Cap	166
3.9.6	Market Floor Price	167
3.9.6A	Application of the Market Floor Price	167
3.9.7	Pricing for constrained-on scheduled generating units	168
3.10	[Deleted]	168
3.11	Ancillary Services	168
3.11.1	Introduction	168
3.11.2	Market ancillary services	169
3.11.3	Acquisition of Network Support and Control Ancillary Service	171
3.11.4	Guidelines and objectives for acquisition of network support and control ancillary services	171
3.11.5	Tender process for network support and control ancillary services	172
3.11.6	Dispatch of network support and control ancillary services by AEMO	174
3.11.7	Guidelines and objectives for acquisition of system restart ancillary services by AEMO	175
3.11.8	Determination of electrical sub-network boundaries	176
3.11.9	Acquisition of system restart ancillary services by AEMO	176
3.11.10	Reporting	178
3.12	Market Intervention by AEMO	178
3.12.1	Intervention settlement timetable	178
3.12.2	Affected Participants and Market Customers entitlements to compensation in relation to AEMO intervention	179
3.12.3	Role of the Independent Expert in calculating payments in relation to intervention by AEMO	183
3.12A	Mandatory restrictions	186
3.12A.1	Restriction offers	186
3.12A.2	Mandatory restrictions schedule	188
3.12A.3	Acquisition of capacity	188
3.12A.4	Rebid of capacity under restriction offers	189
3.12A.5	Dispatch of restriction offers	189
3.12A.6	Pricing during a restriction price trading interval	189
3.12A.7	Determination of funding restriction shortfalls	190
3.12A.8	Cancellation of a mandatory restriction period	195
3.12A.9	Review by AEMC	195
3.13	Market Information	196
3.13.1	Provision of information	196
3.13.2	Systems and procedures	196
3.13.3	Standing data	198
3.13.4	Spot market	205
3.13.4A	Market ancillary services	209
3.13.5	Ancillary services contracting by AEMO	210
3.13.5A	Settlements residue auctions	210
3.13.6	[Deleted]	210
3.13.6A	Report by AEMO	210
3.13.7	Monitoring of significant variation between forecast and actual prices by AER	211
3.13.8	Public information	213
3.13.9	[Deleted]	213
3.13.10	Market auditor	213
3.13.11	[Deleted]	214
3.13.12	NMI Standing Data	214
3.13.12A	NMI Standing Data Schedule	218
3.13.13	Inter-network tests	219
3.13.14	Carbon Dioxide Equivalent Intensity Index	219
3.14	Administered Price Cap and Market Suspension	222
3.14.1	Cumulative Price Threshold and Administered Price Cap	222
3.14.2	Application of Administered Price Cap	224
3.14.3	Conditions for suspension of the spot market	225
3.14.4	Declaration of market suspension	226
3.14.5	Pricing during market suspension	227
3.14.6	Compensation due to the application of an administered price cap or administered floor price	229
3.15	Settlements	233
3.15.1	Settlements management by AEMO	233
3.15.2	Electronic funds transfer	234
3.15.3	Connection point and virtual transmission node responsibility	234
3.15.4	Adjusted energy amounts connection points	234
3.15.5	Adjusted energy - transmission network connection points	235
3.15.5A	Adjusted energy - virtual transmission nodes	235
3.15.6	Spot market transactions	236
3.15.6A	Ancillary service transactions	237
3.15.7	Payment to Directed Participants	250
3.15.7A	Payment to Directed Participants for services other than energy and market ancillary services	251
3.15.7B	Claim for additional compensation by Directed Participants	254
3.15.8	Funding of Compensation for directions	256
3.15.9	Reserve settlements	261
3.15.10	Administered price cap or administered floor price compensation payments	263
3.15.10A	Goods and services tax	264
3.15.10B	Restriction contract amounts	265
3.15.10C	Intervention Settlements	266
3.15.11	Reallocation transactions	270
3.15.11A	Reallocation procedures	271
3.15.12	Settlement amount	272
3.15.13	Payment of settlement amount	272
3.15.14	Preliminary statements	273
3.15.15	Final statements	273
3.15.15A	Use of estimated settlement amounts by AEMO	273
3.15.16	Payment by market participants	274
3.15.17	Payment to market participants	274
3.15.18	Disputes	274
3.15.19	Revised Statements and Adjustments	275
3.15.20	Payment of adjustments	277
3.15.21	Default procedure	277
3.15.22	Maximum total payment in respect of a billing period	282
3.15.23	Maximum total payment in respect of a financial year	283
3.15.24	Compensation for reductions under clause 3.15.23	284
3.15.25	Interest on overdue amounts	285
3.16	Participant compensation fund	285
3.16.1	Establishment of Participant compensation fund	285
3.16.2	Dispute resolution panel to determine compensation	286
3.17	[Deleted]	288
3.18	Settlements Residue Auctions	288
3.18.1	Settlements residue concepts	288
3.18.2	Auctions and eligible persons	289
3.18.3	Auction rules	290
3.18.3A	Secondary trading of SRD units	292
3.18.4	Proceeds and fees	292
3.18.4A	Secondary trading proceeds and margin	293
3.18.5	Settlement residue committee	294
3.19	Market Management Systems Access Procedures	295
3.20	Reliability and Emergency Reserve Trader	296
3.20.1	[Deleted]	296
3.20.2	Reliability and emergency reserve trader	296
3.20.3	Reserve contracts	297
3.20.4	Dispatch pricing methodology for unscheduled reserve contracts	298
3.20.5	AEMO’s risk management and accounts relating to the reliability safety net	298
3.20.6	Reporting on RERT by AEMO	299
3.20.7	AEMO’s exercise of the RERT	300
3.20.8	RERT Guidelines	301
3.20.9	[Deleted]	302
Schedule 3.1	Bid and Offer Validation Data	302
Schedule 3.2	[Deleted]	306
Schedule 3.3	[Deleted]	306
4.	Power System Security	309
4.1	Introduction	309
4.1.1	Purpose	309
4.2	Definitions and Principles	309
4.2.1	[Deleted]	310
4.2.2	Satisfactory Operating State	310
4.2.3	Credible and non-credible contingency events and protected events	310
4.2.3A	Re-classifying contingency events	311
4.2.3B	Criteria for re-classifying contingency events	313
4.2.4	Secure operating state and power system security	313
4.2.5	Technical envelope	314
4.2.6	General principles for maintaining power system security	315
4.2.7	Reliable Operating State	315
4.2.8	Time for undertaking action	316
4.3	Power System Security Responsibilities and Obligations	316
4.3.1	Responsibility of AEMO for power system security	316
4.3.2	System security	318
4.3.3	The role of System Operators	322
4.3.4	Network Service Providers	323
4.3.5	Market Customer obligations	328
4.4	Power System Frequency Control	329
4.4.1	Power system frequency control responsibilities	329
4.4.2	Operational frequency control requirements	329
4.4.3	Generator protection requirements	330
4.4.4	Instructions to enable inertia network services	330
4.4.5	Instructions to enable system strength services	331
4.5	Control of Power System Voltage	333
4.5.1	Power system voltage control	333
4.5.2	Reactive power reserve requirements	334
4.5.3	Audit and testing	334
4.6	Protection of Power System Equipment	334
4.6.1	Power system fault levels	334
4.6.2	Power system protection co-ordination	335
4.6.3	Audit and testing	335
4.6.4	Short-term thermal ratings of power system	335
4.6.5	Partial outage of power protection systems	335
4.6.6	System strength impact assessment guidelines	336
4.7	Power System Stability Co-ordination	337
4.7.1	Stability analysis co-ordination	337
4.7.2	Audit and testing	338
4.8	Power System Security Operations	338
4.8.1	Registered Participants' advice	338
4.8.2	Protection or control system abnormality	338
4.8.3	AEMO’s advice on power system emergency conditions	339
4.8.4	Declaration of conditions	339
4.8.4A	Reserve level declaration guidelines	339
4.8.4B	Lack of reserve framework reporting	340
4.8.5	Managing declarations of conditions	341
4.8.5A	Determination of the latest time for AEMO intervention	342
4.8.5B	Notifications of last time of AEMO intervention	343
4.8.6	[Deleted]	343
4.8.7	Managing a power system contingency event	343
4.8.8	[Deleted]	343
4.8.9	Power to issue directions and clause 4.8.9 instructions	343
4.8.9A	System security directions	346
4.8.10	Disconnection of generating units and market network services	346
4.8.11	[Deleted]	346
4.8.12	System restart plan and local black system procedures	346
4.8.13	[Deleted]	348
4.8.14	Power system restoration	348
4.8.15	Review of operating incidents	349
4.9	Power System Security Related Market Operations	351
4.9.1	Load forecasting	351
4.9.2	Instructions to Scheduled Generators and Semi-Scheduled Generators	352
4.9.2A	Dispatch Instructions to Scheduled Network Service Providers	353
4.9.3	Instructions to Registered Participants	353
4.9.3A	Ancillary services instructions	354
4.9.3B	Compliance with dispatch instructions	355
4.9.4	Dispatch related limitations on Scheduled Generators and Semi-Scheduled Generators	355
4.9.4A	Dispatch related limitations on Scheduled Network Service Providers	356
4.9.5	Form of dispatch instructions	357
4.9.6	Commitment of scheduled generating units	358
4.9.7	De-commitment, or output reduction, by Scheduled Generators	359
4.9.8	General responsibilities of Registered Participants	360
4.9.9	Scheduled Generator plant changes	361
4.9.9A	Scheduled Network Service Provider plant changes	361
4.9.9B	Ancillary service plant changes	362
4.9.9C	Inertia network service availability changes	362
4.9.9D	System strength service availability changes	362
4.10	Power System Operating Procedures	362
4.10.1	Power system operating procedures	362
4.10.2	Transmission network operations	363
4.10.3	Operating interaction with distribution networks	364
4.10.4	Switching of a Distributor's high voltage networks	364
4.10.5	Switching of reactive power facilities	365
4.10.6	Automatic reclose	365
4.10.7	Inspection of facilities by AEMO	365
4.11	Power System Security Support	365
4.11.1	Remote control and monitoring devices	365
4.11.2	Operational control and indication communication facilities	367
4.11.3	Power system voice/data operational communication facilities	368
4.11.4	Records of power system operational communication	369
4.11.5	Agent communications	370
4.12	Nomenclature Standards	371
4.13	[Deleted]	372
4.14	Acceptance of Performance Standards	372
4.15	Compliance with Performance Standards	373
4.16	Transitioning arrangements for establishment of performance standards	377
4.16.1	Definitions	377
4.16.2	Exclusions	379
4.16.3	Notification and acceptance of performance standards	380
4.16.4	Actual capability	385
4.16.5	Criteria for, and negotiation of, performance standards	386
4.16.6	Consultation with and assistance by Network Service Providers	388
4.16.7	Referral to expert determination	389
4.16.8	Prior actions	390
4.16.9	Deemed performance standards	390
4.16.10	Modification of connection agreements	390
4.17	Expert determination	391
4.17.1	Performance standards committee and appointment of performance standards experts	391
4.17.2	Referral to performance standards expert	392
4.17.3	Determinations of performance standards experts	393
4.17.4	Other matters	394
5.	Network Connection Access, Planning and Expansion	397
Part A	Introduction	397
5.1	Introduction to Chapter 5	397
5.1.1	Structure of this Chapter	397
5.1.2	Overview of Part B and connection and access under the Rules	397
Part B	Network Connection and Access	400
5.1A	Introduction to Part B	400
5.1A.1	Purpose and Application	400
5.1A.2	Principles	403
5.2	Obligations	404
5.2.1	Obligations of Registered Participants	404
5.2.2	Connection agreements	404
5.2.3	Obligations of network service providers	405
5.2.3A	Obligations of Market Network Service Providers	410
5.2.4	Obligations of customers	411
5.2.5	Obligations of Generators	413
5.2.6	Obligations of AEMO	414
5.2.7	Obligations of Dedicated Connection Asset Service Providers	415
5.2A	Transmission network connection and access	416
5.2A.1	Application	416
5.2A.2	Relevant assets	416
5.2A.3	Connection and access to transmission services	417
5.2A.4	Transmission services related to connection	418
5.2A.5	Publication and provision of information	421
5.2A.6	Negotiating principles	422
5.2A.7	Third party IUSAs	423
5.2A.8	Access framework for large dedicated connection assets	424
5.3	Establishing or Modifying Connection	426
5.3.1	Process and procedures	426
5.3.1A	Application of rule to connection of embedded generating units	427
5.3.2	Connection enquiry	427
5.3.3	Response to connection enquiry	429
5.3.4	Application for connection	433
5.3.4A	Negotiated access standards	434
5.3.4B	System strength remediation for new connections	437
5.3.5	Preparation of offer to connect	440
5.3.6	Offer to connect	441
5.3.7	Finalisation of connection agreements and network operating agreements	445
5.3.8	Provision and use of information	446
5.3.9	Procedure to be followed by a Generator proposing to alter a generating system	448
5.3.10	Acceptance of performance standards for generating plant that is altered	450
5.3.11	Notification of request to change normal voltage	451
5.3A	Establishing or modifying connection - embedded generation	451
5.3A.1	Application of rule 5.3A	451
5.3A.2	Definitions and miscellaneous	452
5.3A.3	Publication of Information	453
5.3A.4	Fees	455
5.3A.5	Enquiry	455
5.3A.6	Response to Enquiry	456
5.3A.7	Preliminary Response to Enquiry	457
5.3A.8	Detailed Response to Enquiry	457
5.3A.9	Application for connection	459
5.3A.10	Preparation of offer to connect	460
5.3A.11	Technical Dispute	461
5.3A.12	Network support payments and functions	461
5.3AA	Access arrangements relating to Distribution Networks	461
5.3B	Application for connection to declared shared network	465
5.4	Independent Engineer	466
5.4.1	Application	466
5.4.2	Establishment of a pool	466
5.4.3	Initiating the Independent Engineer process	467
5.4.4	Referral to the Adviser	467
5.4.5	Proceedings and decisions of the Independent Engineer	468
5.4.6	Costs of the Independent Engineer	469
5.4A	[Deleted]	469
5.4AA	[Deleted]	470
5.5	Commercial arbitration for prescribed and negotiated transmission services and large DCA services	470
5.5.1	Application	470
5.5.2	Notification of dispute	470
5.5.3	Appointment of commercial arbitrator	471
5.5.4	Procedures of commercial arbitrator	472
5.5.5	Powers of commercial arbitrator in determining disputes	472
5.5.6	Determination of disputes	474
5.5.7	Costs of dispute	475
5.5.8	Enforcement of agreement or determination and requirement for reasons	475
5.5.9	Miscellaneous	475
5.5A	[Deleted]	476
Part C	Post-Connection Agreement matters	476
5.6	Design of Connected Equipment	476
5.6.1	Application	476
5.6.2	Advice of inconsistencies	476
5.6.3	Additional information	477
5.6.4	Advice on possible non-compliance	477
5.6A	[Deleted]	477
5.7	Inspection and Testing	477
5.7.1	Right of entry and inspection	477
5.7.2	Right of testing	479
5.7.3	Tests to demonstrate compliance with connection requirements for generators	481
5.7.3A	Tests to demonstrate compliance with system strength remediation schemes	483
5.7.4	Routine testing of protection equipment	484
5.7.5	Testing by Registered Participants of their own plant requiring changes to normal operation	486
5.7.6	Tests of generating units requiring changes to normal operation	488
5.7.7	Inter-network power system tests	489
5.7.8	Contestable IUSA components	496
5.8	Commissioning	496
5.8.1	Requirement to inspect and test equipment	496
5.8.2	Co-ordination during commissioning	497
5.8.3	Control and protection settings for equipment	497
5.8.4	Commissioning program	498
5.8.5	Commissioning tests	498
5.9	Disconnection and Reconnection	499
5.9.1	Voluntary disconnection	499
5.9.2	Decommissioning procedures	500
5.9.3	Involuntary disconnection	500
5.9.4	Direction to disconnect	501
5.9.4A	Notification of disconnection	502
5.9.5	Disconnection during an emergency	502
5.9.6	Obligation to reconnect	502
Part D	Network Planning and Expansion	504
5.10	Network development generally	504
5.10.1	Content of Part D	504
5.10.2	Definitions	505
5.10.3	Interpretation	509
5.11	Forecasts of connection to transmission network and identification of system limitations	509
5.11.1	Forecasts for connection to transmission network	509
5.11.2	Identification of network limitations	510
5.12	Transmission annual planning process	510
5.12.1	Transmission annual planning review	510
5.12.2	Transmission Annual Planning Report	511
5.13	Distribution annual planning process	516
5.13.1	Distribution annual planning review	516
5.13.2	Distribution Annual Planning Report	518
5.13.3	Distribution system limitation template	518
5.13A	Distribution zone substation information	519
5.14	Joint planning	522
5.14.1	Joint planning obligations of Transmission Network Service Providers and Distribution Network Service Providers	522
5.14.2	Joint planning obligations of Distribution Network Service Providers and Distribution Network Service Providers	523
5.14.3	Joint planning obligations of Transmission Network Service Providers	524
5.14A	Joint planning in relation to retirement or de-ratings of network assets forming part of the Declared Shared Network	524
5.14B	TAPR Guidelines	524
5.14B.1	Development of TAPR Guidelines	524
5.15	Regulatory investment tests generally	525
5.15.1	Interested parties	525
5.15.2	Identification of a credible option	525
5.15.3	Review of costs thresholds	526
5.15.4	Costs determinations	528
5.16	Regulatory investment test for transmission	529
5.16.1	Principles	529
5.16.2	Regulatory investment test for transmission application guidelines	532
5.16.3	Investments subject to the regulatory investment test for transmission	533
5.16.4	Regulatory investment test for transmission procedures	536
5.16.5	Disputes in relation to application of regulatory investment test for transmission	543
5.16.6	Determination that preferred option satisfies the regulatory investment test for transmission	545
5.17	Regulatory investment test for distribution	546
5.17.1	Principles	546
5.17.2	Regulatory investment test for distribution application guidelines	548
5.17.3	Projects subject to the regulatory investment test for distribution	550
5.17.4	Regulatory investment test for distribution procedures	551
5.17.5	Disputes in relation to application of regulatory investment test for distribution	557
5.18	Construction of funded augmentations	559
5.18A	Large generator connections	559
5.18A.1	Definitions	559
5.18A.2	Register of large generator connections	560
5.18A.3	Impact assessment of large generator connections	561
5.18B	Completed embedded generation projects	562
5.18B.1	Definitions	562
5.18B.2	Register of completed embedded generation projects	562
5.19	SENE Design and Costing Study	563
5.19.1	Definitions	563
5.19.2	Interpretation	564
5.19.3	Request for SENE Design and Costing Study	564
5.19.4	Content of SENE Design and Costing Study	565
5.19.5	Co-operation of other Network Service Providers	566
5.19.6	Publication of SENE Design and Costing Study report	567
5.19.7	Provision and use of information	567
5.20	National transmission planning	568
5.20.1	Preliminary consultation	568
5.20.2	Publication of NTNDP	569
5.20.3	Development strategies for national transmission flow paths	571
5.20.4	NTNDP database	572
5.20.5	Jurisdictional planning bodies and jurisdictional planning representatives	573
5.20.6	NTP Functions	573
5.20.7	Inertia and system strength requirements methodologies	573
5.20A	Frequency management planning	575
5.20A.1	Power system frequency risk review	575
5.20A.2	Power system frequency risk review process	576
5.20A.3	Power system frequency risk review report	576
5.20A.4	Request for protected event declaration	577
5.20A.5	Request to revoke a protected event declaration	578
5.20B	Inertia sub-networks and requirements	578
5.20B.1	Boundaries of inertia sub-networks	578
5.20B.2	Inertia requirements	579
5.20B.3	Inertia shortfalls	579
5.20B.4	Inertia Service Provider to make available inertia services	580
5.20B.5	Inertia support activities	583
5.20B.6	Inertia network services information and approvals	584
5.20C	System strength requirements	586
5.20C.1	System strength requirements	586
5.20C.2	Fault level shortfalls	587
5.20C.3	System Strength Service Provider to make available system strength services	588
5.20C.4	System strength services information and approvals	590
5.21	AEMO's obligation to publish information and guidelines and provide advice	592
5.22	Last resort planning power	594
Schedule 5.1a	System standards	597
S5.1a.1	Purpose	597
S5.1a.2	Frequency	597
S5.1a.3	System stability	597
S5.1a.4	Power frequency voltage	598
S5.1a.5	Voltage fluctuations	599
S5.1a.6	Voltage waveform distortion	599
S5.1a.7	Voltage unbalance	599
S5.1a.8	Fault clearance times	600
Schedule 5.1	Network Performance Requirements to be Provided or Co-ordinated by Network Service Providers	602
S5.1.1	Introduction	602
S5.1.2	Network reliability	603
S5.1.2.1	Credible contingency events	603
S5.1.2.2	Network service within a region	604
S5.1.2.3	Network service between regions	605
S5.1.3	Frequency variations	605
S5.1.4	Magnitude of power frequency voltage	605
S5.1.5	Voltage fluctuations	607
S5.1.6	Voltage harmonic or voltage notching distortion	608
S5.1.7	Voltage unbalance	609
S5.1.8	Stability	610
S5.1.9	Protection systems and fault clearance times	611
S5.1.10	Load, generation and network control facilities	614
S5.1.10.1	General	614
S5.1.10.1a	Emergency frequency control schemes	615
S5.1.10.2	Distribution Network Service Providers	616
S5.1.10.3	Transmission Network Service Providers	616
S5.1.11	Automatic reclosure of transmission or distribution lines	617
S5.1.12	Rating of transmission lines and equipment	617
S5.1.13	Information to be provided	618
Schedule 5.2	Conditions for Connection of Generators	618
S5.2.1	Outline of requirements	618
S5.2.2	Application of Settings	619
S5.2.3	Technical matters to be coordinated	620
S5.2.4	Provision of information	621
S5.2.5	Technical requirements	624
S5.2.5.1	Reactive power capability	624
S5.2.5.2	Quality of electricity generated	625
S5.2.5.3	Generating unit response to frequency disturbances	626
S5.2.5.4	Generating system response to voltage disturbances	629
S5.2.5.5	Generating system response to disturbances following contingency events	631
S5.2.5.6	Quality of electricity generated and continuous uninterrupted operation	634
S5.2.5.7	Partial load rejection	634
S5.2.5.8	Protection of generating systems from power system disturbances	635
S5.2.5.9	Protection systems that impact on power system security	637
S5.2.5.10	Protection to trip plant for unstable operation	638
S5.2.5.11	Frequency control	639
S5.2.5.12	Impact on network capability	642
S5.2.5.13	Voltage and reactive power control	643
S5.2.5.14	Active power control	649
S5.2.6	Monitoring and control requirements	651
S5.2.6.1	Remote Monitoring	651
S5.2.6.2	Communications equipment	653
S5.2.7	Power station auxiliary supplies	654
S5.2.8	Fault current	654
Schedule 5.3	Conditions for Connection of Customers	656
S5.3.1a	Introduction to the schedule	656
S5.3.1	Information	657
S5.3.2	Design standards	659
S5.3.3	Protection systems and settings	659
S5.3.4	Settings of protection and control systems	660
S5.3.5	Power factor requirements	661
S5.3.6	Balancing of load currents	662
S5.3.7	Voltage fluctuations	663
S5.3.8	Harmonics and voltage notching	663
S5.3.9	Design requirements for Network Users' substations	663
S5.3.10	Load shedding facilities	664
Schedule 5.3a	Conditions for connection of Market Network Services	664
S5.3a.1a	Introduction to the schedule	664
S5.3a.1	Provision of Information	666
S5.3a.2	Application of settings	668
S5.3a.3	Technical matters to be co-ordinated	669
S5.3a.4	Monitoring and control requirements	669
S5.3a.4.1	Remote Monitoring	669
S5.3a.4.2	[Deleted]	670
S5.3a.4.3	Communications equipment	670
S5.3a.5	Design standards	671
S5.3a.6	Protection systems and settings	671
S5.3a.7	[Deleted]	672
S5.3a.8	Reactive power capability	672
S5.3a.9	Balancing of load currents	673
S5.3a.10	Voltage fluctuations	673
S5.3a.11	Harmonics and voltage notching	674
S5.3a.12	Design requirements for Market Network Service Providers’ substations	674
S5.3a.13	Market network service response to disturbances in the power system	675
S5.3a.14	Protection of market network services from power system disturbances	675
Schedule 5.4	Information to be Provided with Preliminary Enquiry	676
Schedule 5.4A	Preliminary Response	677
Schedule 5.4B	Detailed Response to Enquiry	680
Schedule 5.5	Technical Details to Support Application for Connection and Connection Agreement	682
S5.5.1	Introduction to the schedule	682
S5.5.2	Categories of data	682
S5.5.3	Review, change and supply of data	683
S5.5.4	Data Requirements	684
S5.5.5	Asynchronous generating unit data	684
S5.5.6	Generating units smaller than 30MW data	684
S5.5.7	Power System Design Data Sheet, Power System Setting Data Sheet and Power System Model Guidelines	685
Schedule 5.5.1	[Deleted]	688
Schedule 5.5.2	[Deleted]	688
Schedule 5.5.3	Network and plant technical data of equipment at or near connection point	688
Schedule 5.5.4	Network Plant and Apparatus Setting Data	691
Schedule 5.5.5	Load Characteristics at Connection Point	693
Schedule 5.6	Terms and Conditions of Connection agreements and network operating agreements	694
Part A	Connection agreements	694
Part B	Network Operating Agreements	695
Schedule 5.7	Annual Forecast Information for Planning Purposes	696
Schedule 5.8	Distribution Annual Planning Report	698
Schedule 5.9	Demand side engagement document (clause 5.13.1(h))	705
Schedule 5.10	Information requirements for Primary Transmission Network Service Providers (clause 5.2A.5)	706
Schedule 5.11	Negotiating principles for negotiated transmission services (clause 5.2A.6)	709
Schedule 5.12	Negotiating principles for large DCA services	711
Chapter 5A	Electricity connection for retail customers	715
Part A	Preliminary	715
5A.A.1	Definitions	715
5A.A.2	Application of this Chapter	718
5A.A.3	Small Generation Aggregator deemed to be agent of a retail customer	719
Part B	Standardised offers to provide basic and standard connection services	719
Division 1	Basic connection services	719
5A.B.1	Obligation to have model standing offer to provide basic connection services	719
5A.B.2	Proposed model standing offer for basic connection services	720
5A.B.3	Approval of terms and conditions of model standing offer to provide basic connection services	721
Division 2	Standard connection services	722
5A.B.4	Standard connection services	722
5A.B.5	Approval of model standing offer to provide standard connection services	723
Division 3	Miscellaneous	723
5A.B.6	Amendment etc of model standing offer	723
5A.B.7	Publication of model standing offers	724
Part C	Negotiated connection	724
5A.C.1	Negotiation of connection	724
5A.C.2	Process of negotiation	725
5A.C.3	Negotiation framework	725
5A.C.4	Fee to cover cost of negotiation	727
Part D	Application for connection service	728
Division 1	Information	728
5A.D.1	Publication of information	728
5A.D.1A	Register of completed embedded generation projects	728
Division 2	Preliminary enquiry	730
5A.D.2	Preliminary enquiry	730
Division 3	Applications	731
5A.D.3	Application process	731
5A.D.4	Site inspection	732
Part E	Connection charges	732
5A.E.1	Connection charge principles	732
5A.E.2	Itemised statement of connection charges	734
5A.E.3	Connection charge guidelines	734
5A.E.4	Payment of connection charges	736
Part F	Formation and integration of connection contracts	737
Division 1	Offer and acceptance – basic and standard connection services	737
5A.F.1	Distribution Network Service Provider’s response to application	737
5A.F.2	Acceptance of connection offer	737
5A.F.3	Offer and acceptance—application for expedited connection	737
Division 2	Offer and acceptance – negotiated connection	738
5A.F.4	Negotiated connection offer	738
Division 3	Formation of contract	739
5A.F.5	Acceptance of connection offer	739
Division 4	Contractual performance	739
5A.F.6	Carrying out connection work	739
5A.F.7	Retailer required for energisation where new connection	740
Part G	Dispute resolution between Distribution Network Service Providers and customers	740
5A.G.1	Relevant disputes	740
5A.G.2	Determination of dispute	740
5A.G.3	Termination of proceedings	741
SCHEDULE 5A.1 – Minimum content requirements for connection contract	741
Part A	Connection offer not involving embedded generation	741
Part B	Connection offer involving embedded generation	742
6	Economic Regulation of Distribution Services	747
Part A	Introduction	747
6.1	Introduction to Chapter 6	747
6.1.1	AER's regulatory responsibility	747
6.1.1A	[Deleted]	747
6.1.2	Structure of this Chapter	747
6.1.3	Access to direct control services and negotiated distribution services	748
6.1.4	Prohibition of DUOS charges for the export of energy	748
Part B	Classification of Distribution Services and Distribution Determinations	749
6.2	Classification	749
6.2.1	Classification of distribution services	749
6.2.2	Classification of direct control services as standard control services or alternative control services	749
6.2.3	Term for which classification operates	750
6.2.3A	Distribution Service Classification Guidelines	751
6.2.4	Duty of AER to make distribution determinations	751
6.2.5	Control mechanisms for direct control services	752
6.2.6	Basis of control mechanisms for direct control services	753
6.2.7	Negotiated distribution services	753
6.2.8	Guidelines	753
Part C	Building Block Determinations for standard control services	754
6.3	Building block determinations	754
6.3.1	Introduction	754
6.3.2	Contents of building block determination	755
6.4	Post-tax revenue model	755
6.4.1	Preparation, publication and amendment of post-tax revenue model	755
6.4.2	Contents of post-tax revenue model	755
6.4.3	Building block approach	756
6.4.4	Shared assets	757
6.4.5	Expenditure Forecast Assessment Guidelines	758
6.4A	Capital expenditure incentive mechanisms	759
6.4B	Asset exemptions	760
6.4B.1	Asset exemption decisions and Asset Exemption Guidelines	760
6.4B.2	Exemption applications	761
6.5	Matters relevant to the making of building block determinations	761
6.5.1	Regulatory asset base	761
6.5.2	Return on capital	762
6.5.3	Estimated cost of corporate income tax	765
6.5.4	[Deleted]	766
6.5.5	Depreciation	766
6.5.6	Forecast operating expenditure	766
6.5.7	Forecast capital expenditure	769
6.5.8	Efficiency benefit sharing scheme	774
6.5.8A	Capital expenditure sharing scheme	775
6.5.9	The X factor	776
6.5.10	Pass through events	777
6.6	Adjustments after making of building block determination.	777
6.6.1	Cost pass through	777
6.6.1A	Reporting on jurisdictional schemes	784
6.6.2	Service target performance incentive scheme	786
6.6.3	Demand management incentive scheme	787
6.6.3A	Demand management innovation allowance mechanism	788
6.6.4	Small-scale incentive scheme	789
6.6.5	Reopening of distribution determination for capital expenditure	790
6.6A	Contingent Projects	794
6.6A.1	Acceptance of a contingent project in a distribution determination	794
6.6A.2	Amendment of distribution determination for contingent project	796
Part D	Negotiated distribution services	801
6.7	Negotiated distribution services	801
6.7.1	Principles relating to access to negotiated distribution services	801
6.7.2	Determination of terms and conditions of access for negotiated distribution services	803
6.7.3	Negotiating framework determination	804
6.7.4	Negotiated Distribution Service Criteria determination	804
6.7.5	Preparation of and requirements for negotiating framework for negotiated distribution services	804
6.7.6	Confidential information	807
Part DA	Connection policies	807
6.7A	Connection policy requirements	807
6.7A.1	Preparation of, and requirements for, connection policy	807
Part E	Regulatory proposal and proposed tariff structure statement	808
6.8	Regulatory proposal and proposed tariff structure statement	808
6.8.1	AER's framework and approach paper	808
6.8.1A	Notification of approach to forecasting expenditure	811
6.8.2	Submission of regulatory proposal, tariff structure statement and exemption application	811
6.9	Preliminary examination and consultation	813
6.9.1	Preliminary examination	813
6.9.2	Resubmission of proposal	814
6.9.2A	Confidential information	814
6.9.3	Consultation	815
6.10	Draft distribution determination and further consultation	816
6.10.1	Making of draft distribution determination	816
6.10.2	Publication of draft determination and consultation	816
6.10.3	Submission of revised proposal	817
6.10.4	Submissions on specified matters	817
6.11	Distribution determination	818
6.11.1	Making of distribution determination	818
6.11.1A	Out of scope revised regulatory proposal or late submissions	818
6.11.2	Notice of distribution determination	819
6.11.3	Commencement of distribution determination	819
6.12	Requirements relating to draft and final distribution determinations	820
6.12.1	Constituent decisions	820
6.12.2	Reasons for decisions	823
6.12.3	Extent of AER's discretion in making distribution determinations	824
6.13	Revocation and substitution of distribution determination for wrong information or error	826
6.14	Miscellaneous	826
6.14A	Distribution Confidentiality Guidelines	827
Part F	Cost Allocation	827
6.15	Cost allocation	827
6.15.1	Duty to comply with Cost Allocation Method	827
6.15.2	Cost Allocation Principles	827
6.15.3	Cost Allocation Guidelines	828
6.15.4	Cost Allocation Method	829
Part G	Distribution consultation procedures	830
6.16	Distribution consultation procedures	830
Part H	Ring-Fencing Arrangements for Distribution Network Service Providers	832
6.17	Distribution Ring-Fencing Guidelines	832
6.17.1	Compliance with Distribution Ring-Fencing Guidelines	832
6.17.2	Development of Distribution Ring-Fencing Guidelines	832
Part I	Distribution Pricing Rules	833
6.18	Distribution Pricing Rules	833
6.18.1	Application of this Part	833
6.18.1A	Tariff structure statement	833
6.18.1B	Amending a tariff structure statement with the AER's approval	834
6.18.1C	Sub-threshold tariffs	836
6.18.2	Pricing proposals	836
6.18.3	Tariff classes	838
6.18.4	Principles governing assignment or re-assignment of retail customers to tariff classes and assessment and review of basis of charging	838
6.18.5	Pricing principles	839
6.18.6	Side constraints on tariffs for standard control services	841
6.18.7	Recovery of designated pricing proposal charges	842
6.18.7A	Recovery of jurisdictional scheme amounts	843
6.18.8	Approval of pricing proposal	847
6.18.9	Publication of information about tariffs and tariff classes	848
6.19.	Data Required for Distribution Service Pricing	849
6.19.1	Forecast use of networks by Distribution Customers and Embedded Generators	849
6.19.2	Confidentiality of distribution network pricing information	849
Part J	Billing and Settlements	849
6.20	Billing and Settlements Process	849
6.20.1	Billing for distribution services	849
6.20.2	Minimum information to be provided in distribution network service bills	851
6.20.3	Settlement between Distribution Network Service Providers	852
6.20.4	Obligation to pay	852
Part K	Prudential requirements, capital contributions and prepayments	852
6.21	Distribution Network Service Provider Prudential Requirements	852
6.21.1	Prudential requirements for distribution network service	852
6.21.2	Capital contributions, prepayments and financial guarantees	853
6.21.3	Treatment of past prepayments and capital contributions	853
Part L	Dispute resolution	854
6.22	Dispute Resolution	854
6.22.1	Dispute Resolution by the AER	854
6.22.2	Determination of dispute	854
6.22.3	Termination of access dispute without access determination	856
Part M	Separate disclosure of transmission and distribution charges	856
6.23	Separate disclosure of transmission and distribution charges	856
Part N	Dual Function Assets	857
6.24	Dual Function Assets	857
6.24.1	Application of this Part	857
6.24.2	Dual Function Assets	857
6.25	AER determination of applicable pricing regime for Dual Function Assets	858
6.26	Division of Distribution Network Service Provider's revenue	859
Part O	Annual Benchmarking Report	860
6.27	Annual Benchmarking Report	860
Part P	Distribution Reliability Measures Guidelines	860
6.28	Distribution Reliability Measures Guidelines	860
Schedule 6.1	Contents of building block proposals	861
S6.1.1	Information and matters relating to capital expenditure	861
S6.1.2	Information and matters relating to operating expenditure	862
S6.1.3	Additional information and matters	863
Schedule 6.2	Regulatory Asset Base	865
S6.2.1	Establishment of opening regulatory asset base for a regulatory control period	865
S6.2.2	Prudency and efficiency of capital expenditure	870
S6.2.2A	Reduction for inefficient past capital expenditure	871
S6.2.2B	Depreciation	873
S6.2.3	Roll forward of regulatory asset base within the same regulatory control period	874
6A.	Economic Regulation of Transmission Services	877
Part A	Introduction	877
6A.1	Introduction to Chapter 6A	877
6A.1.1	Economic regulation of transmission services generally	877
6A.1.2	[Deleted]	878
6A.1.3	[Deleted]	878
6A.1.4	National regulatory arrangements	878
6A.1.5	Application of Chapter 6A to Market Network Service Providers	878
6A.1.6	Application of Chapter 6A to AEMO and declared transmission system operators	878
Part B	Transmission Determinations Generally	879
6A.2	Transmission determinations	879
6A.2.1	Duty of AER to make transmission determinations	879
6A.2.2	Components of transmission determinations	879
6A.2.3	Guidelines	879
Part C	Regulation of Revenue - Prescribed Transmission Services	880
6A.3	Allowed revenue from prescribed transmission services	880
6A.3.1	Allowed revenue for regulatory year	880
6A.3.2	Adjustment of maximum allowed revenue	880
6A.4	Revenue determinations	881
6A.4.1	Introduction	881
6A.4.2	Contents of revenue determination	881
6A.5	Post-tax revenue model	882
6A.5.1	Introduction	882
6A.5.2	Preparation, publication and amendment of post-tax revenue model	882
6A.5.3	Contents of post-tax revenue model	883
6A.5.4	Building blocks approach	884
6A.5.5	Shared assets	885
6A.5.6	Expenditure Forecast Assessment Guidelines	886
6A.5A	Capital expenditure incentive mechanisms	886
6A.6	Matters relevant to the making of revenue determinations	887
6A.6.1	Regulatory asset base	887
6A.6.2	Return on capital	888
6A.6.3	Depreciation	891
6A.6.4	Estimated cost of corporate income tax	892
6A.6.5	Efficiency benefit sharing scheme	893
6A.6.5A	Capital expenditure sharing scheme	894
6A.6.6	Forecast operating expenditure	895
6A.6.7	Forecast capital expenditure	898
6A.6.8	The X factor	902
6A.6.9	Pass through events	903
6A.7	Matters relevant to the adjustment of revenue cap after making of revenue determination	903
6A.7.1	Reopening of revenue determination for capital expenditure	903
6A.7.2	Network support pass through	906
6A.7.3	Cost pass through	908
6A.7.4	Service target performance incentive scheme	914
6A.7.5	Small-scale incentive scheme	916
6A.8	Contingent Projects	917
6A.8.1	Acceptance of a Contingent Project in a revenue determination	917
6A.8.2	Amendment of revenue determination for contingent project	918
Part D	[Deleted]	923
Part E	Procedure - Revenue determinations and pricing methodologies	923
6A.10	Revenue Proposal and proposed pricing methodology	923
6A.10.1A	AER's framework and approach paper	923
6A.10.1B	Notification of approach to forecasting expenditure	925
6A.10.1	Submission of proposal, pricing methodology and information	925
6A.10.2	[Deleted]	927
6A.11	Preliminary examination and consultation	927
6A.11.1	Preliminary examination and determination of non-compliance with relevant requirements	927
6A.11.2	Resubmission of proposal, framework, pricing methodology or information	928
6A.11.2A	Confidential information	928
6A.11.3	Consultation	928
6A.12	Draft decision and further consultation	929
6A.12.1	Making of draft decision	929
6A.12.2	Publication of draft decision and consultation	930
6A.12.3	Submission of revised proposal or pricing methodology	930
6A.12.4	Submissions on specified matters	932
6A.13	Final decision	932
6A.13.1	Making of final decision	932
6A.13.2	Refusal to approve amounts, values, framework or pricing methodology	932
6A.13.2A	Out of scope revised documents or late submissions	933
6A.13.3	Notice of final decision	934
6A.13.4	Making of transmission determination	934
6A.14	Requirements relating to draft and final decisions	934
6A.14.1	Contents of decisions	934
6A.14.2	Reasons for decisions	937
6A.14.3	Circumstances in which matters must be approved or accepted	937
6A.15	Revocation of revenue determination or amendment of pricing methodology for wrong information or error	940
6A.16	Miscellaneous	941
6A.16A	Transmission Confidentiality Guidelines	941
Part F	Information Disclosure	942
6A.17	Information disclosure by Transmission Network Service Providers	942
6A.17.1	Information to be provided to AER	942
6A.17.2	Information Guidelines	943
6A.18	[Deleted]	945
Part G	Cost Allocation	945
6A.19	Cost allocation	945
6A.19.1	Duty to comply with Cost Allocation Methodology	945
6A.19.2	Cost Allocation Principles	945
6A.19.3	Cost Allocation Guidelines	946
6A.19.4	Cost Allocation Methodology	947
Part H	Transmission Consultation Procedures	948
6A.20	Transmission consultation procedures	948
Part I	Ring-Fencing Arrangements for Transmission Network Service Providers	949
6A.21	Transmission Ring-Fencing Guidelines	949
6A.21.1	Compliance with Transmission Ring-Fencing Guidelines	949
6A.21.2	Development of Transmission Ring-Fencing Guidelines	950
Part J	Prescribed Transmission Services - Regulation of Pricing	951
6A.22	Terms used in Part J	951
6A.22.1	Aggregate annual revenue requirement (AARR)	951
6A.22.2	Annual service revenue requirement (ASRR)	951
6A.22.3	Meaning of attributable cost share	951
6A.22.4	Meaning of attributable connection point cost share	952
6A.23	Pricing Principles for Prescribed Transmission Services	952
6A.23.1	Introduction	952
6A.23.2	Principles for the allocation of the aggregate annual revenue requirement	952
6A.23.3	Principles for the allocation of the annual service revenue requirement to connection points	953
6A.23.4	Principles for the recovery of the Annual Service Revenue Requirement as prices	956
6A.24	Pricing methodology	958
6A.24.1	Pricing methodologies generally	958
6A.24.2	Publication of pricing methodology and transmission network prices	959
6A.24.3	Basis for setting prices pending approval of pricing methodology	960
6A.24.4	Basis for setting prices pending approval of maximum allowed revenue	960
6A.25	Pricing methodology guidelines for prescribed transmission services	961
6A.25.1	Making and amending of pricing methodology guidelines	961
6A.25.2	Contents of pricing methodology guidelines	962
6A.26	Prudent discounts	963
6A.26.1	Agreements for prudent discounts for prescribed transmission services	963
6A.26.2	Application to AER for approval of proposed prudent discount amounts	964
6A.27	Billing Process	966
6A.27.1	Billing for prescribed transmission services	966
6A.27.1A	Billing of modified load export charges	966
6A.27.2	Minimum information to be provided in network service bills	966
6A.27.3	Obligation to pay charges for prescribed transmission services	967
6A.27.4	Payments between Transmission Network Service Providers in the same region	967
6A.27.5	Calculation of financial transfers between Transmission Network Service Providers in the same region	968
6A.28	Prudential Requirements	968
6A.28.1	Prudential Requirements for prescribed transmission services	968
6A.28.2	Capital contribution or prepayment for a specific asset	968
6A.28.3	Treatment of past capital contributions	968
6A.29	Multiple Transmission Network Service Providers	969
6A.29.1	Multiple Transmission Network Service Providers within a region	969
6A.29.2	Single Transmission Network Service Provider within a region	970
6A.29.3	Allocation over several regions	970
6A.29A	Modified load export charges	970
6A.29A.1	Single Transmission Network Service Provider in a Region	970
6A.29A.2 	Calculation of the modified load export charges	970
6A.29A.3	Calculation of adjustments to the modified load export charge	971
6A.29A.4	Billing the modified load export charge	971
6A.29A.5	Allocation and billing process where multiple Transmission Network Service Providers in a Region	972
Part K	Commercial arbitration for disputes about terms and conditions of access for prescribed and negotiated transmission services	973
[Deleted]	973
Part L	Annual Benchmarking Report	973
6A.31	Annual Benchmarking Report	973
Schedule 6A.1	Contents of Revenue Proposals	973
S6A.1.1	Information and matters relating to capital expenditure	973
S6A.1.2	Information and matters relating to operating expenditure	974
S6A.1.3	Additional information and matters	975
Schedule 6A.2	Regulatory Asset Base	978
S6A.2.1	Establishment of opening regulatory asset base for a regulatory control period	978
S6A.2.2	Prudency and efficiency of capital expenditure	983
S6A.2.2A	Reduction for inefficient past capital expenditure	984
S6A.2.2B	Depreciation	986
S6A.2.3	Removal of assets from regulatory asset base	987
S6A.2.4	Roll forward of regulatory asset base within the same regulatory control period	988
Schedule 6A.3	CRNP methodology and modified CRNP methodology	989
S6A.3.1	Meaning of optimised replacement cost	989
S6A.3.2	CRNP methodology	989
S6A.3.3	Modified CRNP methodology	990
Schedule 6A.4	Application of this Chapter to AEMO and declared transmission system operators	990
S6A.4.1	Application of this Chapter to AEMO etc	990
S6A.4.2	Exclusions, qualifications and modifications	991
Chapter 6B	Retail markets	1001
Part A	Retail support	1001
Division 1 – Application and definitions	1001
6B.A1.1	Application of this Part	1001
Division 2	Billing and payment rules	1002
6B.A2.1	Obligation to pay	1002
6B.A2.2	Direct customer billing and energy-only contracts	1002
6B.A2.3	Calculating network charges	1002
6B.A2.4	Statement of charges	1002
6B.A2.5	Time and manner of payment	1003
Division 3	Matters incidental to billing and payment	1003
6B.A3.1 	Adjustment of network charges	1003
6B.A3.2	Tariff reassignment	1004
6B.A3.3	Disputed statements of charges	1005
6B.A3.4	Interest	1006
6B.A3.5	Notification of changes to charges	1006
Part B	Credit support required for late payment	1006
Division 1	Application and definitions	1007
6B.B1.1	Application of Part B	1007
6B.B1.2	Definitions	1007
Division 2	Requirements for credit support	1007
6B.B2.1	Distribution Network Service Provider may require credit support in limited circumstances	1007
Division 3	Provision of credit support by retailers	1008
6B.B3.1	Retailer to provide credit support	1008
6B.B3.2	Acceptable form of credit support	1008
Division 4	Other Rules relating to credit support	1009
6B.B4.1	Application of credit support	1009
6B.B4.2	Return of credit support	1009
6B.B4.3	Other retailer obligations	1009
Schedule 6B.1	Prescribed form of unconditional undertaking for credit support	1010
7.	Metering	1013
Part A	Introduction	1013
7.1	Introduction to the Metering Chapter	1013
7.1.1	Contents	1013
Part B	Roles and Responsibilities	1013
7.2	Role and Responsibility of financially responsible Market Participant	1013
7.2.1	Obligations of financially responsible Market Participants to establish metering installations	1013
7.2.2	[Not used]	1014
7.2.3	Agreements with Local Network Service Provider	1014
7.2.4	[Not used]	1015
7.2.5	Agreements with Metering Provider	1015
7.3	Role and Responsibility of Metering Coordinator	1015
7.3.1	Responsibility of the Metering Coordinator	1015
7.3.2	Role of the Metering Coordinator	1015
7.4	Qualification and Registration of Metering Providers, Metering Data Providers and Embedded Network Managers	1019
7.4.1	Qualifications and registration of Metering Providers	1019
7.4.2	Qualifications and registration of Metering Data Providers	1020
7.4.2A	Qualifications and registration of Embedded Network Managers	1021
7.4.2B	List of Embedded Network Managers	1021
7.4.3	Nature of appointment of Metering Provider or Metering Data Provider	1021
7.4.4	Deregistration of Metering Providers, Metering Data Providers and Embedded Network Managers	1022
7.5	Role and Responsibility of AEMO	1023
7.5.1	Responsibility of AEMO for the collection, processing and delivery of metering data	1023
7.5.2	AEMO's costs in connection with metering installation	1024
7.5A	Role and Responsibility of Embedded Network Managers	1024
7.5A.1	Responsibility of Embedded Network Managers for management services 	1024
7.5A.2	EN information	1025
Part C	Appointment of Metering Coordinator	1025
7.6	Appointment of Metering Coordinator	1025
7.6.1	Commercial nature of the Metering Coordinator appointment and service provision	1025
7.6.2	Persons who may appoint Metering Coordinators	1026
7.6.3	Appointment with respect to transmission network connection	1027
7.6.4	Type 7 metering installations	1027
7.7	Metering Coordinator default arrangements	1028
7.7.1	Obligations of financially responsible Market Participants on Metering Coordinator default event and end of contract term	1028
7.7.2	Notices to be provided by Metering Coordinator	1029
7.7.3	AEMO may issue breach notice	1030
Part D	Metering installation	1031
7.8	Metering installation arrangements	1031
7.8.1	Metering installation requirements	1031
7.8.2	Metering installation components	1031
7.8.3	Small customer metering installations	1036
7.8.4	Type 4A metering installation	1036
7.8.5	Emergency management	1038
7.8.6	Network devices	1038
7.8.7	Metering point	1041
7.8.8	Metering installation types and accuracy	1042
7.8.9	Meter churn	1042
7.8.10	Meter installation malfunctions	1044
7.8.11	Changes to metering equipment, parameters and settings within a metering installation	1044
7.8.12	Special site or technology related conditions	1045
7.8.13	Joint metering installations	1046
7.9	Inspection, Testing and Audit of Metering installations	1047
7.9.1	Responsibility for testing	1047
7.9.2	Actions in event of non-compliance	1049
7.9.3	Audits of information held in metering installations	1050
7.9.4	Errors found in metering tests, inspections or audits	1050
7.9.5	Retention of test records and documents	1051
7.9.6	Metering installation registration process	1052
Part E	Metering Data	1052
7.10	Metering Data Services	1052
7.10.1	Metering Data Services	1052
7.10.2	Data management and storage	1053
7.10.3	Provision of metering data to certain persons	1055
7.10.4	Use of check metering data	1055
7.10.5	Periodic energy metering	1055
7.10.6	Time settings	1056
7.10.7	Metering data performance standards	1057
7.11	Metering data and database	1059
7.11.1	Metering database	1059
7.11.2	Data validation, substitution and estimation	1060
7.11.3	Changes to energy data or to metering data	1060
7.12	Register of Metering Information	1061
7.12.1	Metering register	1061
7.12.2	Metering register discrepancy	1061
7.13	Disclosure of NMI information	1061
7.13.1	Application of this Rule	1061
7.13.2	NMI and NMI checksum	1061
7.13.3	NMI Standing Data	1062
7.14	Metering data provision to retail customers	1062
Part F	Security of metering installation and energy data	1063
7.15	Security of metering installation and energy data	1063
7.15.1	Confidentiality	1063
7.15.2	Security of metering installations	1063
7.15.3	Security controls for energy data	1064
7.15.4	Additional security controls for small customer metering installations	1066
7.15.5	Access to data	1067
PART G	Procedures	1069
7.16	Procedures	1069
7.16.1	Obligation to establish, maintain and publish procedures	1069
7.16.2	Market Settlement and Transfer Solution Procedures	1069
7.16.3	Requirements of the metrology procedure	1070
7.16.4	Jurisdictional metrology material in metrology procedure	1071
7.16.5	Additional metrology procedure matters	1073
7.16.6	Requirements of the service level procedures	1074
7.16.6A	Requirements of the ENM service level procedures	1075
Clause 7.16.6B	Guide to embedded networks	1077
7.16.7	Amendment of procedures in the Metering Chapter	1077
7.16.8	National Measurement Act	1078
Part H	B2B Requirements	1078
7.17	B2B Arrangements	1078
7.17.1	B2B e-Hub	1078
7.17.2	B2B e-Hub Participants	1079
7.17.3	Content of the B2B Procedures	1080
7.17.4	Changing B2B Procedures	1081
7.17.5	B2B Decision	1083
7.17.6	Establishment of Information Exchange Committee	1084
7.17.7	Functions and powers of Information Exchange Committee	1085
7.17.8	Obligations of Members	1086
7.17.9	Meetings of Information Exchange Committee	1087
7.17.10	Nomination, election and appointment of Members	1088
7.17.11	Qualifications of Members	1089
7.17.12	Information Exchange Committee Election Procedures and Information Exchange Committee Operating Manual	1090
7.17.13	Cost Recovery	1091
Schedule 7.1	Metering register	1091
S7.1.1	General	1091
S7.1.2	Metering register information	1092
Schedule 7.2	Metering Provider	1093
S7.2.1	General	1093
S7.2.2	Categories of registration	1094
S7.2.3	Capabilities of Metering Providers for metering installations types 1, 2, 3, 4 and 4A	1095
S7.2.4	Capabilities of Metering Providers for metering installations types 5 and 6	1098
S7.2.5	Capabilities of Metering Providers for small customer metering installations	1098
S7.2.6	Capabilities of the Accredited Service Provider category	1098
Schedule 7.3	Metering Data Provider	1099
S7.3.1	General	1099
S7.3.2	Categories of registration	1099
S7.3.3	Capabilities of Metering Data Providers	1099
S7.3.4	Capabilities of Metering Data Providers for small customer metering installations	1101
Schedule 7.4	Types and Accuracy of Metering installations	1102
S7.4.1	General requirements	1102
S7.4.2	Metering installations commissioned prior to 13 December 1998	1102
S7.4.3	Accuracy requirements for metering installations	1103
S7.4.4	Check metering	1109
S7.4.5	Resolution and accuracy of displayed or captured data	1109
S7.4.6	General design standards	1110
S7.4.6.1	Design requirements	1110
S7.4.6.2	Design guidelines	1111
Schedule 7.5	Requirements of minimum services specification	1111
S7.5.1	Minimum services specification	1111
Schedule 7.6	Inspection and Testing Requirements	1115
S7.6.1	General	1115
S7.6.2	Technical Guidelines	1117
Schedule 7.7	Embedded Network Managers	1118
S7.7.1	General	1118
S7.7.2	Capabilities of Embedded Network Managers	1118
8.	Administrative Functions	1123
Part A	Introductory	1123
8.1	Administrative functions	1123
8.1.1	[Deleted]	1123
8.1.2	[Deleted]	1123
8.1.3	Structure of this Chapter	1123
Part B	Disputes	1124
8.2	Dispute Resolution	1124
8.2.1	Application and guiding principles	1124
8.2.2	The Dispute Resolution Adviser	1127
8.2.3	Dispute management systems of Registered Participants and AEMO	1128
8.2.4	Stage 1 - dispute resolution through Registered Participants’ DMS	1129
8.2.5	Stage 2 - dispute resolution process	1131
8.2.6A	Establishment of Dispute Resolution Panel	1132
8.2.6B	Parties to DRP Proceedings	1133
8.2.6C	Proceedings of the DRP	1134
8.2.6D	Decisions of the DRP	1135
8.2.6	[Deleted]	1135
8.2.7	Legal representation	1135
8.2.8	Cost of dispute resolution	1136
8.2.9	Effect of resolution	1136
8.2.10	Recording and publication	1137
8.2.11	Appeals on questions of law	1137
8.2.12	[Deleted]	1137
8.2A	B2B Determination Disputes	1137
8.2A.1	Application of rule 8.2	1137
8.2A.2	How rule 8.2 applies	1137
8.3	Power to make Electricity Procedures	1140
8.4	[Deleted]	1141
8.5	[Deleted]	1141
Part C	Registered Participants' confidentiality obligations	1141
8.6	Confidentiality	1141
8.6.1	Confidentiality	1141
8.6.1A	Application	1142
8.6.2	Exceptions	1142
8.6.3	Conditions	1144
8.6.4	[Deleted]	1144
8.6.5	Indemnity to AER, AEMC and AEMO	1144
8.6.6	AEMO information	1144
8.6.7	Information on Rules Bodies	1144
Part D	Monitoring and reporting	1145
8.7	Monitoring and Reporting	1145
8.7.1	Monitoring	1145
8.7.2	Reporting requirements and monitoring standards for Registered Participants and AEMO	1145
8.7.3	Consultation required for making general regulatory information order (Section 28H of the NEL)	1147
8.7.4	Preparation of network service provider performance report (Section 28V of the NEL)	1148
8.7.5	[Deleted]	1149
8.7.6	Recovery of reporting costs	1149
Part E	Reliability panel	1149
8.8	Reliability Panel	1149
8.8.1	Purpose of Reliability Panel	1149
8.8.2	Constitution of the Reliability Panel	1151
8.8.3	Reliability Panel review process	1153
8.8.4	Determination of protected events	1156
Part F	Rules consultation procedures	1158
8.9	Rules Consultation Procedures	1158
Part G	Consumer advocacy funding	1160
8.10	Consumer advocacy funding obligation	1160
Part H	Augmentations	1161
8.11	Augmentations	1161
8.11.1	Application	1161
8.11.2	Object	1161
8.11.3	Definitions	1162
8.11.4	Planning criteria	1162
8.11.5	Construction of augmentation that is not a contestable augmentation	1163
8.11.6	Contestable augmentations	1163
8.11.7	Construction and operation of contestable augmentation	1164
8.11.8	Funded augmentations that are not subject to the tender process	1166
8.11.9	Contractual requirements and principles	1167
8.11.10	Annual planning review	1167
Schedule 8.11	Principles to be reflected in agreements relating to contestable augmentations	1167
S8.11.1	Risk allocation	1167
S8.11.2	Minimum requirements for agreements relating to contestable augmentation	1169
S8.11.3	Matters to be dealt with in relevant agreements	1169
8A.	Participant Derogations	1173
Part 1	Derogations Granted to TransGrid	1173
8A.1	[Deleted]	1173
Part 2	Derogations Granted to EnergyAustralia	1173
8A.2	[Deleted]	1173
8A.2A	[Deleted]	1173
Part 3	[Deleted]	1173
Part 4	[Deleted]	1173
Part 5	[Deleted]	1173
Part 6	Derogations Granted to Victorian Market Participants	1173
Part 7	[Deleted]	1174
Part 8	[Deleted]	1174
Part 9	[Deleted]	1174
Part 10	[Deleted]	1174
Part 11	[Deleted]	1174
Part 12	[Deleted]	1174
Part 13	Derogation granted to Aurora Energy (Tamar Valley) Pty Ltd	1174
8A.13	[Deleted]	1174
Part 14	Derogations granted to Ausgrid, Endeavour Energy and Essential Energy	1174
8A.14	Derogations from Chapter 6 for the current regulatory control period and subsequent regulatory control period	1174
8A.14.1	Definitions	1174
8A.14.2	Expiry date	1179
8A.14.3	Application of Rule 8A.14	1179
8A.14.4	Recovery of revenue across the current regulatory control period and subsequent regulatory control period	1179
8A.14.5	Recovery of revenue in subsequent regulatory control period only and no reopening of subsequent distribution determination required	1181
8A.14.6	Recovery of revenue in subsequent regulatory control period only and reopening of distribution determination is required	1182
8A.14.7	Requirements for adjustment determination	1184
8A.14.8	Application of Chapter 6 under participant derogation	1184
Part 15	Derogations granted to ActewAGL	1186
8A.15	Derogations from Chapter 6 for the current regulatory control period and subsequent regulatory control period	1186
8A.15.1	Definitions	1186
8A.15.2	Expiry date	1190
8A.15.3	Application of Rule 8A.15	1190
8A.15.4	Recovery of revenue across the current regulatory control period and subsequent regulatory control period	1190
8A.15.5	Recovery of revenue in subsequent regulatory control period only and no reopening of subsequent distribution determination required	1192
8A.15.6	Recovery of revenue in subsequent regulatory control period only and reopening of distribution determination is required	1194
8A.15.7	Requirements for adjustment determination	1196
8A.15.8	Application of Chapter 6 under participant derogation	1196
9.	Jurisdictional Derogations and Transitional Arrangements	1201
9.1	Purpose and Application	1201
9.1.1	Purpose	1201
9.1.2	Jurisdictional Derogations	1201
Part A	Jurisdictional Derogations for Victoria	1201
9.2	[Deleted]	1201
9.3	Definitions	1201
9.3.1	General Definitions	1201
9.3.2	[Deleted]	1203
9.3A	Fault levels	1203
9.4	Transitional Arrangements for Chapter 2 - Registered Participants, Registration and Cross Border Networks	1204
9.4.1	[Deleted]	1204
9.4.2	Smelter Trader	1204
9.4.3	Smelter Trader: compliance	1205
9.4.4	Report from AER	1207
9.4.5	Cross Border Networks	1208
9.5	[Deleted]	1208
9.6	Transitional Arrangements for Chapter 4 - System Security	1208
9.6.1	Operating Procedures (clause 4.10.1)	1208
9.6.2	Nomenclature Standards (clause 4.12)	1208
9.7	Transitional Arrangements for Chapter 5 - Network Connection	1209
9.7.1	[Deleted]	1209
9.7.2	[Deleted]	1209
9.7.3	[Deleted]	1209
9.7.4	Regulation of Distribution Network Connection	1209
9.7.5	[Deleted]	1210
9.7.6	[Deleted]	1210
9.7.7	[Deleted]	1210
9.8	Transitional Arrangements for Chapter 6 - Network Pricing	1210
9.8.1	[Deleted]	1210
9.8.2	[Deleted]	1210
9.8.3	[Deleted]	1210
9.8.4	Transmission Network Pricing	1210
9.8.4A	[Deleted]	1212
9.8.4B	[Deleted]	1212
9.8.4C	[Deleted]	1212
9.8.4D	[Deleted]	1212
9.8.4E	[Deleted]	1212
9.8.4F	[Deleted]	1212
9.8.4G	[Deleted]	1212
9.8.5	[Deleted]	1212
9.8.6	[Deleted]	1212
9.8.7	Distribution network pricing – transitional application of former Chapter 6	1212
9.8.8	Exclusion of AER's power to aggregate distribution systems and parts of distribution systems	1213
9.9	Transitional Arrangements for Chapter 7 - Metering	1214
9.9.1	Metering Installations To Which This Schedule Applies	1214
9.9.2	[Deleted]	1214
9.9.3	[Deleted]	1214
9.9.4	[Deleted]	1214
9.9.5	[Deleted]	1214
9.9.6	[Deleted]	1214
9.9.7	[Deleted]	1214
9.9.8	[Deleted]	1214
9.9.9	Periodic Energy Metering (clause 7.9.3)	1214
9.9.10	Use of Alternate Technologies (clause 7.13)	1214
9.9A	[Deleted]	1215
9.9B	[Deleted]	1215
9.9C	Metering services for residential and small business customers	1215
9.9C.1	Definitions	1215
9.9C.2	Expiry Date	1216
9.9C.3	Designation as responsible person	1216
9.9C.4	Classification of relevant metering installations	1216
9.9C.5	Cost recovery of AMI rollout	1216
9.9C.6	Capability for remote acquisition of metering data	1216
Schedule 9A1.1	[Deleted]	1216
Schedule 9A1.2	[Deleted]	1216
Schedule 9A1.3	[Deleted]	1216
Schedule 9A2	[Deleted]	1216
Schedule 9A3	Jurisdictional Derogations Granted to Generators	1216
1.	Interpretation of tables	1216
2.	Continuing effect	1217
3.	Subsequent agreement	1217
4.	[Deleted]	1217
5.	Reactive Power Capability (clause S5.2.5.1 of schedule 5.2)	1217
6.	[Deleted]	1219
7.	[Deleted]	1219
8.	[Deleted]	1219
9.	[Deleted]	1219
10.	[Deleted]	1219
11.	[Deleted	1219
12.	[Deleted]	1219
13.	Governor Systems (load control) (clause S5.2.5.11 of schedule 5.2)	1219
14.	[Deleted]	1219
15.	[Deleted]	1219
16.	Excitation Control System (clause S5.2.5.13 of schedule 5.2)	1219
Part B	Jurisdictional Derogations for New South Wales	1220
9.10	[Deleted]	1220
9.11	Definitions	1220
9.11.1	Definitions used in this Part B	1220
9.12	Transitional Arrangements for Chapter 2 - Generators, Registered Participants, Registration and Cross Border Networks	1221
9.12.1	[Deleted]	1221
9.12.2	Customers	1221
9.12.3	Power Traders	1221
9.12.4	Cross Border Networks	1224
9.13	[Deleted]	1225
9.14	Transitional Arrangements for Chapter 4 - System Security	1225
9.14.1	Power System Operating Procedures	1225
9.15	NSW contestable services for Chapter 5A	1225
9.15.1	Definitions	1225
9.15.2	Chapter 5A not to apply to certain contestable services	1226
9.16	Transitional Arrangements for Chapter 6 - Network Pricing	1226
9.16.1	NSW contestable services	1226
9.16.2	[Deleted]	1226
9.16.3	Jurisdictional Regulator	1226
9.16.4	Deemed Regulated Interconnector	1226
9.16.5	[Deleted]	1226
9.17	Transitional Arrangements for Chapter 7 - Metering	1226
9.17.1	Extent of Derogations	1226
9.17.2	Initial Registration (clause 7.1.2)	1227
9.17.3	Amendments to Schedule 9G1	1227
9.17.4	Compliance with AS/NZ ISO 9002 (clause S7.4.3(f) of schedule 7.4)	1227
9.17A	[Deleted]	1228
9.18	[Deleted]	1228
Part C	Jurisdictional Derogations for the Australian Capital Territory	1228
9.19	[Deleted]	1228
9.20	Definitions and Transitional Arrangements for Cross-Border Networks	1228
9.20.1	Definitions	1228
9.20.2	Cross Border Networks	1228
9.21	[Deleted]	1229
9.22	[Deleted]	1229
9.23	Transitional Arrangements for Chapter 6 - Network Pricing	1229
9.23.1	[Deleted]	1229
9.23.2	[Deleted]	1229
9.23.3	[Deleted	1229
9.23.4	[Deleted]	1229
9.24	Transitional Arrangements	1229
9.24.1	Chapter 7 - Metering	1229
9.24.2	[Deleted]	1229
9.24A	[Deleted]	1229
Part D	Jurisdictional Derogations for South Australia	1229
9.25	Definitions	1229
9.25.1	[Deleted]	1229
9.25.2	Definitions	1229
9.26	Transitional Arrangements for Chapter 2 - Registered Participants, Registration And Cross Border Networks	1232
9.26.1	Registration as a Generator	1232
9.26.2	Registration as a Customer	1233
9.26.3	Cross Border Networks	1233
9.26.4	[Deleted]	1234
9.26.5	Registration as a Network Service Provider	1234
9.27	[Deleted]	1234
9.28	Transitional Arrangements for Chapter 5 - Network Connection	1234
9.28.1	Application of clause 5.2	1234
9.28.2	[Deleted]	1235
9.29	Transitional Arrangements for Chapter 6 - Economic Regulation of Distribution Services	1235
9.29.1	[Deleted]	1235
9.29.2	[Deleted]	1235
9.29.3	[Deleted]	1235
9.29.4	[Deleted]	1235
9.29.5	Distribution Network Pricing – South Australia	1235
9.29.6	Capital contributions, prepayments and financial guarantees	1236
9.29.7	Ring fencing	1237
9.29A	Monitoring and reporting	1237
9.30	Transitional Provisions	1238
9.30.1	Chapter 7 - Metering	1238
Part E	Jurisdictional Derogations for Queensland	1238
9.31	[Deleted]	1238
9.32	Definitions and Interpretation	1238
9.32.1	Definitions	1238
9.32.2	Interpretation	1240
9.33	Transitional Arrangements for Chapter 1	1241
9.33.1	[Deleted]	1241
9.34	Transitional Arrangements for Chapter 2 - Registered Participants and Registration	1241
9.34.1	Application of the Rules in Queensland (clauses 2.2 and 2.5)	1241
9.34.2	Stanwell Cross Border Leases (clause 2.2)	1241
9.34.3	[Deleted]	1241
9.34.4	Registration as a Customer (clause 2.3.1)	1241
9.34.5	There is no clause 9.34.5	1242
9.34.6	Exempted generation agreements (clause 2.2)	1242
9.35	[Deleted]	1247
9.36	[Deleted]	1247
9.37	Transitional Arrangements for Chapter 5 - Network Connection	1247
9.37.1	[Deleted]	1247
9.37.2	Existing connection and access agreements (clause 5.2)	1247
9.37.3	[Deleted]	1248
9.37.4	[Deleted]	1248
9.37.5	Forecasts for connection points to transmission network (clause 5.11.1)	1248
9.37.6	There is no clause 9.37.6	1248
9.37.7	Cross Border Networks	1248
9.37.8	[Deleted]	1248
9.37.9	Credible contingency events (clause S5.1.2.1 of schedule 5.1)	1248
9.37.10	Reactive power capability (clause S5.2.5.1 of schedule 5.2)	1249
9.37.11	[Deleted]	1249
9.37.12	Voltage fluctuations (clause S5.1.5 of schedule 5.1)	1249
9.37.13	[Deleted]	1252
9.37.14	[Deleted]	1252
9.37.15	[Deleted]	1252
9.37.16	[Deleted]	1252
9.37.17	[Deleted]	1252
9.37.18	[Deleted]	1252
9.37.19	Generating unit response to disturbances (clause S5.2.5.3 of schedule 5.2)	1252
9.37.20	[Deleted]	1252
9.37.21	Excitation control system (clause S.5.2.5.13 of schedule 5.2)	1252
9.37.22	[Deleted]	1253
9.37.23	Annual forecast information for planning purposes (schedule 5.7)	1253
9.38	Transitional Arrangements for Chapter 6 - Network Pricing	1253
9.38.1	[Deleted]	1253
9.38.2	[Deleted]	1253
9.38.3	[Deleted]	1253
9.38.4	Interconnectors between regions	1253
9.38.5	Transmission pricing for exempted generation agreements	1254
9.39	Transitional Arrangements for Chapter 7 - Metering	1254
9.39.1	Metering installations to which this clause applies	1254
9.39.2	[Deleted]	1255
9.39.3	[Deleted]	1255
9.39.4	[Deleted]	1255
9.39.5	[Deleted]	1255
9.40	Transitional Arrangements for Chapter 8 - Administration Functions	1255
9.40.1	[Deleted]	1255
9.40.2	[Deleted]	1255
9.40.3	[Deleted]	1255
9.41	[Deleted]	1255
Schedule 9E1	Exempted Generation Agreements	1255
Part F	Jurisdictional Derogations for Tasmania	1256
9.42	Definitions and interpretation	1256
9.42.1	Definitions	1256
9.42.2	Interpretation	1257
9.42.3	National grid, power system and related expressions	1258
9.43	[Deleted]	1258
9.44	Transitional arrangements for Chapter 2 – Registered Participants and Registration - Customers (clause 2.3.1(e))	1258
9.45	Tasmanian Region (clause 3.5)	1258
9.47	Transitional arrangements for Chapter 5- Network Connection	1258
9.47.1	Existing Connection Agreements	1258
9.48	Transitional arrangements - Transmission and Distribution Pricing	1259
9.48.4A	Ring fencing	1259
9.48.4B	Uniformity of tariffs for small customers	1259
9.48.5	Transmission network	1259
9.48.6	Deemed regulated interconnector	1259
Part G	Schedules to Chapter 9	1260
Schedule 9G1	Metering Transitional Arrangements	1260
1.	Introduction	1260
2.	[Deleted]	1260
3.	General Principle	1260
4.	[Deleted]	1260
5.	Accuracy Requirements	1260
6.	[Deleted]	1261
7.	[Deleted]	1261
8.	[Deleted]	1261
9.	[Deleted]	1261
10.	[Deleted]	1261
10.	Glossary	1265
11.	Savings and Transitional Rules	1395
Part A	Definitions	1395
Part B	System Restart Ancillary Services (2006 amendments)	1395
11.2	Rules consequent on making of the National Electricity Amendment (System Restart Ancillary Services and pricing under market suspension) Rule 2006	1395
11.2.1	Transitional provision for acquisition of non-market ancillary services	1395
11.3	[Deleted]	1396
Part C	Dispute Resolution for Regulatory Test (2006 amendments)	1396
11.4	Rules consequent on making of the National Electricity Amendment (Dispute Resolution for Regulatory Test) Rule 2006	1396
11.4.1	Continuation of things done under old clause 5.6.6	1396
Part D	Metrology (2006 amendments)	1397
11.5	Rules consequential on the making of the National Electricity Amendment (Metrology) Rule 2006	1397
11.5.1	Definitions	1397
11.5.2	Metrology procedures continues to apply until 31 December 2006	1397
11.5.3	Responsible person	1397
11.5.4	NEMMCO’s responsibility to develop a metrology procedure	1397
11.5.5	Jurisdictional metrology material in the metrology procedure	1398
Part E	Economic Regulation of Transmission Services (2006 amendments)	1399
11.6	Rules consequent on making of the National Electricity Amendment (Economic Regulation of Transmission Services) Rule 2006	1399
11.6.1	Definitions	1399
11.6.2	New Chapter 6A does not affect existing revenue determinations	1400
11.6.3	Old Part C and Schedules 6.2, 6.3, 6.4, 6.7 and 6.8 of old Chapter 6	1401
11.6.4	Old Part F of Chapter 6	1401
11.6.5	Application of new Chapter 6A to Transmission Network Service Providers	1401
11.6.6	Application of Chapter 6 to old distribution matters	1401
11.6.7	References to the old Chapter 6	1401
11.6.8	References to provisions of the old Chapter 6	1402
11.6.9	Roll forward of regulatory asset base for first regulatory control period	1402
11.6.10	Other adjustment carry-over mechanisms from current to first regulatory control period	1402
11.6.11	Clause consequent upon making National Electricity Amendment (Cost Allocation Arrangements for Transmission Services) Rule No 2009 No 3 - Transition to new Chapter 6A: existing prescribed connection services	1402
11.6.12	Powerlink transitional provisions	1405
11.6.13	ElectraNet easements transitional provisions	1409
11.6.14	TransGrid contingent projects	1409
11.6.15	Transmission determination includes existing revenue determinations	1410
11.6.16	References to regulatory control period	1410
11.6.17	Consultation procedure for first proposed guidelines	1410
11.6.18	Reliance on proposed guidelines for SP AusNet, VENCorp and ElectraNet	1411
11.6.19	EnergyAustralia transitional provisions	1411
11.6.20	Basslink transitional provisions	1414
11.6.21	SPI Powernet savings and transitional provision	1415
11.6.22	Interim arrangements pricing-related information	1417
Part F	Reform of Regulatory Test Principles (2006 amendments)	1417
11.7	Rules consequent on making of the National Electricity Amendment (Reform of the Regulatory Test Principles) Rule 2006	1417
11.7.1	Definitions	1417
11.7.2	Amending Rule does not affect old clause 5.6.5A	1418
Part G	Pricing of Prescribed Transmission Services (2006 amendments)	1418
11.8	Rules consequent on making the National Electricity Amendment (Pricing of Prescribed Transmission Services) Rule 2006	1418
11.8.1	Definitions	1418
11.8.2	Regulated interconnectors	1419
11.8.3	Application of new Part J of Chapter 6A to Transmission Network Service Providers	1419
11.8.4	Reliance on agreed interim guideline for ElectraNet, SPAusNet, and VenCorp	1419
11.8.5	Prudent discounts under existing agreements	1420
11.8.6	Application of prudent discounts regime under rule 6A.26	1420
11.8.7	Prudent discounts pending approval of pricing methodology	1420
Part H	Reallocations (2007 amendments)	1421
11.9	Rules consequent on the making of the National Electricity Amendment (Reallocations) Rule 2007	1421
11.9.1	Definitions	1421
11.9.2	Existing and transitional reallocations	1422
Part I	Technical Standards for Wind Generation (2007 amendments)	1422
11.10	Rules consequent on making of the National Electricity Amendment (Technical Standards for Wind Generation and other Generator Connections) Rule 2007	1422
11.10.1	Definitions	1422
11.10.2	Provision of information under S5.2.4 in registration application	1422
11.10.3	Access standards made under the old Chapter 5	1423
11.10.4	Modifications to plant by Generators	1423
11.10.5	Technical Details to Support Application for Connection and Connection Agreement	1423
11.10.6	Transitional arrangements for establishment of performance standards	1424
11.10.7	Jurisdictional Derogations for Queensland	1424
11.10A	Rules consequent on the making of the National Electricity Amendment (Central Dispatch and Integration of Wind and Other Intermittent Generation) Rule 2008	1424
11.10A.1	Definitions	1424
11.10A.2	Registration and reclassification of classified generating units	1425
11.10A.3	Registered generating unit	1426
11.10A.4	Classification of potential semi-scheduled generating unit	1426
11.10A.5	Participant fees	1426
11.10A.6	Timetable	1427
11.10A.7	Procedure for contribution factors for ancillary service transactions	1427
11.10A.8	Guidelines for energy conversion model information	1427
Part J	Cost Recovery of Localised Regulation Services (2007 amendments)	1428
11.11	Rules consequent on making of the National Electricity Amendment (Cost Recovery of Localised Regulation Services) Rule 2007	1428
11.11.1	Definitions	1428
11.11.2	Action taken by NEMMCO for the purposes of Amending Rule	1428
11.12	[Deleted]	1428
Part L	[Deleted]	1428
Division 1	General Provisions	1428
11.14	General provisions	1428
Part M	Economic Regulation of Distribution Services (2007 amendments)	1432
Division 1	General Provisions	1432
11.14	General provisions	1432
Division 2	[Deleted]	1436
Division 3	Transitional arrangements for first distribution determination for Queensland Distribution Network Service Providers	1436
11.16	Transitional arrangements for first distribution determination for Queensland Distribution Network Service Providers	1436
Division 4	Transitional provisions of specific application to Victoria	1439
11.17	Transitional provisions of specific application to Victoria	1439
Part N	Registration of Foreign Based Persons and Corporations as Trader Class Participants (2007 amendments)	1442
11.18	Rules consequential on the making of the National Electricity Amendment (Registration of Foreign Based Persons and Corporations as Trader Class Participants) Rule 2007	1442
11.18.1	Definitions	1442
11.18.2	Auction rules	1442
Part O	Process for Region Change (2007 amendments)	1442
11.19	Rules consequent on making of the National Electricity Amendment (Process for Region Change) Rule 2007	1442
11.19.1	Definitions	1442
11.19.2	Regions Publication	1442
Part P	Integration of NEM Metrology Requirements	1443
11.20	Rules consequential on the making of the National Electricity Amendment (Integration of NEM Metrology Requirements) Rule 2008	1443
11.20.1	Definitions	1443
11.20.2	Metering installations for non-market generating units immediately prior to 30 June 2008	1443
11.20.3	First-tier load metering installations	1444
11.20.4	First-tier load metering installations in Victoria	1444
11.20.5	Minimalist Transitioning Approach in Queensland	1444
11.20.6	First-tier jurisdictional requirements publication	1444
11.20.7	Metrology procedure	1445
Part PA	Reliability Settings: Information Safety Net and Directions	1445
11.21	Rules consequential on the making of the National Electricity Amendment (NEM Reliability Settings: Information Safety Net and Directions) Rule 2008	1445
11.21.1	Definitions	1445
11.21.2	EAAP guidelines	1445
11.21.3	[Deleted]	1445
11.21.4	[Deleted]	1445
11.21.5	Timetable	1445
11.21.6	Power system security and reliability standards	1446
11.21.7	Report on statement of opportunities	1446
11.21.8	Methodology for dispatch prices and ancillary services prices	1446
Part Q	Regulatory Test Thresholds and Information Disclosure on Network Replacements	1446
11.22	Rules consequential on the making of the National Electricity Amendment (Regulatory Test Thresholds and Information Disclosure on Network Replacements) Rule 2008	1446
11.22.1	Definitions	1446
11.22.2	Amending Rule does not affect existing regulatory test	1447
Part R	Performance Standard Compliance of Generators	1447
11.23	Rules consequential on the making of the National Electricity Amendment (Performance Standards Compliance of Generators) Rule 2008	1447
11.23.1	Definitions	1447
11.23.2	Application of rule 11.23 for compliance programs implemented immediately after the commencement of the Amending Rule	1447
11.23.3	Application of rule 11.23 for compliance programs implemented immediately prior to the commencement of the Amending Rule	1448
11.23.4	Application of rule 11.23 for compliance programs not implemented immediately prior to the commencement of the Amending Rule	1448
Part S	[Deleted]	1448
Part U	Confidentiality Arrangements concerning Information required for Power System Studies	1448
11.25	Rule consequential on the making of the National Electricity Amendment (Confidentiality Arrangements in Respect of Information Required for Power System Studies) Rule 2009	1448
11.25.1	Definitions	1448
11.25.2	Transitional arrangements for the provision of information	1448
Part V	WACC Reviews: Extension of Time	1450
11.26	Rule consequential on the making of the National Electricity Amendment (WACC Reviews: Extension of Time) Rule 2009	1450
11.26.1	Definitions	1450
11.26.2	Extension of time to submit a regulatory proposal for the regulatory control period 2010-2015	1450
Part W	National Transmission Statement	1450
11.27	Rules consequent on the making of the National Electricity Amendment (National Transmission Statement) Rule 2009	1450
11.27.1	Definitions	1450
11.27.2	Purpose	1451
11.27.3	Application of rule 11.27	1451
11.27.4	National Transmission Statement	1451
11.27.5	Scope and Content of National Transmission Network Development Plan	1453
11.27.6	Energy Adequacy Assessment Projection	1453
11.27.7	Amendment to Last Resort Power	1454
11.27.8	Actions taken prior to commencement of Rule	1454
Part X	National Transmission Planning	1454
11.28	Rules consequential on the making of the National Electricity (Australian Energy Market Operator) Amendment Rules 2009	1454
11.28.1	Definitions	1454
11.28.2	Jurisdictional planning bodies and representatives	1454
11.28.3	Criteria and guidelines published by Inter-regional Planning Committee	1455
11.28.4	Augmentation technical reports	1455
11.28.5	Last Resort Planning Power	1455
11.28.6	Inter-network power system tests	1456
11.28.7	Control and protection settings for equipment	1456
11.28.8	Revenue Proposals	1456
Part Y	Regulatory Investment Test for Transmission	1456
11.29	Rules consequent on making of the National Electricity Amendment (Regulatory Investment Test for Transmission) Rule 2009	1456
11.29.1	Definitions	1456
11.29.2	Period when Amending Rule applies to transmission investment	1457
Part Z	Congestion Information Resource	1458
11.30	Rules consequent on the making of the National Electricity Amendment (Congestion Information Resource) Rule 2009	1458
11.30.1	Definitions	1458
11.30.2	Interim congestion Information resource	1458
Part ZA	Reliability and emergency reserve trader (2009 amendments)	1460
11.31	Rules consequent on the making of the National Electricity Amendment (Improved RERT Flexibility and Short-notice Reserve Contracts) Rule 2009	1460
11.31.1	Definitions	1460
11.31.2	Purpose	1460
11.31.3	Amendments to Reliability Panel's RERT Guidelines	1461
11.31.4	Amendments to AEMO's RERT procedures for exercising the RERT	1461
Part ZB	Early Application of Market Impact Parameters	1462
11.32	Rules consequent on the making of the National Electricity Amendment (Early Implementation of Market Impact Parameters) Rule 2010	1462
11.32.1	Definitions	1462
11.32.2	Purpose	1463
11.32.3	Early application of the market impact component of the service target performance incentive scheme	1463
Part ZC	Transparency of operating data	1466
11.33	Rules consequential on the making of National Electricity Amendment (Transparency of Operating Data) Rule 2010	1466
11.33.1	Definitions	1466
11.33.2	Spot market operations timetable	1466
Part ZD	Cost Recovery for Other Services Directions	1468
11.34	Rules consequent on making of the National Electricity Amendment (Cost Recovery for Other Services Directions) Rule 2010	1468
11.34.1	Definitions	1468
11.34.2	Period when Amending Rules applies to funding of compensation	1469
Part ZE	Payments under Feed-in Schemes and Climate Change Funds	1469
11.35	Rules consequential on the making of the National Electricity Amendment (Payments under Feed-in Schemes and Climate Change Funds) Rule 2010	1469
11.35.1	Definitions	1469
11.35.2	Application of recovery of jurisdictional scheme Rules	1470
11.35.3	Reporting on jurisdictional schemes	1471
11.35.4	Revocation and substitution of distribution determination for jurisdictional scheme recovery	1472
Part ZF	Transitional Arrangements for Ministerial Smart Meter Roll Out Determinations	1473
11.36	Ministerial Smart Meter Roll Out Determinations	1473
11.36.1	Definitions	1473
11.36.2	Meaning of relevant metering installation	1473
11.36.3	Period of application of rule to relevant metering installation	1474
11.36.4	Designation of responsible person	1474
11.36.5	[Deleted]	1474
11.36.6	[Deleted]	1474
Part ZG	Provision of Metering Data Services and Clarification of Existing Metrology Requirements	1474
11.37	Rules consequential on the making of the National Electricity Amendment (Provision of Metering Data Services and Clarification of Existing Metrology Requirements) Rule 2010	1474
11.37.1	Definitions	1474
11.37.2	Commencement of special site or technology related conditions	1474
11.37.3	Initial service level procedures	1475
Part ZH	Spot Market Operations Timetable	1475
11.38	Rules consequential on the making of National Electricity Amendment (Amendments to PASA-related Rules) Rule 2010	1475
11.38.1	Definitions	1475
11.38.2	Spot market operations timetable	1476
Part ZI	DNSP Recovery of Transmission-related Charges	1476
11.39	Rules consequential on the making of the National Electricity Amendment (DNSP Recovery of Transmission-related Charges) Rule 2011	1476
11.39.1	Definitions	1476
11.39.2	Recovery by Victorian distribution network service providers during current regulatory control period	1477
11.39.3	Recovery by Victorian distribution network service providers for shared network augmentations	1478
11.39.4	Bairnsdale network support agreement	1478
11.39.5	Approval of pricing proposal	1478
11.39.6	Ergon Energy transitional charges	1478
11.39.7	Energex transitional charges	1478
Part ZJ	Network Support and Control Ancillary Services	1478
11.40	Rules consequential on the making of the National Electricity Amendment (Network Support and Control Ancillary Services) Rule 2011	1478
11.40.1	Definitions	1478
11.40.2	Purpose	1479
11.40.3	Existing NCAS contracts to continue	1479
11.40.4	Amendments to existing guidelines	1479
11.40.5	New procedures	1480
11.40.6	Decisions and actions taken prior to Amending Rule	1480
Part ZK	Application of Dual Marginal Loss Factors	1480
11.41	Rules consequential on the making of the National Electricity Amendment (Application of Dual Marginal Loss Factors) Rule 2011	1480
11.41.1	Definitions	1480
11.41.2	Amendments to loss factor methodology	1481
11.41.3	Procedure applying dual intra-regional loss factors in central dispatch and spot market transactions	1481
11.41.4	Publication of intra-regional loss factors	1481
Part ZL	Tasmania Tranche 5a Procedure Changes	1481
11.42	Rules consequential on the making of the National Electricity Amendment (Tasmania Tranche 5a Procedure Changes) Rule 2011	1481
11.42.1	Definitions	1481
11.42.2	AEMO may amend Relevant Procedures	1482
Part ZM	Application and Operation of Administered Price Periods	1482
11.43	Rules consequential on the making of National Electricity Amendment (Application and Operation of Administered Price Periods) Rule 2011	1482
11.43.1	Definitions	1482
11.43.2	Administered Price Cap Schedule	1483
Part ZO	Negative Intra-regional Settlements Residue	1483
11.45	Rules consequential on the making of National Electricity Amendment (Negative Intra-regional Settlements Residue) Rule 2012	1483
11.45.1	Definitions	1483
11.45.2	Recovery of negative settlements residue prior to consultation under the Amending Rule	1484
11.45.3	First consultation on negative intra-regional settlements residue procedure	1484
Part ZP	Interim Connection Charging Rules	1485
11.46	Rules consequential to the insertion of Chapter 5A by the National Electricity (National Energy Retail Law) Amendment Rule 2012	1485
Division 1	Preliminary	1485
Division 2	Jurisdictional differences	1487
Division 3	General provisions	1495
Part ZQ	NSW transitional retail support and credit support rules	1495
11.47	Rules consequential on the insertion of Chapter 6B by the National Electricity (National Energy Retail Law) Amendment Rule 2012	1495
Division 1	Preliminary	1495
Part ZR	Miscellaneous transitional rules—NERL	1501
11.48	Rules consequential on the making of the National Electricity (National Energy Retail Law) Amendment Rule 2012	1501
11.48.1	Extension of time period for AER to consider certain pass through applications	1501
Part ZS	Cost pass through arrangements for Network Service Providers	1502
11.49	Rules consequential on the making of National Electricity Amendment (Cost pass through arrangements for Network Service Providers) Rule 2012	1502
11.49.1	Definitions	1502
11.49.2	Terrorism event is a cost pass through event in the current regulatory control period	1502
11.49.3	Transitional arrangement for Powerlink	1502
11.49.4	Transitional arrangements for ElectraNet and Murraylink	1503
Part ZT	Distribution Network Planning and Expansion	1503
11.50	Rules consequential on the making of the National Electricity Amendment (Distribution Network Planning and Expansion) Rule 2012	1503
11.50.1	Interpretation	1503
11.50.2	Definitions	1504
11.50.3	Timing for first Distribution Annual Planning Report	1504
11.50.4	Contents of Distribution Annual Planning Report	1504
11.50.5	Transition from the regulatory test to the regulatory investment test for distribution	1506
Part ZU	New Prudential Standard and Framework in the NEM	1507
11.51	Rules consequential on the making of the National Electricity Amendment (New Prudential Standard and Framework in the NEM) Rule 2012	1507
11.51.1	Definitions	1507
11.51.2	AEMO's responsibility to develop and publish the credit limit procedures	1507
11.51.3	Transition to the framework for determining prudential settings	1507
11.51.4	Prior consultation, step, decision or action taken by AEMO	1508
Part ZV	Small Generation Aggregator Framework	1508
11.52	Rules consequential on the making of the National Electricity Amendment (Small Generation Aggregator Framework) Rule 2012	1508
11.52.1	Definitions	1508
11.52.2	Commencement of participant fees as well as transactions, funding and settlements under Chapter 3 for Market Small Generation Aggregators	1509
11.52.3	Participant fees for Market Small Generation Aggregators	1509
11.52.4	Ancillary service transactions, funding of compensation for directions and intervention settlements for directions for Market Small Generation Aggregators	1510
11.52.5	Amendments to the carbon dioxide equivalent intensity index procedures	1510
11.52.6	Amendments of the metrology procedures	1511
11.52.7	Amendments to the Market Settlement and Transfer Solution Procedures	1511
Part ZW	Economic Regulation of Network Service Providers (2012 amendments)	1512
Division 1	Miscellaneous transitional provisions	1512
11.53	Publication of Chapter 6 Guidelines	1512
11.54	Publication of Chapter 6A Guidelines	1513
Division 2	Transitional provisions for NSW/ACT Distribution Network Service Providers	1515
11.55	General provisions	1515
11.56	Special provisions applying to affected DNSPs	1518
Division 3	Transitional provisions for NSW and Tasmanian Transmission Network Service Providers and Directlink	1530
11.57	General provisions	1530
11.58	Special provisions applying to affected TNSPs	1533
Division 4	Transitional provisions for the Victorian TNSP	1542
11.59	Special provisions applying to the Victorian TNSP	1542
Division 5	Transitional provisions for Qld/SA and Victorian Distribution Network Service Providers	1544
11.60	Special provisions applying to the Qld/SA and Victorian Distribution Network Service Providers	1544
Division 6	Review of past capital expenditure	1550
11.61	Definitions and application	1550
11.62	Review of past capital expenditure under Chapter 6	1550
11.63	Review of past capital expenditure under Chapter 6A	1551
Part ZX	Inter-regional Transmission Charging	1551
11.64	Rules consequent on the making of the National Electricity Amendment (Inter-regional Transmission Charging) Rule 2013	1551
11.64.1	Definitions	1551
11.64.2	Amendments to the pricing methodology guidelines	1552
11.64.3	Amendments to the pricing methodologies of Transmission Network Service Providers	1552
11.64.4	Commencement of clause 6A.23.3(f) for further adjustments	1553
Part ZY	Network Service Provider Expenditure Objectives	1553
11.65	Rules consequent on the making of the National Electricity Amendment (Network Service Provider Expenditure Objectives) Rule 2013	1553
11.65.1	Definitions	1553
11.65.2	Application of rule 11.65	1554
Part ZZ	Access to NMI Standing Data	1554
11.66	Rules consequent on the making of the National Electricity Amendment (Access to NMI Standing Data) Rule 2013	1554
11.66.1	Definitions	1554
11.66.2	Minor amendment of the Market Settlement and Transfer Solution Procedures	1554
Part ZZA	Publication of Zone Substation Data	1555
11.67	Rules consequent on the making of the National Electricity Amendment (Publication of Zone Substation Data) Rule 2014	1555
11.67.1	Definitions	1555
11.67.2	Distribution Network Service Providers' obligations to commence on the next DAPR date	1555
Part ZZB	Connecting Embedded Generators	1555
11.68	Rules consequential on the making of the National Electricity Amendment (Connecting embedded generators) Rule 2014	1555
11.68.1	Definitions	1555
11.68.2	Continuation of enquiries lodged	1556
Part ZZC	Customer access to information about their energy consumption	1556
11.69	Rules consequential on the making of the National Electricity Amendment (Customer access to information about their energy consumption) Rule 2014	1556
11.69.1	Definitions	1556
11.69.2	AEMO to develop and publish the metering data provision procedure	1556
Part ZZD	National Electricity Amendment (Distribution Network Pricing Arrangements) Rule 2014	1556
Division 1	Miscellaneous transitional provisions	1556
11.70	General provisions	1556
11.70.1	Definitions	1556
Division 2	Transitional provisions for NSW/ACT and Qld/SA Distribution Network Service Providers	1559
11.72	General provisions	1559
11.772.1	Definitions	1559
Division 3	Transitional provisions for Tasmanian Distribution Network Service Provider	1566
11.74	Application of former Chapter 6	1566
Division 4	Transitional provisions for Victorian Distribution Network Service Providers	1566
11.75	General provisions	1566
11.75.1	Definitions	1566
11.76	Special provisions applying to affected DNSPs	1566
11.76.1	Distribution determination and pricing proposals	1566
11.76.2	Tariff structure statement	1567
Part ZZE	Early Application of Network Capability Component (STPIS)	1573
11.77	Rules consequent on the making of the National Electricity Amendment (Early Application of Service Target Performance Incentive Scheme (STPIS) Components for Transmission Businesses) Rule 2015	1573
11. 77.1	Definitions	1573
11.77.2	Purpose	1574
11.77.3	Earlier application of the network capability component of the service target performance incentive scheme	1574
Part ZZF	National Electricity Amendment (Governance arrangements and implementation of the reliability standard and settings) Rule 2015	1576
11.78	Rules consequent on the making of the National Electricity Amendment (Governance arrangements and implementation of the reliability standards and settings) Rule 2015	1576
11.78.1	Definitions	1576
11.78.2	Existing power system security and reliability standards	1577
11.78.3	Reliability standard and settings guidelines	1577
11.78.4	Reliability standard implementation guidelines	1577
Part ZZG	Improving demand side participation information provided to AEMO by registered participants	1580
11.79	Rules consequential on making of the National Electricity Amendment (Improving demand side participation information provided to AEMO by registered participants) Rule 2015	1580
11.79.1	AEMO to develop and publish the demand side participation information guidelines	1580
Part ZZH	Transitional Arrangements for Aligning TasNetworks' regulatory control periods	1580
11.80	National Electricity Amendment (Aligning TasNetworks' regulatory control periods) Rule 2015	1580
11.80.1	Definitions	1580
11.80.2	Application of rule 11.80	1581
11.80.3	Next regulatory control period	1581
11.80.4	Subsequent regulatory control period	1581
Part ZZI	System Restart Ancillary Services	1581
11.81	Rules consequential on the making of the National Electricity Amendment (System Restart Ancillary Services) Rule 2015	1581
11.81.1	Definitions	1581
11.81.2	System restart standard	1582
11.81.3	SRAS Guideline	1582
11.81.4	Regional Benefit Ancillary Services Procedures	1582
11.81.5	Consultation prior to the Commencement Date	1582
11.81.6	Existing SRAS Contract	1582
Part ZZJ	Demand management incentive scheme	1583
11.82	Rules consequential on making of the National Electricity Amendment (Demand management incentive scheme) Rule 2015	1583
11.82.1	Definitions	1583
11.82.2	AER to develop and publish the demand management incentive scheme and demand management innovation allowance mechanism	1583
Part ZZK	AEMO access to demand forecasting information	1583
11.83	Rules consequential on the making of the National Electricity Amendment (AEMO access to demand forecasting information) Rule 2015	1583
11.83.1	AEMO to include supporting information in NTNDP database	1583
Part ZZL	Compensation arrangements following application of an Administered Price Cap or Administered Floor Price	1584
11.84	Rules consequential on the making of the National Electricity Amendment (Compensation Arrangements following application of an Administered Price Cap and Administered Floor Price) Rule 2016	1584
11.84.1	Definitions	1584
11.84.2	Compensation Guidelines	1584
Part ZZM	Common definitions of distribution reliability measures	1584
11.85	Rules consequential on the making of the National Electricity Amendment (Common definitions of distribution reliability measures) Rule 2015	1584
11.85.1	Definitions	1584
11.85.2	Distribution reliability measures guidelines	1585
11.85.3	Amended STPIS	1585
Part ZZN	Expanding competition in metering and metering related services	1585
11.86	Rules consequent on making of the National Electricity Amendment (Expanding competition in metering and related services) Rule 2015	1585
11.86.1	Definitions	1585
11.86.2	References to old Chapter 7	1585
11.86.3	References to provisions of the old Chapter 7	1586
11.86.4	References to responsible person	1586
11.86.5	Continued operation of old Rules until the effective date	1586
11.86.6	New and amended procedures	1586
11.86.7	Metering Coordinator for type 5 or 6 metering installation from effective date	1587
11.86.8	Distribution Ring Fencing Guidelines	1590
11.86.9	[Deleted]	1590
Part ZZO	Embedded Networks	1590
11.87	Rules consequential on the making of the National Electricity Amendment (Embedded Networks) Rule 2015	1590
11.87.1	Definitions	1590
11.87.2	Amended Procedures and NMI Standing Data Schedule	1591
11.87.3	ENM service level procedures and guide to embedded networks and list of Embedded Network Managers	1591
11.87.4	Exemptions under section 13 of the National Electricity Law	1591
Part ZZP	Meter Replacement Processes	1592
11.88	Rules consequential on the making of the National Electricity Amendment (Meter Replacement Processes) Rule 2016	1592
11.88.1	Definitions	1592
11.88.2	Amended Procedures	1592
Part ZZQ	Energy Adequacy Assessment Projection	1593
11.89	Rules consequential to the National Electricity Amendment (Energy Adequacy Assessment Projection timeframes) Rule 2016	1593
11.89.1	Amended guideline and timetable	1593
Part ZZR	Reliability and emergency reserve trader (2016 amendments)	1593
11.90	Rules consequent on the making of the National Electricity Amendment (Extension of the Reliability and Emergency Reserve Trader) Rule 2016	1593
11.90.1	Definitions	1593
11.90.2	Amendments to Reliability Panel's RERT Guidelines	1593
11.90.3	Amendments to AEMO's RERT procedures	1593
11.90.4	Reserve contracts entered into before Schedule 2 commencement date	1594
Part ZZS	Updating the electricity B2B framework	1594
11.91	Rules consequential on the making of the National Electricity Amendment (Updating the electricity B2B framework) rule 2016	1594
11.91.1	Definitions	1594
11.91.2	B2B Procedures	1595
11.91.3	Information Exchange Committee Election Procedures and Information Exchange Committee Operating Manual	1595
11.91.4	The New IEC	1596
11.91.5	Amended Procedures	1597
11.91.6	B2B e-Hub Participant accreditation process	1598
11.91.7	New IEC Budget and 2016 Annual Report	1598
11.91.8	Cost recovery	1599
Part ZZT	Application of Offsets in the Prudential Margin Calculation	1599
11.92	Rules consequential on the making of the National Electricity Amendment (Application of Offsets in the Prudential Margin Calculation) Rule 2016	1599
11.92.1	Definitions	1599
11.92.2	Amended procedures	1599
Part ZZU	Rate of Return Guidelines Review	1600
11.93	Rules consequential on the making of the National Electricity Amendment (Rate of Return Guidelines Review) Rule 2016	1600
11.93.1	Definitions	1600
11.93.2	Application of current rate of return guidelines to making of a distribution determination for the subsequent regulatory control period	1601
Part ZZV	Demand Response Mechanism and Ancillary Services Unbundling	1602
11.94	Rules consequential on the making of the National Electricity Amendment (Demand Response Management and Ancillary Services Unbundling) rule 2016	1602
11.94.1	Definitions	1602
11.94.2	Participant fees for Market Ancillary Service Providers	1602
Part ZZW	Local Generation Network Credits	1602
11.95	Rules consequential on the making of the National Electricity Amendment (Local Generation Network Credits) Rule 2016	1602
11.95.1	Definitions	1602
11.95.2	System limitation template	1602
Part ZZX	Retailer-Distributor Credit Support Requirements	1603
11.96	Rules consequent on the making of the National Electricity Amendment (Retailer Distributor Credit Support Requirements) Rule 2017 No. 1	1603
11.96.1	Definitions	1603
11.96.2	Continued operation of old Chapter 6B	1603
11.96.3	Interaction with Chapter 6	1603
11.96.4	Application of new Chapter 6B	1603
Part ZZY	Emergency Frequency Control Schemes	1604
11.97	Rules consequent on the making of the National Electricity Amendment (Emergency frequency control schemes) Rule 2017	1604
11.97.1	 Definitions	1604
11.97.2	Interim frequency operating standards for protected events	1604
11.97.3	First power system frequency risk review	1605
11.97.4	AEMO must review existing load shedding procedures	1605
11.97.5	Load shedding procedures	1605
Part ZZZ	Transmission Connection and Planning Arrangements	1606
11.98	Rules consequential on the making of the National Electricity Amendment (Transmission Connection and Planning Arrangements) Rule 2017	1606
11.98.1	Definitions	1606
11.98.2	Grandfathering of existing dedicated connection assets	1607
11.98.3	Preparatory steps for registration changes under the Amending Rule	1608
11.98.4	Participant fees for Dedicated Connection Asset Service Providers	1608
11.98.5	Existing Connection Agreements	1608
11.98.6	Connection process	1609
11.98.7	Transmission Annual Planning Report	1609
11.98.8	Preservation for adoptive jurisdictions	1609
Part ZZZA	Replacement expenditure planning arrangements	1610
11.99	Rules consequential on the making of the National Electricity Amendment (Replacement expenditure planning arrangements) Rule 2017	1610
11.99.1	Definitions	1610
11.99.2	Interpretation	1611
11.99.3	Transitional arrangements for affected DNSPs	1611
11.99.4	Amendments to RIT documentation	1612
11.99.5	Transitional arrangements relating to excluded projects	1612
11.99.6	Transitional arrangements relating to Victorian bushfire mitigation projects	1612
11.99.7	Transitional arrangements relating to review of costs thresholds	1613
Part ZZZB 	Managing the rate of change of power system frequency	1613
11.100	Rules consequential on the making of the National Electricity Amendment (Managing the rate of change of power system frequency) Rule 2017	1613
11.100.1	Definitions	1613
11.100.2	Inertia sub-networks	1614
11.100.3	Inertia requirements methodology	1614
11.100.4	Inertia requirements	1615
11.100.5	NSCAS not to be used to meet an inertia shortfall after 1 July 2019	1615
11.100.6	Inertia network services may be used to meet an NSCAS gap declared in the NSCAS transition period	1616
11.100.7	Inertia network services made available before the commencement date	1616
Part ZZZC	Managing power system fault levels	1617
11.101 	Rules consequential on the making of the National Electricity Amendment (Managing power system fault levels) Rule 2017	1617
11.101.1 	Definitions	1617
11.101.2	System strength impact assessment guidelines	1618
11.101.3	System strength requirements methodology	1618
11.101.4	System strength requirements	1619
11.101.5	NSCAS not to be used to meet a fault level shortfall after 1 July 2019	1619
11.101.6	System strength services may be used to meet an NSCAS gap declared in the NSCAS transition period	1620
11.101.7	Withdrawal of a system strength-related NSCAS gap already declared	1620
11.101.8	System strength services made available before the commencement date	1621
Part ZZZD	Generating System Model Guidelines	1621
11.102	Making of Power System Model Guidelines	1621
Part ZZZE	Five Minute Settlement	1621
11.103	Rules consequential on the making of the National Electricity Amendment (Five Minute Settlement) Rule 2017	1621
11.103.1	Definitions	1621
11.103.2	Amendments to procedures	1622
11.103.3.	Exemption for certain metering installations	1623
11.103.4	New or replacement meters	1624
11.103.5	Metering installations exempt from metering data provision requirements	1624
11.103.6	Exemption from meter data storage requirements	1624
11.103.7	Default offers and bids submitted prior to the commencement date	1624
Part ZZZF	Contestability of energy services	1624
11.104	Rules consequential on the making of the National Electricity Amendment (Contestability of energy services) Rule 2017	1624
11.104.1	Definitions	1624
11.104.2	New guidelines	1626
11.104.3	Transitional arrangements for application of Distribution Service Classification Guidelines and service classification provisions	1626
11.104.4	Transitional arrangements for application of Asset Exemption Guidelines, exemption applications and asset exemption decisions	1627
11.104.5	Transitional arrangements for adjustment in value of regulatory asset base	1628
Part ZZZG	Declaration of lack of reserve conditions	1629
11.105	Making of lack of reserve declaration guidelines	1629
11.105.1	Definitions	1629
11.105.2	Making of lack of reserve declaration guidelines	1629
Part ZZZH	Implementation of demand management incentive scheme	1629
11.106	Implementation of demand management incentive scheme	1629
11.106.1	Definitions	1629
11.106.2	Purpose	1629
11.106.3	Early application of revised demand management incentive scheme	1630
Part ZZZI	Reinstatement of long notice Reliability and Emergency Reserve Trader	1631
11.107	Rules consequential on the making of the National Electricity Amendment (Reinstatement of long notice Reliability and Emergency Reserve Trader) Rule 2018	1631
11.107.1	Definitions	1631
11.107.2	New RERT guidelines	1632
11.107.3	Amendments to RERT procedures	1635
11.107.4	Reserve contracts entered into before the commencement date	1636