National Electricity Rules Version 113

Historical Information

This version of the National Electricity Rules was current from 5 October 2018 to 8 November 2018.

National Electricity Rules Version 113
Status Information
This is the latest electronically available version of the National Electricity Rules as at 5 October 2018.
This consolidated version of the National Electricity Rules was last updated on 5 October 2018 as a result of the commencement of the following amendments:
National Electricity Amendment (Generator technical performance standards) Rule 2018 No. 10
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:
Schedules 1 to 3 of the National Electricity Amendment (Register of distributed energy resources) Rule 2018 No. 9 will commence operation on 1 December 2019.
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	234
3.15.1	Settlements management by AEMO	234
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	235
3.15.5	Adjusted energy - transmission network connection points	235
3.15.5A	Adjusted energy - virtual transmission nodes	236
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	257
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	273
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	374
4.16	Transitioning arrangements for establishment of performance standards	378
4.16.1	Definitions	378
4.16.2	Exclusions	380
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	389
4.16.7	Referral to expert determination	390
4.16.8	Prior actions	390
4.16.9	Deemed performance standards	391
4.16.10	Modification of connection agreements	391
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	393
4.17.3	Determinations of performance standards experts	394
4.17.4	Other matters	395
5.	Network Connection Access, Planning and Expansion	399
Part A	Introduction	399
5.1	Introduction to Chapter 5	399
5.1.1	Structure of this Chapter	399
5.1.2	Overview of Part B and connection and access under the Rules	399
Part B	Network Connection and Access	402
5.1A	Introduction to Part B	402
5.1A.1	Purpose and Application	402
5.1A.2	Principles	405
5.2	Obligations	405
5.2.1	Obligations of Registered Participants	405
5.2.2	Connection agreements	406
5.2.3	Obligations of network service providers	407
5.2.3A	Obligations of Market Network Service Providers	412
5.2.4	Obligations of customers	413
5.2.5	Obligations of Generators	414
5.2.6	Obligations of AEMO	416
5.2.6A	AEMO review of technical requirements for connection	416
5.2.7	Obligations of Dedicated Connection Asset Service Providers	417
5.2A	Transmission network connection and access	418
5.2A.1	Application	418
5.2A.2	Relevant assets	418
5.2A.3	Connection and access to transmission services	419
5.2A.4	Transmission services related to connection	421
5.2A.5	Publication and provision of information	424
5.2A.6	Negotiating principles	425
5.2A.7	Third party IUSAs	425
5.2A.8	Access framework for large dedicated connection assets	427
5.3	Establishing or Modifying Connection	429
5.3.1	Process and procedures	429
5.3.1A	Application of rule to connection of embedded generating units	429
5.3.2	Connection enquiry	430
5.3.3	Response to connection enquiry	431
5.3.4	Application for connection	435
5.3.4A	Negotiated access standards	437
5.3.4B	System strength remediation for new connections	441
5.3.5	Preparation of offer to connect	444
5.3.6	Offer to connect	445
5.3.7	Finalisation of connection agreements and network operating agreements	449
5.3.8	Provision and use of information	450
5.3.9	Procedure to be followed by a Generator proposing to alter a generating system	452
5.3.10	Acceptance of performance standards for generating plant that is altered	454
5.3.11	Notification of request to change normal voltage	455
5.3A	Establishing or modifying connection - embedded generation	455
5.3A.1	Application of rule 5.3A	455
5.3A.2	Definitions and miscellaneous	456
5.3A.3	Publication of Information	457
5.3A.4	Fees	459
5.3A.5	Enquiry	459
5.3A.6	Response to Enquiry	460
5.3A.7	Preliminary Response to Enquiry	461
5.3A.8	Detailed Response to Enquiry	461
5.3A.9	Application for connection	463
5.3A.10	Preparation of offer to connect	464
5.3A.11	Technical Dispute	465
5.3A.12	Network support payments and functions	465
5.3AA	Access arrangements relating to Distribution Networks	465
5.3B	Application for connection to declared shared network	469
5.4	Independent Engineer	470
5.4.1	Application	470
5.4.2	Establishment of a pool	470
5.4.3	Initiating the Independent Engineer process	471
5.4.4	Referral to the Adviser	471
5.4.5	Proceedings and decisions of the Independent Engineer	472
5.4.6	Costs of the Independent Engineer	473
5.4A	[Deleted]	473
5.4AA	[Deleted]	474
5.5	Commercial arbitration for prescribed and negotiated transmission services and large DCA services	474
5.5.1	Application	474
5.5.2	Notification of dispute	474
5.5.3	Appointment of commercial arbitrator	475
5.5.4	Procedures of commercial arbitrator	476
5.5.5	Powers of commercial arbitrator in determining disputes	476
5.5.6	Determination of disputes	478
5.5.7	Costs of dispute	479
5.5.8	Enforcement of agreement or determination and requirement for reasons	479
5.5.9	Miscellaneous	479
5.5A	[Deleted]	480
Part C	Post-Connection Agreement matters	480
5.6	Design of Connected Equipment	480
5.6.1	Application	480
5.6.2	Advice of inconsistencies	480
5.6.3	Additional information	481
5.6.4	Advice on possible non-compliance	481
5.6A	[Deleted]	481
5.7	Inspection and Testing	481
5.7.1	Right of entry and inspection	481
5.7.2	Right of testing	483
5.7.3	Tests to demonstrate compliance with connection requirements for generators	485
5.7.3A	Tests to demonstrate compliance with system strength remediation schemes	487
5.7.4	Routine testing of protection equipment	488
5.7.5	Testing by Registered Participants of their own plant requiring changes to normal operation	490
5.7.6	Tests of generating units requiring changes to normal operation	492
5.7.7	Inter-network power system tests	493
5.7.8	Contestable IUSA components	500
5.8	Commissioning	500
5.8.1	Requirement to inspect and test equipment	500
5.8.2	Co-ordination during commissioning	501
5.8.3	Control and protection settings for equipment	501
5.8.4	Commissioning program	502
5.8.5	Commissioning tests	502
5.9	Disconnection and Reconnection	503
5.9.1	Voluntary disconnection	503
5.9.2	Decommissioning procedures	504
5.9.3	Involuntary disconnection	504
5.9.4	Direction to disconnect	505
5.9.4A	Notification of disconnection	506
5.9.5	Disconnection during an emergency	506
5.9.6	Obligation to reconnect	506
Part D	Network Planning and Expansion	508
5.10	Network development generally	508
5.10.1	Content of Part D	508
5.10.2	Definitions	509
5.10.3	Interpretation	513
5.11	Forecasts of connection to transmission network and identification of system limitations	513
5.11.1	Forecasts for connection to transmission network	513
5.11.2	Identification of network limitations	514
5.12	Transmission annual planning process	514
5.12.1	Transmission annual planning review	514
5.12.2	Transmission Annual Planning Report	515
5.13	Distribution annual planning process	520
5.13.1	Distribution annual planning review	520
5.13.2	Distribution Annual Planning Report	522
5.13.3	Distribution system limitation template	522
5.13A	Distribution zone substation information	523
5.14	Joint planning	526
5.14.1	Joint planning obligations of Transmission Network Service Providers and Distribution Network Service Providers	526
5.14.2	Joint planning obligations of Distribution Network Service Providers and Distribution Network Service Providers	527
5.14.3	Joint planning obligations of Transmission Network Service Providers	528
5.14A	Joint planning in relation to retirement or de-ratings of network assets forming part of the Declared Shared Network	528
5.14B	TAPR Guidelines	528
5.14B.1	Development of TAPR Guidelines	528
5.15	Regulatory investment tests generally	529
5.15.1	Interested parties	529
5.15.2	Identification of a credible option	529
5.15.3	Review of costs thresholds	530
5.15.4	Costs determinations	532
5.16	Regulatory investment test for transmission	533
5.16.1	Principles	533
5.16.2	Regulatory investment test for transmission application guidelines	536
5.16.3	Investments subject to the regulatory investment test for transmission	537
5.16.4	Regulatory investment test for transmission procedures	540
5.16.5	Disputes in relation to application of regulatory investment test for transmission	547
5.16.6	Determination that preferred option satisfies the regulatory investment test for transmission	549
5.17	Regulatory investment test for distribution	550
5.17.1	Principles	550
5.17.2	Regulatory investment test for distribution application guidelines	552
5.17.3	Projects subject to the regulatory investment test for distribution	554
5.17.4	Regulatory investment test for distribution procedures	555
5.17.5	Disputes in relation to application of regulatory investment test for distribution	561
5.18	Construction of funded augmentations	563
5.18A	Large generator connections	563
5.18A.1	Definitions	563
5.18A.2	Register of large generator connections	564
5.18A.3	Impact assessment of large generator connections	565
5.18B	Completed embedded generation projects	566
5.18B.1	Definitions	566
5.18B.2	Register of completed embedded generation projects	566
5.19	SENE Design and Costing Study	567
5.19.1	Definitions	567
5.19.2	Interpretation	568
5.19.3	Request for SENE Design and Costing Study	568
5.19.4	Content of SENE Design and Costing Study	569
5.19.5	Co-operation of other Network Service Providers	570
5.19.6	Publication of SENE Design and Costing Study report	571
5.19.7	Provision and use of information	571
5.20	National transmission planning	572
5.20.1	Preliminary consultation	572
5.20.2	Publication of NTNDP	573
5.20.3	Development strategies for national transmission flow paths	575
5.20.4	NTNDP database	576
5.20.5	Jurisdictional planning bodies and jurisdictional planning representatives	577
5.20.6	NTP Functions	577
5.20.7	Inertia and system strength requirements methodologies	577
5.20A	Frequency management planning	579
5.20A.1	Power system frequency risk review	579
5.20A.2	Power system frequency risk review process	580
5.20A.3	Power system frequency risk review report	580
5.20A.4	Request for protected event declaration	581
5.20A.5	Request to revoke a protected event declaration	582
5.20B	Inertia sub-networks and requirements	582
5.20B.1	Boundaries of inertia sub-networks	582
5.20B.2	Inertia requirements	583
5.20B.3	Inertia shortfalls	583
5.20B.4	Inertia Service Provider to make available inertia services	584
5.20B.5	Inertia support activities	587
5.20B.6	Inertia network services information and approvals	588
5.20C	System strength requirements	590
5.20C.1	System strength requirements	590
5.20C.2	Fault level shortfalls	591
5.20C.3	System Strength Service Provider to make available system strength services	592
5.20C.4	System strength services information and approvals	594
5.21	AEMO's obligation to publish information and guidelines and provide advice	596
5.22	Last resort planning power	598
Schedule 5.1a	System standards	601
S5.1a.1	Purpose	601
S5.1a.2	Frequency	601
S5.1a.3	System stability	601
S5.1a.4	Power frequency voltage	602
S5.1a.5	Voltage fluctuations	603
S5.1a.6	Voltage waveform distortion	603
S5.1a.7	Voltage unbalance	603
S5.1a.8	Fault clearance times	604
Schedule 5.1	Network Performance Requirements to be Provided or Co-ordinated by Network Service Providers	606
S5.1.1	Introduction	606
S5.1.2	Network reliability	607
S5.1.2.1	Credible contingency events	607
S5.1.2.2	Network service within a region	608
S5.1.2.3	Network service between regions	609
S5.1.3	Frequency variations	609
S5.1.4	Magnitude of power frequency voltage	609
S5.1.5	Voltage fluctuations	611
S5.1.6	Voltage harmonic or voltage notching distortion	612
S5.1.7	Voltage unbalance	613
S5.1.8	Stability	614
S5.1.9	Protection systems and fault clearance times	615
S5.1.10	Load, generation and network control facilities	618
S5.1.10.1	General	618
S5.1.10.1a	Emergency frequency control schemes	619
S5.1.10.2	Distribution Network Service Providers	620
S5.1.10.3	Transmission Network Service Providers	620
S5.1.11	Automatic reclosure of transmission or distribution lines	621
S5.1.12	Rating of transmission lines and equipment	621
S5.1.13	Information to be provided	622
Schedule 5.2	Conditions for Connection of Generators	622
S5.2.1	Outline of requirements	622
S5.2.2	Application of Settings	623
S5.2.3	Technical matters to be coordinated	624
S5.2.4	Provision of information	625
S5.2.5	Technical requirements	628
S5.2.5.1	Reactive power capability	628
S5.2.5.2	Quality of electricity generated	629
S5.2.5.3	Generating system response to frequency disturbances	630
S5.2.5.4	Generating system response to voltage disturbances	633
S5.2.5.5	Generating system response to disturbances following contingency events	635
S5.2.5.6	Quality of electricity generated and continuous uninterrupted operation	644
S5.2.5.7	Partial load rejection	644
S5.2.5.8	Protection of generating systems from power system disturbances	645
S5.2.5.9	Protection systems that impact on power system security	646
S5.2.5.10	Protection to trip plant for unstable operation	648
S5.2.5.11	Frequency control	649
S5.2.5.12	Impact on network capability	652
S5.2.5.13	Voltage and reactive power control	653
S5.2.5.14	Active power control	661
S5.2.6	Monitoring and control requirements	663
S5.2.6.1	Remote Monitoring	663
S5.2.6.2	Communications equipment	666
S5.2.7	Power station auxiliary supplies	667
S5.2.8	Fault current	667
Schedule 5.3	Conditions for Connection of Customers	668
S5.3.1a	Introduction to the schedule	668
S5.3.1	Information	669
S5.3.2	Design standards	671
S5.3.3	Protection systems and settings	672
S5.3.4	Settings of protection and control systems	673
S5.3.5	Power factor requirements	674
S5.3.6	Balancing of load currents	675
S5.3.7	Voltage fluctuations	676
S5.3.8	Harmonics and voltage notching	676
S5.3.9	Design requirements for Network Users' substations	676
S5.3.10	Load shedding facilities	677
Schedule 5.3a	Conditions for connection of Market Network Services	677
S5.3a.1a	Introduction to the schedule	677
S5.3a.1	Provision of Information	678
S5.3a.2	Application of settings	680
S5.3a.3	Technical matters to be co-ordinated	681
S5.3a.4	Monitoring and control requirements	682
S5.3a.4.1	Remote Monitoring	682
S5.3a.4.2	[Deleted]	682
S5.3a.4.3	Communications equipment	682
S5.3a.5	Design standards	683
S5.3a.6	Protection systems and settings	684
S5.3a.7	[Deleted]	685
S5.3a.8	Reactive power capability	685
S5.3a.9	Balancing of load currents	686
S5.3a.10	Voltage fluctuations	686
S5.3a.11	Harmonics and voltage notching	687
S5.3a.12	Design requirements for Market Network Service Providers’ substations	687
S5.3a.13	Market network service response to disturbances in the power system	688
S5.3a.14	Protection of market network services from power system disturbances	688
Schedule 5.4	Information to be Provided with Preliminary Enquiry	689
Schedule 5.4A	Preliminary Response	690
Schedule 5.4B	Detailed Response to Enquiry	692
Schedule 5.5	Technical Details to Support Application for Connection and Connection Agreement	695
S5.5.1	Introduction to the schedule	695
S5.5.2	Categories of data	695
S5.5.3	Review, change and supply of data	696
S5.5.4	Data Requirements	696
S5.5.5	Asynchronous generating unit data	697
S5.5.6	Generating units smaller than 30MW data	697
S5.5.7	Power System Design Data Sheet, Power System Setting Data Sheet and Power System Model Guidelines	697
Schedule 5.5.1	[Deleted]	700
Schedule 5.5.2	[Deleted]	700
Schedule 5.5.3	Network and plant technical data of equipment at or near connection point	700
Schedule 5.5.4	Network Plant and Apparatus Setting Data	703
Schedule 5.5.5	Load Characteristics at Connection Point	706
Schedule 5.6	Terms and Conditions of Connection agreements and network operating agreements	706
Part A	Connection agreements	706
Part B	Network Operating Agreements	708
Schedule 5.7	Annual Forecast Information for Planning Purposes	708
Schedule 5.8	Distribution Annual Planning Report	711
Schedule 5.9	Demand side engagement document (clause 5.13.1(h))	717
Schedule 5.10	Information requirements for Primary Transmission Network Service Providers (clause 5.2A.5)	719
Schedule 5.11	Negotiating principles for negotiated transmission services (clause 5.2A.6)	722
Schedule 5.12	Negotiating principles for large DCA services	724
Chapter 5A	Electricity connection for retail customers	729
Part A	Preliminary	729
5A.A.1	Definitions	729
5A.A.2	Application of this Chapter	732
5A.A.3	Small Generation Aggregator deemed to be agent of a retail customer	733
Part B	Standardised offers to provide basic and standard connection services	733
Division 1	Basic connection services	733
5A.B.1	Obligation to have model standing offer to provide basic connection services	733
5A.B.2	Proposed model standing offer for basic connection services	734
5A.B.3	Approval of terms and conditions of model standing offer to provide basic connection services	735
Division 2	Standard connection services	736
5A.B.4	Standard connection services	736
5A.B.5	Approval of model standing offer to provide standard connection services	737
Division 3	Miscellaneous	737
5A.B.6	Amendment etc of model standing offer	737
5A.B.7	Publication of model standing offers	738
Part C	Negotiated connection	738
5A.C.1	Negotiation of connection	738
5A.C.2	Process of negotiation	739
5A.C.3	Negotiation framework	739
5A.C.4	Fee to cover cost of negotiation	741
Part D	Application for connection service	742
Division 1	Information	742
5A.D.1	Publication of information	742
5A.D.1A	Register of completed embedded generation projects	742
Division 2	Preliminary enquiry	744
5A.D.2	Preliminary enquiry	744
Division 3	Applications	745
5A.D.3	Application process	745
5A.D.4	Site inspection	746
Part E	Connection charges	746
5A.E.1	Connection charge principles	746
5A.E.2	Itemised statement of connection charges	748
5A.E.3	Connection charge guidelines	748
5A.E.4	Payment of connection charges	750
Part F	Formation and integration of connection contracts	751
Division 1	Offer and acceptance – basic and standard connection services	751
5A.F.1	Distribution Network Service Provider’s response to application	751
5A.F.2	Acceptance of connection offer	751
5A.F.3	Offer and acceptance—application for expedited connection	751
Division 2	Offer and acceptance – negotiated connection	752
5A.F.4	Negotiated connection offer	752
Division 3	Formation of contract	753
5A.F.5	Acceptance of connection offer	753
Division 4	Contractual performance	753
5A.F.6	Carrying out connection work	753
5A.F.7	Retailer required for energisation where new connection	754
Part G	Dispute resolution between Distribution Network Service Providers and customers	754
5A.G.1	Relevant disputes	754
5A.G.2	Determination of dispute	754
5A.G.3	Termination of proceedings	755
SCHEDULE 5A.1 – Minimum content requirements for connection contract	755
Part A	Connection offer not involving embedded generation	755
Part B	Connection offer involving embedded generation	756
6.	Economic Regulation of Distribution Services	761
Part A	Introduction	761
6.1	Introduction to Chapter 6	761
6.1.1	AER's regulatory responsibility	761
6.1.1A	[Deleted]	761
6.1.2	Structure of this Chapter	761
6.1.3	Access to direct control services and negotiated distribution services	762
6.1.4	Prohibition of DUOS charges for the export of energy	762
Part B	Classification of Distribution Services and Distribution Determinations	763
6.2	Classification	763
6.2.1	Classification of distribution services	763
6.2.2	Classification of direct control services as standard control services or alternative control services	763
6.2.3	Term for which classification operates	764
6.2.3A	Distribution Service Classification Guidelines	765
6.2.4	Duty of AER to make distribution determinations	765
6.2.5	Control mechanisms for direct control services	766
6.2.6	Basis of control mechanisms for direct control services	767
6.2.7	Negotiated distribution services	767
6.2.8	Guidelines	767
Part C	Building Block Determinations for standard control services	768
6.3	Building block determinations	768
6.3.1	Introduction	768
6.3.2	Contents of building block determination	769
6.4	Post-tax revenue model	769
6.4.1	Preparation, publication and amendment of post-tax revenue model	769
6.4.2	Contents of post-tax revenue model	769
6.4.3	Building block approach	770
6.4.4	Shared assets	771
6.4.5	Expenditure Forecast Assessment Guidelines	772
6.4A	Capital expenditure incentive mechanisms	773
6.4B	Asset exemptions	774
6.4B.1	Asset exemption decisions and Asset Exemption Guidelines	774
6.4B.2	Exemption applications	775
6.5	Matters relevant to the making of building block determinations	775
6.5.1	Regulatory asset base	775
6.5.2	Return on capital	776
6.5.3	Estimated cost of corporate income tax	779
6.5.4	[Deleted]	780
6.5.5	Depreciation	780
6.5.6	Forecast operating expenditure	780
6.5.7	Forecast capital expenditure	783
6.5.8	Efficiency benefit sharing scheme	788
6.5.8A	Capital expenditure sharing scheme	789
6.5.9	The X factor	790
6.5.10	Pass through events	791
6.6	Adjustments after making of building block determination.	791
6.6.1	Cost pass through	791
6.6.1A	Reporting on jurisdictional schemes	798
6.6.2	Service target performance incentive scheme	800
6.6.3	Demand management incentive scheme	801
6.6.3A	Demand management innovation allowance mechanism	802
6.6.4	Small-scale incentive scheme	803
6.6.5	Reopening of distribution determination for capital expenditure	804
6.6A	Contingent Projects	808
6.6A.1	Acceptance of a contingent project in a distribution determination	808
6.6A.2	Amendment of distribution determination for contingent project	810
Part D	Negotiated distribution services	815
6.7	Negotiated distribution services	815
6.7.1	Principles relating to access to negotiated distribution services	815
6.7.2	Determination of terms and conditions of access for negotiated distribution services	817
6.7.3	Negotiating framework determination	818
6.7.4	Negotiated Distribution Service Criteria determination	818
6.7.5	Preparation of and requirements for negotiating framework for negotiated distribution services	818
6.7.6	Confidential information	821
Part DA	Connection policies	821
6.7A	Connection policy requirements	821
6.7A.1	Preparation of, and requirements for, connection policy	821
Part E	Regulatory proposal and proposed tariff structure statement	822
6.8	Regulatory proposal and proposed tariff structure statement	822
6.8.1	AER's framework and approach paper	822
6.8.1A	Notification of approach to forecasting expenditure	825
6.8.2	Submission of regulatory proposal, tariff structure statement and exemption application	825
6.9	Preliminary examination and consultation	827
6.9.1	Preliminary examination	827
6.9.2	Resubmission of proposal	828
6.9.2A	Confidential information	828
6.9.3	Consultation	829
6.10	Draft distribution determination and further consultation	830
6.10.1	Making of draft distribution determination	830
6.10.2	Publication of draft determination and consultation	830
6.10.3	Submission of revised proposal	831
6.10.4	Submissions on specified matters	831
6.11	Distribution determination	832
6.11.1	Making of distribution determination	832
6.11.1A	Out of scope revised regulatory proposal or late submissions	832
6.11.2	Notice of distribution determination	833
6.11.3	Commencement of distribution determination	833
6.12	Requirements relating to draft and final distribution determinations	834
6.12.1	Constituent decisions	834
6.12.2	Reasons for decisions	837
6.12.3	Extent of AER's discretion in making distribution determinations	838
6.13	Revocation and substitution of distribution determination for wrong information or error	840
6.14	Miscellaneous	840
6.14A	Distribution Confidentiality Guidelines	841
Part F	Cost Allocation	841
6.15	Cost allocation	841
6.15.1	Duty to comply with Cost Allocation Method	841
6.15.2	Cost Allocation Principles	841
6.15.3	Cost Allocation Guidelines	842
6.15.4	Cost Allocation Method	843
Part G	Distribution consultation procedures	844
6.16	Distribution consultation procedures	844
Part H	Ring-Fencing Arrangements for Distribution Network Service Providers	846
6.17	Distribution Ring-Fencing Guidelines	846
6.17.1	Compliance with Distribution Ring-Fencing Guidelines	846
6.17.2	Development of Distribution Ring-Fencing Guidelines	846
Part I	Distribution Pricing Rules	847
6.18	Distribution Pricing Rules	847
6.18.1	Application of this Part	847
6.18.1A	Tariff structure statement	847
6.18.1B	Amending a tariff structure statement with the AER's approval	848
6.18.1C	Sub-threshold tariffs	850
6.18.2	Pricing proposals	850
6.18.3	Tariff classes	852
6.18.4	Principles governing assignment or re-assignment of retail customers to tariff classes and assessment and review of basis of charging	852
6.18.5	Pricing principles	853
6.18.6	Side constraints on tariffs for standard control services	855
6.18.7	Recovery of designated pricing proposal charges	856
6.18.7A	Recovery of jurisdictional scheme amounts	857
6.18.8	Approval of pricing proposal	861
6.18.9	Publication of information about tariffs and tariff classes	862
6.19.	Data Required for Distribution Service Pricing	863
6.19.1	Forecast use of networks by Distribution Customers and Embedded Generators	863
6.19.2	Confidentiality of distribution network pricing information	863
Part J	Billing and Settlements	863
6.20	Billing and Settlements Process	863
6.20.1	Billing for distribution services	863
6.20.2	Minimum information to be provided in distribution network service bills	865
6.20.3	Settlement between Distribution Network Service Providers	866
6.20.4	Obligation to pay	866
Part K	Prudential requirements, capital contributions and prepayments	866
6.21	Distribution Network Service Provider Prudential Requirements	866
6.21.1	Prudential requirements for distribution network service	866
6.21.2	Capital contributions, prepayments and financial guarantees	867
6.21.3	Treatment of past prepayments and capital contributions	867
Part L	Dispute resolution	868
6.22	Dispute Resolution	868
6.22.1	Dispute Resolution by the AER	868
6.22.2	Determination of dispute	868
6.22.3	Termination of access dispute without access determination	870
Part M	Separate disclosure of transmission and distribution charges	870
6.23	Separate disclosure of transmission and distribution charges	870
Part N	Dual Function Assets	871
6.24	Dual Function Assets	871
6.24.1	Application of this Part	871
6.24.2	Dual Function Assets	871
6.25	AER determination of applicable pricing regime for Dual Function Assets	872
6.26	Division of Distribution Network Service Provider's revenue	873
Part O	Annual Benchmarking Report	874
6.27	Annual Benchmarking Report	874
Part P	Distribution Reliability Measures Guidelines	874
6.28	Distribution Reliability Measures Guidelines	874
Schedule 6.1	Contents of building block proposals	875
S6.1.1	Information and matters relating to capital expenditure	875
S6.1.2	Information and matters relating to operating expenditure	876
S6.1.3	Additional information and matters	877
Schedule 6.2	Regulatory Asset Base	879
S6.2.1	Establishment of opening regulatory asset base for a regulatory control period	879
S6.2.2	Prudency and efficiency of capital expenditure	884
S6.2.2A	Reduction for inefficient past capital expenditure	885
S6.2.2B	Depreciation	887
S6.2.3	Roll forward of regulatory asset base within the same regulatory control period	888
6A.	Economic Regulation of Transmission Services	891
Part A	Introduction	891
6A.1	Introduction to Chapter 6A	891
6A.1.1	Economic regulation of transmission services generally	891
6A.1.2	[Deleted]	892
6A.1.3	[Deleted]	892
6A.1.4	National regulatory arrangements	892
6A.1.5	Application of Chapter 6A to Market Network Service Providers	892
6A.1.6	Application of Chapter 6A to AEMO and declared transmission system operators	892
Part B	Transmission Determinations Generally	893
6A.2	Transmission determinations	893
6A.2.1	Duty of AER to make transmission determinations	893
6A.2.2	Components of transmission determinations	893
6A.2.3	Guidelines	893
Part C	Regulation of Revenue - Prescribed Transmission Services	894
6A.3	Allowed revenue from prescribed transmission services	894
6A.3.1	Allowed revenue for regulatory year	894
6A.3.2	Adjustment of maximum allowed revenue	894
6A.4	Revenue determinations	895
6A.4.1	Introduction	895
6A.4.2	Contents of revenue determination	895
6A.5	Post-tax revenue model	896
6A.5.1	Introduction	896
6A.5.2	Preparation, publication and amendment of post-tax revenue model	896
6A.5.3	Contents of post-tax revenue model	897
6A.5.4	Building blocks approach	898
6A.5.5	Shared assets	899
6A.5.6	Expenditure Forecast Assessment Guidelines	900
6A.5A	Capital expenditure incentive mechanisms	900
6A.6	Matters relevant to the making of revenue determinations	901
6A.6.1	Regulatory asset base	901
6A.6.2	Return on capital	902
6A.6.3	Depreciation	905
6A.6.4	Estimated cost of corporate income tax	906
6A.6.5	Efficiency benefit sharing scheme	907
6A.6.5A	Capital expenditure sharing scheme	908
6A.6.6	Forecast operating expenditure	909
6A.6.7	Forecast capital expenditure	912
6A.6.8	The X factor	916
6A.6.9	Pass through events	917
6A.7	Matters relevant to the adjustment of revenue cap after making of revenue determination	917
6A.7.1	Reopening of revenue determination for capital expenditure	917
6A.7.2	Network support pass through	920
6A.7.3	Cost pass through	922
6A.7.4	Service target performance incentive scheme	928
6A.7.5	Small-scale incentive scheme	930
6A.8	Contingent Projects	931
6A.8.1	Acceptance of a Contingent Project in a revenue determination	931
6A.8.2	Amendment of revenue determination for contingent project	932
Part D	[Deleted]	937
Part E	Procedure - Revenue determinations and pricing methodologies	937
6A.10	Revenue Proposal and proposed pricing methodology	937
6A.10.1A	AER's framework and approach paper	937
6A.10.1B	Notification of approach to forecasting expenditure	939
6A.10.1	Submission of proposal, pricing methodology and information	939
6A.10.2	[Deleted]	941
6A.11	Preliminary examination and consultation	941
6A.11.1	Preliminary examination and determination of non-compliance with relevant requirements	941
6A.11.2	Resubmission of proposal, framework, pricing methodology or information	942
6A.11.2A	Confidential information	942
6A.11.3	Consultation	942
6A.12	Draft decision and further consultation	943
6A.12.1	Making of draft decision	943
6A.12.2	Publication of draft decision and consultation	944
6A.12.3	Submission of revised proposal or pricing methodology	944
6A.12.4	Submissions on specified matters	946
6A.13	Final decision	946
6A.13.1	Making of final decision	946
6A.13.2	Refusal to approve amounts, values, framework or pricing methodology	946
6A.13.2A	Out of scope revised documents or late submissions	947
6A.13.3	Notice of final decision	948
6A.13.4	Making of transmission determination	948
6A.14	Requirements relating to draft and final decisions	948
6A.14.1	Contents of decisions	948
6A.14.2	Reasons for decisions	951
6A.14.3	Circumstances in which matters must be approved or accepted	951
6A.15	Revocation of revenue determination or amendment of pricing methodology for wrong information or error	954
6A.16	Miscellaneous	955
6A.16A	Transmission Confidentiality Guidelines	955
Part F	Information Disclosure	956
6A.17	Information disclosure by Transmission Network Service Providers	956
6A.17.1	Information to be provided to AER	956
6A.17.2	Information Guidelines	957
6A.18	[Deleted]	959
Part G	Cost Allocation	959
6A.19	Cost allocation	959
6A.19.1	Duty to comply with Cost Allocation Methodology	959
6A.19.2	Cost Allocation Principles	959
6A.19.3	Cost Allocation Guidelines	960
6A.19.4	Cost Allocation Methodology	961
Part H	Transmission Consultation Procedures	962
6A.20	Transmission consultation procedures	962
Part I	Ring-Fencing Arrangements for Transmission Network Service Providers	963
6A.21	Transmission Ring-Fencing Guidelines	963
6A.21.1	Compliance with Transmission Ring-Fencing Guidelines	963
6A.21.2	Development of Transmission Ring-Fencing Guidelines	964
Part J	Prescribed Transmission Services - Regulation of Pricing	965
6A.22	Terms used in Part J	965
6A.22.1	Aggregate annual revenue requirement (AARR)	965
6A.22.2	Annual service revenue requirement (ASRR)	965
6A.22.3	Meaning of attributable cost share	965
6A.22.4	Meaning of attributable connection point cost share	966
6A.23	Pricing Principles for Prescribed Transmission Services	966
6A.23.1	Introduction	966
6A.23.2	Principles for the allocation of the aggregate annual revenue requirement	966
6A.23.3	Principles for the allocation of the annual service revenue requirement to connection points	967
6A.23.4	Principles for the recovery of the Annual Service Revenue Requirement as prices	970
6A.24	Pricing methodology	972
6A.24.1	Pricing methodologies generally	972
6A.24.2	Publication of pricing methodology and transmission network prices	973
6A.24.3	Basis for setting prices pending approval of pricing methodology	974
6A.24.4	Basis for setting prices pending approval of maximum allowed revenue	974
6A.25	Pricing methodology guidelines for prescribed transmission services	975
6A.25.1	Making and amending of pricing methodology guidelines	975
6A.25.2	Contents of pricing methodology guidelines	976
6A.26	Prudent discounts	977
6A.26.1	Agreements for prudent discounts for prescribed transmission services	977
6A.26.2	Application to AER for approval of proposed prudent discount amounts	978
6A.27	Billing Process	980
6A.27.1	Billing for prescribed transmission services	980
6A.27.1A	Billing of modified load export charges	980
6A.27.2	Minimum information to be provided in network service bills	980
6A.27.3	Obligation to pay charges for prescribed transmission services	981
6A.27.4	Payments between Transmission Network Service Providers in the same region	981
6A.27.5	Calculation of financial transfers between Transmission Network Service Providers in the same region	982
6A.28	Prudential Requirements	982
6A.28.1	Prudential Requirements for prescribed transmission services	982
6A.28.2	Capital contribution or prepayment for a specific asset	982
6A.28.3	Treatment of past capital contributions	982
6A.29	Multiple Transmission Network Service Providers	983
6A.29.1	Multiple Transmission Network Service Providers within a region	983
6A.29.2	Single Transmission Network Service Provider within a region	984
6A.29.3	Allocation over several regions	984
6A.29A	Modified load export charges	984
6A.29A.1	Single Transmission Network Service Provider in a Region	984
6A.29A.2 	Calculation of the modified load export charges	984
6A.29A.3	Calculation of adjustments to the modified load export charge	985
6A.29A.4	Billing the modified load export charge	985
6A.29A.5	Allocation and billing process where multiple Transmission Network Service Providers in a Region	986
Part K	Commercial arbitration for disputes about terms and conditions of access for prescribed and negotiated transmission services	987
[Deleted]	987
Part L	Annual Benchmarking Report	987
6A.31	Annual Benchmarking Report	987
Schedule 6A.1	Contents of Revenue Proposals	987
S6A.1.1	Information and matters relating to capital expenditure	987
S6A.1.2	Information and matters relating to operating expenditure	988
S6A.1.3	Additional information and matters	989
Schedule 6A.2	Regulatory Asset Base	992
S6A.2.1	Establishment of opening regulatory asset base for a regulatory control period	992
S6A.2.2	Prudency and efficiency of capital expenditure	997
S6A.2.2A	Reduction for inefficient past capital expenditure	998
S6A.2.2B	Depreciation	1000
S6A.2.3	Removal of assets from regulatory asset base	1001
S6A.2.4	Roll forward of regulatory asset base within the same regulatory control period	1002
Schedule 6A.3	CRNP methodology and modified CRNP methodology	1003
S6A.3.1	Meaning of optimised replacement cost	1003
S6A.3.2	CRNP methodology	1003
S6A.3.3	Modified CRNP methodology	1004
Schedule 6A.4	Application of this Chapter to AEMO and declared transmission system operators	1004
S6A.4.1	Application of this Chapter to AEMO etc	1004
S6A.4.2	Exclusions, qualifications and modifications	1005
Chapter 6B	Retail markets	1015
Part A	Retail support	1015
Division 1 – Application and definitions	1015
6B.A1.1	Application of this Part	1015
Division 2	Billing and payment rules	1016
6B.A2.1	Obligation to pay	1016
6B.A2.2	Direct customer billing and energy-only contracts	1016
6B.A2.3	Calculating network charges	1016
6B.A2.4	Statement of charges	1016
6B.A2.5	Time and manner of payment	1017
Division 3	Matters incidental to billing and payment	1017
6B.A3.1 	Adjustment of network charges	1017
6B.A3.2	Tariff reassignment	1018
6B.A3.3	Disputed statements of charges	1019
6B.A3.4	Interest	1020
6B.A3.5	Notification of changes to charges	1020
Part B	Credit support required for late payment	1020
Division 1	Application and definitions	1021
6B.B1.1	Application of Part B	1021
6B.B1.2	Definitions	1021
Division 2	Requirements for credit support	1021
6B.B2.1	Distribution Network Service Provider may require credit support in limited circumstances	1021
Division 3	Provision of credit support by retailers	1022
6B.B3.1	Retailer to provide credit support	1022
6B.B3.2	Acceptable form of credit support	1022
Division 4	Other Rules relating to credit support	1023
6B.B4.1	Application of credit support	1023
6B.B4.2	Return of credit support	1023
6B.B4.3	Other retailer obligations	1023
Schedule 6B.1	Prescribed form of unconditional undertaking for credit support	1024
7.	Metering	1027
Part A	Introduction	1027
7.1	Introduction to the Metering Chapter	1027
7.1.1	Contents	1027
Part B	Roles and Responsibilities	1027
7.2	Role and Responsibility of financially responsible Market Participant	1027
7.2.1	Obligations of financially responsible Market Participants to establish metering installations	1027
7.2.2	[Not used]	1028
7.2.3	Agreements with Local Network Service Provider	1028
7.2.4	[Not used]	1029
7.2.5	Agreements with Metering Provider	1029
7.3	Role and Responsibility of Metering Coordinator	1029
7.3.1	Responsibility of the Metering Coordinator	1029
7.3.2	Role of the Metering Coordinator	1029
7.4	Qualification and Registration of Metering Providers, Metering Data Providers and Embedded Network Managers	1033
7.4.1	Qualifications and registration of Metering Providers	1033
7.4.2	Qualifications and registration of Metering Data Providers	1034
7.4.2A	Qualifications and registration of Embedded Network Managers	1035
7.4.2B	List of Embedded Network Managers	1035
7.4.3	Nature of appointment of Metering Provider or Metering Data Provider	1035
7.4.4	Deregistration of Metering Providers, Metering Data Providers and Embedded Network Managers	1036
7.5	Role and Responsibility of AEMO	1037
7.5.1	Responsibility of AEMO for the collection, processing and delivery of metering data	1037
7.5.2	AEMO's costs in connection with metering installation	1038
7.5A	Role and Responsibility of Embedded Network Managers	1038
7.5A.1	Responsibility of Embedded Network Managers for management services 	1038
7.5A.2	EN information	1039
Part C	Appointment of Metering Coordinator	1039
7.6	Appointment of Metering Coordinator	1039
7.6.1	Commercial nature of the Metering Coordinator appointment and service provision	1039
7.6.2	Persons who may appoint Metering Coordinators	1040
7.6.3	Appointment with respect to transmission network connection	1041
7.6.4	Type 7 metering installations	1041
7.7	Metering Coordinator default arrangements	1042
7.7.1	Obligations of financially responsible Market Participants on Metering Coordinator default event and end of contract term	1042
7.7.2	Notices to be provided by Metering Coordinator	1043
7.7.3	AEMO may issue breach notice	1044
Part D	Metering installation	1045
7.8	Metering installation arrangements	1045
7.8.1	Metering installation requirements	1045
7.8.2	Metering installation components	1045
7.8.3	Small customer metering installations	1050
7.8.4	Type 4A metering installation	1050
7.8.5	Emergency management	1052
7.8.6	Network devices	1052
7.8.7	Metering point	1055
7.8.8	Metering installation types and accuracy	1056
7.8.9	Meter churn	1056
7.8.10	Meter installation malfunctions	1058
7.8.11	Changes to metering equipment, parameters and settings within a metering installation	1058
7.8.12	Special site or technology related conditions	1059
7.8.13	Joint metering installations	1060
7.9	Inspection, Testing and Audit of Metering installations	1061
7.9.1	Responsibility for testing	1061
7.9.2	Actions in event of non-compliance	1063
7.9.3	Audits of information held in metering installations	1064
7.9.4	Errors found in metering tests, inspections or audits	1064
7.9.5	Retention of test records and documents	1065
7.9.6	Metering installation registration process	1066
Part E	Metering Data	1066
7.10	Metering Data Services	1066
7.10.1	Metering Data Services	1066
7.10.2	Data management and storage	1067
7.10.3	Provision of metering data to certain persons	1069
7.10.4	Use of check metering data	1069
7.10.5	Periodic energy metering	1069
7.10.6	Time settings	1070
7.10.7	Metering data performance standards	1071
7.11	Metering data and database	1073
7.11.1	Metering database	1073
7.11.2	Data validation, substitution and estimation	1074
7.11.3	Changes to energy data or to metering data	1074
7.12	Register of Metering Information	1075
7.12.1	Metering register	1075
7.12.2	Metering register discrepancy	1075
7.13	Disclosure of NMI information	1075
7.13.1	Application of this Rule	1075
7.13.2	NMI and NMI checksum	1075
7.13.3	NMI Standing Data	1076
7.14	Metering data provision to retail customers	1076
Part F	Security of metering installation and energy data	1077
7.15	Security of metering installation and energy data	1077
7.15.1	Confidentiality	1077
7.15.2	Security of metering installations	1077
7.15.3	Security controls for energy data	1078
7.15.4	Additional security controls for small customer metering installations	1080
7.15.5	Access to data	1081
PART G	Procedures	1083
7.16	Procedures	1083
7.16.1	Obligation to establish, maintain and publish procedures	1083
7.16.2	Market Settlement and Transfer Solution Procedures	1083
7.16.3	Requirements of the metrology procedure	1084
7.16.4	Jurisdictional metrology material in metrology procedure	1085
7.16.5	Additional metrology procedure matters	1087
7.16.6	Requirements of the service level procedures	1088
7.16.6A	Requirements of the ENM service level procedures	1089
7.16.6B	Guide to embedded networks	1091
7.16.7	Amendment of procedures in the Metering Chapter	1091
7.16.8	National Measurement Act	1092
Part H	B2B Requirements	1092
7.17	B2B Arrangements	1092
7.17.1	B2B e-Hub	1092
7.17.2	B2B e-Hub Participants	1093
7.17.3	Content of the B2B Procedures	1094
7.17.4	Changing B2B Procedures	1095
7.17.5	B2B Decision	1097
7.17.6	Establishment of Information Exchange Committee	1098
7.17.7	Functions and powers of Information Exchange Committee	1099
7.17.8	Obligations of Members	1100
7.17.9	Meetings of Information Exchange Committee	1101
7.17.10	Nomination, election and appointment of Members	1102
7.17.11	Qualifications of Members	1103
7.17.12	Information Exchange Committee Election Procedures and Information Exchange Committee Operating Manual	1104
7.17.13	Cost Recovery	1105
Schedule 7.1	Metering register	1105
S7.1.1	General	1105
S7.1.2	Metering register information	1106
Schedule 7.2	Metering Provider	1107
S7.2.1	General	1107
S7.2.2	Categories of registration	1108
S7.2.3	Capabilities of Metering Providers for metering installations types 1, 2, 3, 4 and 4A	1109
S7.2.4	Capabilities of Metering Providers for metering installations types 5 and 6	1112
S7.2.5	Capabilities of Metering Providers for small customer metering installations	1112
S7.2.6	Capabilities of the Accredited Service Provider category	1112
Schedule 7.3	Metering Data Provider	1113
S7.3.1	General	1113
S7.3.2	Categories of registration	1113
S7.3.3	Capabilities of Metering Data Providers	1113
S7.3.4	Capabilities of Metering Data Providers for small customer metering installations	1115
Schedule 7.4	Types and Accuracy of Metering installations	1116
S7.4.1	General requirements	1116
S7.4.2	Metering installations commissioned prior to 13 December 1998	1116
S7.4.3	Accuracy requirements for metering installations	1117
S7.4.4	Check metering	1123
S7.4.5	Resolution and accuracy of displayed or captured data	1123
S7.4.6	General design standards	1124
S7.4.6.1	Design requirements	1124
S7.4.6.2	Design guidelines	1125
Schedule 7.5	Requirements of minimum services specification	1125
S7.5.1	Minimum services specification	1125
Schedule 7.6	Inspection and Testing Requirements	1129
S7.6.1	General	1129
S7.6.2	Technical Guidelines	1131
Schedule 7.7	Embedded Network Managers	1132
S7.7.1	General	1132
S7.7.2	Capabilities of Embedded Network Managers	1132
8.	Administrative Functions	1137
Part A	Introductory	1137
8.1	Administrative functions	1137
8.1.1	[Deleted]	1137
8.1.2	[Deleted]	1137
8.1.3	Structure of this Chapter	1137
Part B	Disputes	1138
8.2	Dispute Resolution	1138
8.2.1	Application and guiding principles	1138
8.2.2	The Dispute Resolution Adviser	1141
8.2.3	Dispute management systems of Registered Participants and AEMO	1142
8.2.4	Stage 1 - dispute resolution through Registered Participants’ DMS	1143
8.2.5	Stage 2 - dispute resolution process	1145
8.2.6A	Establishment of Dispute Resolution Panel	1146
8.2.6B	Parties to DRP Proceedings	1147
8.2.6C	Proceedings of the DRP	1148
8.2.6D	Decisions of the DRP	1149
8.2.6	[Deleted]	1149
8.2.7	Legal representation	1149
8.2.8	Cost of dispute resolution	1150
8.2.9	Effect of resolution	1150
8.2.10	Recording and publication	1151
8.2.11	Appeals on questions of law	1151
8.2.12	[Deleted]	1151
8.2A	B2B Determination Disputes	1151
8.2A.1	Application of rule 8.2	1151
8.2A.2	How rule 8.2 applies	1151
8.3	Power to make Electricity Procedures	1154
8.4	[Deleted]	1155
8.5	[Deleted]	1155
Part C	Registered Participants' confidentiality obligations	1155
8.6	Confidentiality	1155
8.6.1	Confidentiality	1155
8.6.1A	Application	1156
8.6.2	Exceptions	1156
8.6.3	Conditions	1158
8.6.4	[Deleted]	1158
8.6.5	Indemnity to AER, AEMC and AEMO	1158
8.6.6	AEMO information	1158
8.6.7	Information on Rules Bodies	1158
Part D	Monitoring and reporting	1159
8.7	Monitoring and Reporting	1159
8.7.1	Monitoring	1159
8.7.2	Reporting requirements and monitoring standards for Registered Participants and AEMO	1159
8.7.3	Consultation required for making general regulatory information order (Section 28H of the NEL)	1161
8.7.4	Preparation of network service provider performance report (Section 28V of the NEL)	1162
8.7.5	[Deleted]	1163
8.7.6	Recovery of reporting costs	1163
Part E	Reliability panel	1163
8.8	Reliability Panel	1163
8.8.1	Purpose of Reliability Panel	1163
8.8.2	Constitution of the Reliability Panel	1165
8.8.3	Reliability Panel review process	1167
8.8.4	Determination of protected events	1170
Part F	Rules consultation procedures	1172
8.9	Rules Consultation Procedures	1172
Part G	Consumer advocacy funding	1174
8.10	Consumer advocacy funding obligation	1174
Part H	Augmentations	1175
8.11	Augmentations	1175
8.11.1	Application	1175
8.11.2	Object	1175
8.11.3	Definitions	1176
8.11.4	Planning criteria	1176
8.11.5	Construction of augmentation that is not a contestable augmentation	1177
8.11.6	Contestable augmentations	1177
8.11.7	Construction and operation of contestable augmentation	1178
8.11.8	Funded augmentations that are not subject to the tender process	1180
8.11.9	Contractual requirements and principles	1181
8.11.10	Annual planning review	1181
Schedule 8.11	Principles to be reflected in agreements relating to contestable augmentations	1181
S8.11.1	Risk allocation	1181
S8.11.2	Minimum requirements for agreements relating to contestable augmentation	1183
S8.11.3	Matters to be dealt with in relevant agreements	1183
Part I	Values of customer reliability	1184
8.12	Development of methodology and publication of values of customer reliability	1184
8A.	Participant Derogations	1189
Part 1	Derogations Granted to TransGrid	1189
8A.1	[Deleted]	1189
Part 2	Derogations Granted to EnergyAustralia	1189
8A.2	[Deleted]	1189
8A.2A	[Deleted]	1189
Part 3	[Deleted]	1189
Part 4	[Deleted]	1189
Part 5	[Deleted]	1189
Part 6	Derogations Granted to Victorian Market Participants	1189
Part 7	[Deleted]	1190
Part 8	[Deleted]	1190
Part 9	[Deleted]	1190
Part 10	[Deleted]	1190
Part 11	[Deleted]	1190
Part 12	[Deleted]	1190
Part 13	Derogation granted to Aurora Energy (Tamar Valley) Pty Ltd	1190
8A.13	[Deleted]	1190
Part 14	Derogations granted to Ausgrid, Endeavour Energy and Essential Energy	1190
8A.14	Derogations from Chapter 6 for the current regulatory control period and subsequent regulatory control period	1190
8A.14.1	Definitions	1190
8A.14.2	Expiry date	1195
8A.14.3	Application of Rule 8A.14	1195
8A.14.4	Recovery of revenue across the current regulatory control period and subsequent regulatory control period	1195
8A.14.5	Recovery of revenue in subsequent regulatory control period only and no reopening of subsequent distribution determination required	1197
8A.14.6	Recovery of revenue in subsequent regulatory control period only and reopening of distribution determination is required	1198
8A.14.7	Requirements for adjustment determination	1200
8A.14.8	Application of Chapter 6 under participant derogation	1200
Part 15	Derogations granted to ActewAGL	1202
8A.15	Derogations from Chapter 6 for the current regulatory control period and subsequent regulatory control period	1202
8A.15.1	Definitions	1202
8A.15.2	Expiry date	1206
8A.15.3	Application of Rule 8A.15	1206
8A.15.4	Recovery of revenue across the current regulatory control period and subsequent regulatory control period	1206
8A.15.5	Recovery of revenue in subsequent regulatory control period only and no reopening of subsequent distribution determination required	1208
8A.15.6	Recovery of revenue in subsequent regulatory control period only and reopening of distribution determination is required	1210
8A.15.7	Requirements for adjustment determination	1212
8A.15.8	Application of Chapter 6 under participant derogation	1212
9.	Jurisdictional Derogations and Transitional Arrangements	1217
9.1	Purpose and Application	1217
9.1.1	Purpose	1217
9.1.2	Jurisdictional Derogations	1217
Part A	Jurisdictional Derogations for Victoria	1217
9.2	[Deleted]	1217
9.3	Definitions	1217
9.3.1	General Definitions	1217
9.3.2	[Deleted]	1219
9.3A	Fault levels	1219
9.4	Transitional Arrangements for Chapter 2 - Registered Participants, Registration and Cross Border Networks	1220
9.4.1	[Deleted]	1220
9.4.2	Smelter Trader	1220
9.4.3	Smelter Trader: compliance	1221
9.4.4	Report from AER	1223
9.4.5	Cross Border Networks	1224
9.5	[Deleted]	1224
9.6	Transitional Arrangements for Chapter 4 - System Security	1224
9.6.1	Operating Procedures (clause 4.10.1)	1224
9.6.2	Nomenclature Standards (clause 4.12)	1224
9.7	Transitional Arrangements for Chapter 5 - Network Connection	1225
9.7.1	[Deleted]	1225
9.7.2	[Deleted]	1225
9.7.3	[Deleted]	1225
9.7.4	Regulation of Distribution Network Connection	1225
9.7.5	[Deleted]	1226
9.7.6	[Deleted]	1226
9.7.7	[Deleted]	1226
9.8	Transitional Arrangements for Chapter 6 - Network Pricing	1226
9.8.1	[Deleted]	1226
9.8.2	[Deleted]	1226
9.8.3	[Deleted]	1226
9.8.4	Transmission Network Pricing	1226
9.8.4A	[Deleted]	1228
9.8.4B	[Deleted]	1228
9.8.4C	[Deleted]	1228
9.8.4D	[Deleted]	1228
9.8.4E	[Deleted]	1228
9.8.4F	[Deleted]	1228
9.8.4G	[Deleted]	1228
9.8.5	[Deleted]	1228
9.8.6	[Deleted]	1228
9.8.7	Distribution network pricing – transitional application of former Chapter 6	1228
9.8.8	Exclusion of AER's power to aggregate distribution systems and parts of distribution systems	1229
9.9	Transitional Arrangements for Chapter 7 - Metering	1230
9.9.1	Metering Installations To Which This Schedule Applies	1230
9.9.2	[Deleted]	1230
9.9.3	[Deleted]	1230
9.9.4	[Deleted]	1230
9.9.5	[Deleted]	1230
9.9.6	[Deleted]	1230
9.9.7	[Deleted]	1230
9.9.8	[Deleted]	1230
9.9.9	Periodic Energy Metering (clause 7.9.3)	1230
9.9.10	Use of Alternate Technologies (clause 7.13)	1230
9.9A	[Deleted]	1231
9.9B	[Deleted]	1231
9.9C	Metering services for residential and small business customers	1231
9.9C.1	Definitions	1231
9.9C.2	Expiry Date	1232
9.9C.3	Designation as responsible person	1232
9.9C.4	Classification of relevant metering installations	1232
9.9C.5	Cost recovery of AMI rollout	1232
9.9C.6	Capability for remote acquisition of metering data	1232
Schedule 9A1.1	[Deleted]	1232
Schedule 9A1.2	[Deleted]	1232
Schedule 9A1.3	[Deleted]	1232
Schedule 9A2	[Deleted]	1232
Schedule 9A3	Jurisdictional Derogations Granted to Generators	1232
1.	Interpretation of tables	1232
2.	Continuing effect	1233
3.	Subsequent agreement	1233
4.	[Deleted]	1233
5.	Reactive Power Capability (clause S5.2.5.1 of schedule 5.2)	1233
6.	[Deleted]	1235
7.	[Deleted]	1235
8.	[Deleted]	1235
9.	[Deleted]	1235
10.	[Deleted]	1235
11.	[Deleted	1235
12.	[Deleted]	1235
13.	Governor Systems (load control) (clause S5.2.5.11 of schedule 5.2)	1235
14.	[Deleted]	1235
15.	[Deleted]	1235
16.	Excitation Control System (clause S5.2.5.13 of schedule 5.2)	1235
Part B	Jurisdictional Derogations for New South Wales	1236
9.10	[Deleted]	1236
9.11	Definitions	1236
9.11.1	Definitions used in this Part B	1236
9.12	Transitional Arrangements for Chapter 2 - Generators, Registered Participants, Registration and Cross Border Networks	1237
9.12.1	[Deleted]	1237
9.12.2	Customers	1237
9.12.3	Power Traders	1237
9.12.4	Cross Border Networks	1240
9.13	[Deleted]	1241
9.14	Transitional Arrangements for Chapter 4 - System Security	1241
9.14.1	Power System Operating Procedures	1241
9.15	NSW contestable services for Chapter 5A	1241
9.15.1	Definitions	1241
9.15.2	Chapter 5A not to apply to certain contestable services	1242
9.16	Transitional Arrangements for Chapter 6 - Network Pricing	1242
9.16.1	NSW contestable services	1242
9.16.2	[Deleted]	1242
9.16.3	Jurisdictional Regulator	1242
9.16.4	Deemed Regulated Interconnector	1242
9.16.5	[Deleted]	1242
9.17	Transitional Arrangements for Chapter 7 - Metering	1242
9.17.1	Extent of Derogations	1242
9.17.2	Initial Registration (clause 7.1.2)	1243
9.17.3	Amendments to Schedule 9G1	1243
9.17.4	Compliance with AS/NZ ISO 9002 (clause S7.4.3(f) of schedule 7.4)	1243
9.17A	[Deleted]	1244
9.18	[Deleted]	1244
Part C	Jurisdictional Derogations for the Australian Capital Territory	1244
9.19	[Deleted]	1244
9.20	Definitions and Transitional Arrangements for Cross-Border Networks	1244
9.20.1	Definitions	1244
9.20.2	Cross Border Networks	1244
9.21	[Deleted]	1245
9.22	[Deleted]	1245
9.23	Transitional Arrangements for Chapter 6 - Network Pricing	1245
9.23.1	[Deleted]	1245
9.23.2	[Deleted]	1245
9.23.3	[Deleted	1245
9.23.4	[Deleted]	1245
9.24	Transitional Arrangements	1245
9.24.1	Chapter 7 - Metering	1245
9.24.2	[Deleted]	1245
9.24A	[Deleted]	1245
Part D	Jurisdictional Derogations for South Australia	1245
9.25	Definitions	1245
9.25.1	[Deleted]	1245
9.25.2	Definitions	1245
9.26	Transitional Arrangements for Chapter 2 - Registered Participants, Registration And Cross Border Networks	1248
9.26.1	Registration as a Generator	1248
9.26.2	Registration as a Customer	1249
9.26.3	Cross Border Networks	1249
9.26.4	[Deleted]	1250
9.26.5	Registration as a Network Service Provider	1250
9.27	[Deleted]	1250
9.28	Transitional Arrangements for Chapter 5 - Network Connection	1250
9.28.1	Application of clause 5.2	1250
9.28.2	[Deleted]	1251
9.29	Transitional Arrangements for Chapter 6 - Economic Regulation of Distribution Services	1251
9.29.1	[Deleted]	1251
9.29.2	[Deleted]	1251
9.29.3	[Deleted]	1251
9.29.4	[Deleted]	1251
9.29.5	Distribution Network Pricing – South Australia	1251
9.29.6	Capital contributions, prepayments and financial guarantees	1252
9.29.7	Ring fencing	1253
9.29A	Monitoring and reporting	1253
9.30	Transitional Provisions	1254
9.30.1	Chapter 7 - Metering	1254
Part E	Jurisdictional Derogations for Queensland	1254
9.31	[Deleted]	1254
9.32	Definitions and Interpretation	1254
9.32.1	Definitions	1254
9.32.2	Interpretation	1256
9.33	Transitional Arrangements for Chapter 1	1257
9.33.1	[Deleted]	1257
9.34	Transitional Arrangements for Chapter 2 - Registered Participants and Registration	1257
9.34.1	Application of the Rules in Queensland (clauses 2.2 and 2.5)	1257
9.34.2	Stanwell Cross Border Leases (clause 2.2)	1257
9.34.3	[Deleted]	1257
9.34.4	Registration as a Customer (clause 2.3.1)	1257
9.34.5	There is no clause 9.34.5	1258
9.34.6	Exempted generation agreements (clause 2.2)	1258
9.35	[Deleted]	1263
9.36	[Deleted]	1263
9.37	Transitional Arrangements for Chapter 5 - Network Connection	1263
9.37.1	[Deleted]	1263
9.37.2	Existing connection and access agreements (clause 5.2)	1263
9.37.3	[Deleted]	1264
9.37.4	[Deleted]	1264
9.37.5	Forecasts for connection points to transmission network (clause 5.11.1)	1264
9.37.6	There is no clause 9.37.6	1264
9.37.7	Cross Border Networks	1264
9.37.8	[Deleted]	1264
9.37.9	Credible contingency events (clause S5.1.2.1 of schedule 5.1)	1264
9.37.10	Reactive power capability (clause S5.2.5.1 of schedule 5.2)	1265
9.37.11	[Deleted]	1265
9.37.12	Voltage fluctuations (clause S5.1.5 of schedule 5.1)	1265
9.37.13	[Deleted]	1268
9.37.14	[Deleted]	1268
9.37.15	[Deleted]	1268
9.37.16	[Deleted]	1268
9.37.17	[Deleted]	1268
9.37.18	[Deleted]	1268
9.37.19	Generating unit response to disturbances (clause S5.2.5.3 of schedule 5.2)	1268
9.37.20	[Deleted]	1268
9.37.21	Excitation control system (clause S.5.2.5.13 of schedule 5.2)	1268
9.37.22	[Deleted]	1269
9.37.23	Annual forecast information for planning purposes (schedule 5.7)	1269
9.38	Transitional Arrangements for Chapter 6 - Network Pricing	1269
9.38.1	[Deleted]	1269
9.38.2	[Deleted]	1269
9.38.3	[Deleted]	1269
9.38.4	Interconnectors between regions	1269
9.38.5	Transmission pricing for exempted generation agreements	1270
9.39	Transitional Arrangements for Chapter 7 - Metering	1270
9.39.1	Metering installations to which this clause applies	1270
9.39.2	[Deleted]	1271
9.39.3	[Deleted]	1271
9.39.4	[Deleted]	1271
9.39.5	[Deleted]	1271
9.40	Transitional Arrangements for Chapter 8 - Administration Functions	1271
9.40.1	[Deleted]	1271
9.40.2	[Deleted]	1271
9.40.3	[Deleted]	1271
9.41	[Deleted]	1271
Schedule 9E1	Exempted Generation Agreements	1271
Part F	Jurisdictional Derogations for Tasmania	1272
9.42	Definitions and interpretation	1272
9.42.1	Definitions	1272
9.42.2	Interpretation	1273
9.42.3	National grid, power system and related expressions	1274
9.43	[Deleted]	1274
9.44	Transitional arrangements for Chapter 2 – Registered Participants and Registration - Customers (clause 2.3.1(e))	1274
9.45	Tasmanian Region (clause 3.5)	1274
9.47	Transitional arrangements for Chapter 5- Network Connection	1274
9.47.1	Existing Connection Agreements	1274
9.48	Transitional arrangements - Transmission and Distribution Pricing	1275
9.48.4A	Ring fencing	1275
9.48.4B	Uniformity of tariffs for small customers	1275
9.48.5	Transmission network	1275
9.48.6	Deemed regulated interconnector	1275
Part G	Schedules to Chapter 9	1276
Schedule 9G1	Metering Transitional Arrangements	1276
1.	Introduction	1276
2.	[Deleted]	1276
3.	General Principle	1276
4.	[Deleted]	1276
5.	Accuracy Requirements	1276
6.	[Deleted]	1277
7.	[Deleted]	1277
8.	[Deleted]	1277
9.	[Deleted]	1277
10.	[Deleted]	1277
10.	Glossary	1281
11.	Savings and Transitional Rules	1413
Part A	Definitions	1413
Part B	System Restart Ancillary Services (2006 amendments)	1413
11.2	Rules consequent on making of the National Electricity Amendment (System Restart Ancillary Services and pricing under market suspension) Rule 2006	1413
11.2.1	Transitional provision for acquisition of non-market ancillary services	1413
11.3	[Deleted]	1414
Part C	Dispute Resolution for Regulatory Test (2006 amendments)	1414
11.4	Rules consequent on making of the National Electricity Amendment (Dispute Resolution for Regulatory Test) Rule 2006	1414
11.4.1	Continuation of things done under old clause 5.6.6	1414
Part D	Metrology (2006 amendments)	1415
11.5	Rules consequential on the making of the National Electricity Amendment (Metrology) Rule 2006	1415
11.5.1	Definitions	1415
11.5.2	Metrology procedures continues to apply until 31 December 2006	1415
11.5.3	Responsible person	1415
11.5.4	NEMMCO’s responsibility to develop a metrology procedure	1415
11.5.5	Jurisdictional metrology material in the metrology procedure	1416
Part E	Economic Regulation of Transmission Services (2006 amendments)	1417
11.6	Rules consequent on making of the National Electricity Amendment (Economic Regulation of Transmission Services) Rule 2006	1417
11.6.1	Definitions	1417
11.6.2	New Chapter 6A does not affect existing revenue determinations	1418
11.6.3	Old Part C and Schedules 6.2, 6.3, 6.4, 6.7 and 6.8 of old Chapter 6	1419
11.6.4	Old Part F of Chapter 6	1419
11.6.5	Application of new Chapter 6A to Transmission Network Service Providers	1419
11.6.6	Application of Chapter 6 to old distribution matters	1419
11.6.7	References to the old Chapter 6	1419
11.6.8	References to provisions of the old Chapter 6	1420
11.6.9	Roll forward of regulatory asset base for first regulatory control period	1420
11.6.10	Other adjustment carry-over mechanisms from current to first regulatory control period	1420
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	1420
11.6.12	Powerlink transitional provisions	1423
11.6.13	ElectraNet easements transitional provisions	1427
11.6.14	TransGrid contingent projects	1427
11.6.15	Transmission determination includes existing revenue determinations	1428
11.6.16	References to regulatory control period	1428
11.6.17	Consultation procedure for first proposed guidelines	1428
11.6.18	Reliance on proposed guidelines for SP AusNet, VENCorp and ElectraNet	1429
11.6.19	EnergyAustralia transitional provisions	1429
11.6.20	Basslink transitional provisions	1432
11.6.21	SPI Powernet savings and transitional provision	1433
11.6.22	Interim arrangements pricing-related information	1435
Part F	Reform of Regulatory Test Principles (2006 amendments)	1435
11.7	Rules consequent on making of the National Electricity Amendment (Reform of the Regulatory Test Principles) Rule 2006	1435
11.7.1	Definitions	1435
11.7.2	Amending Rule does not affect old clause 5.6.5A	1436
Part G	Pricing of Prescribed Transmission Services (2006 amendments)	1436
11.8	Rules consequent on making the National Electricity Amendment (Pricing of Prescribed Transmission Services) Rule 2006	1436
11.8.1	Definitions	1436
11.8.2	Regulated interconnectors	1437
11.8.3	Application of new Part J of Chapter 6A to Transmission Network Service Providers	1437
11.8.4	Reliance on agreed interim guideline for ElectraNet, SPAusNet, and VenCorp	1437
11.8.5	Prudent discounts under existing agreements	1438
11.8.6	Application of prudent discounts regime under rule 6A.26	1438
11.8.7	Prudent discounts pending approval of pricing methodology	1438
Part H	Reallocations (2007 amendments)	1439
11.9	Rules consequent on the making of the National Electricity Amendment (Reallocations) Rule 2007	1439
11.9.1	Definitions	1439
11.9.2	Existing and transitional reallocations	1440
Part I	Technical Standards for Wind Generation (2007 amendments)	1440
11.10	Rules consequent on making of the National Electricity Amendment (Technical Standards for Wind Generation and other Generator Connections) Rule 2007	1440
11.10.1	Definitions	1440
11.10.2	Provision of information under S5.2.4 in registration application	1440
11.10.3	Access standards made under the old Chapter 5	1441
11.10.4	Modifications to plant by Generators	1441
11.10.5	Technical Details to Support Application for Connection and Connection Agreement	1441
11.10.6	Transitional arrangements for establishment of performance standards	1442
11.10.7	Jurisdictional Derogations for Queensland	1442
11.10A	Rules consequent on the making of the National Electricity Amendment (Central Dispatch and Integration of Wind and Other Intermittent Generation) Rule 2008	1442
11.10A.1	Definitions	1442
11.10A.2	Registration and reclassification of classified generating units	1443
11.10A.3	Registered generating unit	1444
11.10A.4	Classification of potential semi-scheduled generating unit	1444
11.10A.5	Participant fees	1444
11.10A.6	Timetable	1445
11.10A.7	Procedure for contribution factors for ancillary service transactions	1445
11.10A.8	Guidelines for energy conversion model information	1445
Part J	Cost Recovery of Localised Regulation Services (2007 amendments)	1446
11.11	Rules consequent on making of the National Electricity Amendment (Cost Recovery of Localised Regulation Services) Rule 2007	1446
11.11.1	Definitions	1446
11.11.2	Action taken by NEMMCO for the purposes of Amending Rule	1446
11.12	[Deleted]	1446
Part L	[Deleted]	1446
Division 1	General Provisions	1446
11.14	General provisions	1446
Part M	Economic Regulation of Distribution Services (2007 amendments)	1450
Division 1	General Provisions	1450
11.14	General provisions	1450
Division 2	[Deleted]	1454
Division 3	Transitional arrangements for first distribution determination for Queensland Distribution Network Service Providers	1454
11.16	Transitional arrangements for first distribution determination for Queensland Distribution Network Service Providers	1454
Division 4	Transitional provisions of specific application to Victoria	1457
11.17	Transitional provisions of specific application to Victoria	1457
Part N	Registration of Foreign Based Persons and Corporations as Trader Class Participants (2007 amendments)	1460
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	1460
11.18.1	Definitions	1460
11.18.2	Auction rules	1460
Part O	Process for Region Change (2007 amendments)	1460
11.19	Rules consequent on making of the National Electricity Amendment (Process for Region Change) Rule 2007	1460
11.19.1	Definitions	1460
11.19.2	Regions Publication	1460
Part P	Integration of NEM Metrology Requirements	1461
11.20	Rules consequential on the making of the National Electricity Amendment (Integration of NEM Metrology Requirements) Rule 2008	1461
11.20.1	Definitions	1461
11.20.2	Metering installations for non-market generating units immediately prior to 30 June 2008	1461
11.20.3	First-tier load metering installations	1462
11.20.4	First-tier load metering installations in Victoria	1462
11.20.5	Minimalist Transitioning Approach in Queensland	1462
11.20.6	First-tier jurisdictional requirements publication	1462
11.20.7	Metrology procedure	1463
Part PA	Reliability Settings: Information Safety Net and Directions	1463
11.21	Rules consequential on the making of the National Electricity Amendment (NEM Reliability Settings: Information Safety Net and Directions) Rule 2008	1463
11.21.1	Definitions	1463
11.21.2	EAAP guidelines	1463
11.21.3	[Deleted]	1463
11.21.4	[Deleted]	1463
11.21.5	Timetable	1463
11.21.6	Power system security and reliability standards	1464
11.21.7	Report on statement of opportunities	1464
11.21.8	Methodology for dispatch prices and ancillary services prices	1464
Part Q	Regulatory Test Thresholds and Information Disclosure on Network Replacements	1464
11.22	Rules consequential on the making of the National Electricity Amendment (Regulatory Test Thresholds and Information Disclosure on Network Replacements) Rule 2008	1464
11.22.1	Definitions	1464
11.22.2	Amending Rule does not affect existing regulatory test	1465
Part R	Performance Standard Compliance of Generators	1465
11.23	Rules consequential on the making of the National Electricity Amendment (Performance Standards Compliance of Generators) Rule 2008	1465
11.23.1	Definitions	1465
11.23.2	Application of rule 11.23 for compliance programs implemented immediately after the commencement of the Amending Rule	1465
11.23.3	Application of rule 11.23 for compliance programs implemented immediately prior to the commencement of the Amending Rule	1466
11.23.4	Application of rule 11.23 for compliance programs not implemented immediately prior to the commencement of the Amending Rule	1466
Part S	[Deleted]	1466
Part U	Confidentiality Arrangements concerning Information required for Power System Studies	1466
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	1466
11.25.1	Definitions	1466
11.25.2	Transitional arrangements for the provision of information	1466
Part V	WACC Reviews: Extension of Time	1468
11.26	Rule consequential on the making of the National Electricity Amendment (WACC Reviews: Extension of Time) Rule 2009	1468
11.26.1	Definitions	1468
11.26.2	Extension of time to submit a regulatory proposal for the regulatory control period 2010-2015	1468
Part W	National Transmission Statement	1468
11.27	Rules consequent on the making of the National Electricity Amendment (National Transmission Statement) Rule 2009	1468
11.27.1	Definitions	1468
11.27.2	Purpose	1469
11.27.3	Application of rule 11.27	1469
11.27.4	National Transmission Statement	1469
11.27.5	Scope and Content of National Transmission Network Development Plan	1471
11.27.6	Energy Adequacy Assessment Projection	1471
11.27.7	Amendment to Last Resort Power	1472
11.27.8	Actions taken prior to commencement of Rule	1472
Part X	National Transmission Planning	1472
11.28	Rules consequential on the making of the National Electricity (Australian Energy Market Operator) Amendment Rules 2009	1472
11.28.1	Definitions	1472
11.28.2	Jurisdictional planning bodies and representatives	1472
11.28.3	Criteria and guidelines published by Inter-regional Planning Committee	1473
11.28.4	Augmentation technical reports	1473
11.28.5	Last Resort Planning Power	1473
11.28.6	Inter-network power system tests	1474
11.28.7	Control and protection settings for equipment	1474
11.28.8	Revenue Proposals	1474
Part Y	Regulatory Investment Test for Transmission	1474
11.29	Rules consequent on making of the National Electricity Amendment (Regulatory Investment Test for Transmission) Rule 2009	1474
11.29.1	Definitions	1474
11.29.2	Period when Amending Rule applies to transmission investment	1475
Part Z	Congestion Information Resource	1476
11.30	Rules consequent on the making of the National Electricity Amendment (Congestion Information Resource) Rule 2009	1476
11.30.1	Definitions	1476
11.30.2	Interim congestion Information resource	1476
Part ZA	Reliability and emergency reserve trader (2009 amendments)	1478
11.31	Rules consequent on the making of the National Electricity Amendment (Improved RERT Flexibility and Short-notice Reserve Contracts) Rule 2009	1478
11.31.1	Definitions	1478
11.31.2	Purpose	1478
11.31.3	Amendments to Reliability Panel's RERT Guidelines	1479
11.31.4	Amendments to AEMO's RERT procedures for exercising the RERT	1479
Part ZB	Early Application of Market Impact Parameters	1480
11.32	Rules consequent on the making of the National Electricity Amendment (Early Implementation of Market Impact Parameters) Rule 2010	1480
11.32.1	Definitions	1480
11.32.2	Purpose	1481
11.32.3	Early application of the market impact component of the service target performance incentive scheme	1481
Part ZC	Transparency of operating data	1484
11.33	Rules consequential on the making of National Electricity Amendment (Transparency of Operating Data) Rule 2010	1484
11.33.1	Definitions	1484
11.33.2	Spot market operations timetable	1484
Part ZD	Cost Recovery for Other Services Directions	1486
11.34	Rules consequent on making of the National Electricity Amendment (Cost Recovery for Other Services Directions) Rule 2010	1486
11.34.1	Definitions	1486
11.34.2	Period when Amending Rules applies to funding of compensation	1487
Part ZE	Payments under Feed-in Schemes and Climate Change Funds	1487
11.35	Rules consequential on the making of the National Electricity Amendment (Payments under Feed-in Schemes and Climate Change Funds) Rule 2010	1487
11.35.1	Definitions	1487
11.35.2	Application of recovery of jurisdictional scheme Rules	1488
11.35.3	Reporting on jurisdictional schemes	1489
11.35.4	Revocation and substitution of distribution determination for jurisdictional scheme recovery	1490
Part ZF	Transitional Arrangements for Ministerial Smart Meter Roll Out Determinations	1491
11.36	Ministerial Smart Meter Roll Out Determinations	1491
11.36.1	Definitions	1491
11.36.2	Meaning of relevant metering installation	1491
11.36.3	Period of application of rule to relevant metering installation	1492
11.36.4	Designation of responsible person	1492
11.36.5	[Deleted]	1492
11.36.6	[Deleted]	1492
Part ZG	Provision of Metering Data Services and Clarification of Existing Metrology Requirements	1492
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	1492
11.37.1	Definitions	1492
11.37.2	Commencement of special site or technology related conditions	1492
11.37.3	Initial service level procedures	1493
Part ZH	Spot Market Operations Timetable	1493
11.38	Rules consequential on the making of National Electricity Amendment (Amendments to PASA-related Rules) Rule 2010	1493
11.38.1	Definitions	1493
11.38.2	Spot market operations timetable	1494
Part ZI	DNSP Recovery of Transmission-related Charges	1494
11.39	Rules consequential on the making of the National Electricity Amendment (DNSP Recovery of Transmission-related Charges) Rule 2011	1494
11.39.1	Definitions	1494
11.39.2	Recovery by Victorian distribution network service providers during current regulatory control period	1495
11.39.3	Recovery by Victorian distribution network service providers for shared network augmentations	1496
11.39.4	Bairnsdale network support agreement	1496
11.39.5	Approval of pricing proposal	1496
11.39.6	Ergon Energy transitional charges	1496
11.39.7	Energex transitional charges	1496
Part ZJ	Network Support and Control Ancillary Services	1496
11.40	Rules consequential on the making of the National Electricity Amendment (Network Support and Control Ancillary Services) Rule 2011	1496
11.40.1	Definitions	1496
11.40.2	Purpose	1497
11.40.3	Existing NCAS contracts to continue	1497
11.40.4	Amendments to existing guidelines	1497
11.40.5	New procedures	1498
11.40.6	Decisions and actions taken prior to Amending Rule	1498
Part ZK	Application of Dual Marginal Loss Factors	1498
11.41	Rules consequential on the making of the National Electricity Amendment (Application of Dual Marginal Loss Factors) Rule 2011	1498
11.41.1	Definitions	1498
11.41.2	Amendments to loss factor methodology	1499
11.41.3	Procedure applying dual intra-regional loss factors in central dispatch and spot market transactions	1499
11.41.4	Publication of intra-regional loss factors	1499
Part ZL	Tasmania Tranche 5a Procedure Changes	1499
11.42	Rules consequential on the making of the National Electricity Amendment (Tasmania Tranche 5a Procedure Changes) Rule 2011	1499
11.42.1	Definitions	1499
11.42.2	AEMO may amend Relevant Procedures	1500
Part ZM	Application and Operation of Administered Price Periods	1500
11.43	Rules consequential on the making of National Electricity Amendment (Application and Operation of Administered Price Periods) Rule 2011	1500
11.43.1	Definitions	1500
11.43.2	Administered Price Cap Schedule	1501
Part ZO	Negative Intra-regional Settlements Residue	1501
11.45	Rules consequential on the making of National Electricity Amendment (Negative Intra-regional Settlements Residue) Rule 2012	1501
11.45.1	Definitions	1501
11.45.2	Recovery of negative settlements residue prior to consultation under the Amending Rule	1502
11.45.3	First consultation on negative intra-regional settlements residue procedure	1502
Part ZP	Interim Connection Charging Rules	1503
11.46	Rules consequential to the insertion of Chapter 5A by the National Electricity (National Energy Retail Law) Amendment Rule 2012	1503
Division 1	Preliminary	1503
Division 2	Jurisdictional differences	1505
Division 3	General provisions	1513
Part ZQ	NSW transitional retail support and credit support rules	1513
11.47	Rules consequential on the insertion of Chapter 6B by the National Electricity (National Energy Retail Law) Amendment Rule 2012	1513
Division 1	Preliminary	1513
Part ZR	Miscellaneous transitional rules—NERL	1519
11.48	Rules consequential on the making of the National Electricity (National Energy Retail Law) Amendment Rule 2012	1519
11.48.1	Extension of time period for AER to consider certain pass through applications	1519
Part ZS	Cost pass through arrangements for Network Service Providers	1520
11.49	Rules consequential on the making of National Electricity Amendment (Cost pass through arrangements for Network Service Providers) Rule 2012	1520
11.49.1	Definitions	1520
11.49.2	Terrorism event is a cost pass through event in the current regulatory control period	1520
11.49.3	Transitional arrangement for Powerlink	1520
11.49.4	Transitional arrangements for ElectraNet and Murraylink	1521
Part ZT	Distribution Network Planning and Expansion	1521
11.50	Rules consequential on the making of the National Electricity Amendment (Distribution Network Planning and Expansion) Rule 2012	1521
11.50.1	Interpretation	1521
11.50.2	Definitions	1522
11.50.3	Timing for first Distribution Annual Planning Report	1522
11.50.4	Contents of Distribution Annual Planning Report	1522
11.50.5	Transition from the regulatory test to the regulatory investment test for distribution	1524
Part ZU	New Prudential Standard and Framework in the NEM	1525
11.51	Rules consequential on the making of the National Electricity Amendment (New Prudential Standard and Framework in the NEM) Rule 2012	1525
11.51.1	Definitions	1525
11.51.2	AEMO's responsibility to develop and publish the credit limit procedures	1525
11.51.3	Transition to the framework for determining prudential settings	1525
11.51.4	Prior consultation, step, decision or action taken by AEMO	1526
Part ZV	Small Generation Aggregator Framework	1526
11.52	Rules consequential on the making of the National Electricity Amendment (Small Generation Aggregator Framework) Rule 2012	1526
11.52.1	Definitions	1526
11.52.2	Commencement of participant fees as well as transactions, funding and settlements under Chapter 3 for Market Small Generation Aggregators	1527
11.52.3	Participant fees for Market Small Generation Aggregators	1527
11.52.4	Ancillary service transactions, funding of compensation for directions and intervention settlements for directions for Market Small Generation Aggregators	1528
11.52.5	Amendments to the carbon dioxide equivalent intensity index procedures	1528
11.52.6	Amendments of the metrology procedures	1529
11.52.7	Amendments to the Market Settlement and Transfer Solution Procedures	1529
Part ZW	Economic Regulation of Network Service Providers (2012 amendments)	1530
Division 1	Miscellaneous transitional provisions	1530
11.53	Publication of Chapter 6 Guidelines	1530
11.54	Publication of Chapter 6A Guidelines	1531
Division 2	Transitional provisions for NSW/ACT Distribution Network Service Providers	1533
11.55	General provisions	1533
11.56	Special provisions applying to affected DNSPs	1536
Division 3	Transitional provisions for NSW and Tasmanian Transmission Network Service Providers and Directlink	1548
11.57	General provisions	1548
11.58	Special provisions applying to affected TNSPs	1551
Division 4	Transitional provisions for the Victorian TNSP	1560
11.59	Special provisions applying to the Victorian TNSP	1560
Division 5	Transitional provisions for Qld/SA and Victorian Distribution Network Service Providers	1562
11.60	Special provisions applying to the Qld/SA and Victorian Distribution Network Service Providers	1562
Division 6	Review of past capital expenditure	1568
11.61	Definitions and application	1568
11.62	Review of past capital expenditure under Chapter 6	1568
11.63	Review of past capital expenditure under Chapter 6A	1569
Part ZX	Inter-regional Transmission Charging	1569
11.64	Rules consequent on the making of the National Electricity Amendment (Inter-regional Transmission Charging) Rule 2013	1569
11.64.1	Definitions	1569
11.64.2	Amendments to the pricing methodology guidelines	1570
11.64.3	Amendments to the pricing methodologies of Transmission Network Service Providers	1570
11.64.4	Commencement of clause 6A.23.3(f) for further adjustments	1571
Part ZY	Network Service Provider Expenditure Objectives	1571
11.65	Rules consequent on the making of the National Electricity Amendment (Network Service Provider Expenditure Objectives) Rule 2013	1571
11.65.1	Definitions	1571
11.65.2	Application of rule 11.65	1572
Part ZZ	Access to NMI Standing Data	1572
11.66	Rules consequent on the making of the National Electricity Amendment (Access to NMI Standing Data) Rule 2013	1572
11.66.1	Definitions	1572
11.66.2	Minor amendment of the Market Settlement and Transfer Solution Procedures	1572
Part ZZA	Publication of Zone Substation Data	1573
11.67	Rules consequent on the making of the National Electricity Amendment (Publication of Zone Substation Data) Rule 2014	1573
11.67.1	Definitions	1573
11.67.2	Distribution Network Service Providers' obligations to commence on the next DAPR date	1573
Part ZZB	Connecting Embedded Generators	1573
11.68	Rules consequential on the making of the National Electricity Amendment (Connecting embedded generators) Rule 2014	1573
11.68.1	Definitions	1573
11.68.2	Continuation of enquiries lodged	1574
Part ZZC	Customer access to information about their energy consumption	1574
11.69	Rules consequential on the making of the National Electricity Amendment (Customer access to information about their energy consumption) Rule 2014	1574
11.69.1	Definitions	1574
11.69.2	AEMO to develop and publish the metering data provision procedure	1574
Part ZZD	National Electricity Amendment (Distribution Network Pricing Arrangements) Rule 2014	1574
Division 1	Miscellaneous transitional provisions	1574
11.70	General provisions	1574
11.70.1	Definitions	1574
Division 2	Transitional provisions for NSW/ACT and Qld/SA Distribution Network Service Providers	1577
11.72	General provisions	1577
11.772.1	Definitions	1577
Division 3	Transitional provisions for Tasmanian Distribution Network Service Provider	1584
11.74	Application of former Chapter 6	1584
Division 4	Transitional provisions for Victorian Distribution Network Service Providers	1584
11.75	General provisions	1584
11.75.1	Definitions	1584
11.76	Special provisions applying to affected DNSPs	1584
11.76.1	Distribution determination and pricing proposals	1584
11.76.2	Tariff structure statement	1585
Part ZZE	Early Application of Network Capability Component (STPIS)	1591
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	1591
11. 77.1	Definitions	1591
11.77.2	Purpose	1592
11.77.3	Earlier application of the network capability component of the service target performance incentive scheme	1592
Part ZZF	National Electricity Amendment (Governance arrangements and implementation of the reliability standard and settings) Rule 2015	1594
11.78	Rules consequent on the making of the National Electricity Amendment (Governance arrangements and implementation of the reliability standards and settings) Rule 2015	1594
11.78.1	Definitions	1594
11.78.2	Existing power system security and reliability standards	1595
11.78.3	Reliability standard and settings guidelines	1595
11.78.4	Reliability standard implementation guidelines	1595
Part ZZG	Improving demand side participation information provided to AEMO by registered participants	1598
11.79	Rules consequential on making of the National Electricity Amendment (Improving demand side participation information provided to AEMO by registered participants) Rule 2015	1598
11.79.1	AEMO to develop and publish the demand side participation information guidelines	1598
Part ZZH	Transitional Arrangements for Aligning TasNetworks' regulatory control periods	1598
11.80	National Electricity Amendment (Aligning TasNetworks' regulatory control periods) Rule 2015	1598
11.80.1	Definitions	1598
11.80.2	Application of rule 11.80	1599
11.80.3	Next regulatory control period	1599
11.80.4	Subsequent regulatory control period	1599
Part ZZI	System Restart Ancillary Services	1599
11.81	Rules consequential on the making of the National Electricity Amendment (System Restart Ancillary Services) Rule 2015	1599
11.81.1	Definitions	1599
11.81.2	System restart standard	1600
11.81.3	SRAS Guideline	1600
11.81.4	Regional Benefit Ancillary Services Procedures	1600
11.81.5	Consultation prior to the Commencement Date	1600
11.81.6	Existing SRAS Contract	1600
Part ZZJ	Demand management incentive scheme	1601
11.82	Rules consequential on making of the National Electricity Amendment (Demand management incentive scheme) Rule 2015	1601
11.82.1	Definitions	1601
11.82.2	AER to develop and publish the demand management incentive scheme and demand management innovation allowance mechanism	1601
Part ZZK	AEMO access to demand forecasting information	1601
11.83	Rules consequential on the making of the National Electricity Amendment (AEMO access to demand forecasting information) Rule 2015	1601
11.83.1	AEMO to include supporting information in NTNDP database	1601
Part ZZL	Compensation arrangements following application of an Administered Price Cap or Administered Floor Price	1602
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	1602
11.84.1	Definitions	1602
11.84.2	Compensation Guidelines	1602
Part ZZM	Common definitions of distribution reliability measures	1602
11.85	Rules consequential on the making of the National Electricity Amendment (Common definitions of distribution reliability measures) Rule 2015	1602
11.85.1	Definitions	1602
11.85.2	Distribution reliability measures guidelines	1603
11.85.3	Amended STPIS	1603
Part ZZN	Expanding competition in metering and metering related services	1603
11.86	Rules consequent on making of the National Electricity Amendment (Expanding competition in metering and related services) Rule 2015	1603
11.86.1	Definitions	1603
11.86.2	References to old Chapter 7	1603
11.86.3	References to provisions of the old Chapter 7	1604
11.86.4	References to responsible person	1604
11.86.5	Continued operation of old Rules until the effective date	1604
11.86.6	New and amended procedures	1604
11.86.7	Metering Coordinator for type 5 or 6 metering installation from effective date	1605
11.86.8	Distribution Ring Fencing Guidelines	1608
11.86.9	[Deleted]	1608
Part ZZO	Embedded Networks	1608
11.87	Rules consequential on the making of the National Electricity Amendment (Embedded Networks) Rule 2015	1608
11.87.1	Definitions	1608
11.87.2	Amended Procedures and NMI Standing Data Schedule	1609
11.87.3	ENM service level procedures and guide to embedded networks and list of Embedded Network Managers	1609
11.87.4	Exemptions under section 13 of the National Electricity Law	1609
Part ZZP	Meter Replacement Processes	1610
11.88	Rules consequential on the making of the National Electricity Amendment (Meter Replacement Processes) Rule 2016	1610
11.88.1	Definitions	1610
11.88.2	Amended Procedures	1610
Part ZZQ	Energy Adequacy Assessment Projection	1611
11.89	Rules consequential to the National Electricity Amendment (Energy Adequacy Assessment Projection timeframes) Rule 2016	1611
11.89.1	Amended guideline and timetable	1611
Part ZZR	Reliability and emergency reserve trader (2016 amendments)	1611
11.90	Rules consequent on the making of the National Electricity Amendment (Extension of the Reliability and Emergency Reserve Trader) Rule 2016	1611
11.90.1	Definitions	1611
11.90.2	Amendments to Reliability Panel's RERT Guidelines	1611
11.90.3	Amendments to AEMO's RERT procedures	1611
11.90.4	Reserve contracts entered into before Schedule 2 commencement date	1612
Part ZZS	Updating the electricity B2B framework	1612
11.91	Rules consequential on the making of the National Electricity Amendment (Updating the electricity B2B framework) rule 2016	1612
11.91.1	Definitions	1612
11.91.2	B2B Procedures	1613
11.91.3	Information Exchange Committee Election Procedures and Information Exchange Committee Operating Manual	1613
11.91.4	The New IEC	1614
11.91.5	Amended Procedures	1615
11.91.6	B2B e-Hub Participant accreditation process	1616
11.91.7	New IEC Budget and 2016 Annual Report	1616
11.91.8	Cost recovery	1617
Part ZZT	Application of Offsets in the Prudential Margin Calculation	1617
11.92	Rules consequential on the making of the National Electricity Amendment (Application of Offsets in the Prudential Margin Calculation) Rule 2016	1617
11.92.1	Definitions	1617
11.92.2	Amended procedures	1617
Part ZZU	Rate of Return Guidelines Review	1618
11.93	Rules consequential on the making of the National Electricity Amendment (Rate of Return Guidelines Review) Rule 2016	1618
11.93.1	Definitions	1618
11.93.2	Application of current rate of return guidelines to making of a distribution determination for the subsequent regulatory control period	1619
Part ZZV	Demand Response Mechanism and Ancillary Services Unbundling	1620
11.94	Rules consequential on the making of the National Electricity Amendment (Demand Response Management and Ancillary Services Unbundling) rule 2016	1620
11.94.1	Definitions	1620
11.94.2	Participant fees for Market Ancillary Service Providers	1620
Part ZZW	Local Generation Network Credits	1620
11.95	Rules consequential on the making of the National Electricity Amendment (Local Generation Network Credits) Rule 2016	1620
11.95.1	Definitions	1620
11.95.2	System limitation template	1620
Part ZZX	Retailer-Distributor Credit Support Requirements	1621
11.96	Rules consequent on the making of the National Electricity Amendment (Retailer Distributor Credit Support Requirements) Rule 2017 No. 1	1621
11.96.1	Definitions	1621
11.96.2	Continued operation of old Chapter 6B	1621
11.96.3	Interaction with Chapter 6	1621
11.96.4	Application of new Chapter 6B	1621
Part ZZY	Emergency Frequency Control Schemes	1622
11.97	Rules consequent on the making of the National Electricity Amendment (Emergency frequency control schemes) Rule 2017	1622
11.97.1	 Definitions	1622
11.97.2	Interim frequency operating standards for protected events	1622
11.97.3	First power system frequency risk review	1623
11.97.4	AEMO must review existing load shedding procedures	1623
11.97.5	Load shedding procedures	1623
Part ZZZ	Transmission Connection and Planning Arrangements	1624
11.98	Rules consequential on the making of the National Electricity Amendment (Transmission Connection and Planning Arrangements) Rule 2017	1624
11.98.1	Definitions	1624
11.98.2	Grandfathering of existing dedicated connection assets	1625
11.98.3	Preparatory steps for registration changes under the Amending Rule	1626
11.98.4	Participant fees for Dedicated Connection Asset Service Providers	1626
11.98.5	Existing Connection Agreements	1626
11.98.6	Connection process	1627
11.98.7	Transmission Annual Planning Report	1627
11.98.8	Preservation for adoptive jurisdictions	1627
Part ZZZA	Replacement expenditure planning arrangements	1628
11.99	Rules consequential on the making of the National Electricity Amendment (Replacement expenditure planning arrangements) Rule 2017	1628
11.99.1	Definitions	1628
11.99.2	Interpretation	1629
11.99.3	Transitional arrangements for affected DNSPs	1629
11.99.4	Amendments to RIT documentation	1630
11.99.5	Transitional arrangements relating to excluded projects	1630
11.99.6	Transitional arrangements relating to Victorian bushfire mitigation projects	1630
11.99.7	Transitional arrangements relating to review of costs thresholds	1631
Part ZZZB 	Managing the rate of change of power system frequency	1631
11.100	Rules consequential on the making of the National Electricity Amendment (Managing the rate of change of power system frequency) Rule 2017	1631
11.100.1	Definitions	1631
11.100.2	Inertia sub-networks	1632
11.100.3	Inertia requirements methodology	1632
11.100.4	Inertia requirements	1633
11.100.5	NSCAS not to be used to meet an inertia shortfall after 1 July 2019	1633
11.100.6	Inertia network services may be used to meet an NSCAS gap declared in the NSCAS transition period	1634
11.100.7	Inertia network services made available before the commencement date	1634
Part ZZZC	Managing power system fault levels	1635
11.101 	Rules consequential on the making of the National Electricity Amendment (Managing power system fault levels) Rule 2017	1635
11.101.1 	Definitions	1635
11.101.2	System strength impact assessment guidelines	1636
11.101.3	System strength requirements methodology	1636
11.101.4	System strength requirements	1637
11.101.5	NSCAS not to be used to meet a fault level shortfall after 1 July 2019	1637
11.101.6	System strength services may be used to meet an NSCAS gap declared in the NSCAS transition period	1638
11.101.7	Withdrawal of a system strength-related NSCAS gap already declared	1638
11.101.8	System strength services made available before the commencement date	1639
Part ZZZD	Generating System Model Guidelines	1639
11.102	Making of Power System Model Guidelines	1639
Part ZZZE	Five Minute Settlement	1639
11.103	Rules consequential on the making of the National Electricity Amendment (Five Minute Settlement) Rule 2017	1639
11.103.1	Definitions	1639
11.103.2	Amendments to procedures	1640
11.103.3.	Exemption for certain metering installations	1641
11.103.4	New or replacement meters	1642
11.103.5	Metering installations exempt from metering data provision requirements	1642
11.103.6	Exemption from meter data storage requirements	1642
11.103.7	Default offers and bids submitted prior to the commencement date	1642
Part ZZZF	Contestability of energy services	1642
11.104	Rules consequential on the making of the National Electricity Amendment (Contestability of energy services) Rule 2017	1642
11.104.1	Definitions	1642
11.104.2	New guidelines	1644
11.104.3	Transitional arrangements for application of Distribution Service Classification Guidelines and service classification provisions	1644
11.104.4	Transitional arrangements for application of Asset Exemption Guidelines, exemption applications and asset exemption decisions	1645
11.104.5	Transitional arrangements for adjustment in value of regulatory asset base	1646
Part ZZZG	Declaration of lack of reserve conditions	1647
11.105	Making of lack of reserve declaration guidelines	1647
11.105.1	Definitions	1647
11.105.2	Making of lack of reserve declaration guidelines	1647
Part ZZZH	Implementation of demand management incentive scheme	1647
11.106	Implementation of demand management incentive scheme	1647
11.106.1	Definitions	1647
11.106.2	Purpose	1647
11.106.3	Early application of revised demand management incentive scheme	1648
Part ZZZI	Reinstatement of long notice Reliability and Emergency Reserve Trader	1649
11.107	Rules consequential on the making of the National Electricity Amendment (Reinstatement of long notice Reliability and Emergency Reserve Trader) Rule 2018	1649
11.107.1	Definitions	1649
11.107.2	New RERT guidelines	1650
11.107.3	Amendments to RERT procedures	1653
11.107.4	Reserve contracts entered into before the commencement date	1654
Part ZZZJ	Register of distributed energy resources	1654
11.108	Rules consequential on the making of the National Electricity Amendment (Register of distributed energy resources) Rule 2018	1654
11.108.1 	Definitions	1654
11.108.2	AEMO to develop and publish DER register information guidelines	1654
11.108.3	NSPs to provide AEMO with existing DER generation information	1654
Part ZZZK	Generator technical performance standards	1655
11.109	Rules consequential on the making of the National Electricity Amendment (Generator technical performance standards) Rule 2018	1655
11.109.1	Definitions	1655
11.109.2	Application of the Amending Rule to existing connection enquiries 	1655
11.109.3	Application of the Amending Rule to existing applications to connect	1656
11.109.4	Application of the Amending Rule to existing offers to connect	1659
11.109.5	Application of the Amending Rule to Existing Connection Agreements	1659