National Electricity Rules Version 114

Historical Information

This version of the National Electricity Rules was current from 9 November 2018 to 21 November 2018.

National Electricity Rules Version 114
Status Information
This is the latest electronically available version of the National Electricity Rules as at 9 November 2018.
This consolidated version of the National Electricity Rules was last updated on 9 November 2018 as a result of the commencement of the following amendments:
National Electricity Amendment (Minor changes 2) Rule 2018 No. 11
National Electricity Amendment (Generator three year notice of closure) Rule 2018 No. 12
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	15
2.2.3	Non-Scheduled Generator	16
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	22
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	44
2.10.3	Liability after cessation	44
2.11	Participant Fees	44
2.11.1A	Application	44
2.11.1	Development of Participant fee structure	44
2.11.2	Payment of Participant fees	47
2.11.3	Budgeted revenue requirements	48
2.12	Interpretation of References to Various Registered Participants	49
2A.	Regional Structure	55
Part A	Region change applications and region determinations by AEMC	55
2A.1	Introduction to Chapter 2A	55
2A.1.1	Definitions	55
2A.1.2	AEMC determination of regions	55
2A.1.3	Publication of regions by AEMO	55
2A.2	Region change applications	55
2A.2.1	A complete region change application	55
2A.2.2	Identifying a congestion problem	56
2A.2.3	Explanation of economic efficiency of proposed region solution	56
2A.2.4	Region change application must be technically competent	57
2A.2.5	Alternative congestion management options	57
2A.2.6	Previous application relating to congestion problem	58
2A.2.7	AEMO to provide information to intending applicants	58
2A.2.8	AEMC may refuse to accept incomplete applications	59
2A.3	Acceptance of region change application by AEMC	59
2A.3.1	Acceptance of a region change application by AEMC	59
2A.3.2	Preliminary consultation prior to acceptance of a region change application	60
2A.4	First round consultation on region change application	61
2A.4.1	Notice of first round consultation	61
2A.4.2	Right to make written submissions during first round consultation period	61
2A.4.3	Alternative region solution put forward by third parties	61
2A.4.4	Acceptance as a formal alternative region solution by AEMC	62
2A.5	Provision of supplementary economic analysis	63
2A.5.1	AEMC may direct provision of supplementary analysis	63
2A.5.2	AEMC may direct AEMO to provide information	63
2A.6	Region determinations	64
2A.6.1	AEMC powers to make a region determination	64
2A.6.2	Matters for consideration in making region determination	64
2A.7	Draft region determination and second round consultation	65
2A.7.1	Publishing of draft region determination	65
2A.7.2	Second round consultation	65
2A.7.3	Right to make written submissions during second round consultation	66
2A.8	Final region determination	66
2A.8.1	Final determination for region change	66
2A.8.2	Formal publication of region determination	66
2A.9	Miscellaneous matters for region change process	66
2A.9.1	AEMC may extend periods of time specified in Chapter 2A	66
2A.9.2	Consultation meeting in relation to region change application	67
Part B	Implementation of region determination	67
2A.10	Purpose and application of Part B	67
2A.10.1	Purpose of Part B	67
2A.10.2	Application of Part B	68
2A.11	Region Change Implementation Procedure	68
2A.11.1	Submission of draft Region Change Implementation Procedure	68
2A.11.2	Approved Region Change Implementation Procedure	68
2A.12	AEMO region change implementation functions	69
2A.12.1	General implementation functions	69
2A.12.2	Implementation functions referable to published implementation procedure	69
2A.12.3	Amendment of current or subsequent Regions and Loss Factors Publication	69
2A.13	Continuity of regions	69
Schedule 2A.1	Glossary for Chapter 2A	70
3.	Market Rules	75
3.1	Introduction to Market Rules	75
3.1.1	Purpose	75
3.1.1A	Definitions	75
3.1.2	[Deleted]	76
3.1.3	[Deleted]	76
3.1.4	Market design principles	76
3.1.5	Time for undertaking action	77
3.2	AEMO's Market Responsibilities	77
3.2.1	Market functions of AEMO	77
3.2.2	Spot market	78
3.2.3	Power system operations	78
3.2.4	Non-market ancillary services function	78
3.2.5	[Deleted]	79
3.2.6	Settlements	79
3.3	Prudential Requirements	79
3.3.1	Market Participant criteria	79
3.3.2	Credit support	79
3.3.3	Acceptable credit criteria	80
3.3.4	Acceptable credit rating	81
3.3.4A	Prudential standard	81
3.3.5	Amount of credit support	81
3.3.6	Changes to credit support	81
3.3.7	Drawings on credit support	82
3.3.8	Credit limit procedures and prudential settings	83
3.3.8A	Security Deposits	85
3.3.9	Outstandings	85
3.3.10	Trading limit	85
3.3.11	Call notices	86
3.3.12	Typical accrual	87
3.3.13	Response to Call Notices	87
3.3.13A	Application of monies in the security deposit fund	88
3.3.14	Potential value of a transaction	89
3.3.15	Trading margin	90
3.3.16	Limitation on entry of transactions	90
3.3.17	Scheduled prices	90
3.3.18	Additional credit support	91
3.3.19	Consideration of other Market Participant transactions	91
3.4	Spot Market	91
3.4.1	Establishment of spot market	91
3.4.2	Trading day and trading interval	92
3.4.3	Spot market operations timetable	92
3.5	Regions	93
3.5.1	[Deleted]	93
3.5.2	[Deleted]	93
3.5.3	[Deleted]	93
3.5.4	[Deleted]	93
3.5.5	[Deleted]	93
3.5.6	[Deleted]	93
3.6	Network Losses and Constraints	93
3.6.1	Inter-regional losses	93
3.6.2	Intra-regional losses	95
3.6.2A	Load and generation data used to determine inter-regional loss factor equations and intra-regional loss factors	98
3.6.3	Distribution losses	100
3.6.4	Network constraints	104
3.6.5	Settlements residue due to network losses and constraints	105
3.7	Projected Assessment of System Adequacy	107
3.7.1	Administration of PASA	107
3.7.2	Medium term PASA	108
3.7.3	Short term PASA	110
3.7A	Congestion information resource	113
3.7B	Unconstrained intermittent generation forecast	116
3.7C	Energy Adequacy Assessment Projection	117
3.7D	Demand side participation information	121
3.8	Central Dispatch and Spot Market Operation	123
3.8.1	Central Dispatch	123
3.8.2	Participation in central dispatch	125
3.8.3	Bid and offer aggregation guidelines	126
3.8.3A	Ramp rates	128
3.8.4	Notification of scheduled capacity	130
3.8.5	Submission timing	132
3.8.6	Generating unit offers for dispatch	132
3.8.6A	Scheduled network service offers for dispatch	134
3.8.7	Bids for scheduled load	136
3.8.7A	Market ancillary services offers	138
3.8.8	Validation of dispatch bids and offers	139
3.8.9	Default offers and bids	140
3.8.10	Network constraints	141
3.8.11	Ancillary services constraints	142
3.8.12	System scheduled reserve constraints	143
3.8.13	Notification of constraints	143
3.8.14	Dispatch under conditions of supply scarcity	143
3.8.15	[Deleted]	144
3.8.16	Equal priced dispatch bids and dispatch offers	144
3.8.17	Self-commitment	144
3.8.18	Self-decommitment	145
3.8.19	Dispatch inflexibilities	145
3.8.20	Pre-dispatch schedule	148
3.8.21	On-line dispatch process	150
3.8.22	Rebidding	151
3.8.22A	Offers, bids and rebids must not be false or misleading	153
3.8.23	Failure to conform to dispatch instructions	155
3.8.24	Scheduling errors	157
3.9	Price Determination	157
3.9.1	Principles applicable to spot price determination	157
3.9.2	Determination of spot prices	159
3.9.2A	Determination of ancillary services prices	161
3.9.2B	Pricing where AEMO determines a manifestly incorrect input	162
3.9.3	Pricing in the event of intervention by AEMO	163
3.9.3A	Reliability standard and settings review	164
3.9.3B	Reliability standard and settings review report	166
3.9.3C	Reliability standard	166
3.9.3D	Implementation of the reliability standard	167
3.9.4	Market Price Cap	168
3.9.5	Application of the Market Price Cap	169
3.9.6	Market Floor Price	169
3.9.6A	Application of the Market Floor Price	170
3.9.7	Pricing for constrained-on scheduled generating units	170
3.10	[Deleted]	171
3.11	Ancillary Services	171
3.11.1	Introduction	171
3.11.2	Market ancillary services	172
3.11.3	Acquisition of Network Support and Control Ancillary Service	173
3.11.4	Guidelines and objectives for acquisition of network support and control ancillary services	174
3.11.5	Tender process for network support and control ancillary services	174
3.11.6	Dispatch of network support and control ancillary services by AEMO	177
3.11.7	Guidelines and objectives for acquisition of system restart ancillary services by AEMO	178
3.11.8	Determination of electrical sub-network boundaries	179
3.11.9	Acquisition of system restart ancillary services by AEMO	179
3.11.10	Reporting	180
3.12	Market Intervention by AEMO	181
3.12.1	Intervention settlement timetable	181
3.12.2	Affected Participants and Market Customers entitlements to compensation in relation to AEMO intervention	182
3.12.3	Role of the Independent Expert in calculating payments in relation to intervention by AEMO	186
3.12A	Mandatory restrictions	189
3.12A.1	Restriction offers	189
3.12A.2	Mandatory restrictions schedule	190
3.12A.3	Acquisition of capacity	191
3.12A.4	Rebid of capacity under restriction offers	191
3.12A.5	Dispatch of restriction offers	191
3.12A.6	Pricing during a restriction price trading interval	192
3.12A.7	Determination of funding restriction shortfalls	192
3.12A.8	Cancellation of a mandatory restriction period	197
3.12A.9	Review by AEMC	198
3.13	Market Information	198
3.13.1	Provision of information	198
3.13.2	Systems and procedures	199
3.13.3	Standing data	200
3.13.4	Spot market	207
3.13.4A	Market ancillary services	212
3.13.5	Ancillary services contracting by AEMO	212
3.13.5A	Settlements residue auctions	213
3.13.6	[Deleted]	213
3.13.6A	Report by AEMO	213
3.13.7	Monitoring of significant variation between forecast and actual prices by AER	214
3.13.8	Public information	215
3.13.9	[Deleted]	216
3.13.10	Market auditor	216
3.13.11	[Deleted]	217
3.13.12	NMI Standing Data	217
3.13.12A	NMI Standing Data Schedule	221
3.13.13	Inter-network tests	221
3.13.14	Carbon Dioxide Equivalent Intensity Index	222
3.14	Administered Price Cap and Market Suspension	225
3.14.1	Cumulative Price Threshold and Administered Price Cap	225
3.14.2	Application of Administered Price Cap	226
3.14.3	Conditions for suspension of the spot market	228
3.14.4	Declaration of market suspension	229
3.14.5	Pricing during market suspension	230
3.14.6	Compensation due to the application of an administered price cap or administered floor price	232
3.15	Settlements	236
3.15.1	Settlements management by AEMO	236
3.15.2	Electronic funds transfer	237
3.15.3	Connection point and virtual transmission node responsibility	237
3.15.4	Adjusted energy amounts connection points	237
3.15.5	Adjusted energy - transmission network connection points	238
3.15.5A	Adjusted energy - virtual transmission nodes	238
3.15.6	Spot market transactions	239
3.15.6A	Ancillary service transactions	239
3.15.7	Payment to Directed Participants	252
3.15.7A	Payment to Directed Participants for services other than energy and market ancillary services	254
3.15.7B	Claim for additional compensation by Directed Participants	257
3.15.8	Funding of Compensation for directions	259
3.15.9	Reserve settlements	264
3.15.10	Administered price cap or administered floor price compensation payments	266
3.15.10A	Goods and services tax	267
3.15.10B	Restriction contract amounts	268
3.15.10C	Intervention Settlements	269
3.15.11	Reallocation transactions	272
3.15.11A	Reallocation procedures	274
3.15.12	Settlement amount	274
3.15.13	Payment of settlement amount	275
3.15.14	Preliminary statements	275
3.15.15	Final statements	276
3.15.15A	Use of estimated settlement amounts by AEMO	276
3.15.16	Payment by market participants	276
3.15.17	Payment to market participants	277
3.15.18	Disputes	277
3.15.19	Revised Statements and Adjustments	277
3.15.20	Payment of adjustments	279
3.15.21	Default procedure	280
3.15.22	Maximum total payment in respect of a billing period	285
3.15.23	Maximum total payment in respect of a financial year	286
3.15.24	Compensation for reductions under clause 3.15.23	287
3.15.25	Interest on overdue amounts	288
3.16	Participant compensation fund	288
3.16.1	Establishment of Participant compensation fund	288
3.16.2	Dispute resolution panel to determine compensation	289
3.17	[Deleted]	290
3.18	Settlements Residue Auctions	290
3.18.1	Settlements residue concepts	290
3.18.2	Auctions and eligible persons	292
3.18.3	Auction rules	293
3.18.3A	Secondary trading of SRD units	294
3.18.4	Proceeds and fees	294
3.18.4A	Secondary trading proceeds and margin	296
3.18.5	Settlement residue committee	297
3.19	Market Management Systems Access Procedures	298
3.20	Reliability and Emergency Reserve Trader	299
3.20.1	[Deleted]	299
3.20.2	Reliability and emergency reserve trader	299
3.20.3	Reserve contracts	300
3.20.4	Dispatch pricing methodology for unscheduled reserve contracts	301
3.20.5	AEMO’s risk management and accounts relating to the reliability safety net	301
3.20.6	Reporting on RERT by AEMO	301
3.20.7	AEMO’s exercise of the RERT	302
3.20.8	RERT Guidelines	304
3.20.9	[Deleted]	304
Schedule 3.1	Bid and Offer Validation Data	304
Schedule 3.2	[Deleted]	308
Schedule 3.3	[Deleted]	308
4.	Power System Security	311
4.1	Introduction	311
4.1.1	Purpose	311
4.2	Definitions and Principles	311
4.2.1	[Deleted]	312
4.2.2	Satisfactory Operating State	312
4.2.3	Credible and non-credible contingency events and protected events	312
4.2.3A	Re-classifying contingency events	313
4.2.3B	Criteria for re-classifying contingency events	315
4.2.4	Secure operating state and power system security	315
4.2.5	Technical envelope	316
4.2.6	General principles for maintaining power system security	317
4.2.7	Reliable Operating State	317
4.2.8	Time for undertaking action	318
4.3	Power System Security Responsibilities and Obligations	318
4.3.1	Responsibility of AEMO for power system security	318
4.3.2	System security	320
4.3.3	The role of System Operators	324
4.3.4	Network Service Providers	325
4.3.5	Market Customer obligations	330
4.4	Power System Frequency Control	331
4.4.1	Power system frequency control responsibilities	331
4.4.2	Operational frequency control requirements	331
4.4.3	Generator protection requirements	332
4.4.4	Instructions to enable inertia network services	332
4.4.5	Instructions to enable system strength services	334
4.5	Control of Power System Voltage	335
4.5.1	Power system voltage control	335
4.5.2	Reactive power reserve requirements	336
4.5.3	Audit and testing	336
4.6	Protection of Power System Equipment	336
4.6.1	Power system fault levels	336
4.6.2	Power system protection co-ordination	337
4.6.3	Audit and testing	337
4.6.4	Short-term thermal ratings of power system	337
4.6.5	Partial outage of power protection systems	337
4.6.6	System strength impact assessment guidelines	338
4.7	Power System Stability Co-ordination	339
4.7.1	Stability analysis co-ordination	339
4.7.2	Audit and testing	340
4.8	Power System Security Operations	340
4.8.1	Registered Participants' advice	340
4.8.2	Protection or control system abnormality	340
4.8.3	AEMO’s advice on power system emergency conditions	341
4.8.4	Declaration of conditions	341
4.8.4A	Reserve level declaration guidelines	341
4.8.4B	Lack of reserve framework reporting	342
4.8.5	Managing declarations of conditions	343
4.8.5A	Determination of the latest time for AEMO intervention	344
4.8.5B	Notifications of last time of AEMO intervention	345
4.8.6	[Deleted]	345
4.8.7	Managing a power system contingency event	345
4.8.8	[Deleted]	345
4.8.9	Power to issue directions and clause 4.8.9 instructions	345
4.8.9A	System security directions	348
4.8.10	Disconnection of generating units and market network services	348
4.8.11	[Deleted]	348
4.8.12	System restart plan and local black system procedures	348
4.8.13	[Deleted]	350
4.8.14	Power system restoration	350
4.8.15	Review of operating incidents	351
4.9	Power System Security Related Market Operations	353
4.9.1	Load forecasting	353
4.9.2	Instructions to Scheduled Generators and Semi-Scheduled Generators	354
4.9.2A	Dispatch Instructions to Scheduled Network Service Providers	355
4.9.3	Instructions to Registered Participants	355
4.9.3A	Ancillary services instructions	356
4.9.3B	Compliance with dispatch instructions	357
4.9.4	Dispatch related limitations on Scheduled Generators and Semi-Scheduled Generators	357
4.9.4A	Dispatch related limitations on Scheduled Network Service Providers	358
4.9.5	Form of dispatch instructions	359
4.9.6	Commitment of scheduled generating units	360
4.9.7	De-commitment, or output reduction, by Scheduled Generators	361
4.9.8	General responsibilities of Registered Participants	362
4.9.9	Scheduled Generator plant changes	363
4.9.9A	Scheduled Network Service Provider plant changes	363
4.9.9B	Ancillary service plant changes	364
4.9.9C	Inertia network service availability changes	364
4.9.9D	System strength service availability changes	364
4.10	Power System Operating Procedures	364
4.10.1	Power system operating procedures	364
4.10.2	Transmission network operations	365
4.10.3	Operating interaction with distribution networks	366
4.10.4	Switching of a Distributor's high voltage networks	366
4.10.5	Switching of reactive power facilities	367
4.10.6	Automatic reclose	367
4.10.7	Inspection of facilities by AEMO	367
4.11	Power System Security Support	367
4.11.1	Remote control and monitoring devices	367
4.11.2	Operational control and indication communication facilities	369
4.11.3	Power system voice/data operational communication facilities	369
4.11.4	Records of power system operational communication	371
4.11.5	Agent communications	372
4.12	Nomenclature Standards	373
4.13	[Deleted]	374
4.14	Acceptance of Performance Standards	374
4.15	Compliance with Performance Standards	375
4.16	Transitioning arrangements for establishment of performance standards	380
4.16.1	Definitions	380
4.16.2	Exclusions	382
4.16.3	Notification and acceptance of performance standards	382
4.16.4	Actual capability	387
4.16.5	Criteria for, and negotiation of, performance standards	388
4.16.6	Consultation with and assistance by Network Service Providers	391
4.16.7	Referral to expert determination	391
4.16.8	Prior actions	392
4.16.9	Deemed performance standards	392
4.16.10	Modification of connection agreements	393
4.17	Expert determination	393
4.17.1	Performance standards committee and appointment of performance standards experts	393
4.17.2	Referral to performance standards expert	395
4.17.3	Determinations of performance standards experts	395
4.17.4	Other matters	396
5.	Network Connection Access, Planning and Expansion	401
Part A	Introduction	401
5.1	Introduction to Chapter 5	401
5.1.1	Structure of this Chapter	401
5.1.2	Overview of Part B and connection and access under the Rules	401
Part B	Network Connection and Access	404
5.1A	Introduction to Part B	404
5.1A.1	Purpose and Application	404
5.1A.2	Principles	407
5.2	Obligations	407
5.2.1	Obligations of Registered Participants	407
5.2.2	Connection agreements	408
5.2.3	Obligations of network service providers	409
5.2.3A	Obligations of Market Network Service Providers	414
5.2.4	Obligations of customers	415
5.2.5	Obligations of Generators	416
5.2.6	Obligations of AEMO	418
5.2.6A	AEMO review of technical requirements for connection	418
5.2.7	Obligations of Dedicated Connection Asset Service Providers	419
5.2A	Transmission network connection and access	420
5.2A.1	Application	420
5.2A.2	Relevant assets	420
5.2A.3	Connection and access to transmission services	421
5.2A.4	Transmission services related to connection	423
5.2A.5	Publication and provision of information	426
5.2A.6	Negotiating principles	427
5.2A.7	Third party IUSAs	427
5.2A.8	Access framework for large dedicated connection assets	429
5.3	Establishing or Modifying Connection	431
5.3.1	Process and procedures	431
5.3.1A	Application of rule to connection of embedded generating units	431
5.3.2	Connection enquiry	432
5.3.3	Response to connection enquiry	433
5.3.4	Application for connection	437
5.3.4A	Negotiated access standards	439
5.3.4B	System strength remediation for new connections	443
5.3.5	Preparation of offer to connect	446
5.3.6	Offer to connect	447
5.3.7	Finalisation of connection agreements and network operating agreements	451
5.3.8	Provision and use of information	452
5.3.9	Procedure to be followed by a Generator proposing to alter a generating system	454
5.3.10	Acceptance of performance standards for generating plant that is altered	456
5.3.11	Notification of request to change normal voltage	457
5.3A	Establishing or modifying connection - embedded generation	457
5.3A.1	Application of rule 5.3A	457
5.3A.2	Definitions and miscellaneous	458
5.3A.3	Publication of Information	459
5.3A.4	Fees	461
5.3A.5	Enquiry	461
5.3A.6	Response to Enquiry	462
5.3A.7	Preliminary Response to Enquiry	463
5.3A.8	Detailed Response to Enquiry	463
5.3A.9	Application for connection	465
5.3A.10	Preparation of offer to connect	466
5.3A.11	Technical Dispute	467
5.3A.12	Network support payments and functions	467
5.3AA	Access arrangements relating to Distribution Networks	467
5.3B	Application for connection to declared shared network	471
5.4	Independent Engineer	472
5.4.1	Application	472
5.4.2	Establishment of a pool	472
5.4.3	Initiating the Independent Engineer process	473
5.4.4	Referral to the Adviser	473
5.4.5	Proceedings and decisions of the Independent Engineer	474
5.4.6	Costs of the Independent Engineer	475
5.4A	[Deleted]	475
5.4AA	[Deleted]	476
5.5	Commercial arbitration for prescribed and negotiated transmission services and large DCA services	476
5.5.1	Application	476
5.5.2	Notification of dispute	476
5.5.3	Appointment of commercial arbitrator	477
5.5.4	Procedures of commercial arbitrator	478
5.5.5	Powers of commercial arbitrator in determining disputes	478
5.5.6	Determination of disputes	480
5.5.7	Costs of dispute	481
5.5.8	Enforcement of agreement or determination and requirement for reasons	481
5.5.9	Miscellaneous	481
5.5A	[Deleted]	482
Part C	Post-Connection Agreement matters	482
5.6	Design of Connected Equipment	482
5.6.1	Application	482
5.6.2	Advice of inconsistencies	482
5.6.3	Additional information	483
5.6.4	Advice on possible non-compliance	483
5.6A	[Deleted]	483
5.7	Inspection and Testing	483
5.7.1	Right of entry and inspection	483
5.7.2	Right of testing	485
5.7.3	Tests to demonstrate compliance with connection requirements for generators	487
5.7.3A	Tests to demonstrate compliance with system strength remediation schemes	489
5.7.4	Routine testing of protection equipment	490
5.7.5	Testing by Registered Participants of their own plant requiring changes to normal operation	492
5.7.6	Tests of generating units requiring changes to normal operation	494
5.7.7	Inter-network power system tests	495
5.7.8	Contestable IUSA components	502
5.8	Commissioning	502
5.8.1	Requirement to inspect and test equipment	502
5.8.2	Co-ordination during commissioning	503
5.8.3	Control and protection settings for equipment	503
5.8.4	Commissioning program	504
5.8.5	Commissioning tests	504
5.9	Disconnection and Reconnection	505
5.9.1	Voluntary disconnection	505
5.9.2	Decommissioning procedures	506
5.9.3	Involuntary disconnection	506
5.9.4	Direction to disconnect	507
5.9.4A	Notification of disconnection	508
5.9.5	Disconnection during an emergency	508
5.9.6	Obligation to reconnect	508
Part D	Network Planning and Expansion	510
5.10	Network development generally	510
5.10.1	Content of Part D	510
5.10.2	Definitions	511
5.10.3	Interpretation	515
5.11	Forecasts of connection to transmission network and identification of system limitations	515
5.11.1	Forecasts for connection to transmission network	515
5.11.2	Identification of network limitations	516
5.12	Transmission annual planning process	516
5.12.1	Transmission annual planning review	516
5.12.2	Transmission Annual Planning Report	517
5.13	Distribution annual planning process	522
5.13.1	Distribution annual planning review	522
5.13.2	Distribution Annual Planning Report	524
5.13.3	Distribution system limitation template	524
5.13A	Distribution zone substation information	525
5.14	Joint planning	528
5.14.1	Joint planning obligations of Transmission Network Service Providers and Distribution Network Service Providers	528
5.14.2	Joint planning obligations of Distribution Network Service Providers and Distribution Network Service Providers	529
5.14.3	Joint planning obligations of Transmission Network Service Providers	530
5.14A	Joint planning in relation to retirement or de-ratings of network assets forming part of the Declared Shared Network	530
5.14B	TAPR Guidelines	530
5.14B.1	Development of TAPR Guidelines	530
5.15	Regulatory investment tests generally	531
5.15.1	Interested parties	531
5.15.2	Identification of a credible option	531
5.15.3	Review of costs thresholds	532
5.15.4	Costs determinations	534
5.16	Regulatory investment test for transmission	535
5.16.1	Principles	535
5.16.2	Regulatory investment test for transmission application guidelines	538
5.16.3	Investments subject to the regulatory investment test for transmission	539
5.16.4	Regulatory investment test for transmission procedures	542
5.16.5	Disputes in relation to application of regulatory investment test for transmission	549
5.16.6	Determination that preferred option satisfies the regulatory investment test for transmission	551
5.17	Regulatory investment test for distribution	552
5.17.1	Principles	552
5.17.2	Regulatory investment test for distribution application guidelines	554
5.17.3	Projects subject to the regulatory investment test for distribution	556
5.17.4	Regulatory investment test for distribution procedures	557
5.17.5	Disputes in relation to application of regulatory investment test for distribution	563
5.18	Construction of funded augmentations	565
5.18A	Large generator connections	565
5.18A.1	Definitions	565
5.18A.2	Register of large generator connections	566
5.18A.3	Impact assessment of large generator connections	567
5.18B	Completed embedded generation projects	568
5.18B.1	Definitions	568
5.18B.2	Register of completed embedded generation projects	568
5.19	SENE Design and Costing Study	569
5.19.1	Definitions	569
5.19.2	Interpretation	570
5.19.3	Request for SENE Design and Costing Study	570
5.19.4	Content of SENE Design and Costing Study	571
5.19.5	Co-operation of other Network Service Providers	572
5.19.6	Publication of SENE Design and Costing Study report	573
5.19.7	Provision and use of information	573
5.20	National transmission planning	574
5.20.1	Preliminary consultation	574
5.20.2	Publication of NTNDP	575
5.20.3	Development strategies for national transmission flow paths	577
5.20.4	NTNDP database	578
5.20.5	Jurisdictional planning bodies and jurisdictional planning representatives	579
5.20.6	NTP Functions	579
5.20.7	Inertia and system strength requirements methodologies	579
5.20A	Frequency management planning	581
5.20A.1	Power system frequency risk review	581
5.20A.2	Power system frequency risk review process	582
5.20A.3	Power system frequency risk review report	582
5.20A.4	Request for protected event declaration	583
5.20A.5	Request to revoke a protected event declaration	584
5.20B	Inertia sub-networks and requirements	584
5.20B.1	Boundaries of inertia sub-networks	584
5.20B.2	Inertia requirements	585
5.20B.3	Inertia shortfalls	585
5.20B.4	Inertia Service Provider to make available inertia services	586
5.20B.5	Inertia support activities	589
5.20B.6	Inertia network services information and approvals	590
5.20C	System strength requirements	592
5.20C.1	System strength requirements	592
5.20C.2	Fault level shortfalls	593
5.20C.3	System Strength Service Provider to make available system strength services	594
5.20C.4	System strength services information and approvals	596
5.21	AEMO's obligation to publish information and guidelines and provide advice	598
5.22	Last resort planning power	600
Schedule 5.1a	System standards	603
S5.1a.1	Purpose	603
S5.1a.2	Frequency	603
S5.1a.3	System stability	603
S5.1a.4	Power frequency voltage	604
S5.1a.5	Voltage fluctuations	605
S5.1a.6	Voltage waveform distortion	605
S5.1a.7	Voltage unbalance	605
S5.1a.8	Fault clearance times	606
Schedule 5.1	Network Performance Requirements to be Provided or Co-ordinated by Network Service Providers	608
S5.1.1	Introduction	608
S5.1.2	Network reliability	609
S5.1.2.1	Credible contingency events	609
S5.1.2.2	Network service within a region	610
S5.1.2.3	Network service between regions	611
S5.1.3	Frequency variations	611
S5.1.4	Magnitude of power frequency voltage	611
S5.1.5	Voltage fluctuations	613
S5.1.6	Voltage harmonic or voltage notching distortion	614
S5.1.7	Voltage unbalance	615
S5.1.8	Stability	616
S5.1.9	Protection systems and fault clearance times	617
S5.1.10	Load, generation and network control facilities	620
S5.1.10.1	General	620
S5.1.10.1a	Emergency frequency control schemes	621
S5.1.10.2	Distribution Network Service Providers	622
S5.1.10.3	Transmission Network Service Providers	622
S5.1.11	Automatic reclosure of transmission or distribution lines	623
S5.1.12	Rating of transmission lines and equipment	623
S5.1.13	Information to be provided	624
Schedule 5.2	Conditions for Connection of Generators	624
S5.2.1	Outline of requirements	624
S5.2.2	Application of Settings	625
S5.2.3	Technical matters to be coordinated	626
S5.2.4	Provision of information	627
S5.2.5	Technical requirements	630
S5.2.5.1	Reactive power capability	630
S5.2.5.2	Quality of electricity generated	631
S5.2.5.3	Generating system response to frequency disturbances	632
S5.2.5.4	Generating system response to voltage disturbances	635
S5.2.5.5	Generating system response to disturbances following contingency events	637
S5.2.5.6	Quality of electricity generated and continuous uninterrupted operation	646
S5.2.5.7	Partial load rejection	646
S5.2.5.8	Protection of generating systems from power system disturbances	647
S5.2.5.9	Protection systems that impact on power system security	648
S5.2.5.10	Protection to trip plant for unstable operation	650
S5.2.5.11	Frequency control	651
S5.2.5.12	Impact on network capability	654
S5.2.5.13	Voltage and reactive power control	655
S5.2.5.14	Active power control	663
S5.2.6	Monitoring and control requirements	665
S5.2.6.1	Remote Monitoring	665
S5.2.6.2	Communications equipment	668
S5.2.7	Power station auxiliary supplies	669
S5.2.8	Fault current	669
Schedule 5.3	Conditions for Connection of Customers	670
S5.3.1a	Introduction to the schedule	670
S5.3.1	Information	671
S5.3.2	Design standards	673
S5.3.3	Protection systems and settings	674
S5.3.4	Settings of protection and control systems	675
S5.3.5	Power factor requirements	676
S5.3.6	Balancing of load currents	677
S5.3.7	Voltage fluctuations	678
S5.3.8	Harmonics and voltage notching	678
S5.3.9	Design requirements for Network Users' substations	678
S5.3.10	Load shedding facilities	679
Schedule 5.3a	Conditions for connection of Market Network Services	679
S5.3a.1a	Introduction to the schedule	679
S5.3a.1	Provision of Information	680
S5.3a.2	Application of settings	682
S5.3a.3	Technical matters to be co-ordinated	683
S5.3a.4	Monitoring and control requirements	684
S5.3a.4.1	Remote Monitoring	684
S5.3a.4.2	[Deleted]	684
S5.3a.4.3	Communications equipment	684
S5.3a.5	Design standards	685
S5.3a.6	Protection systems and settings	686
S5.3a.7	[Deleted]	687
S5.3a.8	Reactive power capability	687
S5.3a.9	Balancing of load currents	688
S5.3a.10	Voltage fluctuations	688
S5.3a.11	Harmonics and voltage notching	689
S5.3a.12	Design requirements for Market Network Service Providers’ substations	689
S5.3a.13	Market network service response to disturbances in the power system	690
S5.3a.14	Protection of market network services from power system disturbances	690
Schedule 5.4	Information to be Provided with Preliminary Enquiry	691
Schedule 5.4A	Preliminary Response	692
Schedule 5.4B	Detailed Response to Enquiry	694
Schedule 5.5	Technical Details to Support Application for Connection and Connection Agreement	697
S5.5.1	Introduction to the schedule	697
S5.5.2	Categories of data	697
S5.5.3	Review, change and supply of data	698
S5.5.4	Data Requirements	698
S5.5.5	Asynchronous generating unit data	699
S5.5.6	Generating units smaller than 30MW data	699
S5.5.7	Power System Design Data Sheet, Power System Setting Data Sheet and Power System Model Guidelines	699
Schedule 5.5.1	[Deleted]	702
Schedule 5.5.2	[Deleted]	702
Schedule 5.5.3	Network and plant technical data of equipment at or near connection point	702
Schedule 5.5.4	Network Plant and Apparatus Setting Data	705
Schedule 5.5.5	Load Characteristics at Connection Point	708
Schedule 5.6	Terms and Conditions of Connection agreements and network operating agreements	708
Part A	Connection agreements	708
Part B	Network Operating Agreements	710
Schedule 5.7	Annual Forecast Information for Planning Purposes	710
Schedule 5.8	Distribution Annual Planning Report	713
Schedule 5.9	Demand side engagement document (clause 5.13.1(h))	719
Schedule 5.10	Information requirements for Primary Transmission Network Service Providers (clause 5.2A.5)	721
Schedule 5.11	Negotiating principles for negotiated transmission services (clause 5.2A.6)	724
Schedule 5.12	Negotiating principles for large DCA services	726
Chapter 5A	Electricity connection for retail customers	731
Part A	Preliminary	731
5A.A.1	Definitions	731
5A.A.2	Application of this Chapter	734
5A.A.3	Small Generation Aggregator deemed to be agent of a retail customer	735
Part B	Standardised offers to provide basic and standard connection services	735
Division 1	Basic connection services	735
5A.B.1	Obligation to have model standing offer to provide basic connection services	735
5A.B.2	Proposed model standing offer for basic connection services	736
5A.B.3	Approval of terms and conditions of model standing offer to provide basic connection services	737
Division 2	Standard connection services	738
5A.B.4	Standard connection services	738
5A.B.5	Approval of model standing offer to provide standard connection services	739
Division 3	Miscellaneous	739
5A.B.6	Amendment etc of model standing offer	739
5A.B.7	Publication of model standing offers	740
Part C	Negotiated connection	740
5A.C.1	Negotiation of connection	740
5A.C.2	Process of negotiation	741
5A.C.3	Negotiation framework	741
5A.C.4	Fee to cover cost of negotiation	743
Part D	Application for connection service	744
Division 1	Information	744
5A.D.1	Publication of information	744
5A.D.1A	Register of completed embedded generation projects	744
Division 2	Preliminary enquiry	746
5A.D.2	Preliminary enquiry	746
Division 3	Applications	747
5A.D.3	Application process	747
5A.D.4	Site inspection	748
Part E	Connection charges	748
5A.E.1	Connection charge principles	748
5A.E.2	Itemised statement of connection charges	750
5A.E.3	Connection charge guidelines	750
5A.E.4	Payment of connection charges	752
Part F	Formation and integration of connection contracts	753
Division 1	Offer and acceptance – basic and standard connection services	753
5A.F.1	Distribution Network Service Provider’s response to application	753
5A.F.2	Acceptance of connection offer	753
5A.F.3	Offer and acceptance—application for expedited connection	753
Division 2	Offer and acceptance – negotiated connection	754
5A.F.4	Negotiated connection offer	754
Division 3	Formation of contract	755
5A.F.5	Acceptance of connection offer	755
Division 4	Contractual performance	755
5A.F.6	Carrying out connection work	755
5A.F.7	Retailer required for energisation where new connection	756
Part G	Dispute resolution between Distribution Network Service Providers and customers	756
5A.G.1	Relevant disputes	756
5A.G.2	Determination of dispute	756
5A.G.3	Termination of proceedings	757
SCHEDULE 5A.1 – Minimum content requirements for connection contract	757
Part A	Connection offer not involving embedded generation	757
Part B	Connection offer involving embedded generation	758
6.	Economic Regulation of Distribution Services	763
Part A	Introduction	763
6.1	Introduction to Chapter 6	763
6.1.1	AER's regulatory responsibility	763
6.1.1A	[Deleted]	763
6.1.2	Structure of this Chapter	763
6.1.3	Access to direct control services and negotiated distribution services	764
6.1.4	Prohibition of DUOS charges for the export of energy	764
Part B	Classification of Distribution Services and Distribution Determinations	765
6.2	Classification	765
6.2.1	Classification of distribution services	765
6.2.2	Classification of direct control services as standard control services or alternative control services	765
6.2.3	Term for which classification operates	766
6.2.3A	Distribution Service Classification Guidelines	767
6.2.4	Duty of AER to make distribution determinations	767
6.2.5	Control mechanisms for direct control services	768
6.2.6	Basis of control mechanisms for direct control services	769
6.2.7	Negotiated distribution services	769
6.2.8	Guidelines	769
Part C	Building Block Determinations for standard control services	770
6.3	Building block determinations	770
6.3.1	Introduction	770
6.3.2	Contents of building block determination	771
6.4	Post-tax revenue model	771
6.4.1	Preparation, publication and amendment of post-tax revenue model	771
6.4.2	Contents of post-tax revenue model	771
6.4.3	Building block approach	772
6.4.4	Shared assets	773
6.4.5	Expenditure Forecast Assessment Guidelines	774
6.4A	Capital expenditure incentive mechanisms	775
6.4B	Asset exemptions	776
6.4B.1	Asset exemption decisions and Asset Exemption Guidelines	776
6.4B.2	Exemption applications	777
6.5	Matters relevant to the making of building block determinations	777
6.5.1	Regulatory asset base	777
6.5.2	Return on capital	778
6.5.3	Estimated cost of corporate income tax	781
6.5.4	[Deleted]	782
6.5.5	Depreciation	782
6.5.6	Forecast operating expenditure	782
6.5.7	Forecast capital expenditure	785
6.5.8	Efficiency benefit sharing scheme	790
6.5.8A	Capital expenditure sharing scheme	791
6.5.9	The X factor	792
6.5.10	Pass through events	793
6.6	Adjustments after making of building block determination.	793
6.6.1	Cost pass through	793
6.6.1A	Reporting on jurisdictional schemes	800
6.6.2	Service target performance incentive scheme	802
6.6.3	Demand management incentive scheme	803
6.6.3A	Demand management innovation allowance mechanism	804
6.6.4	Small-scale incentive scheme	805
6.6.5	Reopening of distribution determination for capital expenditure	806
6.6A	Contingent Projects	810
6.6A.1	Acceptance of a contingent project in a distribution determination	810
6.6A.2	Amendment of distribution determination for contingent project	812
Part D	Negotiated distribution services	817
6.7	Negotiated distribution services	817
6.7.1	Principles relating to access to negotiated distribution services	817
6.7.2	Determination of terms and conditions of access for negotiated distribution services	819
6.7.3	Negotiating framework determination	820
6.7.4	Negotiated Distribution Service Criteria determination	820
6.7.5	Preparation of and requirements for negotiating framework for negotiated distribution services	820
6.7.6	Confidential information	823
Part DA	Connection policies	823
6.7A	Connection policy requirements	823
6.7A.1	Preparation of, and requirements for, connection policy	823
Part E	Regulatory proposal and proposed tariff structure statement	824
6.8	Regulatory proposal and proposed tariff structure statement	824
6.8.1	AER's framework and approach paper	824
6.8.1A	Notification of approach to forecasting expenditure	827
6.8.2	Submission of regulatory proposal, tariff structure statement and exemption application	827
6.9	Preliminary examination and consultation	829
6.9.1	Preliminary examination	829
6.9.2	Resubmission of proposal	830
6.9.2A	Confidential information	830
6.9.3	Consultation	831
6.10	Draft distribution determination and further consultation	832
6.10.1	Making of draft distribution determination	832
6.10.2	Publication of draft determination and consultation	832
6.10.3	Submission of revised proposal	833
6.10.4	Submissions on specified matters	833
6.11	Distribution determination	834
6.11.1	Making of distribution determination	834
6.11.1A	Out of scope revised regulatory proposal or late submissions	834
6.11.2	Notice of distribution determination	835
6.11.3	Commencement of distribution determination	835
6.12	Requirements relating to draft and final distribution determinations	836
6.12.1	Constituent decisions	836
6.12.2	Reasons for decisions	839
6.12.3	Extent of AER's discretion in making distribution determinations	840
6.13	Revocation and substitution of distribution determination for wrong information or error	842
6.14	Miscellaneous	842
6.14A	Distribution Confidentiality Guidelines	843
Part F	Cost Allocation	843
6.15	Cost allocation	843
6.15.1	Duty to comply with Cost Allocation Method	843
6.15.2	Cost Allocation Principles	843
6.15.3	Cost Allocation Guidelines	844
6.15.4	Cost Allocation Method	845
Part G	Distribution consultation procedures	846
6.16	Distribution consultation procedures	846
Part H	Ring-Fencing Arrangements for Distribution Network Service Providers	848
6.17	Distribution Ring-Fencing Guidelines	848
6.17.1	Compliance with Distribution Ring-Fencing Guidelines	848
6.17.2	Development of Distribution Ring-Fencing Guidelines	848
Part I	Distribution Pricing Rules	849
6.18	Distribution Pricing Rules	849
6.18.1	Application of this Part	849
6.18.1A	Tariff structure statement	849
6.18.1B	Amending a tariff structure statement with the AER's approval	850
6.18.1C	Sub-threshold tariffs	852
6.18.2	Pricing proposals	852
6.18.3	Tariff classes	854
6.18.4	Principles governing assignment or re-assignment of retail customers to tariff classes and assessment and review of basis of charging	854
6.18.5	Pricing principles	855
6.18.6	Side constraints on tariffs for standard control services	857
6.18.7	Recovery of designated pricing proposal charges	858
6.18.7A	Recovery of jurisdictional scheme amounts	859
6.18.8	Approval of pricing proposal	863
6.18.9	Publication of information about tariffs and tariff classes	864
6.19.	Data Required for Distribution Service Pricing	865
6.19.1	Forecast use of networks by Distribution Customers and Embedded Generators	865
6.19.2	Confidentiality of distribution network pricing information	865
Part J	Billing and Settlements	865
6.20	Billing and Settlements Process	865
6.20.1	Billing for distribution services	865
6.20.2	Minimum information to be provided in distribution network service bills	867
6.20.3	Settlement between Distribution Network Service Providers	868
6.20.4	Obligation to pay	868
Part K	Prudential requirements, capital contributions and prepayments	868
6.21	Distribution Network Service Provider Prudential Requirements	868
6.21.1	Prudential requirements for distribution network service	868
6.21.2	Capital contributions, prepayments and financial guarantees	869
6.21.3	Treatment of past prepayments and capital contributions	869
Part L	Dispute resolution	870
6.22	Dispute Resolution	870
6.22.1	Dispute Resolution by the AER	870
6.22.2	Determination of dispute	870
6.22.3	Termination of access dispute without access determination	872
Part M	Separate disclosure of transmission and distribution charges	872
6.23	Separate disclosure of transmission and distribution charges	872
Part N	Dual Function Assets	873
6.24	Dual Function Assets	873
6.24.1	Application of this Part	873
6.24.2	Dual Function Assets	873
6.25	AER determination of applicable pricing regime for Dual Function Assets	874
6.26	Division of Distribution Network Service Provider's revenue	875
Part O	Annual Benchmarking Report	876
6.27	Annual Benchmarking Report	876
Part P	Distribution Reliability Measures Guidelines	876
6.28	Distribution Reliability Measures Guidelines	876
Schedule 6.1	Contents of building block proposals	877
S6.1.1	Information and matters relating to capital expenditure	877
S6.1.2	Information and matters relating to operating expenditure	878
S6.1.3	Additional information and matters	879
Schedule 6.2	Regulatory Asset Base	881
S6.2.1	Establishment of opening regulatory asset base for a regulatory control period	881
S6.2.2	Prudency and efficiency of capital expenditure	886
S6.2.2A	Reduction for inefficient past capital expenditure	887
S6.2.2B	Depreciation	889
S6.2.3	Roll forward of regulatory asset base within the same regulatory control period	890
6A.	Economic Regulation of Transmission Services	893
Part A	Introduction	893
6A.1	Introduction to Chapter 6A	893
6A.1.1	Economic regulation of transmission services generally	893
6A.1.2	[Deleted]	894
6A.1.3	[Deleted]	894
6A.1.4	National regulatory arrangements	894
6A.1.5	Application of Chapter 6A to Market Network Service Providers	894
6A.1.6	Application of Chapter 6A to AEMO and declared transmission system operators	894
Part B	Transmission Determinations Generally	895
6A.2	Transmission determinations	895
6A.2.1	Duty of AER to make transmission determinations	895
6A.2.2	Components of transmission determinations	895
6A.2.3	Guidelines	895
Part C	Regulation of Revenue - Prescribed Transmission Services	896
6A.3	Allowed revenue from prescribed transmission services	896
6A.3.1	Allowed revenue for regulatory year	896
6A.3.2	Adjustment of maximum allowed revenue	896
6A.4	Revenue determinations	897
6A.4.1	Introduction	897
6A.4.2	Contents of revenue determination	897
6A.5	Post-tax revenue model	898
6A.5.1	Introduction	898
6A.5.2	Preparation, publication and amendment of post-tax revenue model	898
6A.5.3	Contents of post-tax revenue model	899
6A.5.4	Building blocks approach	900
6A.5.5	Shared assets	901
6A.5.6	Expenditure Forecast Assessment Guidelines	902
6A.5A	Capital expenditure incentive mechanisms	902
6A.6	Matters relevant to the making of revenue determinations	903
6A.6.1	Regulatory asset base	903
6A.6.2	Return on capital	904
6A.6.3	Depreciation	907
6A.6.4	Estimated cost of corporate income tax	908
6A.6.5	Efficiency benefit sharing scheme	909
6A.6.5A	Capital expenditure sharing scheme	910
6A.6.6	Forecast operating expenditure	911
6A.6.7	Forecast capital expenditure	914
6A.6.8	The X factor	918
6A.6.9	Pass through events	919
6A.7	Matters relevant to the adjustment of revenue cap after making of revenue determination	919
6A.7.1	Reopening of revenue determination for capital expenditure	919
6A.7.2	Network support pass through	922
6A.7.3	Cost pass through	924
6A.7.4	Service target performance incentive scheme	930
6A.7.5	Small-scale incentive scheme	932
6A.8	Contingent Projects	933
6A.8.1	Acceptance of a Contingent Project in a revenue determination	933
6A.8.2	Amendment of revenue determination for contingent project	934
Part D	[Deleted]	939
Part E	Procedure - Revenue determinations and pricing methodologies	939
6A.10	Revenue Proposal and proposed pricing methodology	939
6A.10.1A	AER's framework and approach paper	939
6A.10.1B	Notification of approach to forecasting expenditure	941
6A.10.1	Submission of proposal, pricing methodology and information	941
6A.10.2	[Deleted]	943
6A.11	Preliminary examination and consultation	943
6A.11.1	Preliminary examination and determination of non-compliance with relevant requirements	943
6A.11.2	Resubmission of proposal, framework, pricing methodology or information	944
6A.11.2A	Confidential information	944
6A.11.3	Consultation	944
6A.12	Draft decision and further consultation	945
6A.12.1	Making of draft decision	945
6A.12.2	Publication of draft decision and consultation	946
6A.12.3	Submission of revised proposal or pricing methodology	946
6A.12.4	Submissions on specified matters	948
6A.13	Final decision	948
6A.13.1	Making of final decision	948
6A.13.2	Refusal to approve amounts, values, framework or pricing methodology	948
6A.13.2A	Out of scope revised documents or late submissions	949
6A.13.3	Notice of final decision	950
6A.13.4	Making of transmission determination	950
6A.14	Requirements relating to draft and final decisions	950
6A.14.1	Contents of decisions	950
6A.14.2	Reasons for decisions	953
6A.14.3	Circumstances in which matters must be approved or accepted	953
6A.15	Revocation of revenue determination or amendment of pricing methodology for wrong information or error	956
6A.16	Miscellaneous	957
6A.16A	Transmission Confidentiality Guidelines	957
Part F	Information Disclosure	958
6A.17	Information disclosure by Transmission Network Service Providers	958
6A.17.1	Information to be provided to AER	958
6A.17.2	Information Guidelines	959
6A.18	[Deleted]	961
Part G	Cost Allocation	961
6A.19	Cost allocation	961
6A.19.1	Duty to comply with Cost Allocation Methodology	961
6A.19.2	Cost Allocation Principles	961
6A.19.3	Cost Allocation Guidelines	962
6A.19.4	Cost Allocation Methodology	963
Part H	Transmission Consultation Procedures	964
6A.20	Transmission consultation procedures	964
Part I	Ring-Fencing Arrangements for Transmission Network Service Providers	965
6A.21	Transmission Ring-Fencing Guidelines	965
6A.21.1	Compliance with Transmission Ring-Fencing Guidelines	965
6A.21.2	Development of Transmission Ring-Fencing Guidelines	966
Part J	Prescribed Transmission Services - Regulation of Pricing	967
6A.22	Terms used in Part J	967
6A.22.1	Aggregate annual revenue requirement (AARR)	967
6A.22.2	Annual service revenue requirement (ASRR)	967
6A.22.3	Meaning of attributable cost share	967
6A.22.4	Meaning of attributable connection point cost share	968
6A.23	Pricing Principles for Prescribed Transmission Services	968
6A.23.1	Introduction	968
6A.23.2	Principles for the allocation of the aggregate annual revenue requirement	968
6A.23.3	Principles for the allocation of the annual service revenue requirement to connection points	969
6A.23.4	Principles for the recovery of the Annual Service Revenue Requirement as prices	972
6A.24	Pricing methodology	974
6A.24.1	Pricing methodologies generally	974
6A.24.2	Publication of pricing methodology and transmission network prices	975
6A.24.3	Basis for setting prices pending approval of pricing methodology	976
6A.24.4	Basis for setting prices pending approval of maximum allowed revenue	976
6A.25	Pricing methodology guidelines for prescribed transmission services	977
6A.25.1	Making and amending of pricing methodology guidelines	977
6A.25.2	Contents of pricing methodology guidelines	978
6A.26	Prudent discounts	979
6A.26.1	Agreements for prudent discounts for prescribed transmission services	979
6A.26.2	Application to AER for approval of proposed prudent discount amounts	980
6A.27	Billing Process	982
6A.27.1	Billing for prescribed transmission services	982
6A.27.1A	Billing of modified load export charges	982
6A.27.2	Minimum information to be provided in network service bills	982
6A.27.3	Obligation to pay charges for prescribed transmission services	983
6A.27.4	Payments between Transmission Network Service Providers in the same region	983
6A.27.5	Calculation of financial transfers between Transmission Network Service Providers in the same region	984
6A.28	Prudential Requirements	984
6A.28.1	Prudential Requirements for prescribed transmission services	984
6A.28.2	Capital contribution or prepayment for a specific asset	984
6A.28.3	Treatment of past capital contributions	984
6A.29	Multiple Transmission Network Service Providers	985
6A.29.1	Multiple Transmission Network Service Providers within a region	985
6A.29.2	Single Transmission Network Service Provider within a region	986
6A.29.3	Allocation over several regions	986
6A.29A	Modified load export charges	986
6A.29A.1	Single Transmission Network Service Provider in a Region	986
6A.29A.2 	Calculation of the modified load export charges	986
6A.29A.3	Calculation of adjustments to the modified load export charge	987
6A.29A.4	Billing the modified load export charge	987
6A.29A.5	Allocation and billing process where multiple Transmission Network Service Providers in a Region	988
Part K	Commercial arbitration for disputes about terms and conditions of access for prescribed and negotiated transmission services	989
[Deleted]	989
Part L	Annual Benchmarking Report	989
6A.31	Annual Benchmarking Report	989
Schedule 6A.1	Contents of Revenue Proposals	989
S6A.1.1	Information and matters relating to capital expenditure	989
S6A.1.2	Information and matters relating to operating expenditure	990
S6A.1.3	Additional information and matters	991
Schedule 6A.2	Regulatory Asset Base	994
S6A.2.1	Establishment of opening regulatory asset base for a regulatory control period	994
S6A.2.2	Prudency and efficiency of capital expenditure	999
S6A.2.2A	Reduction for inefficient past capital expenditure	1000
S6A.2.2B	Depreciation	1002
S6A.2.3	Removal of assets from regulatory asset base	1003
S6A.2.4	Roll forward of regulatory asset base within the same regulatory control period	1004
Schedule 6A.3	CRNP methodology and modified CRNP methodology	1005
S6A.3.1	Meaning of optimised replacement cost	1005
S6A.3.2	CRNP methodology	1005
S6A.3.3	Modified CRNP methodology	1006
Schedule 6A.4	Application of this Chapter to AEMO and declared transmission system operators	1006
S6A.4.1	Application of this Chapter to AEMO etc	1006
S6A.4.2	Exclusions, qualifications and modifications	1007
Chapter 6B	Retail markets	1017
Part A	Retail support	1017
Division 1 – Application and definitions	1017
6B.A1.1	Application of this Part	1017
Division 2	Billing and payment rules	1018
6B.A2.1	Obligation to pay	1018
6B.A2.2	Direct customer billing and energy-only contracts	1018
6B.A2.3	Calculating network charges	1018
6B.A2.4	Statement of charges	1018
6B.A2.5	Time and manner of payment	1019
Division 3	Matters incidental to billing and payment	1019
6B.A3.1 	Adjustment of network charges	1019
6B.A3.2	Tariff reassignment	1020
6B.A3.3	Disputed statements of charges	1021
6B.A3.4	Interest	1022
6B.A3.5	Notification of changes to charges	1022
Part B	Credit support required for late payment	1022
Division 1	Application and definitions	1023
6B.B1.1	Application of Part B	1023
6B.B1.2	Definitions	1023
Division 2	Requirements for credit support	1023
6B.B2.1	Distribution Network Service Provider may require credit support in limited circumstances	1023
Division 3	Provision of credit support by retailers	1024
6B.B3.1	Retailer to provide credit support	1024
6B.B3.2	Acceptable form of credit support	1024
Division 4	Other Rules relating to credit support	1025
6B.B4.1	Application of credit support	1025
6B.B4.2	Return of credit support	1025
6B.B4.3	Other retailer obligations	1025
Schedule 6B.1	Prescribed form of unconditional undertaking for credit support	1026
7.	Metering	1029
Part A	Introduction	1029
7.1	Introduction to the Metering Chapter	1029
7.1.1	Contents	1029
Part B	Roles and Responsibilities	1029
7.2	Role and Responsibility of financially responsible Market Participant	1029
7.2.1	Obligations of financially responsible Market Participants to establish metering installations	1029
7.2.2	[Not used]	1030
7.2.3	Agreements with Local Network Service Provider	1030
7.2.4	[Not used]	1031
7.2.5	Agreements with Metering Provider	1031
7.3	Role and Responsibility of Metering Coordinator	1031
7.3.1	Responsibility of the Metering Coordinator	1031
7.3.2	Role of the Metering Coordinator	1031
7.4	Qualification and Registration of Metering Providers, Metering Data Providers and Embedded Network Managers	1035
7.4.1	Qualifications and registration of Metering Providers	1035
7.4.2	Qualifications and registration of Metering Data Providers	1036
7.4.2A	Qualifications and registration of Embedded Network Managers	1037
7.4.2B	List of Embedded Network Managers	1037
7.4.3	Nature of appointment of Metering Provider or Metering Data Provider	1037
7.4.4	Deregistration of Metering Providers, Metering Data Providers and Embedded Network Managers	1038
7.5	Role and Responsibility of AEMO	1039
7.5.1	Responsibility of AEMO for the collection, processing and delivery of metering data	1039
7.5.2	AEMO's costs in connection with metering installation	1040
7.5A	Role and Responsibility of Embedded Network Managers	1040
7.5A.1	Responsibility of Embedded Network Managers for management services 	1040
7.5A.2	EN information	1041
Part C	Appointment of Metering Coordinator	1041
7.6	Appointment of Metering Coordinator	1041
7.6.1	Commercial nature of the Metering Coordinator appointment and service provision	1041
7.6.2	Persons who may appoint Metering Coordinators	1042
7.6.3	Appointment with respect to transmission network connection	1043
7.6.4	Type 7 metering installations	1043
7.7	Metering Coordinator default arrangements	1044
7.7.1	Obligations of financially responsible Market Participants on Metering Coordinator default event and end of contract term	1044
7.7.2	Notices to be provided by Metering Coordinator	1045
7.7.3	AEMO may issue breach notice	1046
Part D	Metering installation	1047
7.8	Metering installation arrangements	1047
7.8.1	Metering installation requirements	1047
7.8.2	Metering installation components	1047
7.8.3	Small customer metering installations	1052
7.8.4	Type 4A metering installation	1052
7.8.5	Emergency management	1054
7.8.6	Network devices	1054
7.8.7	Metering point	1057
7.8.8	Metering installation types and accuracy	1058
7.8.9	Meter churn	1058
7.8.10	Meter installation malfunctions	1060
7.8.11	Changes to metering equipment, parameters and settings within a metering installation	1060
7.8.12	Special site or technology related conditions	1061
7.8.13	Joint metering installations	1062
7.9	Inspection, Testing and Audit of Metering installations	1063
7.9.1	Responsibility for testing	1063
7.9.2	Actions in event of non-compliance	1065
7.9.3	Audits of information held in metering installations	1066
7.9.4	Errors found in metering tests, inspections or audits	1066
7.9.5	Retention of test records and documents	1067
7.9.6	Metering installation registration process	1068
Part E	Metering Data	1068
7.10	Metering Data Services	1068
7.10.1	Metering Data Services	1068
7.10.2	Data management and storage	1069
7.10.3	Provision of metering data to certain persons	1071
7.10.4	Use of check metering data	1071
7.10.5	Periodic energy metering	1071
7.10.6	Time settings	1072
7.10.7	Metering data performance standards	1073
7.11	Metering data and database	1075
7.11.1	Metering database	1075
7.11.2	Data validation, substitution and estimation	1076
7.11.3	Changes to energy data or to metering data	1076
7.12	Register of Metering Information	1077
7.12.1	Metering register	1077
7.12.2	Metering register discrepancy	1077
7.13	Disclosure of NMI information	1077
7.13.1	Application of this Rule	1077
7.13.2	NMI and NMI checksum	1077
7.13.3	NMI Standing Data	1078
7.14	Metering data provision to retail customers	1078
Part F	Security of metering installation and energy data	1079
7.15	Security of metering installation and energy data	1079
7.15.1	Confidentiality	1079
7.15.2	Security of metering installations	1079
7.15.3	Security controls for energy data	1080
7.15.4	Additional security controls for small customer metering installations	1082
7.15.5	Access to data	1083
PART G	Procedures	1085
7.16	Procedures	1085
7.16.1	Obligation to establish, maintain and publish procedures	1085
7.16.2	Market Settlement and Transfer Solution Procedures	1085
7.16.3	Requirements of the metrology procedure	1086
7.16.4	Jurisdictional metrology material in metrology procedure	1087
7.16.5	Additional metrology procedure matters	1089
7.16.6	Requirements of the service level procedures	1090
7.16.6A	Requirements of the ENM service level procedures	1091
7.16.6B	Guide to embedded networks	1093
7.16.7	Amendment of procedures in the Metering Chapter	1093
7.16.8	National Measurement Act	1094
Part H	B2B Requirements	1094
7.17	B2B Arrangements	1094
7.17.1	B2B e-Hub	1094
7.17.2	B2B e-Hub Participants	1095
7.17.3	Content of the B2B Procedures	1096
7.17.4	Changing B2B Procedures	1097
7.17.5	B2B Decision	1099
7.17.6	Establishment of Information Exchange Committee	1100
7.17.7	Functions and powers of Information Exchange Committee	1101
7.17.8	Obligations of Members	1102
7.17.9	Meetings of Information Exchange Committee	1103
7.17.10	Nomination, election and appointment of Members	1104
7.17.11	Qualifications of Members	1105
7.17.12	Information Exchange Committee Election Procedures and Information Exchange Committee Operating Manual	1106
7.17.13	Cost Recovery	1107
Schedule 7.1	Metering register	1107
S7.1.1	General	1107
S7.1.2	Metering register information	1108
Schedule 7.2	Metering Provider	1109
S7.2.1	General	1109
S7.2.2	Categories of registration	1110
S7.2.3	Capabilities of Metering Providers for metering installations types 1, 2, 3, 4 and 4A	1111
S7.2.4	Capabilities of Metering Providers for metering installations types 5 and 6	1114
S7.2.5	Capabilities of Metering Providers for small customer metering installations	1114
S7.2.6	Capabilities of the Accredited Service Provider category	1114
Schedule 7.3	Metering Data Provider	1115
S7.3.1	General	1115
S7.3.2	Categories of registration	1115
S7.3.3	Capabilities of Metering Data Providers	1115
S7.3.4	Capabilities of Metering Data Providers for small customer metering installations	1117
Schedule 7.4	Types and Accuracy of Metering installations	1118
S7.4.1	General requirements	1118
S7.4.2	Metering installations commissioned prior to 13 December 1998	1118
S7.4.3	Accuracy requirements for metering installations	1119
S7.4.4	Check metering	1125
S7.4.5	Resolution and accuracy of displayed or captured data	1125
S7.4.6	General design standards	1126
S7.4.6.1	Design requirements	1126
S7.4.6.2	Design guidelines	1127
Schedule 7.5	Requirements of minimum services specification	1127
S7.5.1	Minimum services specification	1127
Schedule 7.6	Inspection and Testing Requirements	1131
S7.6.1	General	1131
S7.6.2	Technical Guidelines	1133
Schedule 7.7	Embedded Network Managers	1134
S7.7.1	General	1134
S7.7.2	Capabilities of Embedded Network Managers	1134
8.	Administrative Functions	1139
Part A	Introductory	1139
8.1	Administrative functions	1139
8.1.1	[Deleted]	1139
8.1.2	[Deleted]	1139
8.1.3	Structure of this Chapter	1139
Part B	Disputes	1140
8.2	Dispute Resolution	1140
8.2.1	Application and guiding principles	1140
8.2.2	The Dispute Resolution Adviser	1143
8.2.3	Dispute management systems of Registered Participants and AEMO	1144
8.2.4	Stage 1 - dispute resolution through Registered Participants’ DMS	1145
8.2.5	Stage 2 - dispute resolution process	1147
8.2.6A	Establishment of Dispute Resolution Panel	1148
8.2.6B	Parties to DRP Proceedings	1149
8.2.6C	Proceedings of the DRP	1150
8.2.6D	Decisions of the DRP	1151
8.2.6	[Deleted]	1151
8.2.7	Legal representation	1151
8.2.8	Cost of dispute resolution	1152
8.2.9	Effect of resolution	1152
8.2.10	Recording and publication	1153
8.2.11	Appeals on questions of law	1153
8.2.12	[Deleted]	1153
8.2A	B2B Determination Disputes	1153
8.2A.1	Application of rule 8.2	1153
8.2A.2	How rule 8.2 applies	1153
8.3	Power to make Electricity Procedures	1156
8.4	[Deleted]	1157
8.5	[Deleted]	1157
Part C	Registered Participants' confidentiality obligations	1157
8.6	Confidentiality	1157
8.6.1	Confidentiality	1157
8.6.1A	Application	1158
8.6.2	Exceptions	1158
8.6.3	Conditions	1160
8.6.4	[Deleted]	1160
8.6.5	Indemnity to AER, AEMC and AEMO	1160
8.6.6	AEMO information	1160
8.6.7	Information on Rules Bodies	1160
Part D	Monitoring and reporting	1161
8.7	Monitoring and Reporting	1161
8.7.1	Monitoring	1161
8.7.2	Reporting requirements and monitoring standards for Registered Participants and AEMO	1161
8.7.3	Consultation required for making general regulatory information order (Section 28H of the NEL)	1163
8.7.4	Preparation of network service provider performance report (Section 28V of the NEL)	1164
8.7.5	[Deleted]	1165
8.7.6	Recovery of reporting costs	1165
Part E	Reliability panel	1165
8.8	Reliability Panel	1165
8.8.1	Purpose of Reliability Panel	1165
8.8.2	Constitution of the Reliability Panel	1167
8.8.3	Reliability Panel review process	1170
8.8.4	Determination of protected events	1172
Part F	Rules consultation procedures	1174
8.9	Rules Consultation Procedures	1174
Part G	Consumer advocacy funding	1176
8.10	Consumer advocacy funding obligation	1176
Part H	Augmentations	1177
8.11	Augmentations	1177
8.11.1	Application	1177
8.11.2	Object	1177
8.11.3	Definitions	1178
8.11.4	Planning criteria	1178
8.11.5	Construction of augmentation that is not a contestable augmentation	1179
8.11.6	Contestable augmentations	1179
8.11.7	Construction and operation of contestable augmentation	1180
8.11.8	Funded augmentations that are not subject to the tender process	1182
8.11.9	Contractual requirements and principles	1183
8.11.10	Annual planning review	1183
Schedule 8.11	Principles to be reflected in agreements relating to contestable augmentations	1183
S8.11.1	Risk allocation	1183
S8.11.2	Minimum requirements for agreements relating to contestable augmentation	1185
S8.11.3	Matters to be dealt with in relevant agreements	1185
Part I	Values of customer reliability	1186
8.12	Development of methodology and publication of values of customer reliability	1186
8A.	Participant Derogations	1191
Part 1	Derogations Granted to TransGrid	1191
8A.1	[Deleted]	1191
Part 2	Derogations Granted to EnergyAustralia	1191
8A.2	[Deleted]	1191
8A.2A	[Deleted]	1191
Part 3	[Deleted]	1191
Part 4	[Deleted]	1191
Part 5	[Deleted]	1191
Part 6	Derogations Granted to Victorian Market Participants	1191
Part 7	[Deleted]	1192
Part 8	[Deleted]	1192
Part 9	[Deleted]	1192
Part 10	[Deleted]	1192
Part 11	[Deleted]	1192
Part 12	[Deleted]	1192
Part 13	Derogation granted to Aurora Energy (Tamar Valley) Pty Ltd	1192
8A.13	[Deleted]	1192
Part 14	Derogations granted to Ausgrid, Endeavour Energy and Essential Energy	1192
8A.14	Derogations from Chapter 6 for the current regulatory control period and subsequent regulatory control period	1192
8A.14.1	Definitions	1192
8A.14.2	Expiry date	1197
8A.14.3	Application of Rule 8A.14	1197
8A.14.4	Recovery of revenue across the current regulatory control period and subsequent regulatory control period	1197
8A.14.5	Recovery of revenue in subsequent regulatory control period only and no reopening of subsequent distribution determination required	1199
8A.14.6	Recovery of revenue in subsequent regulatory control period only and reopening of distribution determination is required	1200
8A.14.7	Requirements for adjustment determination	1202
8A.14.8	Application of Chapter 6 under participant derogation	1202
Part 15	Derogations granted to ActewAGL	1204
8A.15	Derogations from Chapter 6 for the current regulatory control period and subsequent regulatory control period	1204
8A.15.1	Definitions	1204
8A.15.2	Expiry date	1208
8A.15.3	Application of Rule 8A.15	1208
8A.15.4	Recovery of revenue across the current regulatory control period and subsequent regulatory control period	1208
8A.15.5	Recovery of revenue in subsequent regulatory control period only and no reopening of subsequent distribution determination required	1210
8A.15.6	Recovery of revenue in subsequent regulatory control period only and reopening of distribution determination is required	1212
8A.15.7	Requirements for adjustment determination	1214
8A.15.8	Application of Chapter 6 under participant derogation	1214
9.	Jurisdictional Derogations and Transitional Arrangements	1219
9.1	Purpose and Application	1219
9.1.1	Purpose	1219
9.1.2	Jurisdictional Derogations	1219
Part A	Jurisdictional Derogations for Victoria	1219
9.2	[Deleted]	1219
9.3	Definitions	1219
9.3.1	General Definitions	1219
9.3.2	[Deleted]	1221
9.3A	Fault levels	1221
9.4	Transitional Arrangements for Chapter 2 - Registered Participants, Registration and Cross Border Networks	1222
9.4.1	[Deleted]	1222
9.4.2	Smelter Trader	1222
9.4.3	Smelter Trader: compliance	1223
9.4.4	Report from AER	1225
9.4.5	Cross Border Networks	1226
9.5	[Deleted]	1226
9.6	Transitional Arrangements for Chapter 4 - System Security	1226
9.6.1	Operating Procedures (clause 4.10.1)	1226
9.6.2	Nomenclature Standards (clause 4.12)	1226
9.7	Transitional Arrangements for Chapter 5 - Network Connection	1227
9.7.1	[Deleted]	1227
9.7.2	[Deleted]	1227
9.7.3	[Deleted]	1227
9.7.4	Regulation of Distribution Network Connection	1227
9.7.5	[Deleted]	1228
9.7.6	[Deleted]	1228
9.7.7	[Deleted]	1228
9.8	Transitional Arrangements for Chapter 6 - Network Pricing	1228
9.8.1	[Deleted]	1228
9.8.2	[Deleted]	1228
9.8.3	[Deleted]	1228
9.8.4	Transmission Network Pricing	1228
9.8.4A	[Deleted]	1230
9.8.4B	[Deleted]	1230
9.8.4C	[Deleted]	1230
9.8.4D	[Deleted]	1230
9.8.4E	[Deleted]	1230
9.8.4F	[Deleted]	1230
9.8.4G	[Deleted]	1230
9.8.5	[Deleted]	1230
9.8.6	[Deleted]	1230
9.8.7	Distribution network pricing – transitional application of former Chapter 6	1230
9.8.8	Exclusion of AER's power to aggregate distribution systems and parts of distribution systems	1231
9.9	Transitional Arrangements for Chapter 7 - Metering	1232
9.9.1	Metering Installations To Which This Schedule Applies	1232
9.9.2	[Deleted]	1232
9.9.3	[Deleted]	1232
9.9.4	[Deleted]	1232
9.9.5	[Deleted]	1232
9.9.6	[Deleted]	1232
9.9.7	[Deleted]	1232
9.9.8	[Deleted]	1232
9.9.9	Periodic Energy Metering (clause 7.9.3)	1232
9.9.10	Use of Alternate Technologies (clause 7.13)	1232
9.9A	[Deleted]	1233
9.9B	[Deleted]	1233
9.9C	[Deleted]	1233
Schedule 9A1.1	[Deleted]	1233
Schedule 9A1.2	[Deleted]	1233
Schedule 9A1.3	[Deleted]	1233
Schedule 9A2	[Deleted]	1233
Schedule 9A3	Jurisdictional Derogations Granted to Generators	1233
1.	Interpretation of tables	1233
2.	Continuing effect	1233
3.	Subsequent agreement	1234
4.	[Deleted]	1234
5.	Reactive Power Capability (clause S5.2.5.1 of schedule 5.2)	1234
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]	1236
15.	[Deleted]	1236
16.	Excitation Control System (clause S5.2.5.13 of schedule 5.2)	1236
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	1238
9.12.4	Cross Border Networks	1241
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	1242
9.15.1	Definitions	1242
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	1243
9.16.5	[Deleted]	1243
9.17	Transitional Arrangements for Chapter 7 - Metering	1243
9.17.1	Extent of Derogations	1243
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)	1244
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]	1246
9.24A	[Deleted]	1246
Part D	Jurisdictional Derogations for South Australia	1246
9.25	Definitions	1246
9.25.1	[Deleted]	1246
9.25.2	Definitions	1246
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]	1251
9.28	Transitional Arrangements for Chapter 5 - Network Connection	1251
9.28.1	Application of clause 5.2	1251
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	1253
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	1257
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]	1258
9.34.4	Registration as a Customer (clause 2.3.1)	1258
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
11.72.1	Definitions	1577
11.73	Special provisions applying to affected DNSPs	1577
11.73.1	Distribution determination and pricing proposals	1577
11.73.2	Tariff structure statement	1577
11.73.3	Dispute resolution	1583
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
11.76.3	Dispute resolution	1591
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
Part ZZZL	Generator three year notice of closure	1660
11.110	Rules consequential on the making of the National Electricity Amendment (Generator three year notice of closure) Rule 2018	1660
11.110.1	Definitions	1660
11.110.2	AER to develop and publish notice of closure exemption guideline	1660
11.110.3	Application of Amending Rule to AEMO	1660
11.110.4	Application of Amending Rule to Generators	1661