National Electricity Rules Version 107

Historical Information

This version of the National Electricity Rules was current from 10 April 2018 to 30 May 2018.

National Electricity Rules Version 107
Status Information
This is the latest electronically available version of the National Electricity Rules as at 10 April 2018.
This consolidated version of the National Electricity Rules was last updated on 10 April 2018 as a result of the commencement of the following amendments:
National Electricity Amendment (Testing of system restart ancillary services capability) Rule 2018 No. 2
National Electricity Amendment (Implementation of demand management incentive scheme) Rule 2018 No. 3
Schedule 1 of National Electricity Amendment (Minor Changes) Rule 2018 No. 4
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, 2, 4, 5 and 6 of the National Electricity Amendment (Transmission Connection and Planning Arrangements) Rule 2017 No. 4 will commence on 1 July 2018.
Schedules 1 to 7 of the National Electricity Amendment (Managing the rate of change of power system frequency) Rule 2017 No. 9 will commence on 1 July 2018 immediately after the commencement of Schedules 1,2,4,5 and 6 of the National Electricity Amendment (Transmission Connection and Planning Arrangements) Rule 2017 No. 4.
Schedules 4 to 9 of the National Electricity Amendment (Managing power system fault levels) rule 2017 No. 10 will commence on 1 July 2018 immediately after the commencement of Schedules 1 to 7 of the National Electricity Amendment (Managing the rate of change of power system frequency) Rule 2017 No. 9.
Schedules 1, 2, 3 and 4 of the National Electricity Amendment (Generating System Model Guidelines) Rule 2017 No. 11 commence operation on 1 July 2018, immediately after Schedules 4 to 9 of the National Electricity Amendment (Managing power system fault levels) Rule 2017 No. 10.
Schedule 2 of the National Electricity Amendment (Minor Changes) Rule 2018 No. 4 commences operation on 1 July 2018, immediately after the commencement of Schedule 1 of the National Electricity Amendment (Generating System Model Guidelines) Rule 2017).
Schedules 1 to 6 of the National Electricity Amendment (Five minute settlement) Rule 2017 No. 15 will commence operation on 1 July 2021.

TABLE OF CONTENTS
1.	Introduction	3
1.1	Preliminary	3
1.1.1	References to the Rules	3
1.1.2	Italicised expressions	3
1.1.3	[Deleted]	3
1.2	Background	3
1.3	Nomenclature of and references to provisions of a Chapter	3
1.3.1	Introduction	3
1.3.2	Parts, Divisions and Subdivisions	3
1.3.3	Rules, clauses, paragraphs, subparagraphs and other items	4
1.4	Effect of renumbering of provisions of the Rules	5
1.5	[Deleted]	5
1.6	[Deleted]	5
1.7	Interpretation	5
1.7.1	General	5
1.8	Notices	6
1.8.1	Service of notices under the Rules	6
1.8.2	Time of service	7
1.8.3	Counting of days	7
1.8.4	Reference to addressee	7
1.9	Retention of Records and Documents	8
1.10	[Deleted]	8
1.11	AEMO Rule Funds	8
2.	Registered Participants and Registration	13
2.1	Registered Participants	13
2.1.1	Purpose	13
2.1.2	General	13
2.2	Generator	13
2.2.1	Registration as a Generator	13
2.2.2	Scheduled Generator	14
2.2.3	Non-Scheduled Generator	15
2.2.4	Market Generator	16
2.2.5	Non-Market Generator	17
2.2.6	Ancillary services generating unit	17
2.2.7	Semi-Scheduled Generator	19
2.3	Customer	21
2.3.1	Registration as a Customer	21
2.3.2	First-Tier Customer	21
2.3.3	Second-Tier Customer	22
2.3.4	Market Customer	22
2.3.5	Ancillary services load	23
2.3A	Small Generation Aggregator	26
2.3A.1	Registration	26
2.3AA	Market Ancillary Service Provider	27
2.3AA.1	Registration	27
2.4	Market Participant	27
2.4.1	Registration as a category of Market Participant	27
2.4.2	Eligibility	28
2.4A	Metering Coordinator	28
2.4A.1	Registration as a Metering Coordinator	28
2.4A.2	Eligibility	29
2.5	Network Service Provider	30
2.5.1	Registration as a Network Service Provider	30
2.5.2	Market Network Service	31
2.5.3	Scheduled Network Service	32
2.5A	Trader	33
2.5B	Reallocator	34
2.6	Special Participant	34
2.7	Intention to Commence Activities or Functions	35
2.8	Registered Participant Rights and Obligations	35
2.8.1	Rights and obligations	35
2.9	Application to be Registered as a Registered Participant	36
2.9.1	Applications for Registration	36
2.9.2	Registration as a Registered Participant	36
2.9.3	Registration as an Intermediary	37
2.9A	Transfer of Registration	38
2.9A.1	Definitions	38
2.9A.2	Applications for Transfer of Registration	38
2.9A.3	Approval for Transfer of Registration	39
2.10	Ceasing to be a Registered Participant	40
2.10.1	Notification of intention	40
2.10.2	Ceasing Participation	41
2.10.3	Liability after cessation	42
2.11	Participant Fees	42
2.11.1A	Application	42
2.11.1	Development of Participant fee structure	42
2.11.2	Payment of Participant fees	45
2.11.3	Budgeted revenue requirements	45
2.12	Interpretation of References to Various Registered Participants	46
2A.	Regional Structure	51
Part A	Region change applications and region determinations by AEMC	51
2A.1	Introduction to Chapter 2A	51
2A.1.1	Definitions	51
2A.1.2	AEMC determination of regions	51
2A.1.3	Publication of regions by AEMO	51
2A.2	Region change applications	51
2A.2.1	A complete region change application	51
2A.2.2	Identifying a congestion problem	52
2A.2.3	Explanation of economic efficiency of proposed region solution	52
2A.2.4	Region change application must be technically competent	53
2A.2.5	Alternative congestion management options	53
2A.2.6	Previous application relating to congestion problem	54
2A.2.7	AEMO to provide information to intending applicants	54
2A.2.8	AEMC may refuse to accept incomplete applications	55
2A.3	Acceptance of region change application by AEMC	55
2A.3.1	Acceptance of a region change application by AEMC	55
2A.3.2	Preliminary consultation prior to acceptance of a region change application	56
2A.4	First round consultation on region change application	57
2A.4.1	Notice of first round consultation	57
2A.4.2	Right to make written submissions during first round consultation period	57
2A.4.3	Alternative region solution put forward by third parties	57
2A.4.4	Acceptance as a formal alternative region solution by AEMC	58
2A.5	Provision of supplementary economic analysis	59
2A.5.1	AEMC may direct provision of supplementary analysis	59
2A.5.2	AEMC may direct AEMO to provide information	59
2A.6	Region determinations	60
2A.6.1	AEMC powers to make a region determination	60
2A.6.2	Matters for consideration in making region determination	60
2A.7	Draft region determination and second round consultation	61
2A.7.1	Publishing of draft region determination	61
2A.7.2	Second round consultation	61
2A.7.3	Right to make written submissions during second round consultation	62
2A.8	Final region determination	62
2A.8.1	Final determination for region change	62
2A.8.2	Formal publication of region determination	62
2A.9	Miscellaneous matters for region change process	62
2A.9.1	AEMC may extend periods of time specified in Chapter 2A	62
2A.9.2	Consultation meeting in relation to region change application	63
Part B	Implementation of region determination	63
2A.10	Purpose and application of Part B	63
2A.10.1	Purpose of Part B	63
2A.10.2	Application of Part B	64
2A.11	Region Change Implementation Procedure	64
2A.11.1	Submission of draft Region Change Implementation Procedure	64
2A.11.2	Approved Region Change Implementation Procedure	64
2A.12	AEMO region change implementation functions	65
2A.12.1	General implementation functions	65
2A.12.2	Implementation functions referable to published implementation procedure	65
2A.12.3	Amendment of current or subsequent Regions and Loss Factors Publication	65
2A.13	Continuity of regions	65
Schedule 2A.1	Glossary for Chapter 2A	66
3.	Market Rules	71
3.1	Introduction to Market Rules	71
3.1.1	Purpose	71
3.1.1A	Definitions	71
3.1.2	[Deleted]	72
3.1.3	[Deleted]	72
3.1.4	Market design principles	72
3.1.5	Time for undertaking action	73
3.2	AEMO's Market Responsibilities	73
3.2.1	Market functions of AEMO	73
3.2.2	Spot market	74
3.2.3	Power system operations	74
3.2.4	Non-market ancillary services function	74
3.2.5	[Deleted]	75
3.2.6	Settlements	75
3.3	Prudential Requirements	75
3.3.1	Market Participant criteria	75
3.3.2	Credit support	75
3.3.3	Acceptable credit criteria	76
3.3.4	Acceptable credit rating	77
3.3.4A	Prudential standard	77
3.3.5	Amount of credit support	77
3.3.6	Changes to credit support	77
3.3.7	Drawings on credit support	78
3.3.8	Credit limit procedures and prudential settings	79
3.3.8A	Security Deposits	81
3.3.9	Outstandings	81
3.3.10	Trading limit	81
3.3.11	Call notices	82
3.3.12	Typical accrual	83
3.3.13	Response to Call Notices	83
3.3.13A	Application of monies in the security deposit fund	84
3.3.14	Potential value of a transaction	85
3.3.15	Trading margin	86
3.3.16	Limitation on entry of transactions	86
3.3.17	Scheduled prices	86
3.3.18	Additional credit support	87
3.3.19	Consideration of other Market Participant transactions	87
3.4	Spot Market	87
3.4.1	Establishment of spot market	87
3.4.2	Trading day and trading interval	88
3.4.3	Spot market operations timetable	88
3.5	Regions	89
3.5.1	[Deleted]	89
3.5.2	[Deleted]	89
3.5.3	[Deleted]	89
3.5.4	[Deleted]	89
3.5.5	[Deleted]	89
3.5.6	[Deleted]	89
3.6	Network Losses and Constraints	89
3.6.1	Inter-regional losses	89
3.6.2	Intra-regional losses	91
3.6.2A	Load and generation data used to determine inter-regional loss factor equations and intra-regional loss factors	94
3.6.3	Distribution losses	96
3.6.4	Network constraints	100
3.6.5	Settlements residue due to network losses and constraints	101
3.7	Projected Assessment of System Adequacy	103
3.7.1	Administration of PASA	103
3.7.2	Medium term PASA	104
3.7.3	Short term PASA	106
3.7A	Congestion information resource	109
3.7B	Unconstrained intermittent generation forecast	112
3.7C	Energy Adequacy Assessment Projection	113
3.7D	Demand side participation information	117
3.8	Central Dispatch and Spot Market Operation	119
3.8.1	Central Dispatch	119
3.8.2	Participation in central dispatch	121
3.8.3	Bid and offer aggregation guidelines	122
3.8.3A	Ramp rates	124
3.8.4	Notification of scheduled capacity	126
3.8.5	Submission timing	128
3.8.6	Generating unit offers for dispatch	128
3.8.6A	Scheduled network service offers for dispatch	130
3.8.7	Bids for scheduled load	132
3.8.7A	Market ancillary services offers	134
3.8.8	Validation of dispatch bids and offers	135
3.8.9	Default offers and bids	136
3.8.10	Network constraints	137
3.8.11	Ancillary services constraints	138
3.8.12	System scheduled reserve constraints	139
3.8.13	Notification of constraints	139
3.8.14	Dispatch under conditions of supply scarcity	139
3.8.15	[Deleted]	140
3.8.16	Equal priced dispatch bids and dispatch offers	140
3.8.17	Self-commitment	140
3.8.18	Self-decommitment	141
3.8.19	Dispatch inflexibilities	141
3.8.20	Pre-dispatch schedule	144
3.8.21	On-line dispatch process	146
3.8.22	Rebidding	147
3.8.22A	Offers, bids and rebids must not be false or misleading	149
3.8.23	Failure to conform to dispatch instructions	151
3.8.24	Scheduling errors	153
3.9	Price Determination	153
3.9.1	Principles applicable to spot price determination	153
3.9.2	Determination of spot prices	155
3.9.2A	Determination of ancillary services prices	157
3.9.2B	Pricing where AEMO determines a manifestly incorrect input	158
3.9.3	Pricing in the event of intervention by AEMO	159
3.9.3A	Reliability standard and settings review	160
3.9.3B	Reliability standard and settings review report	162
3.9.3C	Reliability standard	162
3.9.3D	Implementation of the reliability standard	163
3.9.4	Market Price Cap	164
3.9.5	Application of the Market Price Cap	165
3.9.6	Market Floor Price	165
3.9.6A	Application of the Market Floor Price	165
3.9.7	Pricing for constrained-on scheduled generating units	166
3.10	[Deleted]	166
3.11	Ancillary Services	166
3.11.1	Introduction	166
3.11.2	Market ancillary services	167
3.11.3	Acquisition of Network Support and Control Ancillary Service	168
3.11.4	Guidelines and objectives for acquisition of network support and control ancillary services	169
3.11.5	Tender process for network support and control ancillary services	170
3.11.6	Dispatch of network support and control ancillary services by AEMO	172
3.11.7	Guidelines and objectives for acquisition of system restart ancillary services by AEMO	173
3.11.8	Determination of electrical sub-network boundaries	174
3.11.9	Acquisition of system restart ancillary services by AEMO	174
3.11.10	Reporting	176
3.12	Market Intervention by AEMO	176
3.12.1	Intervention settlement timetable	176
3.12.2	Affected Participants and Market Customers entitlements to compensation in relation to AEMO intervention	177
3.12.3	Role of the Independent Expert in calculating payments in relation to intervention by AEMO	181
3.12A	Mandatory restrictions	184
3.12A.1	Restriction offers	184
3.12A.2	Mandatory restrictions schedule	185
3.12A.3	Acquisition of capacity	186
3.12A.4	Rebid of capacity under restriction offers	186
3.12A.5	Dispatch of restriction offers	187
3.12A.6	Pricing during a restriction price trading interval	187
3.12A.7	Determination of funding restriction shortfalls	187
3.12A.8	Cancellation of a mandatory restriction period	192
3.12A.9	Review by AEMC	193
3.13	Market Information	193
3.13.1	Provision of information	193
3.13.2	Systems and procedures	194
3.13.3	Standing data	195
3.13.4	Spot market	202
3.13.4A	Market ancillary services	207
3.13.5	Ancillary services contracting by AEMO	207
3.13.5A	Settlements residue auctions	207
3.13.6	[Deleted]	208
3.13.6A	Report by AEMO	208
3.13.7	Monitoring of significant variation between forecast and actual prices by AER	209
3.13.8	Public information	210
3.13.9	[Deleted]	211
3.13.10	Market auditor	211
3.13.11	[Deleted]	212
3.13.12	NMI Standing Data	212
3.13.12A	NMI Standing Data Schedule	216
3.13.13	Inter-network tests	216
3.13.14	Carbon Dioxide Equivalent Intensity Index	217
3.14	Administered Price Cap and Market Suspension	220
3.14.1	Cumulative Price Threshold and Administered Price Cap	220
3.14.2	Application of Administered Price Cap	221
3.14.3	Conditions for suspension of the spot market	223
3.14.4	Declaration of market suspension	224
3.14.5	Pricing during market suspension	225
3.14.6	Compensation due to the application of an administered price cap or administered floor price	226
3.15	Settlements	231
3.15.1	Settlements management by AEMO	231
3.15.2	Electronic funds transfer	232
3.15.3	Connection point and virtual transmission node responsibility	232
3.15.4	Adjusted energy amounts connection points	232
3.15.5	Adjusted energy - transmission network connection points	233
3.15.5A	Adjusted energy - virtual transmission nodes	233
3.15.6	Spot market transactions	234
3.15.6A	Ancillary service transactions	234
3.15.7	Payment to Directed Participants	247
3.15.7A	Payment to Directed Participants for services other than energy and market ancillary services	249
3.15.7B	Claim for additional compensation by Directed Participants	252
3.15.8	Funding of Compensation for directions	254
3.15.9	Reserve settlements	259
3.15.10	Administered price cap or administered floor price compensation payments	261
3.15.10A	Goods and services tax	262
3.15.10B	Restriction contract amounts	263
3.15.10C	Intervention Settlements	264
3.15.11	Reallocation transactions	267
3.15.11A	Reallocation procedures	269
3.15.12	Settlement amount	269
3.15.13	Payment of settlement amount	270
3.15.14	Preliminary statements	270
3.15.15	Final statements	271
3.15.15A	Use of estimated settlement amounts by AEMO	271
3.15.16	Payment by market participants	271
3.15.17	Payment to market participants	272
3.15.18	Disputes	272
3.15.19	Revised Statements and Adjustments	272
3.15.20	Payment of adjustments	274
3.15.21	Default procedure	275
3.15.22	Maximum total payment in respect of a billing period	280
3.15.23	Maximum total payment in respect of a financial year	281
3.15.24	Compensation for reductions under clause 3.15.23	282
3.15.25	Interest on overdue amounts	283
3.16	Participant compensation fund	283
3.16.1	Establishment of Participant compensation fund	283
3.16.2	Dispute resolution panel to determine compensation	284
3.17	[Deleted]	285
3.18	Settlements Residue Auctions	285
3.18.1	Settlements residue concepts	285
3.18.2	Auctions and eligible persons	287
3.18.3	Auction rules	288
3.18.3A	Secondary trading of SRD units	289
3.18.4	Proceeds and fees	289
3.18.4A	Secondary trading proceeds and margin	291
3.18.5	Settlement residue committee	292
3.19	Market Management Systems Access Procedures	293
3.20	Reliability and Emergency Reserve Trader	294
3.20.1	[Deleted]	294
3.20.2	Reliability and emergency reserve trader	294
3.20.3	Reserve contracts	295
3.20.4	Dispatch pricing methodology for unscheduled reserve contracts	296
3.20.5	AEMO’s risk management and accounts relating to the reliability safety net	296
3.20.6	Reporting on RERT by AEMO	296
3.20.7	AEMO’s exercise of the RERT	297
3.20.8	RERT Guidelines	299
3.20.9	[Deleted] 	299
Schedule 3.1	Bid and Offer Validation Data	299
Scheduled Generating Unit Data:	300
Semi-Scheduled Generating Unit Data:	301
Scheduled Load Data:	301
Scheduled Network Service Data:	302
Ancillary Service Generating Unit and Ancillary Service Load Data:	302
Dispatch Inflexibility Profile:	303
Aggregation Data:	303
Schedule 3.2	[Deleted]	303
Schedule 3.3	[Deleted]	303
4.	Power System Security	307
4.1	Introduction	307
4.1.1	Purpose	307
4.2	Definitions and Principles	307
4.2.1	[Deleted]	308
4.2.2	Satisfactory Operating State	308
4.2.3	Credible and non-credible contingency events and protected events	308
4.2.3A	Re-classifying contingency events	309
4.2.3B	Criteria for re-classifying contingency events	311
4.2.4	Secure operating state and power system security	311
4.2.5	Technical envelope	312
4.2.6	General principles for maintaining power system security	313
4.2.7	Reliable Operating State	313
4.2.8	Time for undertaking action	314
4.3	Power System Security Responsibilities and Obligations	314
4.3.1	Responsibility of AEMO for power system security	314
4.3.2	System security	316
4.3.3	The role of System Operators	319
4.3.4	Network Service Providers	321
4.3.5	Market Customer obligations	324
4.4	Power System Frequency Control	325
4.4.1	Power system frequency control responsibilities	325
4.4.2	Operational frequency control requirements	325
4.4.3	Generator protection requirements	325
4.5	Control of Power System Voltage	326
4.5.1	Power system voltage control	326
4.5.2	Reactive power reserve requirements	327
4.5.3	Audit and testing	327
4.6	Protection of Power System Equipment	327
4.6.1	Power system fault levels	327
4.6.2	Power system protection co-ordination	328
4.6.3	Audit and testing	328
4.6.4	Short-term thermal ratings of power system	328
4.6.5	Partial outage of power protection systems	328
4.6.6	System strength impact assessment guidelines	329
4.7	Power System Stability Co-ordination	330
4.7.1	Stability analysis co-ordination	330
4.7.2	Audit and testing	331
4.8	Power System Security Operations	331
4.8.1	Registered Participants' advice	331
4.8.2	Protection or control system abnormality	331
4.8.3	AEMO’s advice on power system emergency conditions	331
4.8.4	Declaration of conditions	332
4.8.4A	Reserve level declaration guidelines	332
4.8.4B	Lack of reserve framework reporting	333
4.8.5	Managing declarations of conditions	334
4.8.5A	Determination of the latest time for AEMO intervention	334
4.8.5B	Notifications of last time of AEMO intervention	336
4.8.6	[Deleted]	336
4.8.7	Managing a power system contingency event	336
4.8.8	[Deleted]	336
4.8.9	Power to issue directions and clause 4.8.9 instructions	336
4.8.9A	System security directions	338
4.8.10	Disconnection of generating units and market network services	339
4.8.11	[Deleted]	339
4.8.12	System restart plan and local black system procedures	339
4.8.13	[Deleted]	341
4.8.14	Power system restoration	341
4.8.15	Review of operating incidents	342
4.9	Power System Security Related Market Operations	344
4.9.1	Load forecasting	344
4.9.2	Instructions to Scheduled Generators and Semi-Scheduled Generators	345
4.9.2A	Dispatch Instructions to Scheduled Network Service Providers	346
4.9.3	Instructions to Registered Participants	346
4.9.3A	Ancillary services instructions	347
4.9.3B	Compliance with dispatch instructions	348
4.9.4	Dispatch related limitations on Scheduled Generators and Semi-Scheduled Generators	348
4.9.4A	Dispatch related limitations on Scheduled Network Service Providers	349
4.9.5	Form of dispatch instructions	350
4.9.6	Commitment of scheduled generating units	351
4.9.7	De-commitment, or output reduction, by Scheduled Generators	352
4.9.8	General responsibilities of Registered Participants	353
4.9.9	Scheduled Generator plant changes	354
4.9.9A	Scheduled Network Service Provider plant changes	354
4.9.9B	Ancillary service plant changes	355
4.10	Power System Operating Procedures	355
4.10.1	Power system operating procedures	355
4.10.2	Transmission network operations	356
4.10.3	Operating interaction with distribution networks	356
4.10.4	Switching of a Distributor's high voltage networks	357
4.10.5	Switching of reactive power facilities	357
4.10.6	Automatic reclose	357
4.10.7	Inspection of facilities by AEMO	358
4.11	Power System Security Support	358
4.11.1	Remote control and monitoring devices	358
4.11.2	Operational control and indication communication facilities	359
4.11.3	Power system voice/data operational communication facilities	360
4.11.4	Records of power system operational communication	362
4.11.5	Agent communications	363
4.12	Nomenclature Standards	363
4.13	[Deleted]	364
4.14	Acceptance of Performance Standards	364
4.15	Compliance with Performance Standards	366
4.16	Transitioning arrangements for establishment of performance standards	370
4.16.1	Definitions	370
4.16.2	Exclusions	372
4.16.3	Notification and acceptance of performance standards	372
4.16.4	Actual capability	377
4.16.5	Criteria for, and negotiation of, performance standards	378
4.16.6	Consultation with and assistance by Network Service Providers	381
4.16.7	Referral to expert determination	382
4.16.8	Prior actions	382
4.16.9	Deemed performance standards	383
4.16.10	Modification of connection agreements	383
4.17	Expert determination	383
4.17.1	Performance standards committee and appointment of performance standards experts	383
4.17.2	Referral to performance standards expert	385
4.17.3	Determinations of performance standards experts	386
4.17.4	Other matters	387
5.	Network Connection, Planning and Expansion	391
Part A	Network Connection	391
5.1	Statement of Purpose	391
5.1.1	[Deleted]	391
5.1.2	Purpose and Application	391
5.1.3	Principles	393
5.2	Obligations	394
5.2.1	Obligations of Registered Participants	394
5.2.2	Connection agreements	395
5.2.3	Obligations of network service providers	395
5.2.4	Obligations of customers	400
5.2.5	Obligations of Generators	401
5.2.6	Obligations of AEMO	402
5.3	Establishing or Modifying Connection	402
5.3.1	Process and procedures	402
5.3.1A	Application of rule to connection of embedded generating units	402
5.3.2	Connection enquiry	403
5.3.3	Response to connection enquiry	404
5.3.4	Application for connection	407
5.3.4A	Negotiated access standards	408
5.3.4B	System strength remediation for new connections	410
5.3.5	Preparation of offer to connect	413
5.3.6	Offer to connect	414
5.3.7	Finalisation of connection agreements	418
5.3.7A	Application for connection to declared shared network	420
5.3.8	Provision and use of information	420
5.3.9	Procedure to be followed by a Generator proposing to alter a generating system	421
5.3.10	Acceptance of performance standards for generating plant that is altered	423
5.3.11	Notification of request to change normal voltage	424
5.3A	Establishing or modifying connection - embedded generation	424
5.3A.1	Application of rule 5.3A	424
5.3A.2	Definitions and miscellaneous	425
5.3A.3	Publication of Information	426
5.3A.4	Fees	428
5.3A.5	Enquiry	429
5.3A.6	Response to Enquiry	430
5.3A.7	Preliminary Response to Enquiry	430
5.3A.8	Detailed Response to Enquiry	431
5.3A.9	Application for connection	432
5.3A.10	Preparation of offer to connect	433
5.3A.11	Technical Dispute	434
5.4	Design of Connected Equipment	434
5.4.1	Application	434
5.4.2	Advice of inconsistencies	434
5.4.3	Additional information	435
5.4.4	Advice on possible non-compliance	435
5.4.5	Register of completed embedded generation projects	436
5.4A	Access arrangements relating to Transmission Networks	437
5.4AA	Network support payments and functions	439
5.5	Access arrangements relating to Distribution Networks	440
5.5A	[Deleted]	444
5.6	[Deleted]	444
5.6A	[Deleted]	444
5.7	Inspection and Testing	444
5.7.1	Right of entry and inspection	444
5.7.2	Right of testing	446
5.7.3	Tests to demonstrate compliance with connection requirements for generators	447
5.7.3A	Tests to demonstrate compliance with system strength remediation schemes	449
5.7.4	Routine testing of protection equipment	450
5.7.5	Testing by Registered Participants of their own plant requiring changes to normal operation	452
5.7.6	Tests of generating units requiring changes to normal operation	454
5.7.7	Inter-network power system tests	455
5.8	Commissioning	462
5.8.1	Requirement to inspect and test equipment	462
5.8.2	Co-ordination during commissioning	463
5.8.3	Control and protection settings for equipment	463
5.8.4	Commissioning program	464
5.8.5	Commissioning tests	465
5.9	Disconnection and Reconnection	466
5.9.1	Voluntary disconnection	466
5.9.2	Decommissioning procedures	466
5.9.3	Involuntary disconnection	467
5.9.4	Direction to disconnect	467
5.9.4A	Notification of disconnection	468
5.9.5	Disconnection during an emergency	468
5.9.6	Obligation to reconnect	469
Part D	Network Planning and Expansion	470
5.10	Network development generally	470
5.10.1	Content of Part D	470
5.10.2	Definitions	471
5.10.3	Interpretation	475
5.11	Forecasts of connection to transmission network and identification of system limitations	475
5.11.1	Forecasts for connection to transmission network	475
5.11.2	Identification of network limitations	476
5.12	Transmission annual planning process	476
5.12.1	Transmission annual planning review	476
5.12.2	Transmission Annual Planning Report	477
5.13	Distribution annual planning process	482
5.13.1	Distribution annual planning review	482
5.13.2	Distribution Annual Planning Report	484
5.13.3	Distribution system limitation template	484
5.13A	Distribution zone substation information	485
5.14	Joint planning	488
5.14.1	Joint planning obligations of Transmission Network Service Providers and Distribution Network Service Providers	488
5.14.2	Joint planning obligations of Distribution Network Service Providers and Distribution Network Service Providers	489
5.14.3	Joint planning obligations of Transmission Network Service Providers	490
5.14A	Joint planning in relation to retirement or de-ratings of network assets forming part of the Declared Shared Network	490
5.14B	TAPR Guidelines	490
5.14B.1	Development of TAPR Guidelines	490
5.15	Regulatory investment tests generally	491
5.15.1	Interested parties	491
5.15.2	Identification of a credible option	491
5.15.3	Review of costs thresholds	492
5.15.4	Costs determinations	494
5.16	Regulatory investment test for transmission	495
5.16.1	Principles	495
5.16.2	Regulatory investment test for transmission application guidelines	498
5.16.3	Investments subject to the regulatory investment test for transmission	499
5.16.4	Regulatory investment test for transmission procedures	501
5.16.5	Disputes in relation to application of regulatory investment test for transmission	508
5.16.6	Determination that preferred option satisfies the regulatory investment test for transmission	510
5.17	Regulatory investment test for distribution	511
5.17.1	Principles	511
5.17.2	Regulatory investment test for distribution application guidelines	513
5.17.3	Projects subject to the regulatory investment test for distribution	515
5.17.4	Regulatory investment test for distribution procedures	516
5.17.5	Disputes in relation to application of regulatory investment test for distribution	522
5.18	Construction of funded augmentations	524
5.18A	Large generator connections	525
5.18A.1	Definitions	525
5.18A.2	Register of large generator connections	525
5.18A.3	Impact assessment of large generator connections	526
5.19	SENE Design and Costing Study	527
5.19.1	Definitions	527
5.19.2	Interpretation	528
5.19.3	Request for SENE Design and Costing Study	528
5.19.4	Content of SENE Design and Costing Study	529
5.19.5	Co-operation of other Network Service Providers	530
5.19.6	Publication of SENE Design and Costing Study report	531
5.19.7	Provision and use of information	531
5.20	National transmission planning	532
5.20.1	Preliminary consultation	532
5.20.2	Publication of NTNDP	533
5.20.3	Development strategies for national transmission flow paths	535
5.20.4	NTNDP database	536
5.20.5	Jurisdictional planning bodies and jurisdictional planning representatives	537
5.20.6	NTP Functions	537
5.20A	Frequency management planning	537
5.20A.1	Power system frequency risk review	537
5.20A.2	Power system frequency risk review process	538
5.20A.3	Power system frequency risk review report	539
5.20A.4	Request for protected event declaration	539
5.20A.5	Request to revoke a protected event declaration	540
5.21	AEMO's obligation to publish information and guidelines and provide advice	541
5.22	Last resort planning power	542
Schedule 5.1a	System standards	546
S5.1a.1	Purpose	546
S5.1a.2	Frequency	546
S5.1a.3	System stability	546
S5.1a.4	Power frequency voltage	547
S5.1a.5	Voltage fluctuations	547
S5.1a.6	Voltage waveform distortion	548
S5.1a.7	Voltage unbalance	548
S5.1a.8	Fault clearance times	549
Schedule 5.1	Network Performance Requirements to be Provided or Co-ordinated by Network Service Providers	551
S5.1.1	Introduction	551
S5.1.2	Network reliability	552
S5.1.2.1	Credible contingency events	552
S5.1.2.2	Network service within a region	553
S5.1.2.3	Network service between regions	554
S5.1.3	Frequency variations	554
S5.1.4	Magnitude of power frequency voltage	554
S5.1.5	Voltage fluctuations	556
S5.1.6	Voltage harmonic or voltage notching distortion	557
S5.1.7	Voltage unbalance	558
S5.1.8	Stability	559
S5.1.9	Protection systems and fault clearance times	560
S5.1.10	Load, generation and network control facilities	563
S5.1.10.1	General	563
S5.1.10.1a	Emergency frequency control schemes	564
S5.1.10.2	Distribution Network Service Providers	565
S5.1.10.3	Transmission Network Service Providers	565
S5.1.11	Automatic reclosure of transmission or distribution lines	566
S5.1.12	Rating of transmission lines and equipment	566
S5.1.13	Information to be provided	567
Schedule 5.2	Conditions for Connection of Generators	567
S5.2.1	Outline of requirements	567
S5.2.2	Application of Settings	568
S5.2.3	Technical matters to be coordinated	569
S5.2.4	Provision of information	570
S5.2.5	Technical requirements	572
S5.2.5.1	Reactive power capability	572
S5.2.5.2	Quality of electricity generated	574
S5.2.5.3	Generating unit response to frequency disturbances	575
S5.2.5.4	Generating system response to voltage disturbances	578
S5.2.5.5	Generating system response to disturbances following contingency events	579
S5.2.5.6	Quality of electricity generated and continuous uninterrupted operation	583
S5.2.5.7	Partial load rejection	583
S5.2.5.8	Protection of generating systems from power system disturbances	583
S5.2.5.9	Protection systems that impact on power system security	585
S5.2.5.10	Protection to trip plant for unstable operation	587
S5.2.5.11	Frequency control	588
S5.2.5.12	Impact on network capability	590
S5.2.5.13	Voltage and reactive power control	592
S5.2.5.14	Active power control	598
S5.2.6	Monitoring and control requirements	600
S5.2.6.1	Remote Monitoring	600
S5.2.6.2	Communications equipment	602
S5.2.7	Power station auxiliary supplies	603
S5.2.8	Fault current	603
Schedule 5.3	Conditions for Connection of Customers	604
S5.3.1a	Introduction to the schedule	604
S5.3.1	Information	606
S5.3.2	Design standards	607
S5.3.3	Protection systems and settings	607
S5.3.4	Settings of protection and control systems	608
S5.3.5	Power factor requirements	609
S5.3.6	Balancing of load currents	610
S5.3.7	Voltage fluctuations	611
S5.3.8	Harmonics and voltage notching	611
S5.3.9	Design requirements for Network Users' substations	611
S5.3.10	Load shedding facilities	612
Schedule 5.3a	Conditions for connection of Market Network Services	612
S5.3a.1a	Introduction to the schedule	612
S5.3a.1	Provision of Information	614
S5.3a.2	Application of settings	615
S5.3a.3	Technical matters to be co-ordinated	616
S5.3a.4	Monitoring and control requirements	616
S5.3a.4.1	Remote Monitoring	616
S5.3a.4.2	[Deleted]	617
S5.3a.4.3	Communications equipment	617
S5.3a.5	Design standards	618
S5.3a.6	Protection systems and settings	618
S5.3a.7	[Deleted]	620
S5.3a.8	Reactive power capability	620
S5.3a.9	Balancing of load currents	620
S5.3a.10	Voltage fluctuations	621
S5.3a.11	Harmonics and voltage notching	621
S5.3a.12	Design requirements for Market Network Service Providers’ substations	621
S5.3a.13	Market network service response to disturbances in the power system	622
S5.3a.14	Protection of market network services from power system disturbances	622
Schedule 5.4	Information to be Provided with Preliminary Enquiry	623
Schedule 5.4A	Preliminary Response	624
Schedule 5.4B	Detailed Response to Enquiry	627
Schedule 5.5	Technical Details to Support Application for Connection and Connection Agreement	629
S5.5.1	Introduction to the schedule	629
S5.5.2	Categories of data	629
S5.5.3	Review, change and supply of data	630
S5.5.4	Data Requirements	630
S5.5.5	Asynchronous generating unit data	631
S5.5.6	Generating units equal to or smaller than 30MW data	631
S5.5.7	Generating System Design Data Sheet, Generating System Setting Data Sheet and Generating System Model Guidelines	631
Schedule 5.5.1	[Deleted]	633
Schedule 5.5.2	[Deleted]	633
Schedule 5.5.3	Network and plant technical data of equipment at or near connection point	633
Schedule 5.5.4	Network Plant and Apparatus Setting Data	636
Schedule 5.5.5	Load Characteristics at Connection Point	638
Schedule 5.6	Terms and Conditions of Connection agreements	639
Schedule 5.7	Annual Forecast Information for Planning Purposes	640
Schedule 5.8	Distribution Annual Planning Report	642
Schedule 5.9	Demand side engagement document (clause 5.13.1(h))	649
Chapter 5A	Electricity connection for retail customers	653
Part A	Preliminary	653
5A.A.1	Definitions	653
5A.A.2	Application of this Chapter	656
5A.A.3	Small Generation Aggregator deemed to be agent of a retail customer	657
Part B	Standardised offers to provide basic and standard connection services	657
Division 1	Basic connection services	657
5A.B.1	Obligation to have model standing offer to provide basic connection services	657
5A.B.2	Proposed model standing offer for basic connection services	658
5A.B.3	Approval of terms and conditions of model standing offer to provide basic connection services	659
Division 2	Standard connection services	660
5A.B.4	Standard connection services	660
5A.B.5	Approval of model standing offer to provide standard connection services	661
Division 3	Miscellaneous	661
5A.B.6	Amendment etc of model standing offer	661
5A.B.7	Publication of model standing offers	662
Part C	Negotiated connection	662
5A.C.1	Negotiation of connection	662
5A.C.2	Process of negotiation	663
5A.C.3	Negotiation framework	663
5A.C.4	Fee to cover cost of negotiation	665
Part D	Application for connection service	666
Division 1	Information	666
5A.D.1	Publication of information	666
5A.D.1A	Register of completed embedded generation projects	666
Division 2	Preliminary enquiry	668
5A.D.2	Preliminary enquiry	668
Division 3	Applications	669
5A.D.3	Application process	669
5A.D.4	Site inspection	670
Part E	Connection charges	670
5A.E.1	Connection charge principles	670
5A.E.2	Itemised statement of connection charges	672
5A.E.3	Connection charge guidelines	672
5A.E.4	Payment of connection charges	674
Part F	Formation and integration of connection contracts	675
Division 1	Offer and acceptance – basic and standard connection services	675
5A.F.1	Distribution Network Service Provider’s response to application	675
5A.F.2	Acceptance of connection offer	675
5A.F.3	Offer and acceptance—application for expedited connection	675
Division 2	Offer and acceptance – negotiated connection	676
5A.F.4	Negotiated connection offer	676
Division 3	Formation of contract	677
5A.F.5	Acceptance of connection offer	677
Division 4	Contractual performance	677
5A.F.6	Carrying out connection work	677
5A.F.7	Retailer required for energisation where new connection	678
Part G	Dispute resolution between Distribution Network Service Providers and customers	678
5A.G.1	Relevant disputes	678
5A.G.2	Determination of dispute	678
5A.G.3	Termination of proceedings	679
SCHEDULE 5A.1 – Minimum content requirements for connection contract	679
Part A	Connection offer not involving embedded generation	679
Part B	Connection offer involving embedded generation	680
6	Economic Regulation of Distribution Services	685
Part A	Introduction	685
6.1	Introduction to Chapter 6	685
6.1.1	AER's regulatory responsibility	685
6.1.1A	[Deleted]	685
6.1.2	Structure of this Chapter	685
6.1.3	Access to direct control services and negotiated distribution services	686
6.1.4	Prohibition of DUOS charges for the export of energy	686
Part B	Classification of Distribution Services and Distribution Determinations	687
6.2	Classification	687
6.2.1	Classification of distribution services	687
6.2.2	Classification of direct control services as standard control services or alternative control services	687
6.2.3	Term for which classification operates	688
6.2.3A	Distribution Service Classification Guidelines	689
6.2.4	Duty of AER to make distribution determinations	689
6.2.5	Control mechanisms for direct control services	690
6.2.6	Basis of control mechanisms for direct control services	691
6.2.7	Negotiated distribution services	691
6.2.8	Guidelines	691
Part C	Building Block Determinations for standard control services	692
6.3	Building block determinations	692
6.3.1	Introduction	692
6.3.2	Contents of building block determination	693
6.4	Post-tax revenue model	693
6.4.1	Preparation, publication and amendment of post-tax revenue model	693
6.4.2	Contents of post-tax revenue model	693
6.4.3	Building block approach	694
6.4.4	Shared assets	695
6.4.5	Expenditure Forecast Assessment Guidelines	696
6.4A	Capital expenditure incentive mechanisms	697
6.4B	Asset exemptions	698
6.4B.1	Asset exemption decisions and Asset Exemption Guidelines	698
6.4B.2	Exemption applications	699
6.5	Matters relevant to the making of building block determinations	699
6.5.1	Regulatory asset base	699
6.5.2	Return on capital	700
6.5.3	Estimated cost of corporate income tax	703
6.5.4	[Deleted]	704
6.5.5	Depreciation	704
6.5.6	Forecast operating expenditure	704
6.5.7	Forecast capital expenditure	707
6.5.8	Efficiency benefit sharing scheme	712
6.5.8A	Capital expenditure sharing scheme	713
6.5.9	The X factor	714
6.5.10	Pass through events	715
6.6	Adjustments after making of building block determination.	715
6.6.1	Cost pass through	715
6.6.1A	Reporting on jurisdictional schemes	722
6.6.2	Service target performance incentive scheme	724
6.6.3	Demand management incentive scheme	725
6.6.3A	Demand management innovation allowance mechanism	726
6.6.4	Small-scale incentive scheme	727
6.6.5	Reopening of distribution determination for capital expenditure	728
6.6A	Contingent Projects	732
6.6A.1	Acceptance of a contingent project in a distribution determination	732
6.6A.2	Amendment of distribution determination for contingent project	734
Part D	Negotiated distribution services	739
6.7	Negotiated distribution services	739
6.7.1	Principles relating to access to negotiated distribution services	739
6.7.2	Determination of terms and conditions of access for negotiated distribution services	741
6.7.3	Negotiating framework determination	742
6.7.4	Negotiated Distribution Service Criteria determination	742
6.7.5	Preparation of and requirements for negotiating framework for negotiated distribution services	742
6.7.6	Confidential information	744
Part DA	Connection policies	745
6.7A	Connection policy requirements	745
6.7A.1	Preparation of, and requirements for, connection policy	745
Part E	Regulatory proposal and proposed tariff structure statement	746
6.8	Regulatory proposal and proposed tariff structure statement	746
6.8.1	AER's framework and approach paper	746
6.8.1A	Notification of approach to forecasting expenditure	749
6.8.2	Submission of regulatory proposal, tariff structure statement and exemption application	749
6.9	Preliminary examination and consultation	751
6.9.1	Preliminary examination	751
6.9.2	Resubmission of proposal	752
6.9.2A	Confidential information	752
6.9.3	Consultation	752
6.10	Draft distribution determination and further consultation	754
6.10.1	Making of draft distribution determination	754
6.10.2	Publication of draft determination and consultation	754
6.10.3	Submission of revised proposal	755
6.10.4	Submissions on specified matters	755
6.11	Distribution determination	756
6.11.1	Making of distribution determination	756
6.11.1A	Out of scope revised regulatory proposal or late submissions	756
6.11.2	Notice of distribution determination	757
6.11.3	Commencement of distribution determination	757
6.12	Requirements relating to draft and final distribution determinations	758
6.12.1	Constituent decisions	758
6.12.2	Reasons for decisions	761
6.12.3	Extent of AER's discretion in making distribution determinations	762
6.13	Revocation and substitution of distribution determination for wrong information or error	764
6.14	Miscellaneous	764
6.14A	Distribution Confidentiality Guidelines	765
Part F	Cost Allocation	765
6.15	Cost allocation	765
6.15.1	Duty to comply with Cost Allocation Method	765
6.15.2	Cost Allocation Principles	765
6.15.3	Cost Allocation Guidelines	766
6.15.4	Cost Allocation Method	767
Part G	Distribution consultation procedures	768
6.16	Distribution consultation procedures	768
Part H	Ring-Fencing Arrangements for Distribution Network Service Providers	770
6.17	Distribution Ring-Fencing Guidelines	770
6.17.1	Compliance with Distribution Ring-Fencing Guidelines	770
6.17.2	Development of Distribution Ring-Fencing Guidelines	770
Part I	Distribution Pricing Rules	771
6.18	Distribution Pricing Rules	771
6.18.1	Application of this Part	771
6.18.1A	Tariff structure statement	771
6.18.1B	Amending a tariff structure statement with the AER's approval	772
6.18.1C	Sub-threshold tariffs	774
6.18.2	Pricing proposals	774
6.18.3	Tariff classes	776
6.18.4	Principles governing assignment or re-assignment of retail customers to tariff classes and assessment and review of basis of charging	776
6.18.5	Pricing principles	777
6.18.6	Side constraints on tariffs for standard control services	779
6.18.7	Recovery of designated pricing proposal charges	780
6.18.7A	Recovery of jurisdictional scheme amounts	781
6.18.8	Approval of pricing proposal	785
6.18.9	Publication of information about tariffs and tariff classes	786
6.19.	Data Required for Distribution Service Pricing	787
6.19.1	Forecast use of networks by Distribution Customers and Embedded Generators	787
6.19.2	Confidentiality of distribution network pricing information	787
Part J	Billing and Settlements	787
6.20	Billing and Settlements Process	787
6.20.1	Billing for distribution services	787
6.20.2	Minimum information to be provided in distribution network service bills	789
6.20.3	Settlement between Distribution Network Service Providers	790
6.20.4	Obligation to pay	790
Part K	Prudential requirements, capital contributions and prepayments	790
6.21	Distribution Network Service Provider Prudential Requirements	790
6.21.1	Prudential requirements for distribution network service	790
6.21.2	Capital contributions, prepayments and financial guarantees	791
6.21.3	Treatment of past prepayments and capital contributions	791
Part L	Dispute resolution	792
6.22	Dispute Resolution	792
6.22.1	Dispute Resolution by the AER	792
6.22.2	Determination of dispute	792
6.22.3	Termination of access dispute without access determination	794
Part M	Separate disclosure of transmission and distribution charges	794
6.23	Separate disclosure of transmission and distribution charges	794
Part N	Dual Function Assets	795
6.24	Dual Function Assets	795
6.24.1	Application of this Part	795
6.24.2	Dual Function Assets	795
6.25	AER determination of applicable pricing regime for Dual Function Assets	796
6.26	Division of Distribution Network Service Provider's revenue	797
Part O	Annual Benchmarking Report	798
6.27	Annual Benchmarking Report	798
Part P	Distribution Reliability Measures Guidelines	798
6.28	Distribution Reliability Measures Guidelines	798
Schedule 6.1	Contents of building block proposals	799
S6.1.1	Information and matters relating to capital expenditure	799
S6.1.2	Information and matters relating to operating expenditure	800
S6.1.3	Additional information and matters	801
Schedule 6.2	Regulatory Asset Base	803
S6.2.1	Establishment of opening regulatory asset base for a regulatory control period	803
S6.2.2	Prudency and efficiency of capital expenditure	808
S6.2.2A	Reduction for inefficient past capital expenditure	809
S6.2.2B	Depreciation	811
S6.2.3	Roll forward of regulatory asset base within the same regulatory control period	812
6A.	Economic Regulation of Transmission Services	815
Part A	Introduction	815
6A.1	Introduction to Chapter 6A	815
6A.1.1	Economic regulation of transmission services generally	815
6A.1.2	Meaning of terms and conditions of access for transmission services	816
6A.1.3	Access to prescribed and negotiated transmission services	816
6A.1.4	National regulatory arrangements	817
6A.1.5	Application of Chapter 6A to Market Network Service Providers	817
6A.1.6	Application of Chapter 6A to AEMO and declared transmission system operators	818
Part B	Transmission Determinations Generally	818
6A.2	Transmission determinations	818
6A.2.1	Duty of AER to make transmission determinations	818
6A.2.2	Components of transmission determinations	818
6A.2.3	Guidelines	818
Part C	Regulation of Revenue - Prescribed Transmission Services	819
6A.3	Allowed revenue from prescribed transmission services	819
6A.3.1	Allowed revenue for regulatory year	819
6A.3.2	Adjustment of maximum allowed revenue	820
6A.4	Revenue determinations	820
6A.4.1	Introduction	820
6A.4.2	Contents of revenue determination	820
6A.5	Post-tax revenue model	821
6A.5.1	Introduction	821
6A.5.2	Preparation, publication and amendment of post-tax revenue model	822
6A.5.3	Contents of post-tax revenue model	822
6A.5.4	Building blocks approach	823
6A.5.5	Shared assets	824
6A.5.6	Expenditure Forecast Assessment Guidelines	825
6A.5A	Capital expenditure incentive mechanisms	826
6A.6	Matters relevant to the making of revenue determinations	826
6A.6.1	Regulatory asset base	826
6A.6.2	Return on capital	828
6A.6.3	Depreciation	830
6A.6.4	Estimated cost of corporate income tax	832
6A.6.5	Efficiency benefit sharing scheme	832
6A.6.5A	Capital expenditure sharing scheme	833
6A.6.6	Forecast operating expenditure	834
6A.6.7	Forecast capital expenditure	837
6A.6.8	The X factor	841
6A.6.9	Pass through events	842
6A.7	Matters relevant to the adjustment of revenue cap after making of revenue determination	842
6A.7.1	Reopening of revenue determination for capital expenditure	842
6A.7.2	Network support pass through	845
6A.7.3	Cost pass through	847
6A.7.4	Service target performance incentive scheme	853
6A.7.5	Small-scale incentive scheme	855
6A.8	Contingent Projects	856
6A.8.1	Acceptance of a Contingent Project in a revenue determination	856
6A.8.2	Amendment of revenue determination for contingent project	857
Part D	Negotiated Transmission Services	862
6A.9	Negotiated transmission services	862
6A.9.1	Principles relating to access to negotiated transmission services	862
6A.9.2	Determination of terms and conditions of access for negotiated transmission services	864
6A.9.3	Negotiating framework determination	864
6A.9.4	Negotiated transmission criteria determination	864
6A.9.5	Preparation of and requirements for negotiating framework	865
6A.9.6	Confidential information	867
6A.9.7	Commercial arbitration for negotiated transmission services	867
Part E	Procedure – Revenue determinations, negotiating frameworks and pricing methodologies	867
6A.10	Revenue Proposal, proposed negotiating framework and proposed pricing methodology	867
6A.10.1A	AER's framework and approach paper	867
6A.10.1B	Notification of approach to forecasting expenditure	869
6A.10.1	Submission of proposal, framework, pricing methodology and information	870
6A.10.2	[Deleted]	871
6A.11	Preliminary examination and consultation	871
6A.11.1	Preliminary examination and determination of non-compliance with relevant requirements	871
6A.11.2	Resubmission of proposal, framework, pricing methodology or information	872
6A.11.2A	Confidential information	872
6A.11.3	Consultation	873
6A.12	Draft decision and further consultation	874
6A.12.1	Making of draft decision	874
6A.12.2	Publication of draft decision and consultation	874
6A.12.3	Submission of revised proposal, framework or pricing methodology	875
6A.12.4	Submissions on specified matters	876
6A.13	Final decision	877
6A.13.1	Making of final decision	877
6A.13.2	Refusal to approve amounts, values, framework or pricing methodology	877
6A.13.2A	Out of scope revised documents or late submissions	878
6A.13.3	Notice of final decision	879
6A.13.4	Making of transmission determination	879
6A.14	Requirements relating to draft and final decisions	879
6A.14.1	Contents of decisions	879
6A.14.2	Reasons for decisions	882
6A.14.3	Circumstances in which matters must be approved or accepted	882
6A.15	Revocation of revenue determination or amendment of pricing methodology for wrong information or error	885
6A.16	Miscellaneous	886
6A.16A	Transmission Confidentiality Guidelines	886
Part F	Information Disclosure	887
6A.17	Information disclosure by Transmission Network Service Providers	887
6A.17.1	Information to be provided to AER	887
6A.17.2	Information Guidelines	888
6A.18	[Deleted]	890
Part G	Cost Allocation	890
6A.19	Cost allocation	890
6A.19.1	Duty to comply with Cost Allocation Methodology	890
6A.19.2	Cost Allocation Principles	890
6A.19.3	Cost Allocation Guidelines	891
6A.19.4	Cost Allocation Methodology	892
Part H	Transmission Consultation Procedures	893
6A.20	Transmission consultation procedures	893
Part I	Ring-Fencing Arrangements for Transmission Network Service Providers	894
6A.21	Transmission Ring-Fencing Guidelines	894
6A.21.1	Compliance with Transmission Ring-Fencing Guidelines	894
6A.21.2	Development of Transmission Ring-Fencing Guidelines	895
Part J	Prescribed Transmission Services - Regulation of Pricing	896
6A.22	Terms used in Part J	896
6A.22.1	Aggregate annual revenue requirement (AARR)	896
6A.22.2	Annual service revenue requirement (ASRR)	896
6A.22.3	Meaning of attributable cost share	896
6A.22.4	Meaning of attributable connection point cost share	897
6A.23	Pricing Principles for Prescribed Transmission Services	897
6A.23.1	Introduction	897
6A.23.2	Principles for the allocation of the aggregate annual revenue requirement	897
6A.23.3	Principles for the allocation of the annual service revenue requirement to connection points	898
6A.23.4	Principles for the recovery of the Annual Service Revenue Requirement as prices	901
6A.24	Pricing methodology	903
6A.24.1	Pricing methodologies generally	903
6A.24.2	Publication of pricing methodology and transmission network prices	904
6A.24.3	Basis for setting prices pending approval of pricing methodology	905
6A.24.4	Basis for setting prices pending approval of maximum allowed revenue	905
6A.25	Pricing methodology guidelines for prescribed transmission services	906
6A.25.1	Making and amending of pricing methodology guidelines	906
6A.25.2	Contents of pricing methodology guidelines	907
6A.26	Prudent discounts	908
6A.26.1	Agreements for prudent discounts for prescribed transmission services	908
6A.26.2	Application to AER for approval of proposed prudent discount amounts	909
6A.27	Billing Process	911
6A.27.1	Billing for prescribed transmission services	911
6A.27.1A	Billing of modified load export charges	911
6A.27.2	Minimum information to be provided in network service bills	911
6A.27.3	Obligation to pay charges for prescribed transmission services	912
6A.27.4	Payments between Transmission Network Service Providers in the same region	912
6A.27.5	Calculation of financial transfers between Transmission Network Service Providers in the same region	913
6A.28	Prudential Requirements	913
6A.28.1	Prudential Requirements for prescribed transmission services	913
6A.28.2	Capital contribution or prepayment for a specific asset	913
6A.28.3	Treatment of past capital contributions	913
6A.29	Multiple Transmission Network Service Providers	914
6A.29.1	Multiple Transmission Network Service Providers within a region	914
6A.29.2	Single Transmission Network Service Provider within a region	915
6A.29.3	Allocation over several regions	915
6A.29A	Modified load export charges	915
6A.29A.1	Single Transmission Network Service Provider in a Region	915
6A.29A.2 	Calculation of the modified load export charges	915
6A.29A.3	Calculation of adjustments to the modified load export charge	916
6A.29A.4	Billing the modified load export charge	916
6A.29A.5	Allocation and billing process where multiple Transmission Network Service Providers in a Region	917
Part K	Commercial arbitration for disputes about terms and conditions of access for prescribed and negotiated transmission services	917
6A.30	Commercial arbitration for prescribed and negotiated transmission services	917
6A.30.1	Notification of transmission services dispute	918
6A.30.2	Appointment of commercial arbitrator	918
6A.30.3	Procedures of commercial arbitrator	919
6A.30.4	Powers of commercial arbitrator in determining transmission services access disputes	919
6A.30.5	Determination of transmission services access disputes	921
6A.30.6	Costs of dispute	921
6A.30.7	Enforcement of agreement or determination and requirement for reasons	922
6A.30.8	Miscellaneous	922
Part L	Annual Benchmarking Report	923
6A.31	Annual Benchmarking Report	923
Schedule 6A.1	Contents of Revenue Proposals	923
S6A.1.1	Information and matters relating to capital expenditure	923
S6A.1.2	Information and matters relating to operating expenditure	924
S6A.1.3	Additional information and matters	925
Schedule 6A.2	Regulatory Asset Base	928
S6A.2.1	Establishment of opening regulatory asset base for a regulatory control period	928
S6A.2.2	Prudency and efficiency of capital expenditure	933
S6A.2.2A	Reduction for inefficient past capital expenditure	934
S6A.2.2B	Depreciation	936
S6A.2.3	Removal of assets from regulatory asset base	936
S6A.2.4	Roll forward of regulatory asset base within the same regulatory control period	938
Schedule 6A.3	CRNP methodology and modified CRNP methodology	939
S6A.3.1	Meaning of optimised replacement cost	939
S6A.3.2	CRNP methodology	939
S6A.3.3	Modified CRNP methodology	940
Schedule 6A.4	Application of this Chapter to AEMO and declared transmission system operators	940
S6A.4.1	Application of this Chapter to AEMO etc	940
S6A.4.2	Exclusions, qualifications and modifications	940
Chapter 6B	Retail markets	951
Part A	Retail support	951
Division 1 – Application and definitions	951
6B.A1.1	Application of this Part	951
Division 2	Billing and payment rules	952
6B.A2.1	Obligation to pay	952
6B.A2.2	Direct customer billing and energy-only contracts	952
6B.A2.3	Calculating network charges	952
6B.A2.4	Statement of charges	952
6B.A2.5	Time and manner of payment	953
Division 3	Matters incidental to billing and payment	953
6B.A3.1 	Adjustment of network charges	953
6B.A3.2	Tariff reassignment	954
6B.A3.3	Disputed statements of charges	955
6B.A3.4	Interest	956
6B.A3.5	Notification of changes to charges	956
Part B	Credit support required for late payment	956
Division 1	Application and definitions	957
6B.B1.1	Application of Part B	957
6B.B1.2	Definitions	957
Division 2	Requirements for credit support	957
6B.B2.1	Distribution Network Service Provider may require credit support in limited circumstances	957
Division 3	Provision of credit support by retailers	958
6B.B3.1	Retailer to provide credit support	958
6B.B3.2	Acceptable form of credit support	958
Division 4	Other Rules relating to credit support	959
6B.B4.1	Application of credit support	959
6B.B4.2	Return of credit support	959
6B.B4.3	Other retailer obligations	959
Schedule 6B.1	Prescribed form of unconditional undertaking for credit support	960
7.	Metering	963
Part A	Introduction	963
7.1	Introduction to the Metering Chapter	963
7.1.1	Contents	963
Part B	Roles and Responsibilities	963
7.2	Role and Responsibility of financially responsible Market Participant	963
7.2.1	Obligations of financially responsible Market Participants to establish metering installations	963
7.2.2	[Not used]	964
7.2.3	Agreements with Local Network Service Provider	964
7.2.4	[Not used]	965
7.2.5	Agreements with Metering Provider	965
7.3	Role and Responsibility of Metering Coordinator	965
7.3.1	Responsibility of the Metering Coordinator	965
7.3.2	Role of the Metering Coordinator	965
7.4	Qualification and Registration of Metering Providers, Metering Data Providers and Embedded Network Managers	969
7.4.1	Qualifications and registration of Metering Providers	969
7.4.2	Qualifications and registration of Metering Data Providers	970
7.4.2A	Qualifications and registration of Embedded Network Managers	971
7.4.2B	List of Embedded Network Managers	971
7.4.3	Nature of appointment of Metering Provider or Metering Data Provider	971
7.4.4	Deregistration of Metering Providers, Metering Data Providers and Embedded Network Managers	972
7.5	Role and Responsibility of AEMO	973
7.5.1	Responsibility of AEMO for the collection, processing and delivery of metering data	973
7.5.2	AEMO's costs in connection with metering installation	974
7.5A	Role and Responsibility of Embedded Network Managers	974
7.5A.1	Responsibility of Embedded Network Managers for management services 	974
7.5A.2	EN information	975
Part C	Appointment of Metering Coordinator	975
7.6	Appointment of Metering Coordinator	975
7.6.1	Commercial nature of the Metering Coordinator appointment and service provision	975
7.6.2	Persons who may appoint Metering Coordinators	976
7.6.3	Appointment with respect to transmission network connection	977
7.6.4	Type 7 metering installations	977
7.7	Metering Coordinator default arrangements	978
7.7.1	Obligations of financially responsible Market Participants on Metering Coordinator default event and end of contract term	978
7.7.2	Notices to be provided by Metering Coordinator	979
7.7.3	AEMO may issue breach notice	980
Part D	Metering installation	981
7.8	Metering installation arrangements	981
7.8.1	Metering installation requirements	981
7.8.2	Metering installation components	981
7.8.3	Small customer metering installations	986
7.8.4	Type 4A metering installation	986
7.8.5	Emergency management	988
7.8.6	Network devices	988
7.8.7	Metering point	991
7.8.8	Metering installation types and accuracy	992
7.8.9	Meter churn	992
7.8.10	Meter installation malfunctions	994
7.8.11	Changes to metering equipment, parameters and settings within a metering installation	994
7.8.12	Special site or technology related conditions	995
7.8.13	Joint metering installations	996
7.9	Inspection, Testing and Audit of Metering installations	997
7.9.1	Responsibility for testing	997
7.9.2	Actions in event of non-compliance	999
7.9.3	Audits of information held in metering installations	1000
7.9.4	Errors found in metering tests, inspections or audits	1000
7.9.5	Retention of test records and documents	1001
7.9.6	Metering installation registration process	1002
Part E	Metering Data	1002
7.10	Metering Data Services	1002
7.10.1	Metering Data Services	1002
7.10.2	Data management and storage	1003
7.10.3	Provision of metering data to certain persons	1005
7.10.4	Use of check metering data	1005
7.10.5	Periodic energy metering	1005
7.10.6	Time settings	1006
7.10.7	Metering data performance standards	1007
7.11	Metering data and database	1009
7.11.1	Metering database	1009
7.11.2	Data validation, substitution and estimation	1010
7.11.3	Changes to energy data or to metering data	1010
7.12	Register of Metering Information	1011
7.12.1	Metering register	1011
7.12.2	Metering register discrepancy	1011
7.13	Disclosure of NMI information	1011
7.13.1	Application of this Rule	1011
7.13.2	NMI and NMI checksum	1011
7.13.3	NMI Standing Data	1012
7.14	Metering data provision to retail customers	1012
Part F	Security of metering installation and energy data	1013
7.15	Security of metering installation and energy data	1013
7.15.1	Confidentiality	1013
7.15.2	Security of metering installations	1013
7.15.3	Security controls for energy data	1014
7.15.4	Additional security controls for small customer metering installations	1016
7.15.5	Access to data	1017
PART G	Procedures	1019
7.16	Procedures	1019
7.16.1	Obligation to establish, maintain and publish procedures	1019
7.16.2	Market Settlement and Transfer Solution Procedures	1019
7.16.3	Requirements of the metrology procedure	1020
7.16.4	Jurisdictional metrology material in metrology procedure	1022
7.16.5	Additional metrology procedure matters	1023
7.16.6	Requirements of the service level procedures	1024
7.16.6A	Requirements of the ENM service level procedures	1025
Clause 7.16.6B	Guide to embedded networks	1027
7.16.7	Amendment of procedures in the Metering Chapter	1027
7.16.8	National Measurement Act	1028
Part H	B2B Requirements	1029
7.17	B2B Arrangements	1029
7.17.1	B2B e-Hub	1029
7.17.2	B2B e-Hub Participants	1029
7.17.3	Content of the B2B Procedures	1030
7.17.4	Changing B2B Procedures	1031
7.17.5	B2B Decision	1034
7.17.6	Establishment of Information Exchange Committee	1034
7.17.7	Functions and powers of Information Exchange Committee	1036
7.17.8	Obligations of Members	1037
7.17.9	Meetings of Information Exchange Committee	1038
7.17.10	Nomination, election and appointment of Members	1038
7.17.11	Qualifications of Members	1039
7.17.12	Information Exchange Committee Election Procedures and Information Exchange Committee Operating Manual	1040
7.17.13	Cost Recovery	1041
Schedule 7.1	Metering register	1042
S7.1.1	General	1042
S7.1.2	Metering register information	1042
Schedule 7.2	Metering Provider	1044
S7.2.1	General	1044
S7.2.2	Categories of registration	1044
S7.2.3	Capabilities of Metering Providers for metering installations types 1, 2, 3, 4 and 4A	1046
S7.2.4	Capabilities of Metering Providers for metering installations types 5 and 6	1048
S7.2.5	Capabilities of Metering Providers for small customer metering installations	1048
S7.2.6	Capabilities of the Accredited Service Provider category	1049
Schedule 7.3	Metering Data Provider	1049
S7.3.1	General	1049
S7.3.2	Categories of registration	1049
S7.3.3	Capabilities of Metering Data Providers	1050
S7.3.4	Capabilities of Metering Data Providers for small customer metering installations	1052
Schedule 7.4	Types and Accuracy of Metering installations	1052
S7.4.1	General requirements	1052
S7.4.2	Metering installations commissioned prior to 13 December 1998	1052
S7.4.3	Accuracy requirements for metering installations	1053
S7.4.4	Check metering	1059
S7.4.5	Resolution and accuracy of displayed or captured data	1060
S7.4.6	General design standards	1060
S7.4.6.1	Design requirements	1060
S7.4.6.2	Design guidelines	1061
Schedule 7.5	Requirements of minimum services specification	1061
S7.5.1	Minimum services specification	1061
Schedule 7.6	Inspection and Testing Requirements	1065
S7.6.1	General	1065
S7.6.2	Technical Guidelines	1067
Schedule 7.7	Embedded Network Managers	1068
S7.7.1	General	1068
S7.7.2	Capabilities of Embedded Network Managers	1068
8.	Administrative Functions	1073
Part A	Introductory	1073
8.1	Administrative functions	1073
8.1.1	[Deleted]	1073
8.1.2	[Deleted]	1073
8.1.3	Structure of this Chapter	1073
Part B	Disputes	1074
8.2	Dispute Resolution	1074
8.2.1	Application and guiding principles	1074
8.2.2	The Dispute Resolution Adviser	1077
8.2.3	Dispute management systems of Registered Participants and AEMO	1078
8.2.4	Stage 1 - dispute resolution through Registered Participants’ DMS	1079
8.2.5	Stage 2 - dispute resolution process	1081
8.2.6A	Establishment of Dispute Resolution Panel	1082
8.2.6B	Parties to DRP Proceedings	1083
8.2.6C	Proceedings of the DRP	1084
8.2.6D	Decisions of the DRP	1084
8.2.6	[Deleted]	1085
8.2.7	Legal representation	1085
8.2.8	Cost of dispute resolution	1085
8.2.9	Effect of resolution	1086
8.2.10	Recording and publication	1087
8.2.11	Appeals on questions of law	1087
8.2.12	[Deleted]	1087
8.2A	B2B Determination Disputes	1087
8.2A.1	Application of rule 8.2	1087
8.2A.2	How rule 8.2 applies	1087
8.3	Power to make Electricity Procedures	1090
8.4	[Deleted]	1090
8.5	[Deleted]	1090
Part C	Registered Participants' confidentiality obligations	1090
8.6	Confidentiality	1090
8.6.1	Confidentiality	1090
8.6.1A	Application	1092
8.6.2	Exceptions	1092
8.6.3	Conditions	1093
8.6.4	[Deleted]	1094
8.6.5	Indemnity to AER, AEMC and AEMO	1094
8.6.6	AEMO information	1094
8.6.7	Information on Rules Bodies	1094
Part D	Monitoring and reporting	1094
8.7	Monitoring and Reporting	1094
8.7.1	Monitoring	1094
8.7.2	Reporting requirements and monitoring standards for Registered Participants and AEMO	1095
8.7.3	Consultation required for making general regulatory information order (Section 28H of the NEL)	1097
8.7.4	Preparation of network service provider performance report (Section 28V of the NEL)	1098
8.7.5	[Deleted]	1099
8.7.6	Recovery of reporting costs	1099
Part E	Reliability panel	1099
8.8	Reliability Panel	1099
8.8.1	Purpose of Reliability Panel	1099
8.8.2	Constitution of the Reliability Panel	1101
8.8.3	Reliability Panel review process	1103
8.8.4	Determination of protected events	1106
Part F	Rules consultation procedures	1107
8.9	Rules Consultation Procedures	1107
Part G	Consumer advocacy funding	1110
8.10	Consumer advocacy funding obligation	1110
Part H	Augmentations	1110
8.11	Augmentations	1110
8.11.1	Application	1110
8.11.2	Object	1110
8.11.3	Definitions	1111
8.11.4	Planning criteria	1112
8.11.5	Construction of augmentation that is not a contestable augmentation	1112
8.11.6	Contestable augmentations	1113
8.11.7	Construction and operation of contestable augmentation	1113
8.11.8	Funded augmentations that are not subject to the tender process	1115
8.11.9	Contractual requirements and principles	1116
8.11.10	Annual planning review	1116
Schedule 8.11	Principles to be reflected in agreements relating to contestable augmentations	1117
S8.11.1	Risk allocation	1117
S8.11.2	Minimum requirements for agreements relating to contestable augmentation	1118
S8.11.3	Matters to be dealt with in relevant agreements	1119
8A.	Participant Derogations	1123
Part 1	Derogations Granted to TransGrid	1123
8A.1	[Deleted]	1123
Part 2	Derogations Granted to EnergyAustralia	1123
8A.2	[Deleted]	1123
8A.2A	[Deleted]	1123
Part 3	[Deleted]	1123
Part 4	[Deleted]	1123
Part 5	[Deleted]	1123
Part 6	Derogations Granted to Victorian Market Participants	1123
Part 7	[Deleted]	1124
Part 8	[Deleted]	1124
Part 9	[Deleted]	1124
Part 10	[Deleted]	1124
Part 11	[Deleted]	1124
Part 12	[Deleted]	1124
Part 13	Derogation granted to Aurora Energy (Tamar Valley) Pty Ltd	1124
8A.13	[Deleted]	1124
Part 14	Derogations granted to Ausgrid, Endeavour Energy and Essential Energy	1124
8A.14	Derogations from Chapter 6 for the current regulatory control period and subsequent regulatory control period	1124
8A.14.1	Definitions	1124
8A.14.2	Expiry date	1129
8A.14.3	Application of Rule 8A.14	1129
8A.14.4	Recovery of revenue across the current regulatory control period and subsequent regulatory control period	1129
8A.14.5	Recovery of revenue in subsequent regulatory control period only and no reopening of subsequent distribution determination required	1131
8A.14.6	Recovery of revenue in subsequent regulatory control period only and reopening of distribution determination is required	1132
8A.14.7	Requirements for adjustment determination	1134
8A.14.8	Application of Chapter 6 under participant derogation	1134
Part 15	Derogations granted to ActewAGL	1136
8A.15	Derogations from Chapter 6 for the current regulatory control period and subsequent regulatory control period	1136
8A.15.1	Definitions	1136
8A.15.2	Expiry date	1140
8A.15.3	Application of Rule 8A.15	1140
8A.15.4	Recovery of revenue across the current regulatory control period and subsequent regulatory control period	1140
8A.15.5	Recovery of revenue in subsequent regulatory control period only and no reopening of subsequent distribution determination required	1142
8A.15.6	Recovery of revenue in subsequent regulatory control period only and reopening of distribution determination is required	1144
8A.15.7	Requirements for adjustment determination	1146
8A.15.8	Application of Chapter 6 under participant derogation	1146
9.	Jurisdictional Derogations and Transitional Arrangements	1151
9.1	Purpose and Application	1151
9.1.1	Purpose	1151
9.1.2	Jurisdictional Derogations	1151
Part A	Jurisdictional Derogations for Victoria	1151
9.2	[Deleted]	1151
9.3	Definitions	1151
9.3.1	General Definitions	1151
9.3.2	[Deleted]	1153
9.3A	Fault levels	1153
9.4	Transitional Arrangements for Chapter 2 - Registered Participants, Registration and Cross Border Networks	1154
9.4.1	[Deleted]	1154
9.4.2	Smelter Trader	1154
9.4.3	Smelter Trader: compliance	1155
9.4.4	Report from AER	1157
9.4.5	Cross Border Networks	1158
9.5	[Deleted]	1158
9.6	Transitional Arrangements for Chapter 4 - System Security	1158
9.6.1	Operating Procedures (clause 4.10.1)	1158
9.6.2	Nomenclature Standards (clause 4.12)	1158
9.7	Transitional Arrangements for Chapter 5 - Network Connection	1159
9.7.1	[Deleted]	1159
9.7.2	[Deleted]	1159
9.7.3	[Deleted]	1159
9.7.4	Regulation of Distribution Network Connection	1159
9.7.5	[Deleted]	1160
9.7.6	[Deleted]	1160
9.7.7	[Deleted]	1160
9.8	Transitional Arrangements for Chapter 6 - Network Pricing	1160
9.8.1	[Deleted]	1160
9.8.2	[Deleted]	1160
9.8.3	[Deleted]	1160
9.8.4	Transmission Network Pricing	1160
9.8.4A	[Deleted]	1162
9.8.4B	[Deleted]	1162
9.8.4C	[Deleted]	1162
9.8.4D	[Deleted]	1162
9.8.4E	[Deleted]	1162
9.8.4F	[Deleted]	1162
9.8.4G	[Deleted]	1162
9.8.5	[Deleted]	1162
9.8.6	[Deleted]	1162
9.8.7	Distribution network pricing – transitional application of former Chapter 6	1162
9.8.8	Exclusion of AER's power to aggregate distribution systems and parts of distribution systems	1163
9.9	Transitional Arrangements for Chapter 7 - Metering	1164
9.9.1	Metering Installations To Which This Schedule Applies	1164
9.9.2	[Deleted]	1164
9.9.3	[Deleted]	1164
9.9.4	[Deleted]	1164
9.9.5	[Deleted]	1164
9.9.6	[Deleted]	1164
9.9.7	[Deleted]	1164
9.9.8	[Deleted]	1164
9.9.9	Periodic Energy Metering (clause 7.9.3)	1164
9.9.10	Use of Alternate Technologies (clause 7.13)	1164
9.9A	[Deleted]	1165
9.9B	[Deleted]	1165
9.9C	Metering services for residential and small business customers	1165
9.9C.1	Definitions	1165
9.9C.2	Expiry Date	1166
9.9C.3	Designation as responsible person	1166
9.9C.4	Classification of relevant metering installations	1166
9.9C.5	Cost recovery of AMI rollout	1166
9.9C.6	Capability for remote acquisition of metering data	1166
Schedule 9A1.1	[Deleted]	1166
Schedule 9A1.2	[Deleted]	1166
Schedule 9A1.3	[Deleted]	1166
Schedule 9A2	[Deleted]	1166
Schedule 9A3	Jurisdictional Derogations Granted to Generators	1166
1.	Interpretation of tables	1166
2.	Continuing effect	1167
3.	Subsequent agreement	1167
4.	[Deleted]	1167
5.	Reactive Power Capability (clause S5.2.5.1 of schedule 5.2)	1167
6.	[Deleted]	1169
7.	[Deleted]	1169
8.	[Deleted]	1169
9.	[Deleted]	1169
10.	[Deleted]	1169
11.	[Deleted	1169
12.	[Deleted]	1169
13.	Governor Systems (load control) (clause S5.2.5.11 of schedule 5.2)	1169
14.	[Deleted]	1169
15.	[Deleted]	1169
16.	Excitation Control System (clause S5.2.5.13 of schedule 5.2)	1169
Part B	Jurisdictional Derogations for New South Wales	1170
9.10	[Deleted]	1170
9.11	Definitions	1170
9.11.1	Definitions used in this Part B	1170
9.12	Transitional Arrangements for Chapter 2 - Generators, Registered Participants, Registration and Cross Border Networks	1171
9.12.1	[Deleted]	1171
9.12.2	Customers	1171
9.12.3	Power Traders	1171
9.12.4	Cross Border Networks	1174
9.13	[Deleted]	1175
9.14	Transitional Arrangements for Chapter 4 - System Security	1175
9.14.1	Power System Operating Procedures	1175
9.15	NSW contestable services for Chapter 5A	1175
9.15.1	Definitions	1175
9.15.2	Chapter 5A not to apply to certain contestable services	1176
9.16	Transitional Arrangements for Chapter 6 - Network Pricing	1176
9.16.1	NSW contestable services	1176
9.16.2	[Deleted]	1176
9.16.3	Jurisdictional Regulator	1176
9.16.4	Deemed Regulated Interconnector	1176
9.16.5	[Deleted]	1176
9.17	Transitional Arrangements for Chapter 7 - Metering	1176
9.17.1	Extent of Derogations	1176
9.17.2	Initial Registration (clause 7.1.2)	1177
9.17.3	Amendments to Schedule 9G1	1177
9.17.4	Compliance with AS/NZ ISO 9002 (clause S7.4.3(f) of schedule 7.4)	1177
9.17A	[Deleted]	1178
9.18	[Deleted]	1178
Part C	Jurisdictional Derogations for the Australian Capital Territory	1178
9.19	[Deleted]	1178
9.20	Definitions and Transitional Arrangements for Cross-Border Networks	1178
9.20.1	Definitions	1178
9.20.2	Cross Border Networks	1178
9.21	[Deleted]	1179
9.22	[Deleted]	1179
9.23	Transitional Arrangements for Chapter 6 - Network Pricing	1179
9.23.1	[Deleted]	1179
9.23.2	[Deleted]	1179
9.23.3	[Deleted	1179
9.23.4	[Deleted]	1179
9.24	Transitional Arrangements	1179
9.24.1	Chapter 7 - Metering	1179
9.24.2	[Deleted]	1179
9.24A	[Deleted]	1179
Part D	Jurisdictional Derogations for South Australia	1179
9.25	Definitions	1179
9.25.1	[Deleted]	1179
9.25.2	Definitions	1179
9.26	Transitional Arrangements for Chapter 2 - Registered Participants, Registration And Cross Border Networks	1182
9.26.1	Registration as a Generator	1182
9.26.2	Registration as a Customer	1183
9.26.3	Cross Border Networks	1183
9.26.4	[Deleted]	1184
9.26.5	Registration as a Network Service Provider	1184
9.27	[Deleted]	1184
9.28	Transitional Arrangements for Chapter 5 - Network Connection	1184
9.28.1	Application of clause 5.2	1184
9.28.2	[Deleted]	1185
9.29	Transitional Arrangements for Chapter 6 - Economic Regulation of Distribution Services	1185
9.29.1	[Deleted]	1185
9.29.2	[Deleted]	1185
9.29.3	[Deleted]	1185
9.29.4	[Deleted]	1185
9.29.5	Distribution Network Pricing – South Australia	1185
9.29.6	Capital contributions, prepayments and financial guarantees	1186
9.29.7	Ring fencing	1187
9.29A	Monitoring and reporting	1187
9.30	Transitional Provisions	1188
9.30.1	Chapter 7 - Metering	1188
Part E	Jurisdictional Derogations for Queensland	1188
9.31	[Deleted]	1188
9.32	Definitions and Interpretation	1188
9.32.1	Definitions	1188
9.32.2	Interpretation	1190
9.33	Transitional Arrangements for Chapter 1	1191
9.33.1	[Deleted]	1191
9.34	Transitional Arrangements for Chapter 2 - Registered Participants and Registration	1191
9.34.1	Application of the Rules in Queensland (clauses 2.2 and 2.5)	1191
9.34.2	Stanwell Cross Border Leases (clause 2.2)	1191
9.34.3	[Deleted]	1191
9.34.4	Registration as a Customer (clause 2.3.1)	1191
9.34.5	There is no clause 9.34.5	1192
9.34.6	Exempted generation agreements (clause 2.2)	1192
9.35	[Deleted]	1197
9.36	[Deleted]	1197
9.37	Transitional Arrangements for Chapter 5 - Network Connection	1197
9.37.1	[Deleted]	1197
9.37.2	Existing connection and access agreements (clause 5.2)	1197
9.37.3	[Deleted]	1198
9.37.4	[Deleted]	1198
9.37.5	Forecasts for connection points to transmission network (clause 5.11.1)	1198
9.37.6	There is no clause 9.37.6	1198
9.37.7	Cross Border Networks	1198
9.37.8	[Deleted]	1198
9.37.9	Credible contingency events (clause S5.1.2.1 of schedule 5.1)	1198
9.37.10	Reactive power capability (clause S5.2.5.1 of schedule 5.2)	1199
9.37.11	[Deleted]	1199
9.37.12	Voltage fluctuations (clause S5.1.5 of schedule 5.1)	1199
9.37.13	[Deleted]	1202
9.37.14	[Deleted]	1202
9.37.15	[Deleted]	1202
9.37.16	[Deleted]	1202
9.37.17	[Deleted]	1202
9.37.18	[Deleted]	1202
9.37.19	Generating unit response to disturbances (clause S5.2.5.3 of schedule 5.2)	1202
9.37.20	[Deleted]	1202
9.37.21	Excitation control system (clause S.5.2.5.13 of schedule 5.2)	1202
9.37.22	[Deleted]	1203
9.37.23	Annual forecast information for planning purposes (schedule 5.7)	1203
9.38	Transitional Arrangements for Chapter 6 - Network Pricing	1203
9.38.1	[Deleted]	1203
9.38.2	[Deleted]	1203
9.38.3	[Deleted]	1203
9.38.4	Interconnectors between regions	1203
9.38.5	Transmission pricing for exempted generation agreements	1204
9.39	Transitional Arrangements for Chapter 7 - Metering	1204
9.39.1	Metering installations to which this clause applies	1204
9.39.2	[Deleted]	1205
9.39.3	[Deleted]	1205
9.39.4	[Deleted]	1205
9.39.5	[Deleted]	1205
9.40	Transitional Arrangements for Chapter 8 - Administration Functions	1205
9.40.1	[Deleted]	1205
9.40.2	[Deleted]	1205
9.40.3	[Deleted]	1205
9.41	[Deleted]	1205
Schedule 9E1	Exempted Generation Agreements	1205
Part F	Jurisdictional Derogations for Tasmania	1206
9.42	Definitions and interpretation	1206
9.42.1	Definitions	1206
9.42.2	Interpretation	1207
9.42.3	National grid, power system and related expressions	1208
9.43	[Deleted]	1208
9.44	Transitional arrangements for Chapter 2 – Registered Participants and Registration - Customers (clause 2.3.1(e))	1208
9.45	Tasmanian Region (clause 3.5)	1208
9.47	Transitional arrangements for Chapter 5- Network Connection	1208
9.47.1	Existing Connection Agreements	1208
9.48	Transitional arrangements - Transmission and Distribution Pricing	1209
9.48.4A	Ring fencing	1209
9.48.4B	Uniformity of tariffs for small customers	1209
9.48.5	Transmission network	1209
9.48.6	Deemed regulated interconnector	1209
Part G	Schedules to Chapter 9	1210
Schedule 9G1	Metering Transitional Arrangements	1210
1.	Introduction	1210
2.	[Deleted]	1210
3.	General Principle	1210
4.	[Deleted]	1210
5.	Accuracy Requirements	1210
6.	[Deleted]	1211
7.	[Deleted]	1211
8.	[Deleted]	1211
9.	[Deleted]	1211
10.	[Deleted]	1211
10.	Glossary	1215
11.	Savings and Transitional Rules	1339
Part A	Definitions	1339
Part B	System Restart Ancillary Services (2006 amendments)	1339
11.2	Rules consequent on making of the National Electricity Amendment (System Restart Ancillary Services and pricing under market suspension) Rule 2006	1339
11.2.1	Transitional provision for acquisition of non-market ancillary services	1339
11.3	[Deleted]	1340
Part C	Dispute Resolution for Regulatory Test (2006 amendments)	1340
11.4	Rules consequent on making of the National Electricity Amendment (Dispute Resolution for Regulatory Test) Rule 2006	1340
11.4.1	Continuation of things done under old clause 5.6.6	1340
Part D	Metrology (2006 amendments)	1341
11.5	Rules consequential on the making of the National Electricity Amendment (Metrology) Rule 2006	1341
11.5.1	Definitions	1341
11.5.2	Metrology procedures continues to apply until 31 December 2006	1341
11.5.3	Responsible person	1341
11.5.4	NEMMCO’s responsibility to develop a metrology procedure	1341
11.5.5	Jurisdictional metrology material in the metrology procedure	1342
Part E	Economic Regulation of Transmission Services (2006 amendments)	1343
11.6	Rules consequent on making of the National Electricity Amendment (Economic Regulation of Transmission Services) Rule 2006	1343
11.6.1	Definitions	1343
11.6.2	New Chapter 6A does not affect existing revenue determinations	1344
11.6.3	Old Part C and Schedules 6.2, 6.3, 6.4, 6.7 and 6.8 of old Chapter 6	1345
11.6.4	Old Part F of Chapter 6	1345
11.6.5	Application of new Chapter 6A to Transmission Network Service Providers	1345
11.6.6	Application of Chapter 6 to old distribution matters	1345
11.6.7	References to the old Chapter 6	1345
11.6.8	References to provisions of the old Chapter 6	1346
11.6.9	Roll forward of regulatory asset base for first regulatory control period	1346
11.6.10	Other adjustment carry-over mechanisms from current to first regulatory control period	1346
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	1346
11.6.12	Powerlink transitional provisions	1349
11.6.13	ElectraNet easements transitional provisions	1353
11.6.14	TransGrid contingent projects	1353
11.6.15	Transmission determination includes existing revenue determinations	1354
11.6.16	References to regulatory control period	1354
11.6.17	Consultation procedure for first proposed guidelines	1354
11.6.18	Reliance on proposed guidelines for SP AusNet, VENCorp and ElectraNet	1355
11.6.19	EnergyAustralia transitional provisions	1355
11.6.20	Basslink transitional provisions	1358
11.6.21	SPI Powernet savings and transitional provision	1359
11.6.22	Interim arrangements pricing-related information	1361
Part F	Reform of Regulatory Test Principles (2006 amendments)	1361
11.7	Rules consequent on making of the National Electricity Amendment (Reform of the Regulatory Test Principles) Rule 2006	1361
11.7.1	Definitions	1361
11.7.2	Amending Rule does not affect old clause 5.6.5A	1362
Part G	Pricing of Prescribed Transmission Services (2006 amendments)	1362
11.8	Rules consequent on making the National Electricity Amendment (Pricing of Prescribed Transmission Services) Rule 2006	1362
11.8.1	Definitions	1362
11.8.2	Regulated interconnectors	1363
11.8.3	Application of new Part J of Chapter 6A to Transmission Network Service Providers	1363
11.8.4	Reliance on agreed interim guideline for ElectraNet, SPAusNet, and VenCorp	1363
11.8.5	Prudent discounts under existing agreements	1364
11.8.6	Application of prudent discounts regime under rule 6A.26	1364
11.8.7	Prudent discounts pending approval of pricing methodology	1364
Part H	Reallocations (2007 amendments)	1365
11.9	Rules consequent on the making of the National Electricity Amendment (Reallocations) Rule 2007	1365
11.9.1	Definitions	1365
11.9.2	Existing and transitional reallocations	1366
Part I	Technical Standards for Wind Generation (2007 amendments)	1366
11.10	Rules consequent on making of the National Electricity Amendment (Technical Standards for Wind Generation and other Generator Connections) Rule 2007	1366
11.10.1	Definitions	1366
11.10.2	Provision of information under S5.2.4 in registration application	1366
11.10.3	Access standards made under the old Chapter 5	1367
11.10.4	Modifications to plant by Generators	1367
11.10.5	Technical Details to Support Application for Connection and Connection Agreement	1367
11.10.6	Transitional arrangements for establishment of performance standards	1368
11.10.7	Jurisdictional Derogations for Queensland	1368
11.10A	Rules consequent on the making of the National Electricity Amendment (Central Dispatch and Integration of Wind and Other Intermittent Generation) Rule 2008	1368
11.10A.1	Definitions	1368
11.10A.2	Registration and reclassification of classified generating units	1369
11.10A.3	Registered generating unit	1370
11.10A.4	Classification of potential semi-scheduled generating unit	1370
11.10A.5	Participant fees	1370
11.10A.6	Timetable	1371
11.10A.7	Procedure for contribution factors for ancillary service transactions	1371
11.10A.8	Guidelines for energy conversion model information	1371
Part J	Cost Recovery of Localised Regulation Services (2007 amendments)	1372
11.11	Rules consequent on making of the National Electricity Amendment (Cost Recovery of Localised Regulation Services) Rule 2007	1372
11.11.1	Definitions	1372
11.11.2	Action taken by NEMMCO for the purposes of Amending Rule	1372
11.12	[Deleted]	1372
Part L	[Deleted]	1372
Division 1	General Provisions	1372
11.14	General provisions	1372
Part M	Economic Regulation of Distribution Services (2007 amendments)	1376
Division 1	General Provisions	1376
11.14	General provisions	1376
Division 2	[Deleted]	1380
Division 3	Transitional arrangements for first distribution determination for Queensland Distribution Network Service Providers	1380
11.16	Transitional arrangements for first distribution determination for Queensland Distribution Network Service Providers	1380
Division 4	Transitional provisions of specific application to Victoria	1383
11.17	Transitional provisions of specific application to Victoria	1383
Part N	Registration of Foreign Based Persons and Corporations as Trader Class Participants (2007 amendments)	1386
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	1386
11.18.1	Definitions	1386
11.18.2	Auction rules	1386
Part O	Process for Region Change (2007 amendments)	1386
11.19	Rules consequent on making of the National Electricity Amendment (Process for Region Change) Rule 2007	1386
11.19.1	Definitions	1386
11.19.2	Regions Publication	1386
Part P	Integration of NEM Metrology Requirements	1387
11.20	Rules consequential on the making of the National Electricity Amendment (Integration of NEM Metrology Requirements) Rule 2008	1387
11.20.1	Definitions	1387
11.20.2	Metering installations for non-market generating units immediately prior to 30 June 2008	1387
11.20.3	First-tier load metering installations	1388
11.20.4	First-tier load metering installations in Victoria	1388
11.20.5	Minimalist Transitioning Approach in Queensland	1388
11.20.6	First-tier jurisdictional requirements publication	1388
11.20.7	Metrology procedure	1389
Part PA	Reliability Settings: Information Safety Net and Directions	1389
11.21	Rules consequential on the making of the National Electricity Amendment (NEM Reliability Settings: Information Safety Net and Directions) Rule 2008	1389
11.21.1	Definitions	1389
11.21.2	EAAP guidelines	1389
11.21.3	[Deleted]	1389
11.21.4	[Deleted]	1389
11.21.5	Timetable	1389
11.21.6	Power system security and reliability standards	1390
11.21.7	Report on statement of opportunities	1390
11.21.8	Methodology for dispatch prices and ancillary services prices	1390
Part Q	Regulatory Test Thresholds and Information Disclosure on Network Replacements	1390
11.22	Rules consequential on the making of the National Electricity Amendment (Regulatory Test Thresholds and Information Disclosure on Network Replacements) Rule 2008	1390
11.22.1	Definitions	1390
11.22.2	Amending Rule does not affect existing regulatory test	1391
Part R	Performance Standard Compliance of Generators	1391
11.23	Rules consequential on the making of the National Electricity Amendment (Performance Standards Compliance of Generators) Rule 2008	1391
11.23.1	Definitions	1391
11.23.2	Application of rule 11.23 for compliance programs implemented immediately after the commencement of the Amending Rule	1391
11.23.3	Application of rule 11.23 for compliance programs implemented immediately prior to the commencement of the Amending Rule	1392
11.23.4	Application of rule 11.23 for compliance programs not implemented immediately prior to the commencement of the Amending Rule	1392
Part S	[Deleted]	1392
Part U	Confidentiality Arrangements concerning Information required for Power System Studies	1392
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	1392
11.25.1	Definitions	1392
11.25.2	Transitional arrangements for the provision of information	1392
Part V	WACC Reviews: Extension of Time	1394
11.26	Rule consequential on the making of the National Electricity Amendment (WACC Reviews: Extension of Time) Rule 2009	1394
11.26.1	Definitions	1394
11.26.2	Extension of time to submit a regulatory proposal for the regulatory control period 2010-2015	1394
Part W	National Transmission Statement	1394
11.27	Rules consequent on the making of the National Electricity Amendment (National Transmission Statement) Rule 2009	1394
11.27.1	Definitions	1394
11.27.2	Purpose	1395
11.27.3	Application of rule 11.27	1395
11.27.4	National Transmission Statement	1395
11.27.5	Scope and Content of National Transmission Network Development Plan	1397
11.27.6	Energy Adequacy Assessment Projection	1397
11.27.7	Amendment to Last Resort Power	1398
11.27.8	Actions taken prior to commencement of Rule	1398
Part X	National Transmission Planning	1398
11.28	Rules consequential on the making of the National Electricity (Australian Energy Market Operator) Amendment Rules 2009	1398
11.28.1	Definitions	1398
11.28.2	Jurisdictional planning bodies and representatives	1398
11.28.3	Criteria and guidelines published by Inter-regional Planning Committee	1399
11.28.4	Augmentation technical reports	1399
11.28.5	Last Resort Planning Power	1399
11.28.6	Inter-network power system tests	1400
11.28.7	Control and protection settings for equipment	1400
11.28.8	Revenue Proposals	1400
Part Y	Regulatory Investment Test for Transmission	1400
11.29	Rules consequent on making of the National Electricity Amendment (Regulatory Investment Test for Transmission) Rule 2009	1400
11.29.1	Definitions	1400
11.29.2	Period when Amending Rule applies to transmission investment	1401
Part Z	Congestion Information Resource	1402
11.30	Rules consequent on the making of the National Electricity Amendment (Congestion Information Resource) Rule 2009	1402
11.30.1	Definitions	1402
11.30.2	Interim congestion Information resource	1402
Part ZA	Reliability and emergency reserve trader (2009 amendments)	1404
11.31	Rules consequent on the making of the National Electricity Amendment (Improved RERT Flexibility and Short-notice Reserve Contracts) Rule 2009	1404
11.31.1	Definitions	1404
11.31.2	Purpose	1404
11.31.3	Amendments to Reliability Panel's RERT Guidelines	1405
11.31.4	Amendments to AEMO's RERT procedures for exercising the RERT	1405
Part ZB	Early Application of Market Impact Parameters	1406
11.32	Rules consequent on the making of the National Electricity Amendment (Early Implementation of Market Impact Parameters) Rule 2010	1406
11.32.1	Definitions	1406
11.32.2	Purpose	1407
11.32.3	Early application of the market impact component of the service target performance incentive scheme	1407
Part ZC	Transparency of operating data	1410
11.33	Rules consequential on the making of National Electricity Amendment (Transparency of Operating Data) Rule 2010	1410
11.33.1	Definitions	1410
11.33.2	Spot market operations timetable	1410
Part ZD	Cost Recovery for Other Services Directions	1412
11.34	Rules consequent on making of the National Electricity Amendment (Cost Recovery for Other Services Directions) Rule 2010	1412
11.34.1	Definitions	1412
11.34.2	Period when Amending Rules applies to funding of compensation	1413
Part ZE	Payments under Feed-in Schemes and Climate Change Funds	1413
11.35	Rules consequential on the making of the National Electricity Amendment (Payments under Feed-in Schemes and Climate Change Funds) Rule 2010	1413
11.35.1	Definitions	1413
11.35.2	Application of recovery of jurisdictional scheme Rules	1414
11.35.3	Reporting on jurisdictional schemes	1415
11.35.4	Revocation and substitution of distribution determination for jurisdictional scheme recovery	1416
Part ZF	Transitional Arrangements for Ministerial Smart Meter Roll Out Determinations	1417
11.36	Ministerial Smart Meter Roll Out Determinations	1417
11.36.1	Definitions	1417
11.36.2	Meaning of relevant metering installation	1417
11.36.3	Period of application of rule to relevant metering installation	1418
11.36.4	Designation of responsible person	1418
11.36.5	[Deleted]	1418
11.36.6	[Deleted]	1418
Part ZG	Provision of Metering Data Services and Clarification of Existing Metrology Requirements	1418
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	1418
11.37.1	Definitions	1418
11.37.2	Commencement of special site or technology related conditions	1418
11.37.3	Initial service level procedures	1419
Part ZH	Spot Market Operations Timetable	1419
11.38	Rules consequential on the making of National Electricity Amendment (Amendments to PASA-related Rules) Rule 2010	1419
11.38.1	Definitions	1419
11.38.2	Spot market operations timetable	1420
Part ZI	DNSP Recovery of Transmission-related Charges	1420
11.39	Rules consequential on the making of the National Electricity Amendment (DNSP Recovery of Transmission-related Charges) Rule 2011	1420
11.39.1	Definitions	1420
11.39.2	Recovery by Victorian distribution network service providers during current regulatory control period	1421
11.39.3	Recovery by Victorian distribution network service providers for shared network augmentations	1422
11.39.4	Bairnsdale network support agreement	1422
11.39.5	Approval of pricing proposal	1422
11.39.6	Ergon Energy transitional charges	1422
11.39.7	Energex transitional charges	1422
Part ZJ	Network Support and Control Ancillary Services	1422
11.40	Rules consequential on the making of the National Electricity Amendment (Network Support and Control Ancillary Services) Rule 2011	1422
11.40.1	Definitions	1422
11.40.2	Purpose	1423
11.40.3	Existing NCAS contracts to continue	1423
11.40.4	Amendments to existing guidelines	1423
11.40.5	New procedures	1424
11.40.6	Decisions and actions taken prior to Amending Rule	1424
Part ZK	Application of Dual Marginal Loss Factors	1424
11.41	Rules consequential on the making of the National Electricity Amendment (Application of Dual Marginal Loss Factors) Rule 2011	1424
11.41.1	Definitions	1424
11.41.2	Amendments to loss factor methodology	1425
11.41.3	Procedure applying dual intra-regional loss factors in central dispatch and spot market transactions	1425
11.41.4	Publication of intra-regional loss factors	1425
Part ZL	Tasmania Tranche 5a Procedure Changes	1425
11.42	Rules consequential on the making of the National Electricity Amendment (Tasmania Tranche 5a Procedure Changes) Rule 2011	1425
11.42.1	Definitions	1425
11.42.2	AEMO may amend Relevant Procedures	1426
Part ZM	Application and Operation of Administered Price Periods	1426
11.43	Rules consequential on the making of National Electricity Amendment (Application and Operation of Administered Price Periods) Rule 2011	1426
11.43.1	Definitions	1426
11.43.2	Administered Price Cap Schedule	1427
Part ZO	Negative Intra-regional Settlements Residue	1427
11.45	Rules consequential on the making of National Electricity Amendment (Negative Intra-regional Settlements Residue) Rule 2012	1427
11.45.1	Definitions	1427
11.45.2	Recovery of negative settlements residue prior to consultation under the Amending Rule	1428
11.45.3	First consultation on negative intra-regional settlements residue procedure	1428
Part ZP	Interim Connection Charging Rules	1429
11.46	Rules consequential to the insertion of Chapter 5A by the National Electricity (National Energy Retail Law) Amendment Rule 2012	1429
Division 1	Preliminary	1429
Division 2	Jurisdictional differences	1431
Division 3	General provisions	1439
Part ZQ	NSW transitional retail support and credit support rules	1439
11.47	Rules consequential on the insertion of Chapter 6B by the National Electricity (National Energy Retail Law) Amendment Rule 2012	1439
Division 1	Preliminary	1439
Part ZR	Miscellaneous transitional rules—NERL	1445
11.48	Rules consequential on the making of the National Electricity (National Energy Retail Law) Amendment Rule 2012	1445
11.48.1	Extension of time period for AER to consider certain pass through applications	1445
Part ZS	Cost pass through arrangements for Network Service Providers	1446
11.49	Rules consequential on the making of National Electricity Amendment (Cost pass through arrangements for Network Service Providers) Rule 2012	1446
11.49.1	Definitions	1446
11.49.2	Terrorism event is a cost pass through event in the current regulatory control period	1446
11.49.3	Transitional arrangement for Powerlink	1446
11.49.4	Transitional arrangements for ElectraNet and Murraylink	1447
Part ZT	Distribution Network Planning and Expansion	1447
11.50	Rules consequential on the making of the National Electricity Amendment (Distribution Network Planning and Expansion) Rule 2012	1447
11.50.1	Interpretation	1447
11.50.2	Definitions	1448
11.50.3	Timing for first Distribution Annual Planning Report	1448
11.50.4	Contents of Distribution Annual Planning Report	1448
11.50.5	Transition from the regulatory test to the regulatory investment test for distribution	1450
Part ZU	New Prudential Standard and Framework in the NEM	1451
11.51	Rules consequential on the making of the National Electricity Amendment (New Prudential Standard and Framework in the NEM) Rule 2012	1451
11.51.1	Definitions	1451
11.51.2	AEMO's responsibility to develop and publish the credit limit procedures	1451
11.51.3	Transition to the framework for determining prudential settings	1451
11.51.4	Prior consultation, step, decision or action taken by AEMO	1452
Part ZV	Small Generation Aggregator Framework	1452
11.52	Rules consequential on the making of the National Electricity Amendment (Small Generation Aggregator Framework) Rule 2012	1452
11.52.1	Definitions	1452
11.52.2	Commencement of participant fees as well as transactions, funding and settlements under Chapter 3 for Market Small Generation Aggregators	1453
11.52.3	Participant fees for Market Small Generation Aggregators	1453
11.52.4	Ancillary service transactions, funding of compensation for directions and intervention settlements for directions for Market Small Generation Aggregators	1454
11.52.5	Amendments to the carbon dioxide equivalent intensity index procedures	1454
11.52.6	Amendments of the metrology procedures	1455
11.52.7	Amendments to the Market Settlement and Transfer Solution Procedures	1455
Part ZW	Economic Regulation of Network Service Providers (2012 amendments)	1456
Division 1	Miscellaneous transitional provisions	1456
11.53	Publication of Chapter 6 Guidelines	1456
11.54	Publication of Chapter 6A Guidelines	1457
Division 2	Transitional provisions for NSW/ACT Distribution Network Service Providers	1459
11.55	General provisions	1459
11.56	Special provisions applying to affected DNSPs	1462
Division 3	Transitional provisions for NSW and Tasmanian Transmission Network Service Providers and Directlink	1474
11.57	General provisions	1474
11.58	Special provisions applying to affected TNSPs	1477
Division 4	Transitional provisions for the Victorian TNSP	1486
11.59	Special provisions applying to the Victorian TNSP	1486
Division 5	Transitional provisions for Qld/SA and Victorian Distribution Network Service Providers	1488
11.60	Special provisions applying to the Qld/SA and Victorian Distribution Network Service Providers	1488
Division 6	Review of past capital expenditure	1494
11.61	Definitions and application	1494
11.62	Review of past capital expenditure under Chapter 6	1494
11.63	Review of past capital expenditure under Chapter 6A	1495
Part ZX	Inter-regional Transmission Charging	1495
11.64	Rules consequent on the making of the National Electricity Amendment (Inter-regional Transmission Charging) Rule 2013	1495
11.64.1	Definitions	1495
11.64.2	Amendments to the pricing methodology guidelines	1496
11.64.3	Amendments to the pricing methodologies of Transmission Network Service Providers	1496
11.64.4	Commencement of clause 6A.23.3(f) for further adjustments	1497
Part ZY	Network Service Provider Expenditure Objectives	1497
11.65	Rules consequent on the making of the National Electricity Amendment (Network Service Provider Expenditure Objectives) Rule 2013	1497
11.65.1	Definitions	1497
11.65.2	Application of rule 11.65	1498
Part ZZ	Access to NMI Standing Data	1498
11.66	Rules consequent on the making of the National Electricity Amendment (Access to NMI Standing Data) Rule 2013	1498
11.66.1	Definitions	1498
11.66.2	Minor amendment of the Market Settlement and Transfer Solution Procedures	1498
Part ZZA	Publication of Zone Substation Data	1499
11.67	Rules consequent on the making of the National Electricity Amendment (Publication of Zone Substation Data) Rule 2014	1499
11.67.1	Definitions	1499
11.67.2	Distribution Network Service Providers' obligations to commence on the next DAPR date	1499
Part ZZB	Connecting Embedded Generators	1499
11.68	Rules consequential on the making of the National Electricity Amendment (Connecting embedded generators) Rule 2014	1499
11.68.1	Definitions	1499
11.68.2	Continuation of enquiries lodged	1500
Part ZZC	Customer access to information about their energy consumption	1500
11.69	Rules consequential on the making of the National Electricity Amendment (Customer access to information about their energy consumption) Rule 2014	1500
11.69.1	Definitions	1500
11.69.2	AEMO to develop and publish the metering data provision procedure	1500
Part ZZD	National Electricity Amendment (Distribution Network Pricing Arrangements) Rule 2014	1500
Division 1	Miscellaneous transitional provisions	1500
11.70	General provisions	1500
11.70.1	Definitions	1500
Division 2	Transitional provisions for NSW/ACT and Qld/SA Distribution Network Service Providers	1503
11.72	General provisions	1503
11.772.1	Definitions	1503
Division 3	Transitional provisions for Tasmanian Distribution Network Service Provider	1510
11.74	Application of former Chapter 6	1510
Division 4	Transitional provisions for Victorian Distribution Network Service Providers	1510
11.75	General provisions	1510
11.75.1	Definitions	1510
11.76	Special provisions applying to affected DNSPs	1510
11.76.1	Distribution determination and pricing proposals	1510
11.76.2	Tariff structure statement	1511
Part ZZE	Early Application of Network Capability Component (STPIS)	1517
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	1517
11. 77.1	Definitions	1517
11.77.2	Purpose	1518
11.77.3	Earlier application of the network capability component of the service target performance incentive scheme	1518
Part ZZF	National Electricity Amendment (Governance arrangements and implementation of the reliability standard and settings) Rule 2015	1520
11.78	Rules consequent on the making of the National Electricity Amendment (Governance arrangements and implementation of the reliability standards and settings) Rule 2015	1520
11.78.1	Definitions	1520
11.78.2	Existing power system security and reliability standards	1521
11.78.3	Reliability standard and settings guidelines	1521
11.78.4	Reliability standard implementation guidelines	1521
Part ZZG	Improving demand side participation information provided to AEMO by registered participants	1524
11.79	Rules consequential on making of the National Electricity Amendment (Improving demand side participation information provided to AEMO by registered participants) Rule 2015	1524
11.79.1	AEMO to develop and publish the demand side participation information guidelines	1524
Part ZZH	Transitional Arrangements for Aligning TasNetworks' regulatory control periods	1524
11.80	National Electricity Amendment (Aligning TasNetworks' regulatory control periods) Rule 2015	1524
11.80.1	Definitions	1524
11.80.2	Application of rule 11.80	1525
11.80.3	Next regulatory control period	1525
11.80.4	Subsequent regulatory control period	1525
Part ZZI	System Restart Ancillary Services	1525
11.81	Rules consequential on the making of the National Electricity Amendment (System Restart Ancillary Services) Rule 2015	1525
11.81.1	Definitions	1525
11.81.2	System restart standard	1526
11.81.3	SRAS Guideline	1526
11.81.4	Regional Benefit Ancillary Services Procedures	1526
11.81.5	Consultation prior to the Commencement Date	1526
11.81.6	Existing SRAS Contract	1526
Part ZZJ	Demand management incentive scheme	1527
11.82	Rules consequential on making of the National Electricity Amendment (Demand management incentive scheme) Rule 2015	1527
11.82.1	Definitions	1527
11.82.2	AER to develop and publish the demand management incentive scheme and demand management innovation allowance mechanism	1527
Part ZZK	AEMO access to demand forecasting information	1527
11.83	Rules consequential on the making of the National Electricity Amendment (AEMO access to demand forecasting information) Rule 2015	1527
11.83.1	AEMO to include supporting information in NTNDP database	1527
Part ZZL	Compensation arrangements following application of an Administered Price Cap or Administered Floor Price	1528
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	1528
11.84.1	Definitions	1528
11.84.2	Compensation Guidelines	1528
Part ZZM	Common definitions of distribution reliability measures	1528
11.85	Rules consequential on the making of the National Electricity Amendment (Common definitions of distribution reliability measures) Rule 2015	1528
11.85.1	Definitions	1528
11.85.2	Distribution reliability measures guidelines	1529
11.85.3	Amended STPIS	1529
Part ZZN	Expanding competition in metering and metering related services	1529
11.86	Rules consequent on making of the National Electricity Amendment (Expanding competition in metering and related services) Rule 2015	1529
11.86.1	Definitions	1529
11.86.2	References to old Chapter 7	1529
11.86.3	References to provisions of the old Chapter 7	1530
11.86.4	References to responsible person	1530
11.86.5	Continued operation of old Rules until the effective date	1530
11.86.6	New and amended procedures	1530
11.86.7	Metering Coordinator for type 5 or 6 metering installation from effective date	1531
11.86.8	Distribution Ring Fencing Guidelines	1534
11.86.9	[Deleted]	1534
Part ZZO	Embedded Networks	1534
11.87	Rules consequential on the making of the National Electricity Amendment (Embedded Networks) Rule 2015	1534
11.87.1	Definitions	1534
11.87.2	Amended Procedures and NMI Standing Data Schedule	1535
11.87.3	ENM service level procedures and guide to embedded networks and list of Embedded Network Managers	1535
11.87.4	Exemptions under section 13 of the National Electricity Law	1535
Part ZZP	Meter Replacement Processes	1536
11.88	Rules consequential on the making of the National Electricity Amendment (Meter Replacement Processes) Rule 2016	1536
11.88.1	Definitions	1536
11.88.2	Amended Procedures	1536
Part ZZQ	Energy Adequacy Assessment Projection	1537
11.89	Rules consequential to the National Electricity Amendment (Energy Adequacy Assessment Projection timeframes) Rule 2016	1537
11.89.1	Amended guideline and timetable	1537
Part ZZR	Reliability and emergency reserve trader (2016 amendments)	1537
11.90	Rules consequent on the making of the National Electricity Amendment (Extension of the Reliability and Emergency Reserve Trader) Rule 2016	1537
11.90.1	Definitions	1537
11.90.2	Amendments to Reliability Panel's RERT Guidelines	1537
11.90.3	Amendments to AEMO's RERT procedures	1537
11.90.4	Reserve contracts entered into before Schedule 2 commencement date	1538
Part ZZS	Updating the electricity B2B framework	1538
11.91	Rules consequential on the making of the National Electricity Amendment (Updating the electricity B2B framework) rule 2016	1538
11.91.1	Definitions	1538
11.91.2	B2B Procedures	1539
11.91.3	Information Exchange Committee Election Procedures and Information Exchange Committee Operating Manual	1539
11.91.4	The New IEC	1540
11.91.5	Amended Procedures	1541
11.91.6	B2B e-Hub Participant accreditation process	1542
11.91.7	New IEC Budget and 2016 Annual Report	1542
11.91.8	Cost recovery	1543
Part ZZT	Application of Offsets in the Prudential Margin Calculation	1543
11.92	Rules consequential on the making of the National Electricity Amendment (Application of Offsets in the Prudential Margin Calculation) Rule 2016	1543
11.92.1	Definitions	1543
11.92.2	Amended procedures	1543
Part ZZU	Rate of Return Guidelines Review	1544
11.93	Rules consequential on the making of the National Electricity Amendment (Rate of Return Guidelines Review) Rule 2016	1544
11.93.1	Definitions	1544
11.93.2	Application of current rate of return guidelines to making of a distribution determination for the subsequent regulatory control period	1545
Part ZZV	Demand Response Mechanism and Ancillary Services Unbundling	1546
11.94	Rules consequential on the making of the National Electricity Amendment (Demand Response Management and Ancillary Services Unbundling) rule 2016	1546
11.94.1	Definitions	1546
11.94.2	Participant fees for Market Ancillary Service Providers	1546
Part ZZW	Local Generation Network Credits	1546
11.95	Rules consequential on the making of the National Electricity Amendment (Local Generation Network Credits) Rule 2016	1546
11.95.1	Definitions	1546
11.95.2	System limitation template	1546
Part ZZX	Retailer-Distributor Credit Support Requirements	1547
11.96	Rules consequent on the making of the National Electricity Amendment (Retailer Distributor Credit Support Requirements) Rule 2017 No. 1	1547
11.96.1	Definitions	1547
11.96.2	Continued operation of old Chapter 6B	1547
11.96.3	Interaction with Chapter 6	1547
11.96.4	Application of new Chapter 6B	1547
Part ZZY	Emergency Frequency Control Schemes	1548
11.97	Rules consequent on the making of the National Electricity Amendment (Emergency frequency control schemes) Rule 2017	1548
11.97.1	 Definitions	1548
11.97.2	Interim frequency operating standards for protected events	1548
11.97.3	First power system frequency risk review	1549
11.97.4	AEMO must review existing load shedding procedures	1549
11.97.5	Load shedding procedures	1549
Part ZZZ	Transmission Connection and Planning Arrangements	1550
11.98	Rules consequential on the making of the National Electricity Amendment (Transmission Connection and Planning Arrangements) Rule 2017	1550
11.98.1	Definitions	1550
11.98.2	Grandfathering of existing dedicated connection assets	1551
11.98.3	Preparatory steps for registration changes under the Amending Rule	1552
11.98.4	Participant fees for Dedicated Connection Asset Service Providers	1552
11.98.5	Existing Connection Agreements	1552
11.98.6	Connection process	1553
11.98.7	Transmission Annual Planning Report	1553
11.98.8	Preservation for adoptive jurisdictions	1553
Part ZZZA	Replacement expenditure planning arrangements	1554
11.99	Rules consequential on the making of the National Electricity Amendment (Replacement expenditure planning arrangements) Rule 2017	1554
11.99.1	Definitions	1554
11.99.2	Interpretation	1555
11.99.3	Transitional arrangements for affected DNSPs	1555
11.99.4	Amendments to RIT documentation	1555
11.99.5	Transitional arrangements relating to excluded projects	1556
11.99.6	Transitional arrangements relating to Victorian bushfire mitigation projects	1556
11.99.7	Transitional arrangements relating to review of costs thresholds	1557
Part ZZZB 	Managing the rate of change of power system frequency	1557
11.100	Rules consequential on the making of the National Electricity Amendment (Managing the rate of change of power system frequency) Rule 2017	1557
11.100.1	Definitions	1557
11.100.2	Inertia sub-networks	1558
11.100.3	Inertia requirements methodology	1558
11.100.4	Inertia requirements	1559
11.100.5	NSCAS not to be used to meet an inertia shortfall after 1 July 2019	1559
11.100.6	Inertia network services may be used to meet an NSCAS gap declared in the NSCAS transition period	1560
11.100.7	Inertia network services made available before the commencement date	1560
Part ZZZC	Managing power system fault levels	1561
11.101 	Rules consequential on the making of the National Electricity Amendment (Managing power system fault levels) Rule 2017	1561
11.101.1 	Definitions	1561
11.101.2	System strength impact assessment guidelines	1562
11.101.3	System strength requirements methodology	1562
11.101.4	System strength requirements	1563
11.101.5	NSCAS not to be used to meet a fault level shortfall after 1 July 2019	1563
11.101.6	System strength services may be used to meet an NSCAS gap declared in the NSCAS transition period	1564
11.101.7	Withdrawal of a system strength-related NSCAS gap already declared	1564
11.101.8	System strength services made available before the commencement date	1565
Part ZZZD	Generating System Model Guidelines	1565
11.102	Making of Power System Model Guidelines	1565
Part ZZZE	Five Minute Settlement	1565
11.103	Rules consequential on the making of the National Electricity Amendment (Five Minute Settlement) Rule 2017	1565
11.103.1	Definitions	1565
11.103.2	Amendments to procedures	1566
11.103.3.	Exemption for certain metering installations	1567
11.103.4	New or replacement meters	1567
11.103.5	Metering installations exempt from metering data provision requirements	1568
11.103.6	Exemption from meter data storage requirements	1568
11.103.7	Default offers and bids submitted prior to the commencement date	1568
Part ZZZF	Contestability of energy services	1568
11.104	Rules consequential on the making of the National Electricity Amendment (Contestability of energy services) Rule 2017	1568
11.104.1	Definitions	1568
11.104.2	New guidelines	1570
11.104.3	Transitional arrangements for application of Distribution Service Classification Guidelines and service classification provisions	1570
11.104.4	Transitional arrangements for application of Asset Exemption Guidelines, exemption applications and asset exemption decisions	1570
11.104.5	Transitional arrangements for adjustment in value of regulatory asset base	1572
Part ZZZG	Declaration of lack of reserve conditions	1573
11.105	Making of lack of reserve declaration guidelines	1573
11.105.1	Definitions	1573
11.105.2	Making of lack of reserve declaration guidelines	1573
Part ZZZH	Implementation of demand management incentive scheme	1573
11.106	Implementation of demand management incentive scheme	1573
11.106.1	Definitions	1573
11.106.2	Purpose	1573
11.106.3	Early application of revised demand management incentive scheme	1574