National Electricity Rules Version 119

Historical Information

This version of the National Electricity Rules was current from 1 February 2019 to 10 April 2019.

National Electricity Rules Version 119
Status Information
This is the latest electronically available version of the National Electricity Rules as at 1 February 2019.
This consolidated version of the National Electricity Rules was last updated on 14 February 2019 as a result of the commencement of the following amendments:
National Electricity (Binding rate of return instrument) Amendment Rule 2019
This consolidated version of the Rules reflects the initial Rules made by the SA Minister under section 90 of the National Electricity Law (NEL) as amended by:
Rules made by the South Australian Minister under sections 90A to 90E of the NEL; and
Rules made by the Australian Energy Market Commission under Part 7 Division 3 of the NEL.
Application of the National Energy Customer Framework related Rule
On 27 June 2012, the South Australian Minister made Rules relating to the implementation of the National Energy Customer Framework (NECF), including amendments to the National Electricity Rules under section 90D of the NEL in relation to small customer connections (Chapter 5A), Retail Markets including billing and credit support (Chapter 6B) and related provisions (NECF related rule).
The NECF related Rule commenced operation as a law of Tasmania, the Australian Capital Territory and the Commonwealth on 1 July 2012; South Australia on 1 February 2013, New South Wales on 1 July 2013 and Queensland on 1 July 2015.
On 1 July 2016, Victoria adopted the provisions of the NECF related rule that relate to small customer connections (Chapter 5A and related provisions). Victoria has not adopted the Retail Market provisions in Chapter 6B of the Rules.
The NECF related Rule does not apply in Western Australia or the Northern Territory until the National Energy Retail Law set out in the Schedule to the National Energy Retail Law (South Australia) Act 2011 is implemented as a law in that jurisdiction (clause 24, Part 11, Schedule 3 NEL).
The NECF related Rule can be found on the Australian Energy Market Commission's website under the 'National Electricity Rules', 'Rules made by the SA Ministers' tabs.
Provisions in force
All provisions displayed in this consolidated version of the Rules have commenced. As at the date of this consolidation the Australian Energy Market Commission has made the following Rules under Part 7 Division 3 of the NEL that have not yet commenced:
Schedules 1 to 3 of the National Electricity Amendment (Register of distributed energy resources) Rule 2018 No. 9 will commence operation on 1 December 2019.
Schedules 1 to 6 of the National Electricity Amendment (Five minute settlement) Rule 2017 No. 15 will commence operation on 1 July 2021.
Schedule 2 of the National Electricity Amendment (Participant compensation following market suspension) Rule 2018 No. 13 will commence operation on 1 July 2021, immediately after commencement of the National Electricity Amendment (Five minute settlement) Rule 2017 No. 15.
Schedules 1 to 4 of the National Electricity Amendment (Global settlement and market reconciliation) Rule 2018 No. 14 will commence operation on 6 February 2022.

TABLE OF CONTENTS
1.	Introduction	3
1.1	Preliminary	3
1.1.1	References to the Rules	3
1.1.2	Italicised expressions	3
1.1.3	[Deleted]	3
1.2	Background	3
1.3	Nomenclature of and references to provisions of a Chapter	3
1.3.1	Introduction	3
1.3.2	Parts, Divisions and Subdivisions	3
1.3.3	Rules, clauses, paragraphs, subparagraphs and other items	4
1.4	Effect of renumbering of provisions of the Rules	5
1.5	[Deleted]	5
1.6	[Deleted]	5
1.7	Interpretation	5
1.7.1	General	5
1.8	Notices	6
1.8.1	Service of notices under the Rules	6
1.8.2	Time of service	7
1.8.3	Counting of days	7
1.8.4	Reference to addressee	7
1.9	Retention of Records and Documents	8
1.10	[Deleted]	8
1.11	AEMO Rule Funds	8
2.	Registered Participants and Registration	13
2.1	Registered Participants	13
2.1.1	Purpose	13
2.1.2	General	13
2.2	Generator	13
2.2.1	Registration as a Generator	13
2.2.2	Scheduled Generator	15
2.2.3	Non-Scheduled Generator	16
2.2.4	Market Generator	16
2.2.5	Non-Market Generator	17
2.2.6	Ancillary services generating unit	17
2.2.7	Semi-Scheduled Generator	19
2.3	Customer	21
2.3.1	Registration as a Customer	21
2.3.2	First-Tier Customer	22
2.3.3	Second-Tier Customer	22
2.3.4	Market Customer	22
2.3.5	Ancillary services load	23
2.3A	Small Generation Aggregator	26
2.3A.1	Registration	26
2.3AA	Market Ancillary Service Provider	27
2.3AA.1	Registration	27
2.4	Market Participant	27
2.4.1	Registration as a category of Market Participant	27
2.4.2	Eligibility	28
2.4A	Metering Coordinator	28
2.4A.1	Registration as a Metering Coordinator	28
2.4A.2	Eligibility	29
2.5	Network Service Provider	30
2.5.1	Registration as a Network Service Provider	30
2.5.1A	Dedicated Connection Asset Service Provider	31
2.5.2	Market Network Service	32
2.5.3	Scheduled Network Service	33
2.5A	Trader	34
2.5B	Reallocator	35
2.6	Special Participant	36
2.7	Intention to Commence Activities or Functions	36
2.8	Registered Participant Rights and Obligations	37
2.8.1	Rights and obligations	37
2.9	Application to be Registered as a Registered Participant	37
2.9.1	Applications for Registration	37
2.9.2	Registration as a Registered Participant	37
2.9.3	Registration as an Intermediary	38
2.9A	Transfer of Registration	39
2.9A.1	Definitions	39
2.9A.2	Applications for Transfer of Registration	40
2.9A.3	Approval for Transfer of Registration	40
2.10	Ceasing to be a Registered Participant	41
2.10.1	Notification of intention	41
2.10.2	Ceasing Participation	44
2.10.3	Liability after cessation	44
2.11	Participant Fees	44
2.11.1A	Application	44
2.11.1	Development of Participant fee structure	44
2.11.2	Payment of Participant fees	47
2.11.3	Budgeted revenue requirements	48
2.12	Interpretation of References to Various Registered Participants	49
2A.	Regional Structure	55
Part A	Region change applications and region determinations by AEMC	55
2A.1	Introduction to Chapter 2A	55
2A.1.1	Definitions	55
2A.1.2	AEMC determination of regions	55
2A.1.3	Publication of regions by AEMO	55
2A.2	Region change applications	55
2A.2.1	A complete region change application	55
2A.2.2	Identifying a congestion problem	56
2A.2.3	Explanation of economic efficiency of proposed region solution	56
2A.2.4	Region change application must be technically competent	57
2A.2.5	Alternative congestion management options	57
2A.2.6	Previous application relating to congestion problem	58
2A.2.7	AEMO to provide information to intending applicants	58
2A.2.8	AEMC may refuse to accept incomplete applications	59
2A.3	Acceptance of region change application by AEMC	59
2A.3.1	Acceptance of a region change application by AEMC	59
2A.3.2	Preliminary consultation prior to acceptance of a region change application	60
2A.4	First round consultation on region change application	61
2A.4.1	Notice of first round consultation	61
2A.4.2	Right to make written submissions during first round consultation period	61
2A.4.3	Alternative region solution put forward by third parties	61
2A.4.4	Acceptance as a formal alternative region solution by AEMC	62
2A.5	Provision of supplementary economic analysis	63
2A.5.1	AEMC may direct provision of supplementary analysis	63
2A.5.2	AEMC may direct AEMO to provide information	63
2A.6	Region determinations	64
2A.6.1	AEMC powers to make a region determination	64
2A.6.2	Matters for consideration in making region determination	64
2A.7	Draft region determination and second round consultation	65
2A.7.1	Publishing of draft region determination	65
2A.7.2	Second round consultation	65
2A.7.3	Right to make written submissions during second round consultation	66
2A.8	Final region determination	66
2A.8.1	Final determination for region change	66
2A.8.2	Formal publication of region determination	66
2A.9	Miscellaneous matters for region change process	66
2A.9.1	AEMC may extend periods of time specified in Chapter 2A	66
2A.9.2	Consultation meeting in relation to region change application	67
Part B	Implementation of region determination	67
2A.10	Purpose and application of Part B	67
2A.10.1	Purpose of Part B	67
2A.10.2	Application of Part B	68
2A.11	Region Change Implementation Procedure	68
2A.11.1	Submission of draft Region Change Implementation Procedure	68
2A.11.2	Approved Region Change Implementation Procedure	68
2A.12	AEMO region change implementation functions	69
2A.12.1	General implementation functions	69
2A.12.2	Implementation functions referable to published implementation procedure	69
2A.12.3	Amendment of current or subsequent Regions and Loss Factors Publication	69
2A.13	Continuity of regions	69
Schedule 2A.1	Glossary for Chapter 2A	70
3.	Market Rules	75
3.1	Introduction to Market Rules	75
3.1.1	Purpose	75
3.1.1A	Definitions	75
3.1.2	[Deleted]	76
3.1.3	[Deleted]	76
3.1.4	Market design principles	76
3.1.5	Time for undertaking action	77
3.2	AEMO's Market Responsibilities	77
3.2.1	Market functions of AEMO	77
3.2.2	Spot market	78
3.2.3	Power system operations	78
3.2.4	Non-market ancillary services function	78
3.2.5	[Deleted]	79
3.2.6	Settlements	79
3.3	Prudential Requirements	79
3.3.1	Market Participant criteria	79
3.3.2	Credit support	79
3.3.3	Acceptable credit criteria	80
3.3.4	Acceptable credit rating	81
3.3.4A	Prudential standard	81
3.3.5	Amount of credit support	81
3.3.6	Changes to credit support	81
3.3.7	Drawings on credit support	82
3.3.8	Credit limit procedures and prudential settings	83
3.3.8A	Security Deposits	85
3.3.9	Outstandings	85
3.3.10	Trading limit	85
3.3.11	Call notices	86
3.3.12	Typical accrual	87
3.3.13	Response to Call Notices	87
3.3.13A	Application of monies in the security deposit fund	88
3.3.14	Potential value of a transaction	89
3.3.15	Trading margin	90
3.3.16	Limitation on entry of transactions	90
3.3.17	Scheduled prices	90
3.3.18	Additional credit support	91
3.3.19	Consideration of other Market Participant transactions	91
3.4	Spot Market	91
3.4.1	Establishment of spot market	91
3.4.2	Trading day and trading interval	92
3.4.3	Spot market operations timetable	92
3.5	Regions	93
3.5.1	[Deleted]	93
3.5.2	[Deleted]	93
3.5.3	[Deleted]	93
3.5.4	[Deleted]	93
3.5.5	[Deleted]	93
3.5.6	[Deleted]	93
3.6	Network Losses and Constraints	93
3.6.1	Inter-regional losses	93
3.6.2	Intra-regional losses	95
3.6.2A	Load and generation data used to determine inter-regional loss factor equations and intra-regional loss factors	98
3.6.3	Distribution losses	100
3.6.4	Network constraints	104
3.6.5	Settlements residue due to network losses and constraints	105
3.7	Projected Assessment of System Adequacy	107
3.7.1	Administration of PASA	107
3.7.2	Medium term PASA	108
3.7.3	Short term PASA	110
3.7A	Congestion information resource	113
3.7B	Unconstrained intermittent generation forecast	116
3.7C	Energy Adequacy Assessment Projection	117
3.7D	Demand side participation information	121
3.8	Central Dispatch and Spot Market Operation	123
3.8.1	Central Dispatch	123
3.8.2	Participation in central dispatch	125
3.8.3	Bid and offer aggregation guidelines	126
3.8.3A	Ramp rates	128
3.8.4	Notification of scheduled capacity	130
3.8.5	Submission timing	132
3.8.6	Generating unit offers for dispatch	132
3.8.6A	Scheduled network service offers for dispatch	134
3.8.7	Bids for scheduled load	136
3.8.7A	Market ancillary services offers	138
3.8.8	Validation of dispatch bids and offers	139
3.8.9	Default offers and bids	140
3.8.10	Network constraints	141
3.8.11	Ancillary services constraints	142
3.8.12	System scheduled reserve constraints	143
3.8.13	Notification of constraints	143
3.8.14	Dispatch under conditions of supply scarcity	143
3.8.15	[Deleted]	144
3.8.16	Equal priced dispatch bids and dispatch offers	144
3.8.17	Self-commitment	144
3.8.18	Self-decommitment	145
3.8.19	Dispatch inflexibilities	145
3.8.20	Pre-dispatch schedule	148
3.8.21	On-line dispatch process	150
3.8.22	Rebidding	151
3.8.22A	Offers, bids and rebids must not be false or misleading	153
3.8.23	Failure to conform to dispatch instructions	155
3.8.24	Scheduling errors	157
3.9	Price Determination	157
3.9.1	Principles applicable to spot price determination	157
3.9.2	Determination of spot prices	159
3.9.2A	Determination of ancillary services prices	161
3.9.2B	Pricing where AEMO determines a manifestly incorrect input	162
3.9.3	Pricing in the event of intervention by AEMO	163
3.9.3A	Reliability standard and settings review	164
3.9.3B	Reliability standard and settings review report	166
3.9.3C	Reliability standard	166
3.9.3D	Implementation of the reliability standard	167
3.9.4	Market Price Cap	168
3.9.5	Application of the Market Price Cap	169
3.9.6	Market Floor Price	169
3.9.6A	Application of the Market Floor Price	170
3.9.7	Pricing for constrained-on scheduled generating units	170
3.10	[Deleted]	171
3.11	Ancillary Services	171
3.11.1	Introduction	171
3.11.2	Market ancillary services	172
3.11.3	Acquisition of Network Support and Control Ancillary Service	173
3.11.4	Guidelines and objectives for acquisition of network support and control ancillary services	174
3.11.5	Tender process for network support and control ancillary services	174
3.11.6	Dispatch of network support and control ancillary services by AEMO	177
3.11.7	Guidelines and objectives for acquisition of system restart ancillary services by AEMO	178
3.11.8	Determination of electrical sub-network boundaries	179
3.11.9	Acquisition of system restart ancillary services by AEMO	179
3.11.10	Reporting	180
3.12	Market Intervention by AEMO	181
3.12.1	Intervention settlement timetable	181
3.12.2	Affected Participants and Market Customers entitlements to compensation in relation to AEMO intervention	182
3.12.3	Role of the Independent Expert in calculating payments in relation to intervention by AEMO and market suspension pricing schedule periods	186
3.12A	Mandatory restrictions	189
3.12A.1	Restriction offers	189
3.12A.2	Mandatory restrictions schedule	191
3.12A.3	Acquisition of capacity	191
3.12A.4	Rebid of capacity under restriction offers	192
3.12A.5	Dispatch of restriction offers	192
3.12A.6	Pricing during a restriction price trading interval	193
3.12A.7	Determination of funding restriction shortfalls	193
3.12A.8	Cancellation of a mandatory restriction period	198
3.12A.9	Review by AEMC	198
3.13	Market Information	199
3.13.1	Provision of information	199
3.13.2	Systems and procedures	199
3.13.3	Standing data	201
3.13.4	Spot market	208
3.13.4A	Market ancillary services	212
3.13.5	Ancillary services contracting by AEMO	213
3.13.5A	Settlements residue auctions	213
3.13.6	[Deleted]	214
3.13.6A	Report by AEMO	214
3.13.7	Monitoring of significant variation between forecast and actual prices by AER	215
3.13.8	Public information	216
3.13.9	[Deleted]	217
3.13.10	Market auditor	217
3.13.11	[Deleted]	217
3.13.12	NMI Standing Data	217
3.13.12A	NMI Standing Data Schedule	221
3.13.13	Inter-network tests	222
3.13.14	Carbon Dioxide Equivalent Intensity Index	222
3.14	Administered Price Cap and Market Suspension	226
3.14.1	Cumulative Price Threshold and Administered Price Cap	226
3.14.2	Application of Administered Price Cap	227
3.14.3	Conditions for suspension of the spot market	228
3.14.4	Declaration of market suspension	230
3.14.5	Pricing during market suspension	231
3.14.5A	Payment of compensation due to market suspension pricing schedule periods	233
3.14.5B	Claims for additional compensation due to market suspension pricing schedule periods	236
3.14.6	Compensation due to the application of an administered price cap or administered floor price	238
3.15	Settlements	242
3.15.1	Settlements management by AEMO	242
3.15.2	Electronic funds transfer	243
3.15.3	Connection point and virtual transmission node responsibility	243
3.15.4	Adjusted energy amounts connection points	243
3.15.5	Adjusted energy - transmission network connection points	244
3.15.5A	Adjusted energy - virtual transmission nodes	244
3.15.6	Spot market transactions	245
3.15.6A	Ancillary service transactions	245
3.15.7	Payment to Directed Participants	258
3.15.7A	Payment to Directed Participants for services other than energy and market ancillary services	260
3.15.7B	Claim for additional compensation by Directed Participants	263
3.15.8	Funding of Compensation for directions	265
3.15.8A	Funding of compensation for market suspension pricing schedule periods	270
3.15.9	Reserve settlements	272
3.15.10	Administered price cap or administered floor price compensation payments	274
3.15.10A	Goods and services tax	275
3.15.10B	Restriction contract amounts	276
3.15.10C	Intervention and Market Suspension Pricing Schedule Period Settlements	277
3.15.11	Reallocation transactions	281
3.15.11A	Reallocation procedures	282
3.15.12	Settlement amount	283
3.15.13	Payment of settlement amount	284
3.15.14	Preliminary statements	284
3.15.15	Final statements	284
3.15.15A	Use of estimated settlement amounts by AEMO	284
3.15.16	Payment by market participants	285
3.15.17	Payment to market participants	285
3.15.18	Disputes	285
3.15.19	Revised Statements and Adjustments	286
3.15.20	Payment of adjustments	288
3.15.21	Default procedure	288
3.15.22	Maximum total payment in respect of a billing period	293
3.15.23	Maximum total payment in respect of a financial year	294
3.15.24	Compensation for reductions under clause 3.15.23	296
3.15.25	Interest on overdue amounts	296
3.16	Participant compensation fund	296
3.16.1	Establishment of Participant compensation fund	296
3.16.2	Dispute resolution panel to determine compensation	297
3.17	[Deleted]	299
3.18	Settlements Residue Auctions	299
3.18.1	Settlements residue concepts	299
3.18.2	Auctions and eligible persons	300
3.18.3	Auction rules	301
3.18.3A	Secondary trading of SRD units	303
3.18.4	Proceeds and fees	303
3.18.4A	Secondary trading proceeds and margin	304
3.18.5	Settlement residue committee	305
3.19	Market Management Systems Access Procedures	306
3.20	Reliability and Emergency Reserve Trader	307
3.20.1	[Deleted]	307
3.20.2	Reliability and emergency reserve trader	307
3.20.3	Reserve contracts	308
3.20.4	Dispatch pricing methodology for unscheduled reserve contracts	309
3.20.5	AEMO’s risk management and accounts relating to the reliability safety net	309
3.20.6	Reporting on RERT by AEMO	310
3.20.7	AEMO’s exercise of the RERT	311
3.20.8	RERT Guidelines	312
3.20.9	[Deleted]	313
Schedule 3.1	Bid and Offer Validation Data	313
Schedule 3.2	[Deleted]	317
Schedule 3.3	[Deleted]	317
4.	Power System Security	321
4.1	Introduction	321
4.1.1	Purpose	321
4.2	Definitions and Principles	321
4.2.1	[Deleted]	322
4.2.2	Satisfactory Operating State	322
4.2.3	Credible and non-credible contingency events and protected events	322
4.2.3A	Re-classifying contingency events	323
4.2.3B	Criteria for re-classifying contingency events	325
4.2.4	Secure operating state and power system security	325
4.2.5	Technical envelope	326
4.2.6	General principles for maintaining power system security	327
4.2.7	Reliable Operating State	327
4.2.8	Time for undertaking action	328
4.3	Power System Security Responsibilities and Obligations	328
4.3.1	Responsibility of AEMO for power system security	328
4.3.2	System security	330
4.3.3	The role of System Operators	334
4.3.4	Network Service Providers	335
4.3.5	Market Customer obligations	340
4.4	Power System Frequency Control	341
4.4.1	Power system frequency control responsibilities	341
4.4.2	Operational frequency control requirements	341
4.4.3	Generator protection requirements	342
4.4.4	Instructions to enable inertia network services	342
4.4.5	Instructions to enable system strength services	344
4.5	Control of Power System Voltage	345
4.5.1	Power system voltage control	345
4.5.2	Reactive power reserve requirements	346
4.5.3	Audit and testing	346
4.6	Protection of Power System Equipment	346
4.6.1	Power system fault levels	346
4.6.2	Power system protection co-ordination	347
4.6.3	Audit and testing	347
4.6.4	Short-term thermal ratings of power system	347
4.6.5	Partial outage of power protection systems	347
4.6.6	System strength impact assessment guidelines	348
4.7	Power System Stability Co-ordination	349
4.7.1	Stability analysis co-ordination	349
4.7.2	Audit and testing	350
4.8	Power System Security Operations	350
4.8.1	Registered Participants' advice	350
4.8.2	Protection or control system abnormality	350
4.8.3	AEMO’s advice on power system emergency conditions	351
4.8.4	Declaration of conditions	351
4.8.4A	Reserve level declaration guidelines	351
4.8.4B	Lack of reserve framework reporting	352
4.8.5	Managing declarations of conditions	353
4.8.5A	Determination of the latest time for AEMO intervention	354
4.8.5B	Notifications of last time of AEMO intervention	355
4.8.6	[Deleted]	355
4.8.7	Managing a power system contingency event	355
4.8.8	[Deleted]	355
4.8.9	Power to issue directions and clause 4.8.9 instructions	355
4.8.9A	System security directions	358
4.8.10	Disconnection of generating units and market network services	358
4.8.11	[Deleted]	358
4.8.12	System restart plan and local black system procedures	358
4.8.13	[Deleted]	360
4.8.14	Power system restoration	360
4.8.15	Review of operating incidents	361
4.9	Power System Security Related Market Operations	363
4.9.1	Load forecasting	363
4.9.2	Instructions to Scheduled Generators and Semi-Scheduled Generators	364
4.9.2A	Dispatch Instructions to Scheduled Network Service Providers	365
4.9.3	Instructions to Registered Participants	365
4.9.3A	Ancillary services instructions	366
4.9.3B	Compliance with dispatch instructions	367
4.9.4	Dispatch related limitations on Scheduled Generators and Semi-Scheduled Generators	367
4.9.4A	Dispatch related limitations on Scheduled Network Service Providers	368
4.9.5	Form of dispatch instructions	369
4.9.6	Commitment of scheduled generating units	370
4.9.7	De-commitment, or output reduction, by Scheduled Generators	371
4.9.8	General responsibilities of Registered Participants	372
4.9.9	Scheduled Generator plant changes	373
4.9.9A	Scheduled Network Service Provider plant changes	373
4.9.9B	Ancillary service plant changes	374
4.9.9C	Inertia network service availability changes	374
4.9.9D	System strength service availability changes	374
4.10	Power System Operating Procedures	374
4.10.1	Power system operating procedures	374
4.10.2	Transmission network operations	375
4.10.3	Operating interaction with distribution networks	376
4.10.4	Switching of a Distributor's high voltage networks	376
4.10.5	Switching of reactive power facilities	377
4.10.6	Automatic reclose	377
4.10.7	Inspection of facilities by AEMO	377
4.11	Power System Security Support	377
4.11.1	Remote control and monitoring devices	377
4.11.2	Operational control and indication communication facilities	379
4.11.3	Power system voice/data operational communication facilities	379
4.11.4	Records of power system operational communication	381
4.11.5	Agent communications	382
4.12	Nomenclature Standards	383
4.13	[Deleted]	384
4.14	Acceptance of Performance Standards	384
4.15	Compliance with Performance Standards	385
4.16	Transitioning arrangements for establishment of performance standards	390
4.16.1	Definitions	390
4.16.2	Exclusions	392
4.16.3	Notification and acceptance of performance standards	392
4.16.4	Actual capability	397
4.16.5	Criteria for, and negotiation of, performance standards	398
4.16.6	Consultation with and assistance by Network Service Providers	401
4.16.7	Referral to expert determination	401
4.16.8	Prior actions	402
4.16.9	Deemed performance standards	402
4.16.10	Modification of connection agreements	403
4.17	Expert determination	403
4.17.1	Performance standards committee and appointment of performance standards experts	403
4.17.2	Referral to performance standards expert	405
4.17.3	Determinations of performance standards experts	405
4.17.4	Other matters	406
5.	Network Connection Access, Planning and Expansion	411
Part A	Introduction	411
5.1	Introduction to Chapter 5	411
5.1.1	Structure of this Chapter	411
5.1.2	Overview of Part B and connection and access under the Rules	411
Part B	Network Connection and Access	414
5.1A	Introduction to Part B	414
5.1A.1	Purpose and Application	414
5.1A.2	Principles	417
5.2	Obligations	417
5.2.1	Obligations of Registered Participants	417
5.2.2	Connection agreements	418
5.2.3	Obligations of network service providers	419
5.2.3A	Obligations of Market Network Service Providers	424
5.2.4	Obligations of customers	425
5.2.5	Obligations of Generators	426
5.2.6	Obligations of AEMO	428
5.2.6A	AEMO review of technical requirements for connection	428
5.2.7	Obligations of Dedicated Connection Asset Service Providers	429
5.2A	Transmission network connection and access	430
5.2A.1	Application	430
5.2A.2	Relevant assets	430
5.2A.3	Connection and access to transmission services	431
5.2A.4	Transmission services related to connection	433
5.2A.5	Publication and provision of information	436
5.2A.6	Negotiating principles	437
5.2A.7	Third party IUSAs	437
5.2A.8	Access framework for large dedicated connection assets	439
5.3	Establishing or Modifying Connection	441
5.3.1	Process and procedures	441
5.3.1A	Application of rule to connection of embedded generating units	441
5.3.2	Connection enquiry	442
5.3.3	Response to connection enquiry	443
5.3.4	Application for connection	447
5.3.4A	Negotiated access standards	449
5.3.4B	System strength remediation for new connections	453
5.3.5	Preparation of offer to connect	456
5.3.6	Offer to connect	457
5.3.7	Finalisation of connection agreements and network operating agreements	461
5.3.8	Provision and use of information	462
5.3.9	Procedure to be followed by a Generator proposing to alter a generating system	464
5.3.10	Acceptance of performance standards for generating plant that is altered	466
5.3.11	Notification of request to change normal voltage	467
5.3A	Establishing or modifying connection - embedded generation	467
5.3A.1	Application of rule 5.3A	467
5.3A.2	Definitions and miscellaneous	468
5.3A.3	Publication of Information	469
5.3A.4	Fees	471
5.3A.5	Enquiry	471
5.3A.6	Response to Enquiry	472
5.3A.7	Preliminary Response to Enquiry	473
5.3A.8	Detailed Response to Enquiry	473
5.3A.9	Application for connection	475
5.3A.10	Preparation of offer to connect	476
5.3A.11	Technical Dispute	477
5.3A.12	Network support payments and functions	477
5.3AA	Access arrangements relating to Distribution Networks	477
5.3B	Application for connection to declared shared network	481
5.4	Independent Engineer	482
5.4.1	Application	482
5.4.2	Establishment of a pool	482
5.4.3	Initiating the Independent Engineer process	483
5.4.4	Referral to the Adviser	483
5.4.5	Proceedings and decisions of the Independent Engineer	484
5.4.6	Costs of the Independent Engineer	485
5.4A	[Deleted]	485
5.4AA	[Deleted]	486
5.5	Commercial arbitration for prescribed and negotiated transmission services and large DCA services	486
5.5.1	Application	486
5.5.2	Notification of dispute	486
5.5.3	Appointment of commercial arbitrator	487
5.5.4	Procedures of commercial arbitrator	488
5.5.5	Powers of commercial arbitrator in determining disputes	488
5.5.6	Determination of disputes	490
5.5.7	Costs of dispute	491
5.5.8	Enforcement of agreement or determination and requirement for reasons	491
5.5.9	Miscellaneous	491
5.5A	[Deleted]	492
Part C	Post-Connection Agreement matters	492
5.6	Design of Connected Equipment	492
5.6.1	Application	492
5.6.2	Advice of inconsistencies	492
5.6.3	Additional information	493
5.6.4	Advice on possible non-compliance	493
5.6A	[Deleted]	493
5.7	Inspection and Testing	493
5.7.1	Right of entry and inspection	493
5.7.2	Right of testing	495
5.7.3	Tests to demonstrate compliance with connection requirements for generators	497
5.7.3A	Tests to demonstrate compliance with system strength remediation schemes	499
5.7.4	Routine testing of protection equipment	500
5.7.5	Testing by Registered Participants of their own plant requiring changes to normal operation	502
5.7.6	Tests of generating units requiring changes to normal operation	504
5.7.7	Inter-network power system tests	505
5.7.8	Contestable IUSA components	512
5.8	Commissioning	512
5.8.1	Requirement to inspect and test equipment	512
5.8.2	Co-ordination during commissioning	513
5.8.3	Control and protection settings for equipment	513
5.8.4	Commissioning program	514
5.8.5	Commissioning tests	514
5.9	Disconnection and Reconnection	515
5.9.1	Voluntary disconnection	515
5.9.2	Decommissioning procedures	516
5.9.3	Involuntary disconnection	516
5.9.4	Direction to disconnect	517
5.9.4A	Notification of disconnection	518
5.9.5	Disconnection during an emergency	518
5.9.6	Obligation to reconnect	518
Part D	Network Planning and Expansion	520
5.10	Network development generally	520
5.10.1	Content of Part D	520
5.10.2	Definitions	521
5.10.3	Interpretation	525
5.11	Forecasts of connection to transmission network and identification of system limitations	525
5.11.1	Forecasts for connection to transmission network	525
5.11.2	Identification of network limitations	526
5.12	Transmission annual planning process	526
5.12.1	Transmission annual planning review	526
5.12.2	Transmission Annual Planning Report	527
5.13	Distribution annual planning process	532
5.13.1	Distribution annual planning review	532
5.13.2	Distribution Annual Planning Report	534
5.13.3	Distribution system limitation template	534
5.13A	Distribution zone substation information	535
5.14	Joint planning	538
5.14.1	Joint planning obligations of Transmission Network Service Providers and Distribution Network Service Providers	538
5.14.2	Joint planning obligations of Distribution Network Service Providers and Distribution Network Service Providers	539
5.14.3	Joint planning obligations of Transmission Network Service Providers	540
5.14A	Joint planning in relation to retirement or de-ratings of network assets forming part of the Declared Shared Network	540
5.14B	TAPR Guidelines	540
5.14B.1	Development of TAPR Guidelines	540
5.15	Regulatory investment tests generally	541
5.15.1	Interested parties	541
5.15.2	Identification of a credible option	541
5.15.3	Review of costs thresholds	542
5.15.4	Costs determinations	544
5.16	Regulatory investment test for transmission	545
5.16.1	Principles	545
5.16.2	Regulatory investment test for transmission application guidelines	548
5.16.3	Investments subject to the regulatory investment test for transmission	549
5.16.4	Regulatory investment test for transmission procedures	552
5.16.5	Disputes in relation to application of regulatory investment test for transmission	559
5.16.6	Determination that preferred option satisfies the regulatory investment test for transmission	561
5.17	Regulatory investment test for distribution	562
5.17.1	Principles	562
5.17.2	Regulatory investment test for distribution application guidelines	564
5.17.3	Projects subject to the regulatory investment test for distribution	566
5.17.4	Regulatory investment test for distribution procedures	567
5.17.5	Disputes in relation to application of regulatory investment test for distribution	573
5.18	Construction of funded augmentations	575
5.18A	Large generator connections	575
5.18A.1	Definitions	575
5.18A.2	Register of large generator connections	576
5.18A.3	Impact assessment of large generator connections	577
5.18B	Completed embedded generation projects	578
5.18B.1	Definitions	578
5.18B.2	Register of completed embedded generation projects	578
5.19	SENE Design and Costing Study	579
5.19.1	Definitions	579
5.19.2	Interpretation	580
5.19.3	Request for SENE Design and Costing Study	580
5.19.4	Content of SENE Design and Costing Study	581
5.19.5	Co-operation of other Network Service Providers	582
5.19.6	Publication of SENE Design and Costing Study report	583
5.19.7	Provision and use of information	583
5.20	National transmission planning	584
5.20.1	Preliminary consultation	584
5.20.2	Publication of NTNDP	585
5.20.3	Development strategies for national transmission flow paths	587
5.20.4	NTNDP database	588
5.20.5	Jurisdictional planning bodies and jurisdictional planning representatives	589
5.20.6	NTP Functions	589
5.20.7	Inertia and system strength requirements methodologies	589
5.20A	Frequency management planning	591
5.20A.1	Power system frequency risk review	591
5.20A.2	Power system frequency risk review process	592
5.20A.3	Power system frequency risk review report	592
5.20A.4	Request for protected event declaration	593
5.20A.5	Request to revoke a protected event declaration	594
5.20B	Inertia sub-networks and requirements	594
5.20B.1	Boundaries of inertia sub-networks	594
5.20B.2	Inertia requirements	595
5.20B.3	Inertia shortfalls	595
5.20B.4	Inertia Service Provider to make available inertia services	596
5.20B.5	Inertia support activities	599
5.20B.6	Inertia network services information and approvals	600
5.20C	System strength requirements	602
5.20C.1	System strength requirements	602
5.20C.2	Fault level shortfalls	603
5.20C.3	System Strength Service Provider to make available system strength services	604
5.20C.4	System strength services information and approvals	606
5.21	AEMO's obligation to publish information and guidelines and provide advice	608
5.22	Last resort planning power	610
Schedule 5.1a	System standards	613
S5.1a.1	Purpose	613
S5.1a.2	Frequency	613
S5.1a.3	System stability	613
S5.1a.4	Power frequency voltage	614
S5.1a.5	Voltage fluctuations	615
S5.1a.6	Voltage waveform distortion	615
S5.1a.7	Voltage unbalance	615
S5.1a.8	Fault clearance times	616
Schedule 5.1	Network Performance Requirements to be Provided or Co-ordinated by Network Service Providers	618
S5.1.1	Introduction	618
S5.1.2	Network reliability	619
S5.1.2.1	Credible contingency events	619
S5.1.2.2	Network service within a region	620
S5.1.2.3	Network service between regions	621
S5.1.3	Frequency variations	621
S5.1.4	Magnitude of power frequency voltage	621
S5.1.5	Voltage fluctuations	623
S5.1.6	Voltage harmonic or voltage notching distortion	624
S5.1.7	Voltage unbalance	625
S5.1.8	Stability	626
S5.1.9	Protection systems and fault clearance times	627
S5.1.10	Load, generation and network control facilities	630
S5.1.10.1	General	630
S5.1.10.1a	Emergency frequency control schemes	631
S5.1.10.2	Distribution Network Service Providers	632
S5.1.10.3	Transmission Network Service Providers	632
S5.1.11	Automatic reclosure of transmission or distribution lines	633
S5.1.12	Rating of transmission lines and equipment	633
S5.1.13	Information to be provided	634
Schedule 5.2	Conditions for Connection of Generators	634
S5.2.1	Outline of requirements	634
S5.2.2	Application of Settings	635
S5.2.3	Technical matters to be coordinated	636
S5.2.4	Provision of information	637
S5.2.5	Technical requirements	640
S5.2.5.1	Reactive power capability	640
S5.2.5.2	Quality of electricity generated	641
S5.2.5.3	Generating system response to frequency disturbances	642
S5.2.5.4	Generating system response to voltage disturbances	645
S5.2.5.5	Generating system response to disturbances following contingency events	647
S5.2.5.6	Quality of electricity generated and continuous uninterrupted operation	656
S5.2.5.7	Partial load rejection	656
S5.2.5.8	Protection of generating systems from power system disturbances	657
S5.2.5.9	Protection systems that impact on power system security	658
S5.2.5.10	Protection to trip plant for unstable operation	660
S5.2.5.11	Frequency control	661
S5.2.5.12	Impact on network capability	664
S5.2.5.13	Voltage and reactive power control	665
S5.2.5.14	Active power control	673
S5.2.6	Monitoring and control requirements	675
S5.2.6.1	Remote Monitoring	675
S5.2.6.2	Communications equipment	678
S5.2.7	Power station auxiliary supplies	679
S5.2.8	Fault current	679
Schedule 5.3	Conditions for Connection of Customers	680
S5.3.1a	Introduction to the schedule	680
S5.3.1	Information	681
S5.3.2	Design standards	683
S5.3.3	Protection systems and settings	684
S5.3.4	Settings of protection and control systems	685
S5.3.5	Power factor requirements	686
S5.3.6	Balancing of load currents	687
S5.3.7	Voltage fluctuations	688
S5.3.8	Harmonics and voltage notching	688
S5.3.9	Design requirements for Network Users' substations	688
S5.3.10	Load shedding facilities	689
Schedule 5.3a	Conditions for connection of Market Network Services	689
S5.3a.1a	Introduction to the schedule	689
S5.3a.1	Provision of Information	690
S5.3a.2	Application of settings	692
S5.3a.3	Technical matters to be co-ordinated	693
S5.3a.4	Monitoring and control requirements	694
S5.3a.4.1	Remote Monitoring	694
S5.3a.4.2	[Deleted]	694
S5.3a.4.3	Communications equipment	694
S5.3a.5	Design standards	695
S5.3a.6	Protection systems and settings	696
S5.3a.7	[Deleted]	697
S5.3a.8	Reactive power capability	697
S5.3a.9	Balancing of load currents	698
S5.3a.10	Voltage fluctuations	698
S5.3a.11	Harmonics and voltage notching	699
S5.3a.12	Design requirements for Market Network Service Providers’ substations	699
S5.3a.13	Market network service response to disturbances in the power system	700
S5.3a.14	Protection of market network services from power system disturbances	700
Schedule 5.4	Information to be Provided with Preliminary Enquiry	701
Schedule 5.4A	Preliminary Response	702
Schedule 5.4B	Detailed Response to Enquiry	704
Schedule 5.5	Technical Details to Support Application for Connection and Connection Agreement	707
S5.5.1	Introduction to the schedule	707
S5.5.2	Categories of data	707
S5.5.3	Review, change and supply of data	708
S5.5.4	Data Requirements	708
S5.5.5	Asynchronous generating unit data	709
S5.5.6	Generating units smaller than 30MW data	709
S5.5.7	Power System Design Data Sheet, Power System Setting Data Sheet and Power System Model Guidelines	709
Schedule 5.5.1	[Deleted]	712
Schedule 5.5.2	[Deleted]	712
Schedule 5.5.3	Network and plant technical data of equipment at or near connection point	712
Schedule 5.5.4	Network Plant and Apparatus Setting Data	715
Schedule 5.5.5	Load Characteristics at Connection Point	718
Schedule 5.6	Terms and Conditions of Connection agreements and network operating agreements	718
Part A	Connection agreements	718
Part B	Network Operating Agreements	720
Schedule 5.7	Annual Forecast Information for Planning Purposes	720
Schedule 5.8	Distribution Annual Planning Report	723
Schedule 5.9	Demand side engagement document (clause 5.13.1(h))	729
Schedule 5.10	Information requirements for Primary Transmission Network Service Providers (clause 5.2A.5)	731
Schedule 5.11	Negotiating principles for negotiated transmission services (clause 5.2A.6)	734
Schedule 5.12	Negotiating principles for large DCA services	736
5A 	Electricity connection for retail customers	741
Part A	Preliminary	741
5A.A.1	Definitions	741
5A.A.2	Application of this Chapter	744
5A.A.3	Small Generation Aggregator deemed to be agent of a retail customer	745
Part B	Standardised offers to provide basic and standard connection services	745
Division 1	Basic connection services	745
5A.B.1	Obligation to have model standing offer to provide basic connection services	745
5A.B.2	Proposed model standing offer for basic connection services	746
5A.B.3	Approval of terms and conditions of model standing offer to provide basic connection services	747
Division 2	Standard connection services	748
5A.B.4	Standard connection services	748
5A.B.5	Approval of model standing offer to provide standard connection services	749
Division 3	Miscellaneous	749
5A.B.6	Amendment etc of model standing offer	749
5A.B.7	Publication of model standing offers	750
Part C	Negotiated connection	750
5A.C.1	Negotiation of connection	750
5A.C.2	Process of negotiation	751
5A.C.3	Negotiation framework	751
5A.C.4	Fee to cover cost of negotiation	753
Part D	Application for connection service	754
Division 1	Information	754
5A.D.1	Publication of information	754
5A.D.1A	Register of completed embedded generation projects	754
Division 2	Preliminary enquiry	756
5A.D.2	Preliminary enquiry	756
Division 3	Applications	757
5A.D.3	Application process	757
5A.D.4	Site inspection	758
Part E	Connection charges	758
5A.E.1	Connection charge principles	758
5A.E.2	Itemised statement of connection charges	760
5A.E.3	Connection charge guidelines	760
5A.E.4	Payment of connection charges	762
Part F	Formation and integration of connection contracts	763
Division 1	Offer and acceptance – basic and standard connection services	763
5A.F.1	Distribution Network Service Provider’s response to application	763
5A.F.2	Acceptance of connection offer	763
5A.F.3	Offer and acceptance—application for expedited connection	763
Division 2	Offer and acceptance – negotiated connection	764
5A.F.4	Negotiated connection offer	764
Division 3	Formation of contract	765
5A.F.5	Acceptance of connection offer	765
Division 4	Contractual performance	765
5A.F.6	Carrying out connection work	765
5A.F.7	Retailer required for energisation where new connection	766
Part G	Dispute resolution between Distribution Network Service Providers and customers	766
5A.G.1	Relevant disputes	766
5A.G.2	Determination of dispute	766
5A.G.3	Termination of proceedings	767
SCHEDULE 5A.1 – Minimum content requirements for connection contract	767
Part A	Connection offer not involving embedded generation	767
Part B	Connection offer involving embedded generation	768
6.	Economic Regulation of Distribution Services	773
Part A	Introduction	773
6.1	Introduction to Chapter 6	773
6.1.1	AER's regulatory responsibility	773
6.1.1A	[Deleted]	773
6.1.2	Structure of this Chapter	773
6.1.3	Access to direct control services and negotiated distribution services	774
6.1.4	Prohibition of DUOS charges for the export of energy	774
Part B	Classification of Distribution Services and Distribution Determinations	775
6.2	Classification	775
6.2.1	Classification of distribution services	775
6.2.2	Classification of direct control services as standard control services or alternative control services	775
6.2.3	Term for which classification operates	776
6.2.3A	Distribution Service Classification Guidelines	777
6.2.4	Duty of AER to make distribution determinations	777
6.2.5	Control mechanisms for direct control services	778
6.2.6	Basis of control mechanisms for direct control services	779
6.2.7	Negotiated distribution services	779
6.2.8	Guidelines	779
Part C	Building Block Determinations for standard control services	780
6.3	Building block determinations	780
6.3.1	Introduction	780
6.3.2	Contents of building block determination	781
6.4	Post-tax revenue model	781
6.4.1	Preparation, publication and amendment of post-tax revenue model	781
6.4.2	Contents of post-tax revenue model	781
6.4.3	Building block approach	782
6.4.4	Shared assets	783
6.4.5	Expenditure Forecast Assessment Guidelines	784
6.4A	Capital expenditure incentive mechanisms	785
6.4B	Asset exemptions	786
6.4B.1	Asset exemption decisions and Asset Exemption Guidelines	786
6.4B.2	Exemption applications	787
6.5	Matters relevant to the making of building block determinations	787
6.5.1	Regulatory asset base	787
6.5.2	Return on capital	788
6.5.3	Estimated cost of corporate income tax	789
6.5.4	[Deleted]	789
6.5.5	Depreciation	789
6.5.6	Forecast operating expenditure	790
6.5.7	Forecast capital expenditure	792
6.5.8	Efficiency benefit sharing scheme	797
6.5.8A	Capital expenditure sharing scheme	798
6.5.9	The X factor	799
6.5.10	Pass through events	800
6.6	Adjustments after making of building block determination.	800
6.6.1	Cost pass through	800
6.6.1A	Reporting on jurisdictional schemes	808
6.6.2	Service target performance incentive scheme	809
6.6.3	Demand management incentive scheme	810
6.6.3A	Demand management innovation allowance mechanism	812
6.6.4	Small-scale incentive scheme	813
6.6.5	Reopening of distribution determination for capital expenditure	814
6.6A	Contingent Projects	818
6.6A.1	Acceptance of a contingent project in a distribution determination	818
6.6A.2	Amendment of distribution determination for contingent project	819
Part D	Negotiated distribution services	825
6.7	Negotiated distribution services	825
6.7.1	Principles relating to access to negotiated distribution services	825
6.7.2	Determination of terms and conditions of access for negotiated distribution services	827
6.7.3	Negotiating framework determination	827
6.7.4	Negotiated Distribution Service Criteria determination	827
6.7.5	Preparation of and requirements for negotiating framework for negotiated distribution services	828
6.7.6	Confidential information	830
Part DA	Connection policies	831
6.7A	Connection policy requirements	831
6.7A.1	Preparation of, and requirements for, connection policy	831
Part E	Regulatory proposal and proposed tariff structure statement	832
6.8	Regulatory proposal and proposed tariff structure statement	832
6.8.1	AER's framework and approach paper	832
6.8.1A	Notification of approach to forecasting expenditure	834
6.8.2	Submission of regulatory proposal, tariff structure statement and exemption application	835
6.9	Preliminary examination and consultation	837
6.9.1	Preliminary examination	837
6.9.2	Resubmission of proposal	838
6.9.2A	Confidential information	838
6.9.3	Consultation	838
6.10	Draft distribution determination and further consultation	839
6.10.1	Making of draft distribution determination	839
6.10.2	Publication of draft determination and consultation	840
6.10.3	Submission of revised proposal	840
6.10.4	Submissions on specified matters	841
6.11	Distribution determination	841
6.11.1	Making of distribution determination	841
6.11.1A	Out of scope revised regulatory proposal or late submissions	842
6.11.2	Notice of distribution determination	843
6.11.3	Commencement of distribution determination	843
6.12	Requirements relating to draft and final distribution determinations	843
6.12.1	Constituent decisions	843
6.12.2	Reasons for decisions	847
6.12.3	Extent of AER's discretion in making distribution determinations	848
6.13	Revocation and substitution of distribution determination for wrong information or error	849
6.14	Miscellaneous	850
6.14A	Distribution Confidentiality Guidelines	851
Part F	Cost Allocation	851
6.15	Cost allocation	851
6.15.1	Duty to comply with Cost Allocation Method	851
6.15.2	Cost Allocation Principles	851
6.15.3	Cost Allocation Guidelines	852
6.15.4	Cost Allocation Method	853
Part G	Distribution consultation procedures	854
6.16	Distribution consultation procedures	854
Part H	Ring-Fencing Arrangements for Distribution Network Service Providers	856
6.17	Distribution Ring-Fencing Guidelines	856
6.17.1	Compliance with Distribution Ring-Fencing Guidelines	856
6.17.2	Development of Distribution Ring-Fencing Guidelines	856
Part I	Distribution Pricing Rules	857
6.18	Distribution Pricing Rules	857
6.18.1	Application of this Part	857
6.18.1A	Tariff structure statement	857
6.18.1B	Amending a tariff structure statement with the AER's approval	858
6.18.1C	Sub-threshold tariffs	859
6.18.2	Pricing proposals	860
6.18.3	Tariff classes	862
6.18.4	Principles governing assignment or re-assignment of retail customers to tariff classes and assessment and review of basis of charging	862
6.18.5	Pricing principles	863
6.18.6	Side constraints on tariffs for standard control services	865
6.18.7	Recovery of designated pricing proposal charges	866
6.18.7A	Recovery of jurisdictional scheme amounts	866
6.18.8	Approval of pricing proposal	870
6.18.9	Publication of information about tariffs and tariff classes	872
6.19.	Data Required for Distribution Service Pricing	872
6.19.1	Forecast use of networks by Distribution Customers and Embedded Generators	872
6.19.2	Confidentiality of distribution network pricing information	872
Part J	Billing and Settlements	873
6.20	Billing and Settlements Process	873
6.20.1	Billing for distribution services	873
6.20.2	Minimum information to be provided in distribution network service bills	875
6.20.3	Settlement between Distribution Network Service Providers	875
6.20.4	Obligation to pay	875
Part K	Prudential requirements, capital contributions and prepayments	876
6.21	Distribution Network Service Provider Prudential Requirements	876
6.21.1	Prudential requirements for distribution network service	876
6.21.2	Capital contributions, prepayments and financial guarantees	877
6.21.3	Treatment of past prepayments and capital contributions	877
Part L	Dispute resolution	877
6.22	Dispute Resolution	877
6.22.1	Dispute Resolution by the AER	877
6.22.2	Determination of dispute	878
6.22.3	Termination of access dispute without access determination	879
Part M	Separate disclosure of transmission and distribution charges	880
6.23	Separate disclosure of transmission and distribution charges	880
Part N	Dual Function Assets	881
6.24	Dual Function Assets	881
6.24.1	Application of this Part	881
6.24.2	Dual Function Assets	881
6.25	AER determination of applicable pricing regime for Dual Function Assets	881
6.26	Division of Distribution Network Service Provider's revenue	882
Part O	Annual Benchmarking Report	884
6.27	Annual Benchmarking Report	884
Part P	Distribution Reliability Measures Guidelines	884
6.28	Distribution Reliability Measures Guidelines	884
Schedule 6.1	Contents of building block proposals	884
S6.1.1	Information and matters relating to capital expenditure	884
S6.1.2	Information and matters relating to operating expenditure	886
S6.1.3	Additional information and matters	886
Schedule 6.2	Regulatory Asset Base	889
S6.2.1	Establishment of opening regulatory asset base for a regulatory control period	889
S6.2.2	Prudency and efficiency of capital expenditure	894
S6.2.2A	Reduction for inefficient past capital expenditure	894
S6.2.2B	Depreciation	897
S6.2.3	Roll forward of regulatory asset base within the same regulatory control period	897
6A.	Economic Regulation of Transmission Services	901
Part A	Introduction	901
6A.1	Introduction to Chapter 6A	901
6A.1.1	Economic regulation of transmission services generally	901
6A.1.2	[Deleted]	902
6A.1.3	[Deleted]	902
6A.1.4	National regulatory arrangements	902
6A.1.5	Application of Chapter 6A to Market Network Service Providers	902
6A.1.6	Application of Chapter 6A to AEMO and declared transmission system operators	902
Part B	Transmission Determinations Generally	903
6A.2	Transmission determinations	903
6A.2.1	Duty of AER to make transmission determinations	903
6A.2.2	Components of transmission determinations	903
6A.2.3	Guidelines	903
Part C	Regulation of Revenue - Prescribed Transmission Services	904
6A.3	Allowed revenue from prescribed transmission services	904
6A.3.1	Allowed revenue for regulatory year	904
6A.3.2	Adjustment of maximum allowed revenue	904
6A.4	Revenue determinations	905
6A.4.1	Introduction	905
6A.4.2	Contents of revenue determination	905
6A.5	Post-tax revenue model	906
6A.5.1	Introduction	906
6A.5.2	Preparation, publication and amendment of post-tax revenue model	906
6A.5.3	Contents of post-tax revenue model	907
6A.5.4	Building blocks approach	908
6A.5.5	Shared assets	909
6A.5.6	Expenditure Forecast Assessment Guidelines	910
6A.5A	Capital expenditure incentive mechanisms	910
6A.6	Matters relevant to the making of revenue determinations	911
6A.6.1	Regulatory asset base	911
6A.6.2	Return on capital	912
6A.6.3	Depreciation	913
6A.6.4	Estimated cost of corporate income tax	914
6A.6.5	Efficiency benefit sharing scheme	914
6A.6.5A	Capital expenditure sharing scheme	916
6A.6.6	Forecast operating expenditure	917
6A.6.7	Forecast capital expenditure	920
6A.6.8	The X factor	924
6A.6.9	Pass through events	924
6A.7	Matters relevant to the adjustment of revenue cap after making of revenue determination	925
6A.7.1	Reopening of revenue determination for capital expenditure	925
6A.7.2	Network support pass through	928
6A.7.3	Cost pass through	930
6A.7.4	Service target performance incentive scheme	936
6A.7.5	Small-scale incentive scheme	937
6A.8	Contingent Projects	938
6A.8.1	Acceptance of a Contingent Project in a revenue determination	938
6A.8.2	Amendment of revenue determination for contingent project	940
Part D	[Deleted]	945
Part E	Procedure - Revenue determinations and pricing methodologies	945
6A.10	Revenue Proposal and proposed pricing methodology	945
6A.10.1A	AER's framework and approach paper	945
6A.10.1B	Notification of approach to forecasting expenditure	947
6A.10.1	Submission of proposal, pricing methodology and information	947
6A.10.2	[Deleted]	948
6A.11	Preliminary examination and consultation	948
6A.11.1	Preliminary examination and determination of non-compliance with relevant requirements	948
6A.11.2	Resubmission of proposal, framework, pricing methodology or information	949
6A.11.2A	Confidential information	950
6A.11.3	Consultation	950
6A.12	Draft decision and further consultation	951
6A.12.1	Making of draft decision	951
6A.12.2	Publication of draft decision and consultation	952
6A.12.3	Submission of revised proposal or pricing methodology	952
6A.12.4	Submissions on specified matters	953
6A.13	Final decision	954
6A.13.1	Making of final decision	954
6A.13.2	Refusal to approve amounts, values, framework or pricing methodology	954
6A.13.2A	Out of scope revised documents or late submissions	955
6A.13.3	Notice of final decision	956
6A.13.4	Making of transmission determination	956
6A.14	Requirements relating to draft and final decisions	956
6A.14.1	Contents of decisions	956
6A.14.2	Reasons for decisions	958
6A.14.3	Circumstances in which matters must be approved or accepted	959
6A.15	Revocation of revenue determination or amendment of pricing methodology for wrong information or error	961
6A.16	Miscellaneous	962
6A.16A	Transmission Confidentiality Guidelines	963
Part F	Information Disclosure	963
6A.17	Information disclosure by Transmission Network Service Providers	963
6A.17.1	Information to be provided to AER	963
6A.17.2	Information Guidelines	964
6A.18	[Deleted]	966
Part G	Cost Allocation	966
6A.19	Cost allocation	966
6A.19.1	Duty to comply with Cost Allocation Methodology	966
6A.19.2	Cost Allocation Principles	966
6A.19.3	Cost Allocation Guidelines	967
6A.19.4	Cost Allocation Methodology	968
Part H	Transmission Consultation Procedures	969
6A.20	Transmission consultation procedures	969
Part I	Ring-Fencing Arrangements for Transmission Network Service Providers	971
6A.21	Transmission Ring-Fencing Guidelines	971
6A.21.1	Compliance with Transmission Ring-Fencing Guidelines	971
6A.21.2	Development of Transmission Ring-Fencing Guidelines	971
Part J	Prescribed Transmission Services - Regulation of Pricing	972
6A.22	Terms used in Part J	972
6A.22.1	Aggregate annual revenue requirement (AARR)	972
6A.22.2	Annual service revenue requirement (ASRR)	973
6A.22.3	Meaning of attributable cost share	973
6A.22.4	Meaning of attributable connection point cost share	973
6A.23	Pricing Principles for Prescribed Transmission Services	974
6A.23.1	Introduction	974
6A.23.2	Principles for the allocation of the aggregate annual revenue requirement	974
6A.23.3	Principles for the allocation of the annual service revenue requirement to connection points	975
6A.23.4	Principles for the recovery of the Annual Service Revenue Requirement as prices	978
6A.24	Pricing methodology	979
6A.24.1	Pricing methodologies generally	979
6A.24.2	Publication of pricing methodology and transmission network prices	981
6A.24.3	Basis for setting prices pending approval of pricing methodology	981
6A.24.4	Basis for setting prices pending approval of maximum allowed revenue	982
6A.25	Pricing methodology guidelines for prescribed transmission services	983
6A.25.1	Making and amending of pricing methodology guidelines	983
6A.25.2	Contents of pricing methodology guidelines	983
6A.26	Prudent discounts	984
6A.26.1	Agreements for prudent discounts for prescribed transmission services	984
6A.26.2	Application to AER for approval of proposed prudent discount amounts	986
6A.27	Billing Process	987
6A.27.1	Billing for prescribed transmission services	987
6A.27.1A	Billing of modified load export charges	988
6A.27.2	Minimum information to be provided in network service bills	988
6A.27.3	Obligation to pay charges for prescribed transmission services	988
6A.27.4	Payments between Transmission Network Service Providers in the same region	988
6A.27.5	Calculation of financial transfers between Transmission Network Service Providers in the same region	989
6A.28	Prudential Requirements	989
6A.28.1	Prudential Requirements for prescribed transmission services	989
6A.28.2	Capital contribution or prepayment for a specific asset	989
6A.28.3	Treatment of past capital contributions	990
6A.29	Multiple Transmission Network Service Providers	990
6A.29.1	Multiple Transmission Network Service Providers within a region	990
6A.29.2	Single Transmission Network Service Provider within a region	991
6A.29.3	Allocation over several regions	991
6A.29A	Modified load export charges	991
6A.29A.1	Single Transmission Network Service Provider in a Region	991
6A.29A.2 	Calculation of the modified load export charges	992
6A.29A.3	Calculation of adjustments to the modified load export charge	992
6A.29A.4	Billing the modified load export charge	992
6A.29A.5	Allocation and billing process where multiple Transmission Network Service Providers in a Region	993
Part K	Commercial arbitration for disputes about terms and conditions of access for prescribed and negotiated transmission services	994
[Deleted]	994
Part L	Annual Benchmarking Report	994
6A.31	Annual Benchmarking Report	994
Schedule 6A.1	Contents of Revenue Proposals	994
S6A.1.1	Information and matters relating to capital expenditure	994
S6A.1.2	Information and matters relating to operating expenditure	995
S6A.1.3	Additional information and matters	996
Schedule 6A.2	Regulatory Asset Base	999
S6A.2.1	Establishment of opening regulatory asset base for a regulatory control period	999
S6A.2.2	Prudency and efficiency of capital expenditure	1004
S6A.2.2A	Reduction for inefficient past capital expenditure	1004
S6A.2.2B	Depreciation	1007
S6A.2.3	Removal of assets from regulatory asset base	1007
S6A.2.4	Roll forward of regulatory asset base within the same regulatory control period	1009
Schedule 6A.3	CRNP methodology and modified CRNP methodology	1010
S6A.3.1	Meaning of optimised replacement cost	1010
S6A.3.2	CRNP methodology	1010
S6A.3.3	Modified CRNP methodology	1011
Schedule 6A.4	Application of this Chapter to AEMO and declared transmission system operators	1011
S6A.4.1	Application of this Chapter to AEMO etc	1011
S6A.4.2	Exclusions, qualifications and modifications	1011
6B 	Retail markets	1021
Part A	Retail support	1021
Division 1	Application and definitions	1021
6B.A1.1	Application of this Part	1021
6B.A1.2	Definitions	1021
Division 2	Billing and payment rules	1022
6B.A2.1	Obligation to pay	1022
6B.A2.2	Direct customer billing and energy-only contracts	1022
6B.A2.3	Calculating network charges	1022
6B.A2.4	Statement of charges	1022
6B.A2.5	Time and manner of payment	1023
Division 3	Matters incidental to billing and payment	1023
6B.A3.1 	Adjustment of network charges	1023
6B.A3.2	Tariff reassignment	1024
6B.A3.3	Disputed statements of charges	1025
6B.A3.4	Interest	1026
6B.A3.5	Notification of changes to charges	1026
Part B	Credit support required for late payment	1026
Division 1	Application and definitions	1027
6B.B1.1	Application of Part B	1027
6B.B1.2	Definitions	1027
Division 2	Requirements for credit support	1027
6B.B2.1	Distribution Network Service Provider may require credit support in limited circumstances	1027
Division 3	Provision of credit support by retailers	1028
6B.B3.1	Retailer to provide credit support	1028
6B.B3.2	Acceptable form of credit support	1028
Division 4	Other Rules relating to credit support	1029
6B.B4.1	Application of credit support	1029
6B.B4.2	Return of credit support	1029
6B.B4.3	Other retailer obligations	1029
Schedule 6B.1	Prescribed form of unconditional undertaking for credit support	1030
7.	Metering	1033
Part A	Introduction	1033
7.1	Introduction to the Metering Chapter	1033
7.1.1	Contents	1033
Part B	Roles and Responsibilities	1033
7.2	Role and Responsibility of financially responsible Market Participant	1033
7.2.1	Obligations of financially responsible Market Participants to establish metering installations	1033
7.2.2	[Not used]	1034
7.2.3	Agreements with Local Network Service Provider	1034
7.2.4	[Not used]	1035
7.2.5	Agreements with Metering Provider	1035
7.3	Role and Responsibility of Metering Coordinator	1035
7.3.1	Responsibility of the Metering Coordinator	1035
7.3.2	Role of the Metering Coordinator	1035
7.4	Qualification and Registration of Metering Providers, Metering Data Providers and Embedded Network Managers	1039
7.4.1	Qualifications and registration of Metering Providers	1039
7.4.2	Qualifications and registration of Metering Data Providers	1040
7.4.2A	Qualifications and registration of Embedded Network Managers	1041
7.4.2B	List of Embedded Network Managers	1041
7.4.3	Nature of appointment of Metering Provider or Metering Data Provider	1041
7.4.4	Deregistration of Metering Providers, Metering Data Providers and Embedded Network Managers	1042
7.5	Role and Responsibility of AEMO	1043
7.5.1	Responsibility of AEMO for the collection, processing and delivery of metering data	1043
7.5.2	AEMO's costs in connection with metering installation	1044
7.5A	Role and Responsibility of Embedded Network Managers	1044
7.5A.1	Responsibility of Embedded Network Managers for management services 	1044
7.5A.2	EN information	1045
Part C	Appointment of Metering Coordinator	1045
7.6	Appointment of Metering Coordinator	1045
7.6.1	Commercial nature of the Metering Coordinator appointment and service provision	1045
7.6.2	Persons who may appoint Metering Coordinators	1046
7.6.3	Appointment with respect to transmission network connection	1047
7.6.4	Type 7 metering installations	1047
7.7	Metering Coordinator default arrangements	1048
7.7.1	Obligations of financially responsible Market Participants on Metering Coordinator default event and end of contract term	1048
7.7.2	Notices to be provided by Metering Coordinator	1049
7.7.3	AEMO may issue breach notice	1050
Part D	Metering installation	1051
7.8	Metering installation arrangements	1051
7.8.1	Metering installation requirements	1051
7.8.2	Metering installation components	1051
7.8.3	Small customer metering installations	1056
7.8.4	Type 4A metering installation	1056
7.8.5	Emergency management	1058
7.8.6	Network devices	1058
7.8.7	Metering point	1061
7.8.8	Metering installation types and accuracy	1062
7.8.9	Meter churn	1062
7.8.10	Metering installation malfunctions	1064
7.8.10A	Timeframes for meters to be installed – new connection 	1065
7.8.10B	Timeframes for meters to be installed – where a connection service is not required	1066
7.8.10C	Timeframes for meters to be installed – where a connection alteration is required	1067
7.8.11	Changes to metering equipment, parameters and settings within a metering installation	1068
7.8.12	Special site or technology related conditions	1069
7.8.13	Joint metering installations	1070
7.9	Inspection, Testing and Audit of Metering installations	1070
7.9.1	Responsibility for testing	1070
7.9.2	Actions in event of non-compliance	1073
7.9.3	Audits of information held in metering installations	1073
7.9.4	Errors found in metering tests, inspections or audits	1074
7.9.5	Retention of test records and documents	1075
7.9.6	Metering installation registration process	1076
Part E	Metering Data	1076
7.10	Metering Data Services	1076
7.10.1	Metering Data Services	1076
7.10.2	Data management and storage	1077
7.10.3	Provision of metering data to certain persons	1078
7.10.4	Use of check metering data	1079
7.10.5	Periodic energy metering	1079
7.10.6	Time settings	1080
7.10.7	Metering data performance standards	1081
7.11	Metering data and database	1082
7.11.1	Metering database	1082
7.11.2	Data validation, substitution and estimation	1083
7.11.3	Changes to energy data or to metering data	1084
7.12	Register of Metering Information	1085
7.12.1	Metering register	1085
7.12.2	Metering register discrepancy	1085
7.13	Disclosure of NMI information	1085
7.13.1	Application of this Rule	1085
7.13.2	NMI and NMI checksum	1085
7.13.3	NMI Standing Data	1086
7.14	Metering data provision to retail customers	1086
Part F	Security of metering installation and energy data	1087
7.15	Security of metering installation and energy data	1087
7.15.1	Confidentiality	1087
7.15.2	Security of metering installations	1087
7.15.3	Security controls for energy data	1088
7.15.4	Additional security controls for small customer metering installations	1090
7.15.5	Access to data	1091
PART G	Procedures	1093
7.16	Procedures	1093
7.16.1	Obligation to establish, maintain and publish procedures	1093
7.16.2	Market Settlement and Transfer Solution Procedures	1093
7.16.3	Requirements of the metrology procedure	1094
7.16.4	Jurisdictional metrology material in metrology procedure	1095
7.16.5	Additional metrology procedure matters	1096
7.16.6	Requirements of the service level procedures	1098
7.16.6A	Requirements of the ENM service level procedures	1099
7.16.6B	Guide to embedded networks	1100
7.16.7	Amendment of procedures in the Metering Chapter	1101
7.16.8	National Measurement Act	1102
Part H	B2B Requirements	1102
7.17	B2B Arrangements	1102
7.17.1	B2B e-Hub	1102
7.17.2	B2B e-Hub Participants	1103
7.17.3	Content of the B2B Procedures	1103
7.17.4	Changing B2B Procedures	1104
7.17.5	B2B Decision	1107
7.17.6	Establishment of Information Exchange Committee	1108
7.17.7	Functions and powers of Information Exchange Committee	1109
7.17.8	Obligations of Members	1110
7.17.9	Meetings of Information Exchange Committee	1111
7.17.10	Nomination, election and appointment of Members	1112
7.17.11	Qualifications of Members	1113
7.17.12	Information Exchange Committee Election Procedures and Information Exchange Committee Operating Manual	1114
7.17.13	Cost Recovery	1115
Schedule 7.1	Metering register	1115
S7.1.1	General	1115
S7.1.2	Metering register information	1115
Schedule 7.2	Metering Provider	1117
S7.2.1	General	1117
S7.2.2	Categories of registration	1117
S7.2.3	Capabilities of Metering Providers for metering installations types 1, 2, 3, 4 and 4A	1119
S7.2.4	Capabilities of Metering Providers for metering installations types 5 and 6	1121
S7.2.5	Capabilities of Metering Providers for small customer metering installations	1122
S7.2.6	Capabilities of the Accredited Service Provider category	1122
Schedule 7.3	Metering Data Provider	1122
S7.3.1	General	1122
S7.3.2	Categories of registration	1123
S7.3.3	Capabilities of Metering Data Providers	1123
S7.3.4	Capabilities of Metering Data Providers for small customer metering installations	1125
Schedule 7.4	Types and Accuracy of Metering installations	1125
S7.4.1	General requirements	1125
S7.4.2	Metering installations commissioned prior to 13 December 1998	1126
S7.4.3	Accuracy requirements for metering installations	1126
S7.4.4	Check metering	1132
S7.4.5	Resolution and accuracy of displayed or captured data	1133
S7.4.6	General design standards	1133
S7.4.6.1	Design requirements	1133
S7.4.6.2	Design guidelines	1134
Schedule 7.5	Requirements of minimum services specification	1135
S7.5.1	Minimum services specification	1135
Schedule 7.6	Inspection and Testing Requirements	1138
S7.6.1	General	1138
S7.6.2	Technical Guidelines	1140
Schedule 7.7	Embedded Network Managers	1141
S7.7.1	General	1141
S7.7.2	Capabilities of Embedded Network Managers	1141
8.	Administrative Functions	1145
Part A	Introductory	1145
8.1	Administrative functions	1145
8.1.1	[Deleted]	1145
8.1.2	[Deleted]	1145
8.1.3	Structure of this Chapter	1145
Part B	Disputes	1146
8.2	Dispute Resolution	1146
8.2.1	Application and guiding principles	1146
8.2.2	The Dispute Resolution Adviser	1149
8.2.3	Dispute management systems of Registered Participants and AEMO	1150
8.2.4	Stage 1 - dispute resolution through Registered Participants’ DMS	1151
8.2.5	Stage 2 - dispute resolution process	1153
8.2.6A	Establishment of Dispute Resolution Panel	1154
8.2.6B	Parties to DRP Proceedings	1155
8.2.6C	Proceedings of the DRP	1156
8.2.6D	Decisions of the DRP	1157
8.2.6	[Deleted]	1157
8.2.7	Legal representation	1157
8.2.8	Cost of dispute resolution	1158
8.2.9	Effect of resolution	1158
8.2.10	Recording and publication	1159
8.2.11	Appeals on questions of law	1159
8.2.12	[Deleted]	1159
8.2A	B2B Determination Disputes	1159
8.2A.1	Application of rule 8.2	1159
8.2A.2	How rule 8.2 applies	1159
8.3	Power to make Electricity Procedures	1162
8.4	[Deleted]	1163
8.5	[Deleted]	1163
Part C	Registered Participants' confidentiality obligations	1163
8.6	Confidentiality	1163
8.6.1	Confidentiality	1163
8.6.1A	Application	1164
8.6.2	Exceptions	1164
8.6.3	Conditions	1166
8.6.4	[Deleted]	1166
8.6.5	Indemnity to AER, AEMC and AEMO	1166
8.6.6	AEMO information	1166
8.6.7	Information on Rules Bodies	1166
Part D	Monitoring and reporting	1167
8.7	Monitoring and Reporting	1167
8.7.1	Monitoring	1167
8.7.2	Reporting requirements and monitoring standards for Registered Participants and AEMO	1167
8.7.3	Consultation required for making general regulatory information order (Section 28H of the NEL)	1169
8.7.4	Preparation of network service provider performance report (Section 28V of the NEL)	1170
8.7.5	[Deleted]	1171
8.7.6	Recovery of reporting costs	1171
Part E	Reliability panel	1171
8.8	Reliability Panel	1171
8.8.1	Purpose of Reliability Panel	1171
8.8.2	Constitution of the Reliability Panel	1173
8.8.3	Reliability Panel review process	1176
8.8.4	Determination of protected events	1178
Part F	Rules consultation procedures	1180
8.9	Rules Consultation Procedures	1180
Part G	Consumer advocacy funding	1182
8.10	Consumer advocacy funding obligation	1182
Part H	Augmentations	1183
8.11	Augmentations	1183
8.11.1	Application	1183
8.11.2	Object	1183
8.11.3	Definitions	1184
8.11.4	Planning criteria	1184
8.11.5	Construction of augmentation that is not a contestable augmentation	1185
8.11.6	Contestable augmentations	1185
8.11.7	Construction and operation of contestable augmentation	1186
8.11.8	Funded augmentations that are not subject to the tender process	1188
8.11.9	Contractual requirements and principles	1189
8.11.10	Annual planning review	1189
Schedule 8.11	Principles to be reflected in agreements relating to contestable augmentations	1189
S8.11.1	Risk allocation	1189
S8.11.2	Minimum requirements for agreements relating to contestable augmentation	1191
S8.11.3	Matters to be dealt with in relevant agreements	1191
Part I	Values of customer reliability	1192
8.12	Development of methodology and publication of values of customer reliability	1192
8A.	Participant Derogations	1197
Part 1	Derogations Granted to TransGrid	1197
8A.1	[Deleted]	1197
Part 2	Derogations Granted to EnergyAustralia	1197
8A.2	[Deleted]	1197
8A.2A	[Deleted]	1197
Part 3	[Deleted]	1197
Part 4	[Deleted]	1197
Part 5	[Deleted]	1197
Part 6	Derogations Granted to Victorian Market Participants	1197
Part 7	[Deleted]	1198
Part 8	[Deleted]	1198
Part 9	[Deleted]	1198
Part 10	[Deleted]	1198
Part 11	[Deleted]	1198
Part 12	[Deleted]	1198
Part 13	Derogation granted to Aurora Energy (Tamar Valley) Pty Ltd	1198
8A.13	[Deleted]	1198
Part 14	Derogations granted to Ausgrid, Endeavour Energy and Essential Energy	1198
8A.14	Derogations from Chapter 6 for the current regulatory control period and subsequent regulatory control period	1198
8A.14.1	Definitions	1198
8A.14.2	Expiry date	1203
8A.14.3	Application of Rule 8A.14	1203
8A.14.4	Recovery of revenue across the current regulatory control period and subsequent regulatory control period	1203
8A.14.5	Recovery of revenue in subsequent regulatory control period only and no reopening of subsequent distribution determination required	1205
8A.14.6	Recovery of revenue in subsequent regulatory control period only and reopening of distribution determination is required	1206
8A.14.7	Requirements for adjustment determination	1208
8A.14.8	Application of Chapter 6 under participant derogation	1208
Part 15	Derogations granted to ActewAGL	1210
8A.15	Derogations from Chapter 6 for the current regulatory control period and subsequent regulatory control period	1210
8A.15.1	Definitions	1210
8A.15.2	Expiry date	1214
8A.15.3	Application of Rule 8A.15	1214
8A.15.4	Recovery of revenue across the current regulatory control period and subsequent regulatory control period	1214
8A.15.5	Recovery of revenue in subsequent regulatory control period only and no reopening of subsequent distribution determination required	1216
8A.15.6	Recovery of revenue in subsequent regulatory control period only and reopening of distribution determination is required	1218
8A.15.7	Requirements for adjustment determination	1220
8A.15.8	Application of Chapter 6 under participant derogation	1220
9.	Jurisdictional Derogations and Transitional Arrangements	1225
9.1	Purpose and Application	1225
9.1.1	Purpose	1225
9.1.2	Jurisdictional Derogations	1225
Part A	Jurisdictional Derogations for Victoria	1225
9.2	[Deleted]	1225
9.3	Definitions	1225
9.3.1	General Definitions	1225
9.3.2	[Deleted]	1227
9.3A	Fault levels	1227
9.4	Transitional Arrangements for Chapter 2 - Registered Participants, Registration and Cross Border Networks	1228
9.4.1	[Deleted]	1228
9.4.2	Smelter Trader	1228
9.4.3	Smelter Trader: compliance	1229
9.4.4	Report from AER	1231
9.4.5	Cross Border Networks	1232
9.5	[Deleted]	1232
9.6	Transitional Arrangements for Chapter 4 - System Security	1232
9.6.1	Operating Procedures (clause 4.10.1)	1232
9.6.2	Nomenclature Standards (clause 4.12)	1232
9.7	Transitional Arrangements for Chapter 5 - Network Connection	1233
9.7.1	[Deleted]	1233
9.7.2	[Deleted]	1233
9.7.3	[Deleted]	1233
9.7.4	Regulation of Distribution Network Connection	1233
9.7.5	[Deleted]	1234
9.7.6	[Deleted]	1234
9.7.7	[Deleted]	1234
9.8	Transitional Arrangements for Chapter 6 - Network Pricing	1234
9.8.1	[Deleted]	1234
9.8.2	[Deleted]	1234
9.8.3	[Deleted]	1234
9.8.4	Transmission Network Pricing	1234
9.8.4A	[Deleted]	1236
9.8.4B	[Deleted]	1236
9.8.4C	[Deleted]	1236
9.8.4D	[Deleted]	1236
9.8.4E	[Deleted]	1236
9.8.4F	[Deleted]	1236
9.8.4G	[Deleted]	1236
9.8.5	[Deleted]	1236
9.8.6	[Deleted]	1236
9.8.7	Distribution network pricing – transitional application of former Chapter 6	1236
9.8.8	Exclusion of AER's power to aggregate distribution systems and parts of distribution systems	1237
9.9	Transitional Arrangements for Chapter 7 - Metering	1238
9.9.1	Metering Installations To Which This Schedule Applies	1238
9.9.2	[Deleted]	1238
9.9.3	[Deleted]	1238
9.9.4	[Deleted]	1238
9.9.5	[Deleted]	1238
9.9.6	[Deleted]	1238
9.9.7	[Deleted]	1238
9.9.8	[Deleted]	1238
9.9.9	Periodic Energy Metering (clause 7.9.3)	1238
9.9.10	Use of Alternate Technologies (clause 7.13)	1238
9.9A	[Deleted]	1239
9.9B	[Deleted]	1239
9.9C	[Deleted]	1239
Schedule 9A1.1	[Deleted]	1239
Schedule 9A1.2	[Deleted]	1239
Schedule 9A1.3	[Deleted]	1239
Schedule 9A2	[Deleted]	1239
Schedule 9A3	Jurisdictional Derogations Granted to Generators	1239
1.	Interpretation of tables	1239
2.	Continuing effect	1239
3.	Subsequent agreement	1240
4.	[Deleted]	1240
5.	Reactive Power Capability (clause S5.2.5.1 of schedule 5.2)	1240
6.	[Deleted]	1241
7.	[Deleted]	1241
8.	[Deleted]	1241
9.	[Deleted]	1241
10.	[Deleted]	1241
11.	[Deleted	1241
12.	[Deleted]	1241
13.	Governor Systems (load control) (clause S5.2.5.11 of schedule 5.2)	1241
14.	[Deleted]	1242
15.	[Deleted]	1242
16.	Excitation Control System (clause S5.2.5.13 of schedule 5.2)	1242
Part B	Jurisdictional Derogations for New South Wales	1242
9.10	[Deleted]	1242
9.11	Definitions	1242
9.11.1	Definitions used in this Part B	1242
9.12	Transitional Arrangements for Chapter 2 - Generators, Registered Participants, Registration and Cross Border Networks	1243
9.12.1	[Deleted]	1243
9.12.2	Customers	1243
9.12.3	Power Traders	1244
9.12.4	Cross Border Networks	1247
9.13	[Deleted]	1247
9.14	Transitional Arrangements for Chapter 4 - System Security	1247
9.14.1	Power System Operating Procedures	1247
9.15	NSW contestable services for Chapter 5A	1248
9.15.1	Definitions	1248
9.15.2	Chapter 5A not to apply to certain contestable services	1248
9.16	Transitional Arrangements for Chapter 6 - Network Pricing	1248
9.16.1	NSW contestable services	1248
9.16.2	[Deleted]	1248
9.16.3	Jurisdictional Regulator	1248
9.16.4	Deemed Regulated Interconnector	1249
9.16.5	[Deleted]	1249
9.17	Transitional Arrangements for Chapter 7 - Metering	1249
9.17.1	Extent of Derogations	1249
9.17.2	Initial Registration (clause 7.1.2)	1249
9.17.3	Amendments to Schedule 9G1	1249
9.17.4	Compliance with AS/NZ ISO 9002 (clause S7.4.3(f) of schedule 7.4)	1250
9.17A	[Deleted]	1250
9.18	[Deleted]	1250
Part C	Jurisdictional Derogations for the Australian Capital Territory	1250
9.19	[Deleted]	1250
9.20	Definitions and Transitional Arrangements for Cross-Border Networks	1250
9.20.1	Definitions	1250
9.20.2	Cross Border Networks	1250
9.21	[Deleted]	1251
9.22	[Deleted]	1251
9.23	Transitional Arrangements for Chapter 6 - Network Pricing	1251
9.23.1	[Deleted]	1251
9.23.2	[Deleted]	1251
9.23.3	[Deleted	1251
9.23.4	[Deleted]	1251
9.24	Transitional Arrangements	1251
9.24.1	Chapter 7 - Metering	1251
9.24.2	[Deleted]	1252
9.24A	[Deleted]	1252
Part D	Jurisdictional Derogations for South Australia	1252
9.25	Definitions	1252
9.25.1	[Deleted]	1252
9.25.2	Definitions	1252
9.26	Transitional Arrangements for Chapter 2 - Registered Participants, Registration And Cross Border Networks	1254
9.26.1	Registration as a Generator	1254
9.26.2	Registration as a Customer	1255
9.26.3	Cross Border Networks	1255
9.26.4	[Deleted]	1256
9.26.5	Registration as a Network Service Provider	1256
9.27	[Deleted]	1257
9.28	Transitional Arrangements for Chapter 5 - Network Connection	1257
9.28.1	Application of clause 5.2	1257
9.28.2	[Deleted]	1257
9.29	Transitional Arrangements for Chapter 6 - Economic Regulation of Distribution Services	1257
9.29.1	[Deleted]	1257
9.29.2	[Deleted]	1257
9.29.3	[Deleted]	1257
9.29.4	[Deleted]	1257
9.29.5	Distribution Network Pricing – South Australia	1257
9.29.6	Capital contributions, prepayments and financial guarantees	1259
9.29.7	Ring fencing	1259
9.29A	Monitoring and reporting	1259
9.30	Transitional Provisions	1260
9.30.1	Chapter 7 - Metering	1260
Part E	Jurisdictional Derogations for Queensland	1260
9.31	[Deleted]	1260
9.32	Definitions and Interpretation	1260
9.32.1	Definitions	1260
9.32.2	Interpretation	1263
9.33	Transitional Arrangements for Chapter 1	1263
9.33.1	[Deleted]	1263
9.34	Transitional Arrangements for Chapter 2 - Registered Participants and Registration	1263
9.34.1	Application of the Rules in Queensland (clauses 2.2 and 2.5)	1263
9.34.2	Stanwell Cross Border Leases (clause 2.2)	1263
9.34.3	[Deleted]	1264
9.34.4	Registration as a Customer (clause 2.3.1)	1264
9.34.5	There is no clause 9.34.5	1264
9.34.6	Exempted generation agreements (clause 2.2)	1264
9.35	[Deleted]	1269
9.36	[Deleted]	1269
9.37	Transitional Arrangements for Chapter 5 - Network Connection	1269
9.37.1	[Deleted]	1269
9.37.2	Existing connection and access agreements (clause 5.2)	1269
9.37.3	[Deleted]	1270
9.37.4	[Deleted]	1270
9.37.5	Forecasts for connection points to transmission network (clause 5.11.1)	1270
9.37.6	There is no clause 9.37.6	1270
9.37.7	Cross Border Networks	1270
9.37.8	[Deleted]	1270
9.37.9	Credible contingency events (clause S5.1.2.1 of schedule 5.1)	1270
9.37.10	Reactive power capability (clause S5.2.5.1 of schedule 5.2)	1271
9.37.11	[Deleted]	1271
9.37.12	Voltage fluctuations (clause S5.1.5 of schedule 5.1)	1271
9.37.13	[Deleted]	1274
9.37.14	[Deleted]	1274
9.37.15	[Deleted]	1274
9.37.16	[Deleted]	1274
9.37.17	[Deleted]	1274
9.37.18	[Deleted]	1274
9.37.19	Generating unit response to disturbances (clause S5.2.5.3 of schedule 5.2)	1274
9.37.20	[Deleted]	1274
9.37.21	Excitation control system (clause S.5.2.5.13 of schedule 5.2)	1274
9.37.22	[Deleted]	1275
9.37.23	Annual forecast information for planning purposes (schedule 5.7)	1275
9.38	Transitional Arrangements for Chapter 6 - Network Pricing	1275
9.38.1	[Deleted]	1275
9.38.2	[Deleted]	1275
9.38.3	[Deleted]	1275
9.38.4	Interconnectors between regions	1275
9.38.5	Transmission pricing for exempted generation agreements	1276
9.39	Transitional Arrangements for Chapter 7 - Metering	1276
9.39.1	Metering installations to which this clause applies	1276
9.39.2	[Deleted]	1277
9.39.3	[Deleted]	1277
9.39.4	[Deleted]	1277
9.39.5	[Deleted]	1277
9.40	Transitional Arrangements for Chapter 8 - Administration Functions	1277
9.40.1	[Deleted]	1277
9.40.2	[Deleted]	1277
9.40.3	[Deleted]	1277
9.41	[Deleted]	1277
Schedule 9E1	Exempted Generation Agreements	1277
Part F	Jurisdictional Derogations for Tasmania	1278
9.42	Definitions and interpretation	1278
9.42.1	Definitions	1278
9.42.2	Interpretation	1279
9.42.3	National grid, power system and related expressions	1280
9.43	[Deleted]	1280
9.44	Transitional arrangements for Chapter 2 – Registered Participants and Registration - Customers (clause 2.3.1(e))	1280
9.45	Tasmanian Region (clause 3.5)	1280
9.47	Transitional arrangements for Chapter 5- Network Connection	1280
9.47.1	Existing Connection Agreements	1280
9.48	Transitional arrangements - Transmission and Distribution Pricing	1281
9.48.4A	Ring fencing	1281
9.48.4B	Uniformity of tariffs for small customers	1281
9.48.5	Transmission network	1281
9.48.6	Deemed regulated interconnector	1281
Part G	Schedules to Chapter 9	1282
Schedule 9G1	Metering Transitional Arrangements	1282
1.	Introduction	1282
2.	[Deleted]	1282
3.	General Principle	1282
4.	[Deleted]	1282
5.	Accuracy Requirements	1282
6.	[Deleted]	1283
7.	[Deleted]	1283
8.	[Deleted]	1283
9.	[Deleted]	1283
10.	[Deleted]	1283
10.	Glossary	1287
11.	Savings and Transitional Rules	1421
Part A	Definitions	1421
Part B	System Restart Ancillary Services (2006 amendments)	1421
11.2	Rules consequent on making of the National Electricity Amendment (System Restart Ancillary Services and pricing under market suspension) Rule 2006	1421
11.2.1	Transitional provision for acquisition of non-market ancillary services	1421
11.3	[Deleted]	1422
Part C	Dispute Resolution for Regulatory Test (2006 amendments)	1422
11.4	Rules consequent on making of the National Electricity Amendment (Dispute Resolution for Regulatory Test) Rule 2006	1422
11.4.1	Continuation of things done under old clause 5.6.6	1422
Part D	Metrology (2006 amendments)	1423
11.5	Rules consequential on the making of the National Electricity Amendment (Metrology) Rule 2006	1423
11.5.1	Definitions	1423
11.5.2	Metrology procedures continues to apply until 31 December 2006	1423
11.5.3	Responsible person	1423
11.5.4	NEMMCO’s responsibility to develop a metrology procedure	1423
11.5.5	Jurisdictional metrology material in the metrology procedure	1424
Part E	Economic Regulation of Transmission Services (2006 amendments)	1425
11.6	Rules consequent on making of the National Electricity Amendment (Economic Regulation of Transmission Services) Rule 2006	1425
11.6.1	Definitions	1425
11.6.2	New Chapter 6A does not affect existing revenue determinations	1426
11.6.3	Old Part C and Schedules 6.2, 6.3, 6.4, 6.7 and 6.8 of old Chapter 6	1427
11.6.4	Old Part F of Chapter 6	1427
11.6.5	Application of new Chapter 6A to Transmission Network Service Providers	1427
11.6.6	Application of Chapter 6 to old distribution matters	1427
11.6.7	References to the old Chapter 6	1427
11.6.8	References to provisions of the old Chapter 6	1428
11.6.9	Roll forward of regulatory asset base for first regulatory control period	1428
11.6.10	Other adjustment carry-over mechanisms from current to first regulatory control period	1428
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	1428
11.6.12	Powerlink transitional provisions	1431
11.6.13	ElectraNet easements transitional provisions	1435
11.6.14	TransGrid contingent projects	1435
11.6.15	Transmission determination includes existing revenue determinations	1436
11.6.16	References to regulatory control period	1436
11.6.17	Consultation procedure for first proposed guidelines	1436
11.6.18	Reliance on proposed guidelines for SP AusNet, VENCorp and ElectraNet	1437
11.6.19	EnergyAustralia transitional provisions	1437
11.6.20	Basslink transitional provisions	1440
11.6.21	SPI Powernet savings and transitional provision	1441
11.6.22	Interim arrangements pricing-related information	1443
Part F	Reform of Regulatory Test Principles (2006 amendments)	1443
11.7	Rules consequent on making of the National Electricity Amendment (Reform of the Regulatory Test Principles) Rule 2006	1443
11.7.1	Definitions	1443
11.7.2	Amending Rule does not affect old clause 5.6.5A	1444
Part G	Pricing of Prescribed Transmission Services (2006 amendments)	1444
11.8	Rules consequent on making the National Electricity Amendment (Pricing of Prescribed Transmission Services) Rule 2006	1444
11.8.1	Definitions	1444
11.8.2	Regulated interconnectors	1445
11.8.3	Application of new Part J of Chapter 6A to Transmission Network Service Providers	1445
11.8.4	Reliance on agreed interim guideline for ElectraNet, SPAusNet, and VenCorp	1445
11.8.5	Prudent discounts under existing agreements	1446
11.8.6	Application of prudent discounts regime under rule 6A.26	1446
11.8.7	Prudent discounts pending approval of pricing methodology	1446
Part H	Reallocations (2007 amendments)	1447
11.9	Rules consequent on the making of the National Electricity Amendment (Reallocations) Rule 2007	1447
11.9.1	Definitions	1447
11.9.2	Existing and transitional reallocations	1448
Part I	Technical Standards for Wind Generation (2007 amendments)	1448
11.10	Rules consequent on making of the National Electricity Amendment (Technical Standards for Wind Generation and other Generator Connections) Rule 2007	1448
11.10.1	Definitions	1448
11.10.2	Provision of information under S5.2.4 in registration application	1448
11.10.3	Access standards made under the old Chapter 5	1449
11.10.4	Modifications to plant by Generators	1449
11.10.5	Technical Details to Support Application for Connection and Connection Agreement	1449
11.10.6	Transitional arrangements for establishment of performance standards	1450
11.10.7	Jurisdictional Derogations for Queensland	1450
11.10A	Rules consequent on the making of the National Electricity Amendment (Central Dispatch and Integration of Wind and Other Intermittent Generation) Rule 2008	1450
11.10A.1	Definitions	1450
11.10A.2	Registration and reclassification of classified generating units	1451
11.10A.3	Registered generating unit	1452
11.10A.4	Classification of potential semi-scheduled generating unit	1452
11.10A.5	Participant fees	1452
11.10A.6	Timetable	1453
11.10A.7	Procedure for contribution factors for ancillary service transactions	1453
11.10A.8	Guidelines for energy conversion model information	1453
Part J	Cost Recovery of Localised Regulation Services (2007 amendments)	1454
11.11	Rules consequent on making of the National Electricity Amendment (Cost Recovery of Localised Regulation Services) Rule 2007	1454
11.11.1	Definitions	1454
11.11.2	Action taken by NEMMCO for the purposes of Amending Rule	1454
11.12	[Deleted]	1454
Part L	[Deleted]	1454
Division 1	General Provisions	1454
11.14	General provisions	1454
Part M	Economic Regulation of Distribution Services (2007 amendments)	1458
Division 1	General Provisions	1458
11.14	General provisions	1458
Division 2	[Deleted]	1462
Division 3	Transitional arrangements for first distribution determination for Queensland Distribution Network Service Providers	1462
11.16	Transitional arrangements for first distribution determination for Queensland Distribution Network Service Providers	1462
Division 4	Transitional provisions of specific application to Victoria	1465
11.17	Transitional provisions of specific application to Victoria	1465
Part N	Registration of Foreign Based Persons and Corporations as Trader Class Participants (2007 amendments)	1468
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	1468
11.18.1	Definitions	1468
11.18.2	Auction rules	1468
Part O	Process for Region Change (2007 amendments)	1468
11.19	Rules consequent on making of the National Electricity Amendment (Process for Region Change) Rule 2007	1468
11.19.1	Definitions	1468
11.19.2	Regions Publication	1468
Part P	Integration of NEM Metrology Requirements	1469
11.20	Rules consequential on the making of the National Electricity Amendment (Integration of NEM Metrology Requirements) Rule 2008	1469
11.20.1	Definitions	1469
11.20.2	Metering installations for non-market generating units immediately prior to 30 June 2008	1469
11.20.3	First-tier load metering installations	1470
11.20.4	First-tier load metering installations in Victoria	1470
11.20.5	Minimalist Transitioning Approach in Queensland	1470
11.20.6	First-tier jurisdictional requirements publication	1470
11.20.7	Metrology procedure	1471
Part PA	Reliability Settings: Information Safety Net and Directions	1471
11.21	Rules consequential on the making of the National Electricity Amendment (NEM Reliability Settings: Information Safety Net and Directions) Rule 2008	1471
11.21.1	Definitions	1471
11.21.2	EAAP guidelines	1471
11.21.3	[Deleted]	1471
11.21.4	[Deleted]	1471
11.21.5	Timetable	1471
11.21.6	Power system security and reliability standards	1472
11.21.7	Report on statement of opportunities	1472
11.21.8	Methodology for dispatch prices and ancillary services prices	1472
Part Q	Regulatory Test Thresholds and Information Disclosure on Network Replacements	1472
11.22	Rules consequential on the making of the National Electricity Amendment (Regulatory Test Thresholds and Information Disclosure on Network Replacements) Rule 2008	1472
11.22.1	Definitions	1472
11.22.2	Amending Rule does not affect existing regulatory test	1473
Part R	Performance Standard Compliance of Generators	1473
11.23	Rules consequential on the making of the National Electricity Amendment (Performance Standards Compliance of Generators) Rule 2008	1473
11.23.1	Definitions	1473
11.23.2	Application of rule 11.23 for compliance programs implemented immediately after the commencement of the Amending Rule	1473
11.23.3	Application of rule 11.23 for compliance programs implemented immediately prior to the commencement of the Amending Rule	1474
11.23.4	Application of rule 11.23 for compliance programs not implemented immediately prior to the commencement of the Amending Rule	1474
Part S	[Deleted]	1474
Part U	Confidentiality Arrangements concerning Information required for Power System Studies	1474
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	1474
11.25.1	Definitions	1474
11.25.2	Transitional arrangements for the provision of information	1474
Part V	WACC Reviews: Extension of Time	1476
11.26	Rule consequential on the making of the National Electricity Amendment (WACC Reviews: Extension of Time) Rule 2009	1476
11.26.1	Definitions	1476
11.26.2	Extension of time to submit a regulatory proposal for the regulatory control period 2010-2015	1476
Part W	National Transmission Statement	1476
11.27	Rules consequent on the making of the National Electricity Amendment (National Transmission Statement) Rule 2009	1476
11.27.1	Definitions	1476
11.27.2	Purpose	1477
11.27.3	Application of rule 11.27	1477
11.27.4	National Transmission Statement	1477
11.27.5	Scope and Content of National Transmission Network Development Plan	1479
11.27.6	Energy Adequacy Assessment Projection	1479
11.27.7	Amendment to Last Resort Power	1480
11.27.8	Actions taken prior to commencement of Rule	1480
Part X	National Transmission Planning	1480
11.28	Rules consequential on the making of the National Electricity (Australian Energy Market Operator) Amendment Rules 2009	1480
11.28.1	Definitions	1480
11.28.2	Jurisdictional planning bodies and representatives	1480
11.28.3	Criteria and guidelines published by Inter-regional Planning Committee	1481
11.28.4	Augmentation technical reports	1481
11.28.5	Last Resort Planning Power	1481
11.28.6	Inter-network power system tests	1482
11.28.7	Control and protection settings for equipment	1482
11.28.8	Revenue Proposals	1482
Part Y	Regulatory Investment Test for Transmission	1482
11.29	Rules consequent on making of the National Electricity Amendment (Regulatory Investment Test for Transmission) Rule 2009	1482
11.29.1	Definitions	1482
11.29.2	Period when Amending Rule applies to transmission investment	1483
Part Z	Congestion Information Resource	1484
11.30	Rules consequent on the making of the National Electricity Amendment (Congestion Information Resource) Rule 2009	1484
11.30.1	Definitions	1484
11.30.2	Interim congestion Information resource	1484
Part ZA	Reliability and emergency reserve trader (2009 amendments)	1486
11.31	Rules consequent on the making of the National Electricity Amendment (Improved RERT Flexibility and Short-notice Reserve Contracts) Rule 2009	1486
11.31.1	Definitions	1486
11.31.2	Purpose	1486
11.31.3	Amendments to Reliability Panel's RERT Guidelines	1487
11.31.4	Amendments to AEMO's RERT procedures for exercising the RERT	1487
Part ZB	Early Application of Market Impact Parameters	1488
11.32	Rules consequent on the making of the National Electricity Amendment (Early Implementation of Market Impact Parameters) Rule 2010	1488
11.32.1	Definitions	1488
11.32.2	Purpose	1489
11.32.3	Early application of the market impact component of the service target performance incentive scheme	1489
Part ZC	Transparency of operating data	1492
11.33	Rules consequential on the making of National Electricity Amendment (Transparency of Operating Data) Rule 2010	1492
11.33.1	Definitions	1492
11.33.2	Spot market operations timetable	1492
Part ZD	Cost Recovery for Other Services Directions	1494
11.34	Rules consequent on making of the National Electricity Amendment (Cost Recovery for Other Services Directions) Rule 2010	1494
11.34.1	Definitions	1494
11.34.2	Period when Amending Rules applies to funding of compensation	1495
Part ZE	Payments under Feed-in Schemes and Climate Change Funds	1495
11.35	Rules consequential on the making of the National Electricity Amendment (Payments under Feed-in Schemes and Climate Change Funds) Rule 2010	1495
11.35.1	Definitions	1495
11.35.2	Application of recovery of jurisdictional scheme Rules	1496
11.35.3	Reporting on jurisdictional schemes	1497
11.35.4	Revocation and substitution of distribution determination for jurisdictional scheme recovery	1498
Part ZF	Transitional Arrangements for Ministerial Smart Meter Roll Out Determinations	1499
11.36	Ministerial Smart Meter Roll Out Determinations	1499
11.36.1	Definitions	1499
11.36.2	Meaning of relevant metering installation	1499
11.36.3	Period of application of rule to relevant metering installation	1500
11.36.4	Designation of responsible person	1500
11.36.5	[Deleted]	1500
11.36.6	[Deleted]	1500
Part ZG	Provision of Metering Data Services and Clarification of Existing Metrology Requirements	1500
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	1500
11.37.1	Definitions	1500
11.37.2	Commencement of special site or technology related conditions	1500
11.37.3	Initial service level procedures	1501
Part ZH	Spot Market Operations Timetable	1501
11.38	Rules consequential on the making of National Electricity Amendment (Amendments to PASA-related Rules) Rule 2010	1501
11.38.1	Definitions	1501
11.38.2	Spot market operations timetable	1502
Part ZI	DNSP Recovery of Transmission-related Charges	1502
11.39	Rules consequential on the making of the National Electricity Amendment (DNSP Recovery of Transmission-related Charges) Rule 2011	1502
11.39.1	Definitions	1502
11.39.2	Recovery by Victorian distribution network service providers during current regulatory control period	1503
11.39.3	Recovery by Victorian distribution network service providers for shared network augmentations	1504
11.39.4	Bairnsdale network support agreement	1504
11.39.5	Approval of pricing proposal	1504
11.39.6	Ergon Energy transitional charges	1504
11.39.7	Energex transitional charges	1504
Part ZJ	Network Support and Control Ancillary Services	1504
11.40	Rules consequential on the making of the National Electricity Amendment (Network Support and Control Ancillary Services) Rule 2011	1504
11.40.1	Definitions	1504
11.40.2	Purpose	1505
11.40.3	Existing NCAS contracts to continue	1505
11.40.4	Amendments to existing guidelines	1505
11.40.5	New procedures	1506
11.40.6	Decisions and actions taken prior to Amending Rule	1506
Part ZK	Application of Dual Marginal Loss Factors	1506
11.41	Rules consequential on the making of the National Electricity Amendment (Application of Dual Marginal Loss Factors) Rule 2011	1506
11.41.1	Definitions	1506
11.41.2	Amendments to loss factor methodology	1507
11.41.3	Procedure applying dual intra-regional loss factors in central dispatch and spot market transactions	1507
11.41.4	Publication of intra-regional loss factors	1507
Part ZL	Tasmania Tranche 5a Procedure Changes	1507
11.42	Rules consequential on the making of the National Electricity Amendment (Tasmania Tranche 5a Procedure Changes) Rule 2011	1507
11.42.1	Definitions	1507
11.42.2	AEMO may amend Relevant Procedures	1508
Part ZM	Application and Operation of Administered Price Periods	1508
11.43	Rules consequential on the making of National Electricity Amendment (Application and Operation of Administered Price Periods) Rule 2011	1508
11.43.1	Definitions	1508
11.43.2	Administered Price Cap Schedule	1509
Part ZO	Negative Intra-regional Settlements Residue	1509
11.45	Rules consequential on the making of National Electricity Amendment (Negative Intra-regional Settlements Residue) Rule 2012	1509
11.45.1	Definitions	1509
11.45.2	Recovery of negative settlements residue prior to consultation under the Amending Rule	1510
11.45.3	First consultation on negative intra-regional settlements residue procedure	1510
Part ZP	Interim Connection Charging Rules	1511
11.46	Rules consequential to the insertion of Chapter 5A by the National Electricity (National Energy Retail Law) Amendment Rule 2012	1511
Division 1	Preliminary	1511
Division 2	Jurisdictional differences	1513
Division 3	General provisions	1521
Part ZQ	NSW transitional retail support and credit support rules	1521
11.47	Rules consequential on the insertion of Chapter 6B by the National Electricity (National Energy Retail Law) Amendment Rule 2012	1521
Division 1	Preliminary	1521
Part ZR	Miscellaneous transitional rules—NERL	1527
11.48	Rules consequential on the making of the National Electricity (National Energy Retail Law) Amendment Rule 2012	1527
11.48.1	Extension of time period for AER to consider certain pass through applications	1527
Part ZS	Cost pass through arrangements for Network Service Providers	1528
11.49	Rules consequential on the making of National Electricity Amendment (Cost pass through arrangements for Network Service Providers) Rule 2012	1528
11.49.1	Definitions	1528
11.49.2	Terrorism event is a cost pass through event in the current regulatory control period	1528
11.49.3	Transitional arrangement for Powerlink	1528
11.49.4	Transitional arrangements for ElectraNet and Murraylink	1529
Part ZT	Distribution Network Planning and Expansion	1529
11.50	Rules consequential on the making of the National Electricity Amendment (Distribution Network Planning and Expansion) Rule 2012	1529
11.50.1	Interpretation	1529
11.50.2	Definitions	1530
11.50.3	Timing for first Distribution Annual Planning Report	1530
11.50.4	Contents of Distribution Annual Planning Report	1530
11.50.5	Transition from the regulatory test to the regulatory investment test for distribution	1532
Part ZU	New Prudential Standard and Framework in the NEM	1533
11.51	Rules consequential on the making of the National Electricity Amendment (New Prudential Standard and Framework in the NEM) Rule 2012	1533
11.51.1	Definitions	1533
11.51.2	AEMO's responsibility to develop and publish the credit limit procedures	1533
11.51.3	Transition to the framework for determining prudential settings	1533
11.51.4	Prior consultation, step, decision or action taken by AEMO	1534
Part ZV	Small Generation Aggregator Framework	1534
11.52	Rules consequential on the making of the National Electricity Amendment (Small Generation Aggregator Framework) Rule 2012	1534
11.52.1	Definitions	1534
11.52.2	Commencement of participant fees as well as transactions, funding and settlements under Chapter 3 for Market Small Generation Aggregators	1535
11.52.3	Participant fees for Market Small Generation Aggregators	1535
11.52.4	Ancillary service transactions, funding of compensation for directions and intervention settlements for directions for Market Small Generation Aggregators	1536
11.52.5	Amendments to the carbon dioxide equivalent intensity index procedures	1536
11.52.6	Amendments of the metrology procedures	1537
11.52.7	Amendments to the Market Settlement and Transfer Solution Procedures	1537
Part ZW	Economic Regulation of Network Service Providers (2012 amendments)	1538
Division 1	Miscellaneous transitional provisions	1538
11.53	Publication of Chapter 6 Guidelines	1538
11.54	Publication of Chapter 6A Guidelines	1539
Division 2	Transitional provisions for NSW/ACT Distribution Network Service Providers	1541
11.55	General provisions	1541
11.56	Special provisions applying to affected DNSPs	1544
Division 3	Transitional provisions for NSW and Tasmanian Transmission Network Service Providers and Directlink	1556
11.57	General provisions	1556
11.58	Special provisions applying to affected TNSPs	1559
Division 4	Transitional provisions for the Victorian TNSP	1568
11.59	Special provisions applying to the Victorian TNSP	1568
Division 5	Transitional provisions for Qld/SA and Victorian Distribution Network Service Providers	1570
11.60	Special provisions applying to the Qld/SA and Victorian Distribution Network Service Providers	1570
Division 6	Review of past capital expenditure	1576
11.61	Definitions and application	1576
11.62	Review of past capital expenditure under Chapter 6	1576
11.63	Review of past capital expenditure under Chapter 6A	1577
Part ZX	Inter-regional Transmission Charging	1577
11.64	Rules consequent on the making of the National Electricity Amendment (Inter-regional Transmission Charging) Rule 2013	1577
11.64.1	Definitions	1577
11.64.2	Amendments to the pricing methodology guidelines	1578
11.64.3	Amendments to the pricing methodologies of Transmission Network Service Providers	1578
11.64.4	Commencement of clause 6A.23.3(f) for further adjustments	1579
Part ZY	Network Service Provider Expenditure Objectives	1579
11.65	Rules consequent on the making of the National Electricity Amendment (Network Service Provider Expenditure Objectives) Rule 2013	1579
11.65.1	Definitions	1579
11.65.2	Application of rule 11.65	1580
Part ZZ	Access to NMI Standing Data	1580
11.66	Rules consequent on the making of the National Electricity Amendment (Access to NMI Standing Data) Rule 2013	1580
11.66.1	Definitions	1580
11.66.2	Minor amendment of the Market Settlement and Transfer Solution Procedures	1580
Part ZZA	Publication of Zone Substation Data	1581
11.67	Rules consequent on the making of the National Electricity Amendment (Publication of Zone Substation Data) Rule 2014	1581
11.67.1	Definitions	1581
11.67.2	Distribution Network Service Providers' obligations to commence on the next DAPR date	1581
Part ZZB	Connecting Embedded Generators	1581
11.68	Rules consequential on the making of the National Electricity Amendment (Connecting embedded generators) Rule 2014	1581
11.68.1	Definitions	1581
11.68.2	Continuation of enquiries lodged	1582
Part ZZC	Customer access to information about their energy consumption	1582
11.69	Rules consequential on the making of the National Electricity Amendment (Customer access to information about their energy consumption) Rule 2014	1582
11.69.1	Definitions	1582
11.69.2	AEMO to develop and publish the metering data provision procedure	1582
Part ZZD	National Electricity Amendment (Distribution Network Pricing Arrangements) Rule 2014	1582
Division 1	Miscellaneous transitional provisions	1582
11.70	General provisions	1582
11.70.1	Definitions	1582
Division 2	Transitional provisions for NSW/ACT and Qld/SA Distribution Network Service Providers	1585
11.72	General provisions	1585
11.72.1	Definitions	1585
11.73	Special provisions applying to affected DNSPs	1585
11.73.1	Distribution determination and pricing proposals	1585
11.73.2	Tariff structure statement	1585
11.73.3	Dispute resolution	1591
Division 3	Transitional provisions for Tasmanian Distribution Network Service Provider	1592
11.74	Application of former Chapter 6	1592
Division 4	Transitional provisions for Victorian Distribution Network Service Providers	1592
11.75	General provisions	1592
11.75.1	Definitions	1592
11.76	Special provisions applying to affected DNSPs	1592
11.76.1	Distribution determination and pricing proposals	1592
11.76.2	Tariff structure statement	1593
11.76.3	Dispute resolution	1599
Part ZZE	Early Application of Network Capability Component (STPIS)	1599
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	1599
11. 77.1	Definitions	1599
11.77.2	Purpose	1600
11.77.3	Earlier application of the network capability component of the service target performance incentive scheme	1600
Part ZZF	National Electricity Amendment (Governance arrangements and implementation of the reliability standard and settings) Rule 2015	1602
11.78	Rules consequent on the making of the National Electricity Amendment (Governance arrangements and implementation of the reliability standards and settings) Rule 2015	1602
11.78.1	Definitions	1602
11.78.2	Existing power system security and reliability standards	1603
11.78.3	Reliability standard and settings guidelines	1603
11.78.4	Reliability standard implementation guidelines	1603
Part ZZG	Improving demand side participation information provided to AEMO by registered participants	1606
11.79	Rules consequential on making of the National Electricity Amendment (Improving demand side participation information provided to AEMO by registered participants) Rule 2015	1606
11.79.1	AEMO to develop and publish the demand side participation information guidelines	1606
Part ZZH	Transitional Arrangements for Aligning TasNetworks' regulatory control periods	1606
11.80	National Electricity Amendment (Aligning TasNetworks' regulatory control periods) Rule 2015	1606
11.80.1	Definitions	1606
11.80.2	Application of rule 11.80	1607
11.80.3	Next regulatory control period	1607
11.80.4	Subsequent regulatory control period	1607
Part ZZI	System Restart Ancillary Services	1607
11.81	Rules consequential on the making of the National Electricity Amendment (System Restart Ancillary Services) Rule 2015	1607
11.81.1	Definitions	1607
11.81.2	System restart standard	1608
11.81.3	SRAS Guideline	1608
11.81.4	Regional Benefit Ancillary Services Procedures	1608
11.81.5	Consultation prior to the Commencement Date	1608
11.81.6	Existing SRAS Contract	1608
Part ZZJ	Demand management incentive scheme	1609
11.82	Rules consequential on making of the National Electricity Amendment (Demand management incentive scheme) Rule 2015	1609
11.82.1	Definitions	1609
11.82.2	AER to develop and publish the demand management incentive scheme and demand management innovation allowance mechanism	1609
Part ZZK	AEMO access to demand forecasting information	1609
11.83	Rules consequential on the making of the National Electricity Amendment (AEMO access to demand forecasting information) Rule 2015	1609
11.83.1	AEMO to include supporting information in NTNDP database	1609
Part ZZL	Compensation arrangements following application of an Administered Price Cap or Administered Floor Price	1610
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	1610
11.84.1	Definitions	1610
11.84.2	Compensation Guidelines	1610
Part ZZM	Common definitions of distribution reliability measures	1610
11.85	Rules consequential on the making of the National Electricity Amendment (Common definitions of distribution reliability measures) Rule 2015	1610
11.85.1	Definitions	1610
11.85.2	Distribution reliability measures guidelines	1611
11.85.3	Amended STPIS	1611
Part ZZN	Expanding competition in metering and metering related services	1611
11.86	Rules consequent on making of the National Electricity Amendment (Expanding competition in metering and related services) Rule 2015	1611
11.86.1	Definitions	1611
11.86.2	References to old Chapter 7	1611
11.86.3	References to provisions of the old Chapter 7	1612
11.86.4	References to responsible person	1612
11.86.5	Continued operation of old Rules until the effective date	1612
11.86.6	New and amended procedures	1612
11.86.7	Metering Coordinator for type 5 or 6 metering installation from effective date	1613
11.86.8	Distribution Ring Fencing Guidelines	1616
11.86.9	[Deleted]	1616
Part ZZO	Embedded Networks	1616
11.87	Rules consequential on the making of the National Electricity Amendment (Embedded Networks) Rule 2015	1616
11.87.1	Definitions	1616
11.87.2	Amended Procedures and NMI Standing Data Schedule	1617
11.87.3	ENM service level procedures and guide to embedded networks and list of Embedded Network Managers	1617
11.87.4	Exemptions under section 13 of the National Electricity Law	1618
Part ZZP	Meter Replacement Processes	1618
11.88	Rules consequential on the making of the National Electricity Amendment (Meter Replacement Processes) Rule 2016	1618
11.88.1	Definitions	1618
11.88.2	Amended Procedures	1618
Part ZZQ	Energy Adequacy Assessment Projection	1619
11.89	Rules consequential to the National Electricity Amendment (Energy Adequacy Assessment Projection timeframes) Rule 2016	1619
11.89.1	Amended guideline and timetable	1619
Part ZZR	Reliability and emergency reserve trader (2016 amendments)	1619
11.90	Rules consequent on the making of the National Electricity Amendment (Extension of the Reliability and Emergency Reserve Trader) Rule 2016	1619
11.90.1	Definitions	1619
11.90.2	Amendments to Reliability Panel's RERT Guidelines	1619
11.90.3	Amendments to AEMO's RERT procedures	1619
11.90.4	Reserve contracts entered into before Schedule 2 commencement date	1620
Part ZZS	Updating the electricity B2B framework	1620
11.91	Rules consequential on the making of the National Electricity Amendment (Updating the electricity B2B framework) rule 2016	1620
11.91.1	Definitions	1620
11.91.2	B2B Procedures	1621
11.91.3	Information Exchange Committee Election Procedures and Information Exchange Committee Operating Manual	1621
11.91.4	The New IEC	1622
11.91.5	Amended Procedures	1623
11.91.6	B2B e-Hub Participant accreditation process	1624
11.91.7	New IEC Budget and 2016 Annual Report	1624
11.91.8	Cost recovery	1625
Part ZZT	Application of Offsets in the Prudential Margin Calculation	1625
11.92	Rules consequential on the making of the National Electricity Amendment (Application of Offsets in the Prudential Margin Calculation) Rule 2016	1625
11.92.1	Definitions	1625
11.92.2	Amended procedures	1625
Part ZZU	Rate of Return Guidelines Review	1626
11.93	Rules consequential on the making of the National Electricity Amendment (Rate of Return Guidelines Review) Rule 2016	1626
11.93.1	Definitions	1626
11.93.2	Application of current rate of return guidelines to making of a distribution determination for the subsequent regulatory control period	1627
Part ZZV	Demand Response Mechanism and Ancillary Services Unbundling	1628
11.94	Rules consequential on the making of the National Electricity Amendment (Demand Response Management and Ancillary Services Unbundling) rule 2016	1628
11.94.1	Definitions	1628
11.94.2	Participant fees for Market Ancillary Service Providers	1628
Part ZZW	Local Generation Network Credits	1628
11.95	Rules consequential on the making of the National Electricity Amendment (Local Generation Network Credits) Rule 2016	1628
11.95.1	Definitions	1628
11.95.2	System limitation template	1628
Part ZZX	Retailer-Distributor Credit Support Requirements	1629
11.96	Rules consequent on the making of the National Electricity Amendment (Retailer Distributor Credit Support Requirements) Rule 2017 No. 1	1629
11.96.1	Definitions	1629
11.96.2	Continued operation of old Chapter 6B	1629
11.96.3	Interaction with Chapter 6	1629
11.96.4	Application of new Chapter 6B	1629
Part ZZY	Emergency Frequency Control Schemes	1630
11.97	Rules consequent on the making of the National Electricity Amendment (Emergency frequency control schemes) Rule 2017	1630
11.97.1	 Definitions	1630
11.97.2	Interim frequency operating standards for protected events	1630
11.97.3	First power system frequency risk review	1631
11.97.4	AEMO must review existing load shedding procedures	1631
11.97.5	Load shedding procedures	1631
Part ZZZ	Transmission Connection and Planning Arrangements	1632
11.98	Rules consequential on the making of the National Electricity Amendment (Transmission Connection and Planning Arrangements) Rule 2017	1632
11.98.1	Definitions	1632
11.98.2	Grandfathering of existing dedicated connection assets	1633
11.98.3	Preparatory steps for registration changes under the Amending Rule	1634
11.98.4	Participant fees for Dedicated Connection Asset Service Providers	1634
11.98.5	Existing Connection Agreements	1634
11.98.6	Connection process	1635
11.98.7	Transmission Annual Planning Report	1635
11.98.8	Preservation for adoptive jurisdictions	1635
Part ZZZA	Replacement expenditure planning arrangements	1636
11.99	Rules consequential on the making of the National Electricity Amendment (Replacement expenditure planning arrangements) Rule 2017	1636
11.99.1	Definitions	1636
11.99.2	Interpretation	1637
11.99.3	Transitional arrangements for affected DNSPs	1637
11.99.4	Amendments to RIT documentation	1638
11.99.5	Transitional arrangements relating to excluded projects	1638
11.99.6	Transitional arrangements relating to Victorian bushfire mitigation projects	1638
11.99.7	Transitional arrangements relating to review of costs thresholds	1639
Part ZZZB 	Managing the rate of change of power system frequency	1639
11.100	Rules consequential on the making of the National Electricity Amendment (Managing the rate of change of power system frequency) Rule 2017	1639
11.100.1	Definitions	1639
11.100.2	Inertia sub-networks	1640
11.100.3	Inertia requirements methodology	1640
11.100.4	Inertia requirements	1641
11.100.5	NSCAS not to be used to meet an inertia shortfall after 1 July 2019	1641
11.100.6	Inertia network services may be used to meet an NSCAS gap declared in the NSCAS transition period	1642
11.100.7	Inertia network services made available before the commencement date	1642
Part ZZZC	Managing power system fault levels	1643
11.101 	Rules consequential on the making of the National Electricity Amendment (Managing power system fault levels) Rule 2017	1643
11.101.1 	Definitions	1643
11.101.2	System strength impact assessment guidelines	1644
11.101.3	System strength requirements methodology	1644
11.101.4	System strength requirements	1645
11.101.5	NSCAS not to be used to meet a fault level shortfall after 1 July 2019	1645
11.101.6	System strength services may be used to meet an NSCAS gap declared in the NSCAS transition period	1646
11.101.7	Withdrawal of a system strength-related NSCAS gap already declared	1646
11.101.8	System strength services made available before the commencement date	1647
Part ZZZD	Generating System Model Guidelines	1647
11.102	Making of Power System Model Guidelines	1647
Part ZZZE	Five Minute Settlement	1647
11.103	Rules consequential on the making of the National Electricity Amendment (Five Minute Settlement) Rule 2017	1647
11.103.1	Definitions	1647
11.103.2	Amendments to procedures	1648
11.103.3.	Exemption for certain metering installations	1649
11.103.4	New or replacement meters	1650
11.103.5	Metering installations exempt from metering data provision requirements	1650
11.103.6	Exemption from meter data storage requirements	1650
11.103.7	Default offers and bids submitted prior to the commencement date	1650
Part ZZZF	Contestability of energy services	1650
11.104	Rules consequential on the making of the National Electricity Amendment (Contestability of energy services) Rule 2017	1650
11.104.1	Definitions	1650
11.104.2	New guidelines	1652
11.104.3	Transitional arrangements for application of Distribution Service Classification Guidelines and service classification provisions	1652
11.104.4	Transitional arrangements for application of Asset Exemption Guidelines, exemption applications and asset exemption decisions	1653
11.104.5	Transitional arrangements for adjustment in value of regulatory asset base	1654
Part ZZZG	Declaration of lack of reserve conditions	1655
11.105	Making of lack of reserve declaration guidelines	1655
11.105.1	Definitions	1655
11.105.2	Making of lack of reserve declaration guidelines	1655
Part ZZZH	Implementation of demand management incentive scheme	1655
11.106	Implementation of demand management incentive scheme	1655
11.106.1	Definitions	1655
11.106.2	Purpose	1656
11.106.3	Early application of revised demand management incentive scheme	1656
Part ZZZI	Reinstatement of long notice Reliability and Emergency Reserve Trader	1658
11.107	Rules consequential on the making of the National Electricity Amendment (Reinstatement of long notice Reliability and Emergency Reserve Trader) Rule 2018	1658
11.107.1	Definitions	1658
11.107.2	New RERT guidelines	1658
11.107.3	Amendments to RERT procedures	1662
11.107.4	Reserve contracts entered into before the commencement date	1662
Part ZZZJ	Register of distributed energy resources	1662
11.108	Rules consequential on the making of the National Electricity Amendment (Register of distributed energy resources) Rule 2018	1662
11.108.1 	Definitions	1662
11.108.2	AEMO to develop and publish DER register information guidelines	1662
11.108.3	NSPs to provide AEMO with existing DER generation information	1662
Part ZZZK	Generator technical performance standards	1663
11.109	Rules consequential on the making of the National Electricity Amendment (Generator technical performance standards) Rule 2018	1663
11.109.1	Definitions	1663
11.109.2	Application of the Amending Rule to existing connection enquiries 	1664
11.109.3	Application of the Amending Rule to existing applications to connect	1665
11.109.4	Application of the Amending Rule to existing offers to connect	1667
11.109.5	Application of the Amending Rule to Existing Connection Agreements	1668
Part ZZZL	Generator three year notice of closure	1668
11.110	Rules consequential on the making of the National Electricity Amendment (Generator three year notice of closure) Rule 2018	1668
11.110.1	Definitions	1668
11.110.2	AER to develop and publish notice of closure exemption guideline	1669
11.110.3	Application of Amending Rule to AEMO	1669
11.110.4	Application of Amending Rule to Generators	1669
Part ZZZM	Participant compensation following market suspension	1669
11.111	Rules consequential on the making of the National Electricity Amendment (Participant compensation following market suspension) Rule 2018	1669
11.111.1	Definitions	1669
11.111.2	Market suspension compensation methodology and schedule of benchmark values	1669
Part ZZZN	Global settlement and market reconciliation	1670
11.112	Rules consequential on the making of the National Electricity Amendment (Global settlement and market reconciliation) Rule 2018	1670
11.112.1	Definitions	1670
11.112.2	Amendments to AEMO procedures	1670
11.112.3	AEMO to publish report on unaccounted for energy trends	1671
11.112.4	Continuation of registration for non-market generators	1671
11.112.5	Publication of UFE data by AEMO	1671
11.112.6	Publication of UFE reporting guidelines	1671
Part ZZZO	Metering installation timeframes	1671
11.113	Rules consequential on making of the National Electricity Amendment (Metering installation timeframes) Rule 2018	1671
11.113.1	Definitions	1671
11.113.2	Timeframes for meters to be installed	1672