National Electricity Rules Version
123

Historical Information

This version of the National Electricity Rules was current from 1 July 2019 to 11 August
2019.

National Electricity Rules
Version 123

Status Information

This is the latest electronically available version of the National Electricity Rules as at 1 July
2019.

This consolidated version of the National Electricity Rules was last updated on 1 July 2019 as
a result of the commencement of the following amendments:

National Electricity Amendment (Meter installation - advanced meter communications)
Rule 2019 No. 1

Schedules 1, 3, 4 and 5 of the National Electricity Amendment (Retailer Reliability
Obligation) 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:

Schedule  2 of the National  Electricity Amendment  (Enhancement  to the Reliability  and
Emergency Reserve Trader) Rule 2019 No. 3 will commence operation on 31 October 2019.

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.

Schedule  1 of the National  Electricity Amendment  (Enhancement  to the Reliability  and
Emergency Reserve Trader) Rule 2019 No. 3 will commence operation on 26 March 2020.

Schedule 2 of the National Electricity Amendment (Retailer Reliability Obligation) Rule 2019
will commence operation on 26 March 2020 immediately after the commencement of Schedule
1 of the National Electricity Amendment (Enhancement to the Reliability and Emergency
Reserve Trader) Rule 2019 No. 3.

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.

Schedule 2 of the National Electricity Amendment (Intervention compensation and settlement
processes) Rule 2019 No. 5 will commence operation on 1 July 2021, immediately after the commencement of Schedule 6 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.

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TABLE OF CONTENTS

1.

1.1
1.1.1
1.1.2
1.1.3

1.2

1.3
1.3.1
1.3.2
1.3.3

1.4

1.5

1.6

1.7
1.7.1

1.8
1.8.1
1.8.2
1.8.3
1.8.4

1.9

1.10

1.11

Introduction ................................................................................1

Preliminary ...................................................................................................3
References to the Rules .................................................................................3
Italicised expressions .....................................................................................3 [Deleted] ........................................................................................................3

Background ..................................................................................................3

Nomenclature of and references to provisions of a Chapter....................3
Introduction....................................................................................................3
Parts, Divisions and Subdivisions..................................................................3
Rules, clauses, paragraphs, subparagraphs and other items ..........................4

Effect of renumbering of provisions of the Rules .....................................4 [Deleted] ........................................................................................................5 [Deleted] ........................................................................................................5
Interpretation ...............................................................................................5
General...........................................................................................................5

Notices ...........................................................................................................6
Service of notices under the Rules.................................................................6
Time of service ..............................................................................................6
Counting of days ............................................................................................7
Reference to addressee ..................................................................................7

Retention of Records and Documents ........................................................7 [Deleted] ........................................................................................................7
AEMO Rule Funds ......................................................................................7

2.

2.1
2.1.1
2.1.2

2.2
2.2.1
2.2.2
2.2.3
2.2.4
2.2.5
2.2.6
2.2.7

2.3
2.3.1
2.3.2
2.3.3
2.3.4
2.3.5

Registered Participants and Registration ................................9

Registered Participants..............................................................................11
Purpose.........................................................................................................11
General .........................................................................................................11

Generator ....................................................................................................11
Registration as a Generator ..........................................................................11
Scheduled Generator....................................................................................12
Non-Scheduled Generator ...........................................................................13
Market Generator .........................................................................................14
Non-Market Generator.................................................................................15
Ancillary services generating unit ...............................................................15
Semi-Scheduled Generator ..........................................................................16

Customer ....................................................................................................18
Registration as a Customer ..........................................................................18
First-Tier Customer......................................................................................19
Second-Tier Customer .................................................................................19
Market Customer .........................................................................................20
Ancillary services load.................................................................................20

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2.3A
2.3A.1

2.3AA
2.3AA.1

2.4
2.4.1
2.4.2

2.4A
2.4A.1
2.4A.2

2.5
2.5.1
2.5.1A
2.5.2
2.5.3

2.5A

2.5B

2.6

2.7

2.8
2.8.1

2.9
2.9.1
2.9.2
2.9.3

2.9A
2.9A.1
2.9A.2
2.9A.3

2.10
2.10.1
2.10.2
2.10.3

2.11
2.11.1A
2.11.1
2.11.2
2.11.3

2.12

Small Generation Aggregator ...................................................................23
Registration ..................................................................................................23

Market Ancillary Service Provider ..........................................................23
Registration ..................................................................................................23

Market Participant ....................................................................................24
Registration as a category of Market Participant.........................................24
Eligibility .....................................................................................................25

Metering Coordinator ...............................................................................25
Registration as a Metering Coordinator.......................................................25
Eligibility .....................................................................................................25

Network Service Provider .........................................................................26
Registration as a Network Service Provider ................................................26
Dedicated Connection Asset Service Provider ............................................28
Market Network Service ..............................................................................29
Scheduled Network Service.........................................................................29

Trader .........................................................................................................30

Reallocator..................................................................................................31

Special Participant .....................................................................................32

Intention to Commence Activities or Functions ......................................32

Registered Participant Rights and Obligations.......................................33
Rights and obligations .................................................................................33

Application to be Registered as a Registered Participant ......................33
Applications for Registration .......................................................................33
Registration as a Registered Participant ......................................................33
Registration as an Intermediary ...................................................................34

Transfer of Registration ............................................................................35
Definitions ...................................................................................................35
Applications for Transfer of Registration ....................................................35
Approval for Transfer of Registration..........................................................36

Ceasing to be a Registered Participant ....................................................37
Notification of intention ..............................................................................37
Ceasing Participation ...................................................................................39
Liability after cessation................................................................................40

Participant Fees .........................................................................................40
Application...................................................................................................40
Development of Participant fee structure ....................................................40
Payment of Participant fees .........................................................................42
Budgeted revenue requirements ..................................................................43

Interpretation of References to Various Registered Participants..........44

2A.

Part A

2A.1
2A.1.1

Regional Structure ...................................................................47

Region change applications and region determinations by AEMC ......49

Introduction to Chapter 2A ......................................................................49
Definitions ...................................................................................................49

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2A.1.2
2A.1.3

2A.2
2A.2.1
2A.2.2
2A.2.3
2A.2.4
2A.2.5
2A.2.6
2A.2.7
2A.2.8

2A.3
2A.3.1
2A.3.2

AEMC determination of regions..................................................................49
Publication of regions by AEMO ................................................................49

Region change applications.......................................................................49
A complete region change application .........................................................49
Identifying a congestion problem ................................................................50
Explanation of economic efficiency of proposed region solution ...............50
Region change application must be technically competent .........................50
Alternative congestion management options ...............................................51
Previous application relating to congestion problem...................................51
AEMO to provide information to intending applicants ...............................52
AEMC may refuse to accept incomplete applications .................................53

Acceptance of region change application by AEMC...............................53
Acceptance of a region change application by AEMC ................................53
Preliminary consultation prior to acceptance of a region change application....................................................................................................53

First round consultation on region change application..........................54
Notice of first round consultation ................................................................54
Right to make written submissions during first round consultation period .54
Alternative region solution put forward by third parties .............................55
Acceptance as a formal alternative region solution by AEMC ....................55

Provision of supplementary economic analysis.......................................56
AEMC may direct provision of supplementary analysis .............................56
AEMC may direct AEMO to provide information ......................................56

Region determinations...............................................................................57
AEMC powers to make a region determination ..........................................57
Matters for consideration in making region determination .........................57

Draft region determination and second round consultation..................58
Publishing of draft region determination .....................................................58
Second round consultation...........................................................................58
Right to make written submissions during second round consultation .......59

Final region determination .......................................................................59
Final determination for region change.........................................................59
Formal publication of region determination ................................................59

Miscellaneous matters for region change process ...................................59
AEMC may extend periods of time specified in Chapter 2A ......................59
Consultation meeting in relation to region change application ...................59

Implementation of region determination.................................................60

Purpose and application of Part B ...........................................................60
Purpose of Part B .........................................................................................60
Application of Part B ...................................................................................60

Region Change Implementation Procedure ............................................60
Submission of draft Region Change Implementation Procedure ................60
Approved Region Change Implementation Procedure ................................61

AEMO region change implementation functions....................................61
General implementation functions...............................................................61

2A.4
2A.4.1
2A.4.2
2A.4.3
2A.4.4

2A.5
2A.5.1
2A.5.2

2A.6
2A.6.1
2A.6.2

2A.7
2A.7.1
2A.7.2
2A.7.3

2A.8
2A.8.1
2A.8.2

2A.9
2A.9.1
2A.9.2

Part B

2A.10
2A.10.1
2A.10.2

2A.11
2A.11.1
2A.11.2

2A.12
2A.12.1

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2A.12.2

Implementation functions referable to published implementation
procedure .....................................................................................................61
Amendment of current or subsequent Regions and Loss Factors
Publication ...................................................................................................61

Continuity of regions .................................................................................62

Glossary for Chapter 2A ...........................................................................62

2A.12.3

2A.13

Schedule 2A.1

3.

3.1
3.1.1
3.1.1A
3.1.2
3.1.3
3.1.4
3.1.5

3.2
3.2.1
3.2.2
3.2.3
3.2.4
3.2.5
3.2.6

3.3
3.3.1
3.3.2
3.3.3
3.3.4
3.3.4A
3.3.5
3.3.6
3.3.7
3.3.8
3.3.8A
3.3.9
3.3.10
3.3.11
3.3.12
3.3.13
3.3.13A
3.3.14
3.3.15
3.3.16
3.3.17
3.3.18
3.3.19

3.4
3.4.1
3.4.2

Market Rules ............................................................................65

Introduction to Market Rules ...................................................................67
Purpose ........................................................................................................67
Definitions ...................................................................................................67 [Deleted] ......................................................................................................68 [Deleted] ......................................................................................................68
Market design principles..............................................................................68
Time for undertaking action.........................................................................69

AEMO's Market Responsibilities .............................................................69
Market functions of AEMO .........................................................................69
Spot market ..................................................................................................69
Power system operations .............................................................................70
Non-market ancillary services function .......................................................70 [Deleted] ......................................................................................................70
Settlements...................................................................................................70

Prudential Requirements ..........................................................................70
Market Participant criteria ...........................................................................70
Credit support ..............................................................................................71
Acceptable credit criteria .............................................................................71
Acceptable credit rating ...............................................................................72
Prudential standard ......................................................................................72
Amount of credit support .............................................................................72
Changes to credit support ............................................................................73
Drawings on credit support..........................................................................73
Credit limit procedures and prudential settings ...........................................74
Security Deposits .........................................................................................76
Outstandings ................................................................................................76
Trading limit ................................................................................................76
Call notices ..................................................................................................77
Typical accrual .............................................................................................77
Response to Call Notices .............................................................................78
Application of monies in the security deposit fund .....................................78
Potential value of a transaction ....................................................................80
Trading margin.............................................................................................80
Limitation on entry of transactions ..............................................................80
Scheduled prices ..........................................................................................81
Additional credit support .............................................................................81
Consideration of other Market Participant transactions ..............................81

Spot Market................................................................................................82
Establishment of spot market.......................................................................82
Trading day and trading interval ..................................................................82

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3.4.3

3.5
3.5.1
3.5.2
3.5.3
3.5.4
3.5.5
3.5.6

3.6
3.6.1
3.6.2
3.6.2A

Spot market operations timetable ................................................................82

Regions ........................................................................................................83 [Deleted] ......................................................................................................83 [Deleted] ......................................................................................................83 [Deleted] ......................................................................................................83 [Deleted] ......................................................................................................83 [Deleted] ......................................................................................................83 [Deleted] ......................................................................................................83

Network Losses and Constraints ..............................................................83
Inter-regional losses .....................................................................................83
Intra-regional losses .....................................................................................84
Load and generation data used to determine inter-regional loss factor equations and intra-regional loss factors .....................................................88
Distribution losses .......................................................................................89
Network constraints .....................................................................................93
Settlements residue due to network losses and constraints .........................94

Projected Assessment of System Adequacy .............................................96
Administration of PASA ..............................................................................96
Medium term PASA.....................................................................................97
Short term PASA .........................................................................................99

Congestion information resource ...........................................................102

Unconstrained intermittent generation forecast ...................................104

Energy Adequacy Assessment Projection ..............................................105

Demand side participation information.................................................108

Central Dispatch and Spot Market Operation ......................................111
Central Dispatch.........................................................................................111
Participation in central dispatch.................................................................112
Bid and offer aggregation guidelines .........................................................113
Ramp rates .................................................................................................115
Notification of scheduled capacity.............................................................117
Submission timing .....................................................................................119
Generating unit offers for dispatch ............................................................119
Scheduled network service offers for dispatch ..........................................121
Bids for scheduled load .............................................................................122
Market ancillary services offers.................................................................124
Validation of dispatch bids and offers........................................................125
Default offers and bids...............................................................................126
Network constraints ...................................................................................127
Ancillary services constraints ....................................................................128
System scheduled reserve constraints........................................................128
Notification of constraints .........................................................................129
Dispatch under conditions of supply scarcity ............................................129 [Deleted] ....................................................................................................129
Equal priced dispatch bids and dispatch offers..........................................129
Self-commitment .......................................................................................130
Self-decommitment....................................................................................130
Dispatch inflexibilities ...............................................................................131

3.6.3
3.6.4
3.6.5

3.7
3.7.1
3.7.2
3.7.3

3.7A

3.7B

3.7C

3.7D

3.8
3.8.1
3.8.2
3.8.3
3.8.3A
3.8.4
3.8.5
3.8.6
3.8.6A
3.8.7
3.8.7A
3.8.8
3.8.9
3.8.10
3.8.11
3.8.12
3.8.13
3.8.14
3.8.15
3.8.16
3.8.17
3.8.18
3.8.19

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3.8.20
3.8.21
3.8.22
3.8.22A
3.8.23
3.8.24

3.9
3.9.1
3.9.2
3.9.2A
3.9.2B
3.9.3
3.9.3A
3.9.3B
3.9.3C
3.9.3D
3.9.4
3.9.5
3.9.6
3.9.6A
3.9.7

3.10

3.11
3.11.1
3.11.2
3.11.3
3.11.4

Pre-dispatch schedule ................................................................................133
On-line dispatch process ............................................................................135
Rebidding...................................................................................................136
Offers, bids and rebids must not be false or misleading ............................138
Failure to conform to dispatch instructions ...............................................140
Scheduling errors .......................................................................................142

Price Determination.................................................................................142
Principles applicable to spot price determination ......................................142
Determination of spot prices......................................................................144
Determination of ancillary services prices ................................................145
Pricing where AEMO determines a manifestly incorrect input .................146
Pricing in the event of intervention by AEMO ..........................................147
Reliability standard and settings review ....................................................148
Reliability standard and settings review report .........................................149
Reliability standard ....................................................................................150
Implementation of the reliability standard.................................................151
Market Price Cap .......................................................................................151
Application of the Market Price Cap .........................................................152
Market Floor Price .....................................................................................153
Application of the Market Floor Price .......................................................153
Pricing for constrained-on scheduled generating units..............................153

[Deleted] ....................................................................................................154

Ancillary Services.....................................................................................154
Introduction................................................................................................154
Market ancillary services ...........................................................................155
Acquisition of Network Support and Control Ancillary Service ...............156
Guidelines and objectives for acquisition of network support and control ancillary services........................................................................................157
Tender process for network support and control ancillary services...........157
Dispatch of network support and control ancillary services by AEMO ....159
Guidelines and objectives for acquisition of system restart ancillary services by AEMO ...................................................................................................160
Determination of electrical sub-network boundaries.................................161
Acquisition of system restart ancillary services by AEMO .......................162
Reporting ...................................................................................................163

Market Intervention by AEMO..............................................................163
Intervention settlement timetable ..............................................................163
Affected Participants and Market Customers entitlements to compensation
in relation to AEMO intervention ..............................................................164
Role of the Independent Expert in calculating payments in relation to intervention by AEMO and market suspension pricing schedule periods .168

Mandatory restrictions ............................................................................170
Restriction offers........................................................................................170
Mandatory restrictions schedule ................................................................172
Acquisition of capacity ..............................................................................173
Rebid of capacity under restriction offers..................................................173
Dispatch of restriction offers .....................................................................173
Pricing during a restriction price trading interval ......................................174

3.11.5
3.11.6
3.11.7

3.11.8
3.11.9
3.11.10

3.12
3.12.1
3.12.2

3.12.3

3.12A
3.12A.1
3.12A.2
3.12A.3
3.12A.4
3.12A.5
3.12A.6

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3.12A.7
3.12A.8
3.12A.9

3.13
3.13.1
3.13.2
3.13.3
3.13.3A
3.13.4
3.13.4A
3.13.5
3.13.5A
3.13.6
3.13.6A
3.13.7

Determination of funding restriction shortfalls .........................................174
Cancellation of a mandatory restriction period .........................................178
Review by AEMC ......................................................................................179

Market Information.................................................................................179
Provision of information ............................................................................179
Systems and procedures.............................................................................179
Standing data .............................................................................................181
Statement of opportunities .........................................................................186
Spot market ................................................................................................188
Market ancillary services ...........................................................................192
Ancillary services contracting by AEMO ..................................................193
Settlements residue auctions ......................................................................193 [Deleted] ....................................................................................................193
Report by AEMO .......................................................................................193
Monitoring of significant variation between forecast and actual prices by
AER ...........................................................................................................194
Public information .....................................................................................195 [Deleted] ....................................................................................................196
Market auditor ...........................................................................................196 [Deleted] ....................................................................................................197
NMI Standing Data ....................................................................................197
NMI Standing Data Schedule ....................................................................200
Inter-network tests .....................................................................................201
Carbon Dioxide Equivalent Intensity Index ..............................................201

Administered Price Cap and Market Suspension .................................204
Cumulative Price Threshold and Administered Price Cap ........................204
Application of Administered Price Cap .....................................................206
Conditions for suspension of the spot market............................................207
Declaration of market suspension..............................................................208
Pricing during market suspension..............................................................209
Payment of compensation due to market suspension pricing schedule
periods ........................................................................................................211
Claims for additional compensation due to market suspension pricing schedule periods.........................................................................................214
Compensation due to the application of an administered price cap or administered floor price .............................................................................216

Settlements................................................................................................220
Settlements management by AEMO..........................................................220
Electronic funds transfer ............................................................................220
Connection point and virtual transmission node responsibility.................221
Adjusted energy amounts connection points .............................................221
Adjusted energy - transmission network connection points ......................221
Adjusted energy - virtual transmission nodes ............................................222
Spot market transactions ............................................................................222
Ancillary service transactions ....................................................................223
Payment to Directed Participants...............................................................235
Payment to Directed Participants for services other than energy and market ancillary services........................................................................................237
Claim for additional compensation by Directed Participants ....................240

3.13.8
3.13.9
3.13.10
3.13.11
3.13.12
3.13.12A
3.13.13
3.13.14

3.14
3.14.1
3.14.2
3.14.3
3.14.4
3.14.5
3.14.5A

3.14.5B

3.14.6

3.15
3.15.1
3.15.2
3.15.3
3.15.4
3.15.5
3.15.5A
3.15.6
3.15.6A
3.15.7
3.15.7A

3.15.7B

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3.15.8
3.15.8A

Funding of Compensation for directions ...................................................242
Funding of compensation for market suspension pricing schedule periods........................................................................................................246
Reserve settlements ...................................................................................248
Administered price cap or administered floor price compensation
payments ....................................................................................................249
Goods and services tax ..............................................................................250
Restriction contract amounts .....................................................................251
Intervention and Market Suspension Pricing Schedule Period
Settlements.................................................................................................252
Reallocation transactions ...........................................................................256
Reallocation procedures.............................................................................257
Settlement amount .....................................................................................258
Payment of settlement amount...................................................................259
Preliminary statements...............................................................................259
Final statements .........................................................................................259
Use of estimated settlement amounts by AEMO .......................................259
Payment by market participants.................................................................260
Payment to market participants .................................................................260
Disputes .....................................................................................................260
Revised Statements and Adjustments ........................................................260
Payment of adjustments .............................................................................263
Default procedure ......................................................................................263
Maximum total payment in respect of a billing period..............................267
Maximum total payment in respect of a financial year .............................269
Compensation for reductions under clause 3.15.23 ...................................270
Interest on overdue amounts ......................................................................270

Participant compensation fund ..............................................................270
Establishment of Participant compensation fund ......................................270
Dispute resolution panel to determine compensation ................................271

[Deleted] ....................................................................................................273

Settlements Residue Auctions .................................................................273
Settlements residue concepts .....................................................................273
Auctions and eligible persons ....................................................................274
Auction rules ..............................................................................................275
Secondary trading of SRD units ................................................................276
Proceeds and fees.......................................................................................276
Secondary trading proceeds and margin ....................................................277
Settlement residue committee ....................................................................278

Market Management Systems Access Procedures ................................280

Reliability and Emergency Reserve Trader ..........................................280
[Deleted] ....................................................................................................280
Reliability and emergency reserve trader ..................................................280
Reserve contracts .......................................................................................281
Dispatch pricing methodology for unscheduled reserve contracts ............282
AEMO's risk management and accounts relating to the reliability safety net...............................................................................................................282
Reporting on RERT by AEMO ..................................................................283

3.15.9
3.15.10

3.15.10A
3.15.10B
3.15.10C

3.15.11
3.15.11A
3.15.12
3.15.13
3.15.14
3.15.15
3.15.15A
3.15.16
3.15.17
3.15.18
3.15.19
3.15.20
3.15.21
3.15.22
3.15.23
3.15.24
3.15.25

3.16
3.16.1
3.16.2

3.17

3.18
3.18.1
3.18.2
3.18.3
3.18.3A
3.18.4
3.18.4A
3.18.5

3.19

3.20
3.20.1
3.20.2
3.20.3
3.20.4
3.20.5

3.20.6

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3.20.7
3.20.8
3.20.9

Schedule 3.1

Schedule 3.2

Schedule 3.3

AEMO's exercise of the RERT ..................................................................284
RERT Guidelines .......................................................................................285 [Deleted] ....................................................................................................285
Bid and Offer Validation Data ................................................................285 [Deleted] ....................................................................................................289 [Deleted] ....................................................................................................289

4.

4.1
4.1.1

4.2
4.2.1
4.2.2
4.2.3
4.2.3A
4.2.3B
4.2.4
4.2.5
4.2.6
4.2.7
4.2.8

4.3
4.3.1
4.3.2
4.3.3
4.3.4
4.3.5

4.4
4.4.1
4.4.2
4.4.3
4.4.4
4.4.5

4.5
4.5.1
4.5.2
4.5.3

4.6
4.6.1
4.6.2
4.6.3
4.6.4
4.6.5
4.6.6

4.7
4.7.1

Power System Security...........................................................291

Introduction..............................................................................................293
Purpose ......................................................................................................293

Definitions and Principles .......................................................................293
[Deleted] ....................................................................................................293
Satisfactory Operating State ......................................................................293
Credible and non-credible contingency events and protected events ........294
Re-classifying contingency events ............................................................295
Criteria for re-classifying contingency events ...........................................296
Secure operating state and power system security ....................................297
Technical envelope ....................................................................................297
General principles for maintaining power system security .......................298
Reliable Operating State ............................................................................299
Time for undertaking action.......................................................................299

Power System Security Responsibilities and Obligations ....................299
Responsibility of AEMO for power system security .................................299
System security ..........................................................................................301
The role of System Operators ....................................................................304
Network Service Providers ........................................................................306
Market Customer obligations.....................................................................311

Power System Frequency Control ..........................................................311
Power system frequency control responsibilities.......................................311
Operational frequency control requirements .............................................311
Generator protection requirements ............................................................312
Instructions to enable inertia network services..........................................312
Instructions to enable system strength services .........................................313

Control of Power System Voltage ...........................................................315
Power system voltage control ....................................................................315
Reactive power reserve requirements ........................................................315
Audit and testing ........................................................................................316

Protection of Power System Equipment ................................................316
Power system fault levels ..........................................................................316
Power system protection co-ordination .....................................................316
Audit and testing ........................................................................................316
Short-term thermal ratings of power system .............................................317
Partial outage of power protection systems ...............................................317
System strength impact assessment guidelines..........................................317

Power System Stability Co-ordination...................................................319
Stability analysis co-ordination .................................................................319

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4.7.2

4.8
4.8.1
4.8.2
4.8.3
4.8.4
4.8.4A
4.8.4B
4.8.5
4.8.5A
4.8.5B
4.8.6
4.8.7
4.8.8
4.8.9
4.8.9A
4.8.10
4.8.11
4.8.12
4.8.13
4.8.14
4.8.15

4.9
4.9.1
4.9.2
4.9.2A
4.9.3
4.9.3A
4.9.3B
4.9.4

Audit and testing ........................................................................................319

Power System Security Operations ........................................................319
Registered Participants' advice ..................................................................319
Protection or control system abnormality ..................................................320
AEMO's advice on power system emergency conditions ..........................320
Declaration of conditions...........................................................................320
Reserve level declaration guidelines .........................................................321
Lack of reserve framework reporting ........................................................322
Managing declarations of conditions .........................................................322
Determination of the latest time for AEMO intervention ..........................323
Notifications of last time of AEMO intervention ......................................324 [Deleted] ....................................................................................................324
Managing a power system contingency event ...........................................324 [Deleted] ....................................................................................................324
Power to issue directions and clause 4.8.9 instructions .............................324
System security directions .........................................................................326
Disconnection of generating units and market network services ..............327 [Deleted] ....................................................................................................327
System restart plan and local black system procedures .............................327 [Deleted] ....................................................................................................328
Power system restoration ...........................................................................328
Review of operating incidents ...................................................................329

Power System Security Related Market Operations ............................331
Load forecasting ........................................................................................331
Instructions to Scheduled Generators and Semi-Scheduled Generators....332
Dispatch Instructions to Scheduled Network Service Providers ...............333
Instructions to Registered Participants ......................................................333
Ancillary services instructions ...................................................................334
Compliance with dispatch instructions ......................................................334
Dispatch related limitations on Scheduled Generators and Semi-Scheduled
Generators ..................................................................................................335
Dispatch related limitations on Scheduled Network Service Providers ....336
Form of dispatch instructions ....................................................................337
Commitment of scheduled generating units ..............................................337
De-commitment, or output reduction, by Scheduled Generators ..............338
General responsibilities of Registered Participants ...................................339
Scheduled Generator plant changes ...........................................................340
Scheduled Network Service Provider plant changes .................................340
Ancillary service plant changes .................................................................341
Inertia network service availability changes..............................................341
System strength service availability changes ............................................341

Power System Operating Procedures.....................................................341
Power system operating procedures ..........................................................341
Transmission network operations ..............................................................342
Operating interaction with distribution networks ......................................343
Switching of a Distributor's high voltage networks...................................343
Switching of reactive power facilities .......................................................344
Automatic reclose ......................................................................................344
Inspection of facilities by AEMO ..............................................................344

4.9.4A
4.9.5
4.9.6
4.9.7
4.9.8
4.9.9
4.9.9A
4.9.9B
4.9.9C
4.9.9D

4.10
4.10.1
4.10.2
4.10.3
4.10.4
4.10.5
4.10.6
4.10.7

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4.11
4.11.1
4.11.2
4.11.3
4.11.4
4.11.5

4.12

4.13

4.14

4.15

4.16

Power System Security Support .............................................................344
Remote control and monitoring devices ....................................................344
Operational control and indication communication facilities....................346
Power system voice/data operational communication facilities ................346
Records of power system operational communication ..............................348
Agent communications ..............................................................................348

Nomenclature Standards.........................................................................349 [Deleted] ....................................................................................................350
Acceptance of Performance Standards ..................................................350

Compliance with Performance Standards.............................................352

Transitioning arrangements for establishment of performance standards ..................................................................................................355
Definitions .................................................................................................355
Exclusions ..................................................................................................357
Notification and acceptance of performance standards .............................358
Actual capability ........................................................................................362
Criteria for, and negotiation of, performance standards ............................363
Consultation with and assistance by Network Service Providers..............366
Referral to expert determination ................................................................366
Prior actions ...............................................................................................367
Deemed performance standards.................................................................367
Modification of connection agreements ....................................................367

Expert determination ..............................................................................368
Performance standards committee and appointment of performance standards experts........................................................................................368
Referral to performance standards expert ..................................................369
Determinations of performance standards experts ....................................370
Other matters .............................................................................................371

4.16.1
4.16.2
4.16.3
4.16.4
4.16.5
4.16.6
4.16.7
4.16.8
4.16.9
4.16.10

4.17
4.17.1

4.17.2
4.17.3
4.17.4

4A.

Part A

4A.A
4A.A.1
4A.A.2
4A.A.3
4A.A.4

Part B
4A.B.1
4A.B.2
4A.B.3
4A.B.4
4A.B.5
Part C Division 1
4A.C.1
4A.C.2

Retailer Reliability Obligation ..............................................373

Introduction..............................................................................................375

Definitions.................................................................................................375
Definitions .................................................................................................375
Forecast reliability gap materiality ............................................................378
One-in-two year peak demand forecast .....................................................378
Peak demand ..............................................................................................378

Reliability Forecasts ................................................................................379
Reliability forecast .....................................................................................379
Reliability forecast components ................................................................379
Supporting materials ..................................................................................380
Reliability Forecast Guidelines..................................................................380
AER Forecasting Best Practice Guidelines................................................381

Reliability Instruments............................................................................382

AEMO request for a reliability instrument ...........................................382
AEMO request for a reliability instrument ................................................382
AEMO request for a T-3 reliability instrument ..........................................382

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4A.C.3
4A.C.4
4A.C.5
4A.C.6
4A.C.7

Division 2
4A.C.8
4A.C.9
4A.C.10
4A.C.11
4A.C.12

Part D
4A.D.1
4A.D.2
4A.D.3
4A.D.4
4A.D.5
4A.D.6
4A.D.7
4A.D.8
4A.D.9
4A.D.10
4A.D.11
4A.D.12
4A.D.13
Part E Division 1
4A.E.1
4A.E.2

Division 2
4A.E.3
4A.E.4
4A.E.5

Division 3
4A.E.6

Division 4
4A.E.7

Division 5
4A.E.8
Part F Division 1
4A.F.1

Division 2
4A.F.2
4A.F.3

AEMO request for a T-1 reliability instrument ..........................................383
Related T-3 reliability instrument ..............................................................383
Notification of a closed forecast reliability gap at T-1 ..............................383
Corrections to a request .............................................................................384
Withdrawing a request ...............................................................................384

AER making of a reliability instrument ................................................384
AER making of a reliability instrument .....................................................384
When a decision by the AER must be made ..............................................384
T-1 reliability instrument components .......................................................385
AER decision making criteria ....................................................................385
Reliability Instrument Guidelines ..............................................................385

Liable Entities ..........................................................................................386
Application.................................................................................................386
Liable entities.............................................................................................386
New entrants ..............................................................................................387
Application to register as large opt-in customer ........................................387
Application to register as prescribed opt-in customer ...............................388
Thresholds..................................................................................................389
Opt-in cut-off day ......................................................................................389
AER approval of applications ....................................................................389
AER opt-in register ....................................................................................390
Changes to register ....................................................................................390
AER register taken to be correct ................................................................391
AEMO Opt-In Procedures .........................................................................391
AER Opt-In Guidelines..............................................................................391

Qualifying Contracts and Net Contract Position..................................392

Key concepts .............................................................................................392
Qualifying contracts...................................................................................392
Net contract position ..................................................................................393

Firmness methodologies ..........................................................................394
Firmness methodology...............................................................................394
Types of methodologies .............................................................................394
Approval of a bespoke firmness methodology ..........................................395

Reporting net contract position ..............................................................395
Reporting requirements .............................................................................395

Adjustment of net contract position .......................................................396
Adjustment of net contract position ...........................................................396

Contracts and Firmness Guidelines .......................................................398
Contracts and Firmness Guidelines ...........................................................398

Compliance with the Retailer Reliability Obligation ...........................398

Application................................................................................................398
Application.................................................................................................398

Key concepts .............................................................................................399
Compliance TI ...........................................................................................399
Share of one-in-two year peak demand forecast........................................399

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Division 3
4A.F.4
4A.F.5

Division 4
4A.F.6
4A.F.7
4A.F.8

Division 5
4A.F.9
4A.F.10
Part G Division 1
4A.G.1
4A.G.2

Division 2
4A.G.3
4A.G.4

Division 3
4A.G.5
4A.G.6

Division 4
4A.G.7
4A.G.8
4A.G.9

Division 5
4A.G.10
4A.G.11

Division 6
4A.G.12
4A.G.13
4A.G.14

Division 7
4A.G.15
4A.G.16

Division 8
4A.G.17
4A.G.18
4A.G.19
4A.G.20
4A.G.21

Division 9
4A.G.22
4A.G.23

Division 10
4A.G.24

AEMO notifications to AER ...................................................................400
AEMO notification of compliance trading intervals .................................400
AEMO compliance report ..........................................................................401

AER assessment of compliance ...............................................................401
Reliability Compliance Procedures and Guidelines ..................................401
AER assessment .........................................................................................401
AER notification to AEMO for PoLR costs ..............................................402

Miscellaneous ...........................................................................................402
Demand response information ...................................................................402
PoLR cost procedures ................................................................................402

Market Liquidity Obligation ..................................................................403

Preliminary ...............................................................................................403
Overview of Part G ....................................................................................403
Purpose and application .............................................................................404

Market Generators and trading right holders ......................................404
Market Generators and generator capacity ................................................404
Trading rights and trading right holders ....................................................404

Trading groups .........................................................................................405
Trading group.............................................................................................405
Controlling entity .......................................................................................405

Traced capacity and trading group capacity .........................................407
Traced capacity ..........................................................................................407
Tracing capacity to trading groups ............................................................407
Trading group capacity ..............................................................................408

MLO generators and MLO groups ........................................................408
MLO group ................................................................................................408
MLO generator ..........................................................................................408

Market Generator information ..............................................................408
MLO register .............................................................................................408
Market Generator information ...................................................................410
Applications to the AER ............................................................................411

Liquidity period .......................................................................................412
Notices prior to a liquidity period..............................................................412
Duration of liquidity period .......................................................................412

Liquidity obligation .................................................................................413
Liquidity obligation ...................................................................................413
Performing a liquidity obligation...............................................................413
Volume limits .............................................................................................414
Appointment of MLO nominee .................................................................415
Exemptions ................................................................................................416

MLO products and MLO exchange .......................................................417
MLO products............................................................................................417
MLO exchange ..........................................................................................417

Miscellaneous ...........................................................................................418
MLO compliance and reporting.................................................................418

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4A.G.25

Part H
4A.H.1
4A.H.2
4A.H.3
4A.H.4
4A.H.5
4A.H.6

MLO Guidelines ........................................................................................418

Voluntary Book Build ..............................................................................419
Purpose and application .............................................................................419
Book Build Procedures ..............................................................................419
Commencement of voluntary book build ..................................................420
Participation in the voluntary book build ..................................................421
Book build fees ..........................................................................................421
Reporting ...................................................................................................421

5.

Part A

5.1
5.1.1
5.1.2

Part B

5.1A
5.1A.1
5.1A.2

5.2
5.2.1
5.2.2
5.2.3
5.2.3A
5.2.4
5.2.5
5.2.6
5.2.6A
5.2.7

5.2A
5.2A.1
5.2A.2
5.2A.3
5.2A.4
5.2A.5
5.2A.6
5.2A.7
5.2A.8

5.3
5.3.1
5.3.1A
5.3.2
5.3.3
5.3.4
5.3.4A
5.3.4B
5.3.5
5.3.6

Network Connection Access, Planning and Expansion ......423

Introduction..............................................................................................425

Introduction to Chapter 5 .......................................................................425
Structure of this Chapter ............................................................................425
Overview of Part B and connection and access under the Rules...............425

Network Connection and Access ............................................................428

Introduction to Part B .............................................................................428
Purpose and Application ............................................................................428
Principles ...................................................................................................430

Obligations................................................................................................431
Obligations of Registered Participants ......................................................431
Connection agreements..............................................................................431
Obligations of network service providers ..................................................432
Obligations of Market Network Service Providers ...................................437
Obligations of customers ...........................................................................438
Obligations of Generators ..........................................................................439
Obligations of AEMO ................................................................................441
AEMO review of technical requirements for connection ..........................441
Obligations of Dedicated Connection Asset Service Providers.................442

Transmission network connection and access .......................................443
Application.................................................................................................443
Relevant assets ...........................................................................................443
Connection and access to transmission services........................................444
Transmission services related to connection..............................................445
Publication and provision of information ..................................................448
Negotiating principles................................................................................449
Third party IUSAs .....................................................................................449
Access framework for large dedicated connection assets ..........................451

Establishing or Modifying Connection ..................................................452
Process and procedures ..............................................................................452
Application of rule to connection of embedded generating units ..............453
Connection enquiry....................................................................................453
Response to connection enquiry ................................................................455
Application for connection ........................................................................458
Negotiated access standards ......................................................................460
System strength remediation for new connections ....................................463
Preparation of offer to connect ..................................................................466
Offer to connect .........................................................................................467

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5.3.7

Finalisation of connection agreements and network operating
agreements .................................................................................................470
Provision and use of information...............................................................472
Procedure to be followed by a Generator proposing to alter a generating system ........................................................................................................473
Acceptance of performance standards for generating plant that is altered 475
Notification of request to change normal voltage......................................476

Establishing or modifying connection - embedded generation............476
Application of rule 5.3A ............................................................................476
Definitions and miscellaneous ...................................................................477
Publication of Information.........................................................................477
Fees ............................................................................................................479
Enquiry ......................................................................................................480
Response to Enquiry ..................................................................................481
Preliminary Response to Enquiry ..............................................................481
Detailed Response to Enquiry ...................................................................482
Application for connection ........................................................................483
Preparation of offer to connect ..................................................................484
Technical Dispute ......................................................................................485
Network support payments and functions .................................................485

Access arrangements relating to Distribution Networks......................485

Application for connection to declared shared network ......................489

Independent Engineer .............................................................................489
Application.................................................................................................489
Establishment of a pool .............................................................................490
Initiating the Independent Engineer process..............................................490
Referral to the Adviser ...............................................................................491
Proceedings and decisions of the Independent Engineer...........................492
Costs of the Independent Engineer ............................................................493 [Deleted] ....................................................................................................493 [Deleted] ....................................................................................................493
Commercial arbitration for prescribed and negotiated transmission services and large DCA services .............................................................493
Application.................................................................................................493
Notification of dispute ...............................................................................494
Appointment of commercial arbitrator ......................................................494
Procedures of commercial arbitrator .........................................................495
Powers of commercial arbitrator in determining disputes .........................495
Determination of disputes ..........................................................................497
Costs of dispute..........................................................................................497
Enforcement of agreement or determination and requirement for reasons498
Miscellaneous ............................................................................................498

[Deleted] ....................................................................................................499

Post-Connection Agreement matters .....................................................499

Design of Connected Equipment ............................................................499
Application.................................................................................................499

5.3.8
5.3.9

5.3.10
5.3.11

5.3A
5.3A.1
5.3A.2
5.3A.3
5.3A.4
5.3A.5
5.3A.6
5.3A.7
5.3A.8
5.3A.9
5.3A.10
5.3A.11
5.3A.12

5.3AA

5.3B

5.4
5.4.1
5.4.2
5.4.3
5.4.4
5.4.5
5.4.6

5.4A

5.4AA

5.5

5.5.1
5.5.2
5.5.3
5.5.4
5.5.5
5.5.6
5.5.7
5.5.8
5.5.9

5.5A Part C
5.6
5.6.1

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5.6.2
5.6.3
5.6.4

5.6A

5.7
5.7.1
5.7.2
5.7.3

Advice of inconsistencies ..........................................................................499
Additional information...............................................................................499
Advice on possible non-compliance ..........................................................500

[Deleted] ....................................................................................................500

Inspection and Testing .............................................................................500
Right of entry and inspection.....................................................................500
Right of testing ..........................................................................................502
Tests to demonstrate compliance with connection requirements for generators...................................................................................................503
Tests to demonstrate compliance with system strength remediation
schemes ......................................................................................................505
Routine testing of protection equipment....................................................506
Testing by Registered Participants of their own plant requiring changes to normal operation ........................................................................................507
Tests of generating units requiring changes to normal operation ..............509
Inter-network power system tests ..............................................................510
Contestable IUSA components ..................................................................517

Commissioning .........................................................................................517
Requirement to inspect and test equipment ...............................................517
Co-ordination during commissioning ........................................................518
Control and protection settings for equipment ..........................................518
Commissioning program ...........................................................................519
Commissioning tests ..................................................................................519

Disconnection and Reconnection ............................................................520
Voluntary disconnection ............................................................................520
Decommissioning procedures....................................................................521
Involuntary disconnection .........................................................................521
Direction to disconnect ..............................................................................522
Notification of disconnection ....................................................................522
Disconnection during an emergency..........................................................522
Obligation to reconnect..............................................................................523

Network Planning and Expansion..........................................................524

Network development generally .............................................................524
Content of Part D .......................................................................................524
Definitions .................................................................................................525
Interpretation..............................................................................................528

Forecasts of connection to transmission network and identification of system limitations.....................................................................................529
Forecasts for connection to transmission network.....................................529
Identification of network limitations .........................................................529

Transmission annual planning process ..................................................530
Transmission annual planning review .......................................................530
Transmission Annual Planning Report ......................................................530

Distribution annual planning process ....................................................534
Distribution annual planning review .........................................................534
Distribution Annual Planning Report ........................................................536

5.7.3A

5.7.4
5.7.5

5.7.6
5.7.7
5.7.8

5.8
5.8.1
5.8.2
5.8.3
5.8.4
5.8.5

5.9
5.9.1
5.9.2
5.9.3
5.9.4
5.9.4A
5.9.5
5.9.6

Part D

5.10
5.10.1
5.10.2
5.10.3

5.11

5.11.1
5.11.2

5.12
5.12.1
5.12.2

5.13
5.13.1
5.13.2

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5.13.3

5.13A

5.14
5.14.1

Distribution system limitation template.....................................................537

Distribution zone substation information..............................................538

Joint planning...........................................................................................540
Joint planning obligations of Transmission Network Service Providers and
Distribution Network Service Providers....................................................540
Joint planning obligations of Distribution Network Service Providers and
Distribution Network Service Providers....................................................541
Joint planning obligations of Transmission Network Service Providers ...542

Joint planning in relation to retirement or de-ratings of network assets forming part of the Declared Shared Network .....................................542

TAPR Guidelines......................................................................................542
Development of TAPR Guidelines ............................................................542

Regulatory investment tests generally ...................................................543
Interested parties ........................................................................................543
Identification of a credible option..............................................................543
Review of costs thresholds ........................................................................544
Costs determinations..................................................................................546

Regulatory investment test for transmission .........................................546
Principles ...................................................................................................546
Regulatory investment test for transmission application guidelines .........549
Investments subject to the regulatory investment test for transmission ....550
Regulatory investment test for transmission procedures ...........................553
Disputes in relation to application of regulatory investment test for transmission ...............................................................................................559
Determination that preferred option satisfies the regulatory investment test for transmission..........................................................................................561

Regulatory investment test for distribution ..........................................562
Principles ...................................................................................................562
Regulatory investment test for distribution application guidelines ...........564
Projects subject to the regulatory investment test for distribution ............565
Regulatory investment test for distribution procedures .............................567
Disputes in relation to application of regulatory investment test for distribution .................................................................................................571

Construction of funded augmentations .................................................573

Large generator connections...................................................................574
Definitions .................................................................................................574
Register of large generator connections.....................................................574
Impact assessment of large generator connections ....................................575

Completed embedded generation projects ............................................576
Definitions .................................................................................................576
Register of completed embedded generation projects ...............................576

SENE Design and Costing Study ............................................................577
Definitions .................................................................................................577
Interpretation..............................................................................................578
Request for SENE Design and Costing Study ...........................................578
Content of SENE Design and Costing Study ............................................579

5.14.2

5.14.3

5.14A

5.14B
5.14B.1

5.15
5.15.1
5.15.2
5.15.3
5.15.4

5.16
5.16.1
5.16.2
5.16.3
5.16.4
5.16.5

5.16.6

5.17
5.17.1
5.17.2
5.17.3
5.17.4
5.17.5

5.18

5.18A
5.18A.1
5.18A.2
5.18A.3

5.18B
5.18B.1
5.18B.2

5.19
5.19.1
5.19.2
5.19.3
5.19.4

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5.19.5
5.19.6
5.19.7

5.20
5.20.1
5.20.2
5.20.3
5.20.4
5.20.5

Co-operation of other Network Service Providers ....................................580
Publication of SENE Design and Costing Study report ............................580
Provision and use of information...............................................................581

National transmission planning ..............................................................581
Preliminary consultation ............................................................................582
Publication of NTNDP ..............................................................................582
Development strategies for national transmission flow paths ...................585
NTNDP database .......................................................................................585
Jurisdictional planning bodies and jurisdictional planning
representatives ...........................................................................................586
NTP Functions ...........................................................................................586
Inertia and system strength requirements methodologies..........................587

Frequency management planning ..........................................................588
Power system frequency risk review .........................................................588
Power system frequency risk review process ............................................589
Power system frequency risk review report...............................................589
Request for protected event declaration ....................................................590
Request to revoke a protected event declaration .......................................590

Inertia sub-networks and requirements ................................................591
Boundaries of inertia sub-networks ...........................................................591
Inertia requirements ...................................................................................591
Inertia shortfalls .........................................................................................592
Inertia Service Provider to make available inertia services .......................593
Inertia support activities ............................................................................595
Inertia network services information and approvals..................................596

System strength requirements ................................................................598
System strength requirements ....................................................................598
Fault level shortfalls ..................................................................................599
System Strength Service Provider to make available system strength services.......................................................................................................599
System strength services information and approvals.................................601

AEMO's obligation to publish information and guidelines and provide advice.........................................................................................................603

Last resort planning power .....................................................................605

System standards .....................................................................................608
Purpose ......................................................................................................608
Frequency ..................................................................................................608
System stability..........................................................................................608
Power frequency voltage ...........................................................................609
Voltage fluctuations ...................................................................................609
Voltage waveform distortion......................................................................610
Voltage unbalance ......................................................................................610
Fault clearance times .................................................................................611

Network Performance Requirements to be Provided or Co-ordinated
by Network Service Providers ................................................................612
Introduction................................................................................................612
Network reliability .....................................................................................613

5.20.6
5.20.7

5.20A
5.20A.1
5.20A.2
5.20A.3
5.20A.4
5.20A.5

5.20B
5.20B.1
5.20B.2
5.20B.3
5.20B.4
5.20B.5
5.20B.6

5.20C
5.20C.1
5.20C.2
5.20C.3

5.20C.4

5.21

5.22

Schedule 5.1a
S5.1a.1
S5.1a.2
S5.1a.3
S5.1a.4
S5.1a.5
S5.1a.6
S5.1a.7
S5.1a.8

Schedule 5.1

S5.1.1
S5.1.2

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S5.1.2.1
S5.1.2.2
S5.1.2.3
S5.1.3
S5.1.4
S5.1.5
S5.1.6
S5.1.7
S5.1.8
S5.1.9
S5.1.10
S5.1.10.1
S5.1.10.1a
S5.1.10.2
S5.1.10.3
S5.1.11
S5.1.12
S5.1.13

Schedule 5.2
S5.2.1
S5.2.2
S5.2.3
S5.2.4
S5.2.5
S5.2.5.1
S5.2.5.2
S5.2.5.3
S5.2.5.4
S5.2.5.5

Credible contingency events ......................................................................613
Network service within a region ................................................................614
Network service between regions ..............................................................615
Frequency variations..................................................................................615
Magnitude of power frequency voltage .....................................................616
Voltage fluctuations ...................................................................................617
Voltage harmonic or voltage notching distortion.......................................618
Voltage unbalance ......................................................................................619
Stability ......................................................................................................619
Protection systems and fault clearance times ............................................621
Load, generation and network control facilities ........................................624
General.......................................................................................................624
Emergency frequency control schemes .....................................................624
Distribution Network Service Providers....................................................625
Transmission Network Service Providers..................................................626
Automatic reclosure of transmission or distribution lines .........................626
Rating of transmission lines and equipment ..............................................626
Information to be provided ........................................................................627

Conditions for Connection of Generators .............................................627
Outline of requirements .............................................................................627
Application of Settings ..............................................................................628
Technical matters to be coordinated ..........................................................629
Provision of information ............................................................................630
Technical requirements ..............................................................................632
Reactive power capability..........................................................................632
Quality of electricity generated .................................................................634
Generating system response to frequency disturbances ............................634
Generating system response to voltage disturbances.................................637
Generating system response to disturbances following contingency
events .........................................................................................................639
Quality of electricity generated and continuous uninterrupted operation .647
Partial load rejection ..................................................................................647
Protection of generating systems from power system disturbances ..........648
Protection systems that impact on power system security.........................650
Protection to trip plant for unstable operation ...........................................651
Frequency control ......................................................................................652
Impact on network capability ....................................................................655
Voltage and reactive power control............................................................656
Active power control..................................................................................663
Monitoring and control requirements ........................................................665
Remote Monitoring....................................................................................665
Communications equipment ......................................................................667
Power station auxiliary supplies ................................................................668
Fault current ...............................................................................................668

Conditions for Connection of Customers ..............................................670
Introduction to the schedule.......................................................................670
Information ................................................................................................671
Design standards ........................................................................................673
Protection systems and settings .................................................................673

S5.2.5.6
S5.2.5.7
S5.2.5.8
S5.2.5.9
S5.2.5.10
S5.2.5.11
S5.2.5.12
S5.2.5.13
S5.2.5.14
S5.2.6
S5.2.6.1
S5.2.6.2
S5.2.7
S5.2.8

Schedule 5.3
S5.3.1a
S5.3.1
S5.3.2
S5.3.3

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S5.3.4
S5.3.5
S5.3.6
S5.3.7
S5.3.8
S5.3.9
S5.3.10

Schedule 5.3a S5.3a.1a S5.3a.1
S5.3a.2
S5.3a.3
S5.3a.4
S5.3a.4.1
S5.3a.4.2
S5.3a.4.3
S5.3a.5
S5.3a.6
S5.3a.7
S5.3a.8
S5.3a.9
S5.3a.10
S5.3a.11
S5.3a.12
S5.3a.13
S5.3a.14

Schedule 5.4
Schedule 5.4A Schedule 5.4B Schedule 5.5

Settings of protection and control systems ................................................674
Power factor requirements .........................................................................675
Balancing of load currents .........................................................................676
Voltage fluctuations ...................................................................................676
Harmonics and voltage notching ...............................................................676
Design requirements for Network Users' substations ................................677
Load shedding facilities .............................................................................677

Conditions for connection of Market Network Services ......................678
Introduction to the schedule.......................................................................678
Provision of Information............................................................................679
Application of settings ...............................................................................681
Technical matters to be co-ordinated .........................................................681
Monitoring and control requirements ........................................................682
Remote Monitoring....................................................................................682 [Deleted] ....................................................................................................682
Communications equipment ......................................................................682
Design standards ........................................................................................683
Protection systems and settings .................................................................684 [Deleted] ....................................................................................................685
Reactive power capability..........................................................................685
Balancing of load currents .........................................................................685
Voltage fluctuations ...................................................................................686
Harmonics and voltage notching ...............................................................686
Design requirements for Market Network Service Providers' substations 687
Market network service response to disturbances in the power system ....687
Protection of market network services from power system disturbances..688

Information to be Provided with Preliminary Enquiry .......................688

Preliminary Response..............................................................................689

Detailed Response to Enquiry.................................................................691

Technical Details to Support Application for Connection and
Connection Agreement ............................................................................694
Introduction to the schedule.......................................................................694
Categories of data ......................................................................................694
Review, change and supply of data............................................................695
Data Requirements.....................................................................................695
Asynchronous generating unit data............................................................696
Generating units smaller than 30MW data ................................................696
Power System Design Data Sheet, Power System Setting Data Sheet and Power System Model Guidelines...............................................................696 [Deleted] ....................................................................................................699 [Deleted] ....................................................................................................699
Network and plant technical data of equipment at or near connection
point ...........................................................................................................699
Network Plant and Apparatus Setting Data ...............................................702
Load Characteristics at Connection Point..................................................704

Terms and Conditions of Connection agreements and network
operating agreements ..............................................................................705

S5.5.1
S5.5.2
S5.5.3
S5.5.4
S5.5.5
S5.5.6
S5.5.7

Schedule 5.5.1
Schedule 5.5.2
Schedule 5.5.3

Schedule 5.5.4
Schedule 5.5.5

Schedule 5.6

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Part A

Part B Schedule 5.7
Schedule 5.8

Schedule 5.9

Schedule 5.10

Connection agreements ...........................................................................705

Network Operating Agreements .............................................................706

Annual Forecast Information for Planning Purposes ..........................707

Distribution Annual Planning Report....................................................709

Demand side engagement document (clause 5.13.1(h)) ........................715

Information requirements for Primary Transmission Network Service
Providers (clause 5.2A.5) .........................................................................716

Negotiating principles for negotiated transmission services (clause
5.2A.6) .......................................................................................................720

Negotiating principles for large DCA services ......................................721

Schedule 5.11

Schedule 5.12

5A.

Part A
5A.A.1
5A.A.2
5A.A.3

Part B

Electricity connection for retail customers ..........................723

Preliminary ...............................................................................................725
Definitions .................................................................................................725
Application of this Chapter ........................................................................728
Small Generation Aggregator deemed to be agent of a retail customer ....728

Standardised offers to provide basic and standard connection
services ......................................................................................................729

Basic connection services ........................................................................729
Obligation to have model standing offer to provide basic connection services.......................................................................................................729
Proposed model standing offer for basic connection services ...................729
Approval of terms and conditions of model standing offer to provide basic connection services ....................................................................................730

Standard connection services..................................................................731
Standard connection services.....................................................................731
Approval of model standing offer to provide standard connection services.......................................................................................................732

Miscellaneous ...........................................................................................732
Amendment etc of model standing offer....................................................732
Publication of model standing offers .........................................................733

Negotiated connection .............................................................................733
Negotiation of connection..........................................................................733
Process of negotiation ................................................................................734
Negotiation framework ..............................................................................734
Fee to cover cost of negotiation .................................................................736

Application for connection service .........................................................736

Information ..............................................................................................736
Publication of information .........................................................................736
Register of completed embedded generation projects ...............................737

Preliminary enquiry ................................................................................738
Preliminary enquiry ...................................................................................738

Applications ..............................................................................................739

Division 1
5A.B.1

5A.B.2
5A.B.3

Division 2
5A.B.4
5A.B.5

Division 3
5A.B.6
5A.B.7

Part C
5A.C.1
5A.C.2
5A.C.3
5A.C.4
Part D Division 1
5A.D.1
5A.D.1A

Division 2
5A.D.2

Division 3

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5A.D.3
5A.D.4

Part E
5A.E.1
5A.E.2
5A.E.3
5A.E.4
Part F Division 1
5A.F.1
5A.F.2
5A.F.3

Division 2
5A.F.4

Division 3
5A.F.5

Division 4
5A.F.6
5A.F.7

Part G

Application process....................................................................................739
Site inspection............................................................................................740

Connection charges..................................................................................740
Connection charge principles.....................................................................740
Itemised statement of connection charges .................................................742
Connection charge guidelines ....................................................................742
Payment of connection charges .................................................................744

Formation and integration of connection contracts .............................745

Offer and acceptance – basic and standard connection services .........745
Distribution Network Service Provider's response to application .............745
Acceptance of connection offer .................................................................745
Offer and acceptance—application for expedited connection ...................745

Offer and acceptance – negotiated connection ......................................746
Negotiated connection offer.......................................................................746

Formation of contract..............................................................................746
Acceptance of connection offer .................................................................746

Contractual performance........................................................................747
Carrying out connection work ...................................................................747
Retailer required for energisation where new connection .........................747

Dispute resolution between Distribution Network Service Providers
and customers...........................................................................................747
Relevant disputes .......................................................................................747
Determination of dispute ...........................................................................748
Termination of proceedings .......................................................................748

5A.G.1
5A.G.2
5A.G.3

SCHEDULE 5A.1 – Minimum content requirements for connection contract..............749

Part A

Part B

Connection offer not involving embedded generation..........................749

Connection offer involving embedded generation ................................750

6.

Part A

6.1
6.1.1
6.1.1A
6.1.2
6.1.3
6.1.4

Part B

Economic Regulation of Distribution Services ....................753

Introduction..............................................................................................755

Introduction to Chapter 6 .......................................................................755
AER's regulatory responsibility .................................................................755 [Deleted] ....................................................................................................755
Structure of this Chapter ............................................................................755
Access to direct control services and negotiated distribution services ......756
Prohibition of DUOS charges for the export of energy .............................756

Classification of Distribution Services and Distribution
Determinations .........................................................................................757

Classification ............................................................................................757
Classification of distribution services........................................................757
Classification of direct control services as standard control services or alternative control services ........................................................................757
Term for which classification operates ......................................................758
Distribution Service Classification Guidelines..........................................758

6.2
6.2.1
6.2.2

6.2.3
6.2.3A

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6.2.4
6.2.5
6.2.6
6.2.7
6.2.8

Part C

6.3
6.3.1
6.3.2

6.4
6.4.1
6.4.2
6.4.3
6.4.4
6.4.5

6.4A

6.4B
6.4B.1
6.4B.2

6.5
6.5.1
6.5.2
6.5.3
6.5.4
6.5.5
6.5.6
6.5.7
6.5.8
6.5.8A
6.5.9
6.5.10

6.6
6.6.1
6.6.1A
6.6.2
6.6.3
6.6.3A
6.6.4
6.6.5

6.6A
6.6A.1
6.6A.2

Part D

6.7
6.7.1

Duty of AER to make distribution determinations ....................................759
Control mechanisms for direct control services ........................................759
Basis of control mechanisms for direct control services ...........................760
Negotiated distribution services ................................................................761
Guidelines ..................................................................................................761

Building Block Determinations for standard control services.............762

Building block determinations................................................................762
Introduction................................................................................................762
Contents of building block determination .................................................762

Post-tax revenue model ...........................................................................763
Preparation, publication and amendment of post-tax revenue model........763
Contents of post-tax revenue model ..........................................................763
Building block approach ............................................................................763
Shared assets ..............................................................................................765
Expenditure Forecast Assessment Guidelines ...........................................766

Capital expenditure incentive mechanisms ...........................................766

Asset exemptions ......................................................................................767
Asset exemption decisions and Asset Exemption Guidelines....................767
Exemption applications .............................................................................768

Matters relevant to the making of building block determinations......768
Regulatory asset base.................................................................................768
Return on capital ........................................................................................769
Estimated cost of corporate income tax .....................................................769 [Deleted] ....................................................................................................770
Depreciation...............................................................................................770
Forecast operating expenditure ..................................................................771
Forecast capital expenditure ......................................................................773
Efficiency benefit sharing scheme .............................................................777
Capital expenditure sharing scheme ..........................................................778
The X factor ...............................................................................................779
Pass through events....................................................................................780

Adjustments after making of building block determination................780
Cost pass through.......................................................................................780
Reporting on jurisdictional schemes..........................................................787
Service target performance incentive scheme ...........................................788
Demand management incentive scheme....................................................789
Demand management innovation allowance mechanism ..........................790
Small-scale incentive scheme ....................................................................791
Reopening of distribution determination for capital expenditure ..............792

Contingent Projects .................................................................................795
Acceptance of a contingent project in a distribution determination ..........795
Amendment of distribution determination for contingent project .............797

Negotiated distribution services .............................................................802

Negotiated distribution services .............................................................802
Principles relating to access to negotiated distribution services................802

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6.7.2

Determination of terms and conditions of access for negotiated distribution
services.......................................................................................................804
Negotiating framework determination.......................................................804
Negotiated Distribution Service Criteria determination ............................805
Preparation of and requirements for negotiating framework for negotiated distribution services ...................................................................................805
Confidential information ...........................................................................807

Connection policies ..................................................................................807

Connection policy requirements .............................................................807
Preparation of, and requirements for, connection policy ...........................808

Regulatory proposal and proposed tariff structure statement ............808

Regulatory proposal and proposed tariff structure statement ............808
AER's framework and approach paper ......................................................808
Notification of approach to forecasting expenditure .................................811
Submission of regulatory proposal, tariff structure statement and exemption application ..................................................................................................811

Preliminary examination and consultation ...........................................813
Preliminary examination............................................................................813
Resubmission of proposal ..........................................................................814
Confidential information ...........................................................................814
Consultation ...............................................................................................814

Draft distribution determination and further consultation .................815
Making of draft distribution determination ...............................................815
Publication of draft determination and consultation..................................816
Submission of revised proposal .................................................................816
Submissions on specified matters ..............................................................817

Distribution determination .....................................................................817
Making of distribution determination ........................................................817
Out of scope revised regulatory proposal or late submissions ..................818
Notice of distribution determination..........................................................818
Commencement of distribution determination ..........................................819

Requirements relating to draft and final distribution determinations..........................................................................................819
Constituent decisions .................................................................................819
Reasons for decisions ................................................................................823
Extent of AER's discretion in making distribution determinations ...........823

Revocation and substitution of distribution determination for wrong information or error ................................................................................825

Miscellaneous ...........................................................................................825

Distribution Confidentiality Guidelines ................................................826

Cost Allocation .........................................................................................826

Cost allocation ..........................................................................................826
Duty to comply with Cost Allocation Method...........................................826
Cost Allocation Principles .........................................................................826
Cost Allocation Guidelines ........................................................................827

6.7.3
6.7.4
6.7.5

6.7.6

Part DA

6.7A
6.7A.1

Part E

6.8
6.8.1
6.8.1A
6.8.2

6.9
6.9.1
6.9.2
6.9.2A
6.9.3

6.10
6.10.1
6.10.2
6.10.3
6.10.4

6.11
6.11.1
6.11.1A
6.11.2
6.11.3

6.12

6.12.1
6.12.2
6.12.3

6.13

6.14

6.14A Part F
6.15
6.15.1
6.15.2
6.15.3

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6.15.4

Part G

6.16

Part H

Cost Allocation Method .............................................................................828

Distribution consultation procedures.....................................................829

Distribution consultation procedures.....................................................829

Ring-Fencing Arrangements for Distribution Network Service
Providers ...................................................................................................830

Distribution Ring-Fencing Guidelines ...................................................830
Compliance with Distribution Ring-Fencing Guidelines ..........................830
Development of Distribution Ring-Fencing Guidelines ............................831

Distribution Pricing Rules ......................................................................832

Distribution Pricing Rules ......................................................................832
Application of this Part ..............................................................................832
Tariff structure statement ...........................................................................832
Amending a tariff structure statement with the AER's approval................832
Sub-threshold tariffs ..................................................................................834
Pricing proposals .......................................................................................835
Tariff classes ..............................................................................................836
Principles governing assignment or re-assignment of retail customers to tariff classes and assessment and review of basis of charging...................837
Pricing principles .......................................................................................837
Side constraints on tariffs for standard control services ............................839
Recovery of designated pricing proposal charges .....................................840
Recovery of jurisdictional scheme amounts ..............................................840
Approval of pricing proposal .....................................................................844
Publication of information about tariffs and tariff classes.........................845

Data Required for Distribution Service Pricing ...................................845
Forecast use of networks by Distribution Customers and Embedded
Generators ..................................................................................................845
Confidentiality of distribution network pricing information .....................846

Billing and Settlements ............................................................................846

Billing and Settlements Process ..............................................................846
Billing for distribution services .................................................................846
Minimum information to be provided in distribution network service
bills ............................................................................................................848
Settlement between Distribution Network Service Providers ...................848
Obligation to pay .......................................................................................848

Prudential requirements, capital contributions and prepayments .....848

Distribution Network Service Provider Prudential Requirements .....848
Prudential requirements for distribution network service .........................849
Capital contributions, prepayments and financial guarantees ...................849
Treatment of past prepayments and capital contributions .........................850

Dispute resolution ....................................................................................850

Dispute Resolution ...................................................................................850
Dispute Resolution by the AER .................................................................850
Determination of dispute ...........................................................................850
Termination of access dispute without access determination ....................852

6.17
6.17.1
6.17.2

Part I

6.18
6.18.1
6.18.1A
6.18.1B
6.18.1C
6.18.2
6.18.3
6.18.4

6.18.5
6.18.6
6.18.7
6.18.7A
6.18.8
6.18.9

6.19.
6.19.1

6.19.2

Part J

6.20
6.20.1
6.20.2

6.20.3
6.20.4

Part K

6.21
6.21.1
6.21.2
6.21.3

Part L

6.22
6.22.1
6.22.2
6.22.3

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Part M

6.23

Part N

6.24
6.24.1
6.24.2

6.25

Separate disclosure of transmission and distribution charges ............852

Separate disclosure of transmission and distribution charges ............852

Dual Function Assets ...............................................................................853

Dual Function Assets ...............................................................................853
Application of this Part ..............................................................................853
Dual Function Assets .................................................................................853

AER determination of applicable pricing regime for Dual Function
Assets.........................................................................................................854

Division of Distribution Network Service Provider's revenue.............854

Annual Benchmarking Report................................................................856

Annual Benchmarking Report................................................................856

Distribution Reliability Measures Guidelines .......................................856

Distribution Reliability Measures Guidelines .......................................856

Contents of building block proposals.....................................................856
Information and matters relating to capital expenditure ............................856
Information and matters relating to operating expenditure .......................857
Additional information and matters ...........................................................858

Regulatory Asset Base .............................................................................861
Establishment of opening regulatory asset base for a regulatory control period .........................................................................................................861
Prudency and efficiency of capital expenditure.........................................865
Reduction for inefficient past capital expenditure .....................................865
Depreciation...............................................................................................867
Roll forward of regulatory asset base within the same regulatory control period .........................................................................................................868

6.26

Part O

6.27

Part P

6.28

Schedule 6.1
S6.1.1
S6.1.2
S6.1.3

Schedule 6.2
S6.2.1

S6.2.2
S6.2.2A S6.2.2B S6.2.3

6A.

Part A

6A.1
6A.1.1
6A.1.2
6A.1.3
6A.1.4
6A.1.5
6A.1.6

Economic Regulation of Transmission Services ..................871

Introduction..............................................................................................873

Introduction to Chapter 6A ....................................................................873
Economic regulation of transmission services generally...........................873 [Deleted] ....................................................................................................874 [Deleted] ....................................................................................................874
National regulatory arrangements..............................................................874
Application of Chapter 6A to Market Network Service Providers ............874
Application of Chapter 6A to AEMO and declared transmission system operators.....................................................................................................874

Transmission Determinations Generally ...............................................875

Transmission determinations ..................................................................875
Duty of AER to make transmission determinations ..................................875
Components of transmission determinations .............................................875
Guidelines ..................................................................................................875

Regulation of Revenue - Prescribed Transmission Services ................876

Allowed revenue from prescribed transmission services .....................876

Part B

6A.2
6A.2.1
6A.2.2
6A.2.3

Part C

6A.3

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6A.3.1
6A.3.2

6A.4
6A.4.1
6A.4.2

6A.5
6A.5.1
6A.5.2
6A.5.3
6A.5.4
6A.5.5
6A.5.6

6A.5A

6A.6
6A.6.1
6A.6.2
6A.6.3
6A.6.4
6A.6.5
6A.6.5A
6A.6.6
6A.6.7
6A.6.8
6A.6.9

6A.7

Allowed revenue for regulatory year .........................................................876
Adjustment of maximum allowed revenue ................................................876

Revenue determinations ..........................................................................876
Introduction................................................................................................876
Contents of revenue determination ............................................................877

Post-tax revenue model ...........................................................................878
Introduction................................................................................................878
Preparation, publication and amendment of post-tax revenue model........878
Contents of post-tax revenue model ..........................................................878
Building blocks approach ..........................................................................879
Shared assets ..............................................................................................880
Expenditure Forecast Assessment Guidelines ...........................................881

Capital expenditure incentive mechanisms ...........................................882

Matters relevant to the making of revenue determinations.................882
Regulatory asset base.................................................................................882
Return on capital ........................................................................................883
Depreciation...............................................................................................884
Estimated cost of corporate income tax .....................................................885
Efficiency benefit sharing scheme .............................................................885
Capital expenditure sharing scheme ..........................................................886
Forecast operating expenditure ..................................................................887
Forecast capital expenditure ......................................................................890
The X factor ...............................................................................................894
Pass through events....................................................................................894

Matters relevant to the adjustment of revenue cap after making of revenue determination.............................................................................895
Reopening of revenue determination for capital expenditure....................895
Network support pass through ...................................................................897
Cost pass through.......................................................................................899
Service target performance incentive scheme ...........................................905
Small-scale incentive scheme ....................................................................906

Contingent Projects .................................................................................907
Acceptance of a Contingent Project in a revenue determination ...............907
Amendment of revenue determination for contingent project ...................908

[Deleted] ....................................................................................................913

Procedure - Revenue determinations and pricing methodologies .......913

Revenue Proposal and proposed pricing methodology ........................913
AER's framework and approach paper ......................................................913
Notification of approach to forecasting expenditure .................................915
Submission of proposal, pricing methodology and information ...............915 [Deleted] ....................................................................................................917

Preliminary examination and consultation ...........................................917
Preliminary examination and determination of non-compliance with
relevant requirements.................................................................................917
Resubmission of proposal, framework, pricing methodology or information.................................................................................................917

6A.7.1
6A.7.2
6A.7.3
6A.7.4
6A.7.5

6A.8
6A.8.1
6A.8.2

Part D Part E
6A.10
6A.10.1A
6A.10.1B
6A.10.1
6A.10.2

6A.11
6A.11.1

6A.11.2

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6A.11.2A
6A.11.3

6A.12
6A.12.1
6A.12.2
6A.12.3
6A.12.4

6A.13
6A.13.1
6A.13.2
6A.13.2A
6A.13.3
6A.13.4

6A.14
6A.14.1
6A.14.2
6A.14.3

6A.15

Confidential information ...........................................................................918
Consultation ...............................................................................................918

Draft decision and further consultation.................................................919
Making of draft decision............................................................................919
Publication of draft decision and consultation...........................................920
Submission of revised proposal or pricing methodology ..........................920
Submissions on specified matters ..............................................................921

Final decision............................................................................................921
Making of final decision ............................................................................921
Refusal to approve amounts, values, framework or pricing methodology 922
Out of scope revised documents or late submissions ................................923
Notice of final decision..............................................................................923
Making of transmission determination ......................................................924

Requirements relating to draft and final decisions...............................924
Contents of decisions .................................................................................924
Reasons for decisions ................................................................................926
Circumstances in which matters must be approved or accepted ...............926

Revocation of revenue determination or amendment of pricing methodology for wrong information or error .......................................929

Miscellaneous ...........................................................................................929

Transmission Confidentiality Guidelines...............................................930

Information Disclosure ............................................................................930

Information disclosure by Transmission Network Service Providers.930
Information to be provided to AER ...........................................................930
Information Guidelines ..............................................................................931

[Deleted] ....................................................................................................933

Cost Allocation .........................................................................................933

Cost allocation ..........................................................................................933
Duty to comply with Cost Allocation Methodology..................................933
Cost Allocation Principles .........................................................................933
Cost Allocation Guidelines ........................................................................934
Cost Allocation Methodology ....................................................................934

Transmission Consultation Procedures .................................................936

Transmission consultation procedures...................................................936

Ring-Fencing Arrangements for Transmission Network Service
Providers ...................................................................................................937

Transmission Ring-Fencing Guidelines .................................................937
Compliance with Transmission Ring-Fencing Guidelines ........................937
Development of Transmission Ring-Fencing Guidelines ..........................937

Prescribed Transmission Services - Regulation of Pricing ..................939

Terms used in Part J ................................................................................939
Aggregate annual revenue requirement (AARR) ......................................939
Annual service revenue requirement (ASRR) ...........................................939

6A.16

6A.16A Part F
6A.17
6A.17.1
6A.17.2

6A.18

Part G

6A.19
6A.19.1
6A.19.2
6A.19.3
6A.19.4

Part H

6A.20

Part I

6A.21
6A.21.1
6A.21.2

Part J

6A.22
6A.22.1
6A.22.2

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6A.22.3
6A.22.4

6A.23
6A.23.1
6A.23.2

Meaning of attributable cost share.............................................................939
Meaning of attributable connection point cost share .................................939

Pricing Principles for Prescribed Transmission Services.....................940
Introduction................................................................................................940
Principles for the allocation of the aggregate annual revenue
requirement ................................................................................................940
Principles for the allocation of the annual service revenue requirement to connection points .......................................................................................941
Principles for the recovery of the Annual Service Revenue Requirement as prices ..........................................................................................................943

Pricing methodology ................................................................................945
Pricing methodologies generally ...............................................................945
Publication of pricing methodology and transmission network prices......946
Basis for setting prices pending approval of pricing methodology ...........947
Basis for setting prices pending approval of maximum allowed revenue .947

Pricing methodology guidelines for prescribed transmission services948
Making and amending of pricing methodology guidelines .......................948
Contents of pricing methodology guidelines .............................................948

Prudent discounts ....................................................................................950
Agreements for prudent discounts for prescribed transmission services ...950
Application to AER for approval of proposed prudent discount amounts .951

Billing Process ..........................................................................................952
Billing for prescribed transmission services ..............................................952
Billing of modified load export charges ....................................................953
Minimum information to be provided in network service bills .................953
Obligation to pay charges for prescribed transmission services ................953
Payments between Transmission Network Service Providers in the same region .........................................................................................................953
Calculation of financial transfers between Transmission Network Service
Providers in the same region......................................................................954

Prudential Requirements ........................................................................954
Prudential Requirements for prescribed transmission services .................954
Capital contribution or prepayment for a specific asset ............................954
Treatment of past capital contributions......................................................954

Multiple Transmission Network Service Providers ..............................955
Multiple Transmission Network Service Providers within a region..........955
Single Transmission Network Service Provider within a region ...............956
Allocation over several regions .................................................................956

Modified load export charges .................................................................956
Single Transmission Network Service Provider in a Region.....................956
Calculation of the modified load export charges ......................................956
Calculation of adjustments to the modified load export charge ................957
Billing the modified load export charge ....................................................957
Allocation and billing process where multiple Transmission Network
Service Providers in a Region....................................................................958

6A.23.3

6A.23.4

6A.24
6A.24.1
6A.24.2
6A.24.3
6A.24.4

6A.25
6A.25.1
6A.25.2

6A.26
6A.26.1
6A.26.2

6A.27
6A.27.1
6A.27.1A
6A.27.2
6A.27.3
6A.27.4

6A.27.5

6A.28
6A.28.1
6A.28.2
6A.28.3

6A.29
6A.29.1
6A.29.2
6A.29.3

6A.29A
6A.29A.1
6A.29A.2
6A.29A.3
6A.29A.4
6A.29A.5

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Part K

Commercial arbitration for disputes about terms and conditions of
access for prescribed and negotiated transmission services ................958

958

Annual Benchmarking Report................................................................958

Annual Benchmarking Report................................................................958

Contents of Revenue Proposals ..............................................................959
Information and matters relating to capital expenditure ............................959
Information and matters relating to operating expenditure .......................960
Additional information and matters ...........................................................961

Regulatory Asset Base .............................................................................963
Establishment of opening regulatory asset base for a regulatory control period .........................................................................................................963
Prudency and efficiency of capital expenditure.........................................967
Reduction for inefficient past capital expenditure .....................................968
Depreciation...............................................................................................970
Removal of assets from regulatory asset base ...........................................971
Roll forward of regulatory asset base within the same regulatory control period .........................................................................................................972

CRNP methodology and modified CRNP methodology .......................973
Meaning of optimised replacement cost ....................................................973
CRNP methodology ...................................................................................973
Modified CRNP methodology ...................................................................974

Application of this Chapter to AEMO and declared transmission
system operators ......................................................................................974
Application of this Chapter to AEMO etc..................................................974
Exclusions, qualifications and modifications ............................................975

[Deleted]

Part L

6A.31

Schedule 6A.1
S6A.1.1
S6A.1.2
S6A.1.3

Schedule 6A.2
S6A.2.1

S6A.2.2
S6A.2.2A S6A.2.2B S6A.2.3
S6A.2.4

Schedule 6A.3
S6A.3.1
S6A.3.2
S6A.3.3

Schedule 6A.4

S6A.4.1
S6A.4.2

6B.
Part A Division 1
6B.A1.1
6B.A1.2

Division 2
6B.A2.1
6B.A2.2
6B.A2.3
6B.A2.4
6B.A2.5

Division 3
6B.A3.1
6B.A3.2
6B.A3.3
6B.A3.4
6B.A3.5

Part B

Retail markets.........................................................................983

Retail support ...........................................................................................985

Application and definitions .....................................................................985
Application of this Part ..............................................................................985
Definitions  ..............................................................................................985

Billing and payment rules .......................................................................985
Obligation to pay .......................................................................................985
Direct customer billing and energy-only contracts ....................................986
Calculating network charges......................................................................986
Statement of charges ..................................................................................986
Time and manner of payment ....................................................................987

Matters incidental to billing and payment ............................................987
Adjustment of network charges .................................................................987
Tariff reassignment ....................................................................................987
Disputed statements of charges..................................................................988
Interest .......................................................................................................989
Notification of changes to charges.............................................................989

Credit support required for late payment .............................................990

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Division 1
6B.B1.1
6B.B1.2

Division 2
6B.B2.1

Application and definitions .....................................................................990
Application of Part B .................................................................................990
Definitions .................................................................................................990

Requirements for credit support ............................................................990
Distribution Network Service Provider may require credit support in limited circumstances.............................................................................................990

Provision of credit support by retailers .................................................991
Retailer to provide credit support ..............................................................991
Acceptable form of credit support .............................................................991

Other Rules relating to credit support ...................................................992
Application of credit support .....................................................................992
Return of credit support .............................................................................992
Other retailer obligations ...........................................................................992

Prescribed form of unconditional undertaking for credit support .....993

Division 3
6B.B3.1
6B.B3.2

Division 4
6B.B4.1
6B.B4.2
6B.B4.3

Schedule 6B.1

7.

Part A

7.1
7.1.1

Part B

7.2

Metering ..................................................................................995

Introduction..............................................................................................997

Introduction to the Metering Chapter ...................................................997
Contents .....................................................................................................997

Roles and Responsibilities .......................................................................997

Role and Responsibility of financially responsible Market
Participant ................................................................................................997
Obligations of financially responsible Market Participants to establish metering installations .................................................................................997 [Not used] ..................................................................................................998
Agreements with Local Network Service Provider ...................................998 [Not used] ..................................................................................................998
Agreements with Metering Provider..........................................................998

Role and Responsibility of Metering Coordinator ...............................998
Responsibility of the Metering Coordinator ..............................................998
Role of the Metering Coordinator..............................................................999

Qualification and Registration of Metering Providers, Metering Data
Providers and Embedded Network Managers ....................................1003
Qualifications and registration of Metering Providers ............................1003
Qualifications and registration of Metering Data Providers ....................1003
Qualifications and registration of Embedded Network Managers ..........1004
List of Embedded Network Managers .....................................................1004
Nature of appointment of Metering Provider or Metering Data
Provider....................................................................................................1004
Deregistration of Metering Providers, Metering Data Providers and
Embedded Network Managers.................................................................1005

Role and Responsibility of AEMO .......................................................1006

Responsibility of AEMO for the collection, processing and delivery of metering data..........................................................................................1006

AEMO's costs in connection with metering installation ....................1007

7.2.1

7.2.2
7.2.3
7.2.4
7.2.5

7.3
7.3.1
7.3.2

7.4

7.4.1
7.4.2
7.4.2A
7.4.2B
7.4.3

7.4.4

7.5

7.5.1

7.5.2

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7.5A
7.5A.1

Role and Responsibility of Embedded Network Managers ...............1007
Responsibility of Embedded Network Managers for management services.....................................................................................................1007
EN information ........................................................................................1008

Appointment of Metering Coordinator ...............................................1008

Appointment of Metering Coordinator ...............................................1008
Commercial nature of the Metering Coordinator appointment and service provision ..................................................................................................1008
Persons who may appoint Metering Coordinators...................................1009
Appointment with respect to transmission network connection ..............1009
Type 7 metering installations ...................................................................1010

Metering Coordinator default arrangements ......................................1011
Obligations of financially responsible Market Participants on Metering
Coordinator default event and end of contract term ................................1011
Notices to be provided by Metering Coordinator ....................................1012
AEMO may issue breach notice ..............................................................1012

Metering installation .............................................................................1013

Metering installation arrangements.....................................................1013
Metering installation requirements ..........................................................1013
Metering installation components............................................................1014
Small customer metering installations .....................................................1018
Type 4A metering installation ..................................................................1018
Emergency management ..........................................................................1020
Network devices ......................................................................................1021
Metering point .........................................................................................1024
Metering installation types and accuracy ................................................1024
Meter churn..............................................................................................1025
Metering installation malfunctions ..........................................................1026
Timeframes for meters to be installed – new connection ........................1027
Timeframes for meters to be installed – where a connection service is not required ....................................................................................................1028
Timeframes for meters to be installed – where a connection alteration is required ....................................................................................................1028
Changes to metering equipment, parameters and settings within a metering installation................................................................................................1030
Special site or technology related conditions ..........................................1030
Joint metering installations ......................................................................1031

Inspection, Testing and Audit of Metering installations.....................1032
Responsibility for testing .........................................................................1032
Actions in event of non-compliance ........................................................1034
Audits of information held in metering installations ...............................1034
Errors found in metering tests, inspections or audits...............................1035
Retention of test records and documents .................................................1036
Metering installation registration process................................................1037

Metering Data ........................................................................................1037

Metering Data Services .........................................................................1037
Metering Data Services............................................................................1037

7.5A.2

Part C

7.6
7.6.1

7.6.2
7.6.3
7.6.4

7.7
7.7.1

7.7.2
7.7.3

Part D

7.8
7.8.1
7.8.2
7.8.3
7.8.4
7.8.5
7.8.6
7.8.7
7.8.8
7.8.9
7.8.10
7.8.10A
7.8.10B

7.8.10C

7.8.11

7.8.12
7.8.13

7.9
7.9.1
7.9.2
7.9.3
7.9.4
7.9.5
7.9.6

Part E

7.10
7.10.1

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7.10.2
7.10.3
7.10.4
7.10.5
7.10.6
7.10.7

7.11
7.11.1
7.11.2
7.11.3

7.12
7.12.1
7.12.2

7.13
7.13.1
7.13.2
7.13.3

7.14

Part F

7.15
7.15.1
7.15.2
7.15.3
7.15.4
7.15.5

Part G

7.16
7.16.1
7.16.2
7.16.3
7.16.4
7.16.5
7.16.6
7.16.6A
7.16.6B
7.16.7
7.16.8

Part H

7.17
7.17.1
7.17.2
7.17.3
7.17.4
7.17.5
7.17.6
7.17.7

Data management and storage .................................................................1038
Provision of metering data to certain persons..........................................1039
Use of check metering data......................................................................1040
Periodic energy metering .........................................................................1040
Time settings ............................................................................................1041
Metering data performance standards......................................................1041

Metering data and database .................................................................1043
Metering database ....................................................................................1043
Data validation, substitution and estimation............................................1044
Changes to energy data or to metering data.............................................1044

Register of Metering Information ........................................................1045
Metering register......................................................................................1045
Metering register discrepancy..................................................................1045

Disclosure of NMI information.............................................................1045
Application of this Rule ...........................................................................1045
NMI and NMI checksum .........................................................................1045
NMI Standing Data ..................................................................................1046

Metering data provision to retail customers .......................................1046

Security of metering installation and energy data ..............................1047

Security of metering installation and energy data ..............................1047
Confidentiality .........................................................................................1047
Security of metering installations ............................................................1047
Security controls for energy data .............................................................1048
Additional security controls for small customer metering installations ..1049
Access to data ..........................................................................................1050

Procedures ..............................................................................................1052

Procedures ..............................................................................................1052
Obligation to establish, maintain and publish procedures .......................1052
Market Settlement and Transfer Solution Procedures .............................1053
Requirements of the metrology procedure ..............................................1053
Jurisdictional metrology material in metrology procedure......................1054
Additional metrology procedure matters .................................................1056
Requirements of the service level procedures .........................................1057
Requirements of the ENM service level procedures ...............................1058
Guide to embedded networks ..................................................................1059
Amendment of procedures in the Metering Chapter................................1059
National Measurement Act ......................................................................1060

B2B Requirements .................................................................................1061

B2B Arrangements.................................................................................1061
B2B e-Hub ...............................................................................................1061
B2B e-Hub Participants ...........................................................................1061
Content of the B2B Procedures ...............................................................1062
Changing B2B Procedures.......................................................................1063
B2B Decision ...........................................................................................1065
Establishment of Information Exchange Committee...............................1066
Functions and powers of Information Exchange Committee ..................1067

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7.17.8
7.17.9
7.17.10
7.17.11
7.17.12

Obligations of Members ..........................................................................1068
Meetings of Information Exchange Committee ......................................1069
Nomination, election and appointment of Members ...............................1069
Qualifications of Members ......................................................................1070
Information Exchange Committee Election Procedures and Information
Exchange Committee Operating Manual.................................................1071
Cost Recovery..........................................................................................1072

Metering register....................................................................................1072
General.....................................................................................................1072
Metering register information ..................................................................1073

Metering Provider..................................................................................1074
General.....................................................................................................1074
Categories of registration.........................................................................1074
Capabilities of Metering Providers for metering installations types 1, 2, 3, 4 and 4A......................................................................................................1076
Capabilities of Metering Providers for metering installations types 5 and
6 ...............................................................................................................1078
Capabilities of Metering Providers for small customer metering
installations ..............................................................................................1078
Capabilities of the Accredited Service Provider category .......................1079

Metering Data Provider ........................................................................1079
General.....................................................................................................1079
Categories of registration.........................................................................1079
Capabilities of Metering Data Providers .................................................1080
Capabilities of Metering Data Providers for small customer metering installations ..............................................................................................1082

Types and Accuracy of Metering installations ....................................1082
General requirements ...............................................................................1082
Metering installations commissioned prior to 13 December 1998 ..........1082
Accuracy requirements for metering installations ...................................1083
Check metering ........................................................................................1088
Resolution and accuracy of displayed or captured data...........................1089
General design standards .........................................................................1089
Design requirements ................................................................................1089
Design guidelines.....................................................................................1090

Requirements of minimum services specification ...............................1090
Minimum services specification ..............................................................1090

Inspection and Testing Requirements ..................................................1094
General.....................................................................................................1094
Technical Guidelines................................................................................1096

Embedded Network Managers .............................................................1096
General.....................................................................................................1096
Capabilities of Embedded Network Managers ........................................1097

7.17.13

Schedule 7.1
S7.1.1
S7.1.2

Schedule 7.2
S7.2.1
S7.2.2
S7.2.3

S7.2.4

S7.2.5

S7.2.6

Schedule 7.3
S7.3.1
S7.3.2
S7.3.3
S7.3.4

Schedule 7.4
S7.4.1
S7.4.2
S7.4.3
S7.4.4
S7.4.5
S7.4.6
S7.4.6.1
S7.4.6.2

Schedule 7.5
S7.5.1

Schedule 7.6
S7.6.1
S7.6.2

Schedule 7.7
S7.7.1
S7.7.2

8.

Part A

Administrative Functions ....................................................1099

Introductory ...........................................................................................1101

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8.1
8.1.1
8.1.2
8.1.3

Part B

8.2
8.2.1
8.2.2
8.2.3
8.2.4
8.2.5
8.2.6A
8.2.6B
8.2.6C
8.2.6D
8.2.6
8.2.7
8.2.8
8.2.9
8.2.10
8.2.11
8.2.12

8.2A
8.2A.1
8.2A.2

8.3

8.4

8.5

Part C

8.6
8.6.1
8.6.1A
8.6.2
8.6.3
8.6.4
8.6.5
8.6.6
8.6.7

Part D

8.7
8.7.1
8.7.2

Administrative functions .......................................................................1101
[Deleted] ..................................................................................................1101 [Deleted] ..................................................................................................1101
Structure of this Chapter ..........................................................................1101

Disputes ...................................................................................................1101

Dispute Resolution .................................................................................1101
Application and guiding principles ..........................................................1101
The Dispute Resolution Adviser ..............................................................1104
Dispute management systems of Registered Participants and AEMO ....1105
Stage 1 - dispute resolution through Registered Participants' DMS ........1106
Stage 2 - dispute resolution process.........................................................1108
Establishment of Dispute Resolution Panel .............................................1109
Parties to DRP Proceedings .....................................................................1110
Proceedings of the DRP ...........................................................................1111
Decisions of the DRP ...............................................................................1111 [Deleted]...................................................................................................1112
Legal representation .................................................................................1112
Cost of dispute resolution ........................................................................1112
Effect of resolution...................................................................................1113
Recording and publication .......................................................................1113
Appeals on questions of law.....................................................................1114 [Deleted]...................................................................................................1114

B2B Determination Disputes .................................................................1114
Application of rule 8.2 .............................................................................1114
How rule 8.2 applies ................................................................................1114

Power to make Electricity Procedures .................................................1116 [Deleted] ..................................................................................................1117 [Deleted] ..................................................................................................1117
Registered Participants' confidentiality obligations ...........................1117

Confidentiality ........................................................................................1117
Confidentiality .........................................................................................1117
Application ...............................................................................................1118
Exceptions ................................................................................................1118
Conditions ................................................................................................1119 [Deleted] ..................................................................................................1120
Indemnity to AER, AEMC and AEMO ...................................................1120
AEMO information ..................................................................................1120
Information on Rules Bodies ...................................................................1120

Monitoring and reporting .....................................................................1120

Monitoring and Reporting ....................................................................1120
Monitoring ...............................................................................................1120
Reporting requirements and monitoring standards for Registered
Participants and AEMO ...........................................................................1121
Consultation required for making general regulatory information order
(Section 28H of the NEL) ........................................................................1123

8.7.3

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8.7.4

Preparation of network service provider performance report (Section 28V of
the NEL)...................................................................................................1124 [Deleted] ..................................................................................................1124
Recovery of reporting costs .....................................................................1124

Reliability panel .....................................................................................1125

Reliability Panel .....................................................................................1125
Purpose of Reliability Panel ....................................................................1125
Constitution of the Reliability Panel........................................................1127
Reliability Panel review process ..............................................................1129
Determination of protected events ...........................................................1131

Rules consultation procedures ..............................................................1133

Rules Consultation Procedures .............................................................1133

Consumer advocacy funding.................................................................1135

Consumer advocacy funding obligation...............................................1135

Augmentations ........................................................................................1136

Augmentations ........................................................................................1136
Application ...............................................................................................1136
Object .......................................................................................................1136
Definitions ...............................................................................................1136
Planning criteria .......................................................................................1137
Construction of augmentation that is not a contestable augmentation ....1137
Contestable augmentations ......................................................................1138
Construction and operation of contestable augmentation ........................1138
Funded augmentations that are not subject to the tender process ............1140
Contractual requirements and principles .................................................1141
Annual planning review ...........................................................................1141

Principles to be reflected in agreements relating to contestable augmentations ........................................................................................1141
Risk allocation .........................................................................................1141
Minimum requirements for agreements relating to contestable
augmentation ............................................................................................1143
Matters to be dealt with in relevant agreements ......................................1143

Values of customer reliability ................................................................1143

Development of methodology and publication of values of customer reliability .................................................................................................1143

8.7.5
8.7.6

Part E

8.8
8.8.1
8.8.2
8.8.3
8.8.4

Part F

8.9

Part G

8.10

Part H

8.11
8.11.1
8.11.2
8.11.3
8.11.4
8.11.5
8.11.6
8.11.7
8.11.8
8.11.9
8.11.10

Schedule 8.11

S8.11.1
S8.11.2

S8.11.3

Part I

8.12

8A.

Part 1

8A.1

Part 2

8A.2
8A.2A Part 3

Participant Derogations .......................................................1147

Derogations Granted to TransGrid ......................................................1149 [Deleted] ..................................................................................................1149
Derogations Granted to EnergyAustralia ............................................1149 [Deleted] ..................................................................................................1149 [Deleted] ..................................................................................................1149
[Deleted] ..................................................................................................1149

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Part 4

Part 5

Part 6

Part 7

Part 8

Part 9

Part 10

Part 11

Part 12

Part 13

8A.13

Part 14

[Deleted] ..................................................................................................1149

[Deleted] ..................................................................................................1149

Derogations Granted to Victorian Market Participants ....................1149 [Deleted] ..................................................................................................1150 [Deleted] ..................................................................................................1150 [Deleted] ..................................................................................................1150 [Deleted] ..................................................................................................1150 [Deleted] ..................................................................................................1150 [Deleted] ..................................................................................................1150
Derogation granted to Aurora Energy (Tamar Valley) Pty Ltd.........1150 [Deleted] ..................................................................................................1150
Derogations granted to Ausgrid, Endeavour Energy and Essential
Energy .....................................................................................................1150

Derogations from Chapter 6 for the current regulatory control period and subsequent regulatory control period ...........................................1150
Definitions ...............................................................................................1150
Expiry date ...............................................................................................1154
Application of Rule 8A.14 .......................................................................1154
Recovery of revenue across the current regulatory control period and subsequent regulatory control period .......................................................1155
Recovery of revenue in subsequent regulatory control period only and no reopening of subsequent distribution determination required .................1156
Recovery of revenue in subsequent regulatory control period only and reopening of distribution determination is required.................................1157
Requirements for adjustment determination ............................................1159
Application of Chapter 6 under participant derogation............................1159

Derogations granted to ActewAGL ......................................................1161

Derogations from Chapter 6 for the current regulatory control period and subsequent regulatory control period ...........................................1161
Definitions ...............................................................................................1161
Expiry date ...............................................................................................1164
Application of Rule 8A.15 .......................................................................1164
Recovery of revenue across the current regulatory control period and subsequent regulatory control period .......................................................1165
Recovery of revenue in subsequent regulatory control period only and no reopening of subsequent distribution determination required .................1167
Recovery of revenue in subsequent regulatory control period only and reopening of distribution determination is required.................................1168
Requirements for adjustment determination ............................................1170
Application of Chapter 6 under participant derogation............................1170

8A.14

8A.14.1
8A.14.2
8A.14.3
8A.14.4

8A.14.5

8A.14.6

8A.14.7
8A.14.8

Part 15

8A.15

8A.15.1
8A.15.2
8A.15.3
8A.15.4

8A.15.5

8A.15.6

8A.15.7
8A.15.8

9.

Jurisdictional Derogations and Transitional
Arrangements........................................................................1173

Purpose and Application .......................................................................1175

9.1

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9.1.1
9.1.2

Part A

9.2

9.3
9.3.1
9.3.2

9.3A

9.4

Purpose.....................................................................................................1175
Jurisdictional Derogations .......................................................................1175

Jurisdictional Derogations for Victoria................................................1175 [Deleted] ..................................................................................................1175
Definitions ...............................................................................................1175
General Definitions ..................................................................................1175 [Deleted] ..................................................................................................1177

Fault levels ..............................................................................................1177

Transitional Arrangements for Chapter 2 - Registered Participants, Registration and Cross Border Networks ............................................1177 [Deleted] ..................................................................................................1177
Smelter Trader..........................................................................................1177
Smelter Trader: compliance .....................................................................1178
Report from AER .....................................................................................1181
Cross Border Networks............................................................................1181

[Deleted] ..................................................................................................1182

Transitional Arrangements for Chapter 4 - System Security ............1182
Operating Procedures (clause 4.10.1) ......................................................1182
Nomenclature Standards (clause 4.12) ....................................................1182

Transitional Arrangements for Chapter 5 - Network Connection ....1182 [Deleted] ..................................................................................................1182 [Deleted] ..................................................................................................1182 [Deleted] ..................................................................................................1182
Regulation of Distribution Network Connection .....................................1182
[Deleted] ..................................................................................................1183 [Deleted] ..................................................................................................1183 [Deleted] ..................................................................................................1183

Transitional Arrangements for Chapter 6 - Network Pricing............1183 [Deleted] ..................................................................................................1183 [Deleted] ..................................................................................................1183 [Deleted] ..................................................................................................1183
Transmission Network Pricing.................................................................1183
[Deleted] ..................................................................................................1185 [Deleted] ..................................................................................................1185 [Deleted] ..................................................................................................1185 [Deleted] ..................................................................................................1185 [Deleted] ..................................................................................................1185 [Deleted] ..................................................................................................1185 [Deleted] ..................................................................................................1185 [Deleted] ..................................................................................................1185 [Deleted] ..................................................................................................1185
Distribution network pricing – transitional application of former Chapter
6................................................................................................................1185
Exclusion of AER's power to aggregate distribution systems and parts of distribution systems .................................................................................1186

Transitional Arrangements for Chapter 7 - Metering ........................1186

9.4.1
9.4.2
9.4.3
9.4.4
9.4.5

9.5

9.6
9.6.1
9.6.2

9.7
9.7.1
9.7.2
9.7.3
9.7.4
9.7.5
9.7.6
9.7.7

9.8
9.8.1
9.8.2
9.8.3
9.8.4
9.8.4A
9.8.4B
9.8.4C
9.8.4D
9.8.4E
9.8.4F
9.8.4G
9.8.5
9.8.6
9.8.7

9.8.8

9.9

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NATIONAL ELECTRICITY RULES
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9.9.1
9.9.2
9.9.3
9.9.4
9.9.5
9.9.6
9.9.7
9.9.8
9.9.9
9.9.10

9.9A

9.9B

9.9C

Schedule 9A1.1

Schedule 9A1.2

Schedule 9A1.3

Schedule 9A2

Schedule 9A3
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.

Part B

9.10

9.11
9.11.1

9.12

Metering Installations To Which This Schedule Applies.........................1186
[Deleted] ..................................................................................................1187 [Deleted] ..................................................................................................1187 [Deleted] ..................................................................................................1187 [Deleted] ..................................................................................................1187 [Deleted] ..................................................................................................1187 [Deleted] ..................................................................................................1187 [Deleted] ..................................................................................................1187
Periodic Energy Metering (clause 7.9.3) .................................................1187
Use of Alternate Technologies (clause 7.13) ...........................................1187 [Deleted] ..................................................................................................1188 [Deleted] ..................................................................................................1188 [Deleted] ..................................................................................................1188 [Deleted] ..................................................................................................1188 [Deleted] ..................................................................................................1188 [Deleted] ..................................................................................................1188 [Deleted] ..................................................................................................1188
Jurisdictional Derogations Granted to Generators ............................1188
Interpretation of tables .............................................................................1188
Continuing effect .....................................................................................1188
Subsequent agreement .............................................................................1189 [Deleted] ..................................................................................................1189
Reactive Power Capability (clause S5.2.5.1 of schedule 5.2) .................1189 [Deleted] ..................................................................................................1190 [Deleted] ..................................................................................................1190 [Deleted] ..................................................................................................1190 [Deleted] ..................................................................................................1190 [Deleted] ..................................................................................................1190 [Deleted....................................................................................................1190 [Deleted] ..................................................................................................1190
Governor Systems (load control) (clause S5.2.5.11 of schedule 5.2) ......1190 [Deleted] ..................................................................................................1190 [Deleted] ..................................................................................................1190
Excitation Control System (clause S5.2.5.13 of schedule 5.2) ................1190

Jurisdictional Derogations for New South Wales................................1191 [Deleted] ..................................................................................................1191
Definitions ...............................................................................................1191
Definitions used in this Part B .................................................................1191

Transitional Arrangements for Chapter 2 - Generators, Registered Participants, Registration and Cross Border Networks .....................1192 [Deleted] ..................................................................................................1192
Customers ................................................................................................1192
Power Traders ..........................................................................................1192
Cross Border Networks............................................................................1195

[Deleted] ..................................................................................................1196

9.12.1
9.12.2
9.12.3
9.12.4

9.13

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9.14
9.14.1

9.15
9.15.1
9.15.2

9.16
9.16.1
9.16.2
9.16.3
9.16.4
9.16.5

9.17
9.17.1
9.17.2
9.17.3
9.17.4

9.17A

9.18

Part C

9.19

9.20

Transitional Arrangements for Chapter 4 - System Security ............1196
Power System Operating Procedures.......................................................1196

NSW contestable services for Chapter 5A ...........................................1196
Definitions ...............................................................................................1196
Chapter 5A not to apply to certain contestable services ..........................1196

Transitional Arrangements for Chapter 6 - Network Pricing............1196
NSW contestable services ........................................................................1196 [Deleted] ..................................................................................................1196
Jurisdictional Regulator ...........................................................................1196
Deemed Regulated Interconnector...........................................................1197 [Deleted] ..................................................................................................1197

Transitional Arrangements for Chapter 7 - Metering ........................1197
Extent of Derogations ..............................................................................1197
Initial Registration (clause 7.1.2).............................................................1197
Amendments to Schedule 9G1.................................................................1197
Compliance with AS/NZ ISO 9002 (clause S7.4.3(f) of schedule 7.4) ...1198 [Deleted] ..................................................................................................1198 [Deleted] ..................................................................................................1198
Jurisdictional Derogations for the Australian Capital Territory.......1198 [Deleted] ..................................................................................................1198
Definitions and Transitional Arrangements for Cross-Border
Networks .................................................................................................1198
Definitions ...............................................................................................1198
Cross Border Networks............................................................................1198 [Deleted] ..................................................................................................1199 [Deleted] ..................................................................................................1199
Transitional Arrangements for Chapter 6 - Network Pricing............1199 [Deleted] ..................................................................................................1199 [Deleted] ..................................................................................................1199 [Deleted....................................................................................................1199 [Deleted] ..................................................................................................1199

Transitional Arrangements ...................................................................1199
Chapter 7 - Metering ................................................................................1199 [Deleted] ..................................................................................................1199

[Deleted] ..................................................................................................1199

Jurisdictional Derogations for South Australia...................................1199

Definitions ...............................................................................................1199
[Deleted] ..................................................................................................1199
Definitions ...............................................................................................1199

Transitional Arrangements for Chapter 2 - Registered Participants, Registration And Cross Border Networks ...........................................1202
Registration as a Generator......................................................................1202
Registration as a Customer ......................................................................1203
Cross Border Networks............................................................................1203

9.20.1
9.20.2

9.21

9.22

9.23
9.23.1
9.23.2
9.23.3
9.23.4

9.24
9.24.1
9.24.2

9.24A Part D
9.25
9.25.1
9.25.2

9.26

9.26.1
9.26.2
9.26.3

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9.26.4
9.26.5

9.27

9.28
9.28.1
9.28.2

9.29

[Deleted] ..................................................................................................1203
Registration as a Network Service Provider ............................................1203

[Deleted] ..................................................................................................1204

Transitional Arrangements for Chapter 5 - Network Connection ....1204
Application of clause 5.2 .........................................................................1204 [Deleted] ..................................................................................................1205

Transitional Arrangements for Chapter 6 - Economic Regulation of Distribution Services..............................................................................1205 [Deleted] ..................................................................................................1205 [Deleted] ..................................................................................................1205 [Deleted] ..................................................................................................1205 [Deleted] ..................................................................................................1205
Distribution Network Pricing – South Australia......................................1205
Capital contributions, prepayments and financial guarantees .................1206
Ring fencing.............................................................................................1206

Monitoring and reporting .....................................................................1206

Transitional Provisions ..........................................................................1207
Chapter 7 - Metering................................................................................1207

Jurisdictional Derogations for Queensland .........................................1207 [Deleted] ..................................................................................................1207
Definitions and Interpretation ..............................................................1207
Definitions ...............................................................................................1207
Interpretation............................................................................................1209

Transitional Arrangements for Chapter 1 ...........................................1210
[Deleted] ..................................................................................................1210

Transitional Arrangements for Chapter 2 - Registered Participants and
Registration ............................................................................................1210
Application of the Rules in Queensland (clauses 2.2 and 2.5) ................1210
Stanwell Cross Border Leases (clause 2.2)..............................................1210 [Deleted] ..................................................................................................1210
Registration as a Customer (clause 2.3.1) ...............................................1210
There is no clause 9.34.5..........................................................................1211
Exempted generation agreements (clause 2.2).........................................1211 [Deleted] ..................................................................................................1215 [Deleted] ..................................................................................................1215
Transitional Arrangements for Chapter 5 - Network Connection ....1215
[Deleted] ..................................................................................................1215
Existing connection and access agreements (clause 5.2).........................1215 [Deleted] ..................................................................................................1216 [Deleted] ..................................................................................................1216
Forecasts for connection points to transmission network (clause
5.11.1) ......................................................................................................1216
There is no clause 9.37.6 .........................................................................1216
Cross Border Networks............................................................................1216 [Deleted] ..................................................................................................1216

9.29.1
9.29.2
9.29.3
9.29.4
9.29.5
9.29.6
9.29.7

9.29A

9.30
9.30.1

Part E

9.31

9.32
9.32.1
9.32.2

9.33
9.33.1

9.34

9.34.1
9.34.2
9.34.3
9.34.4
9.34.5
9.34.6

9.35

9.36

9.37
9.37.1
9.37.2
9.37.3
9.37.4
9.37.5

9.37.6
9.37.7
9.37.8

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9.37.9
9.37.10
9.37.11
9.37.12
9.37.13
9.37.14
9.37.15
9.37.16
9.37.17
9.37.18
9.37.19

Credible contingency events (clause S5.1.2.1 of schedule 5.1)...............1216
Reactive power capability (clause S5.2.5.1 of schedule 5.2) ..................1217 [Deleted] ..................................................................................................1217
Voltage fluctuations (clause S5.1.5 of schedule 5.1) ...............................1217 [Deleted] ..................................................................................................1219 [Deleted] ..................................................................................................1219 [Deleted] ..................................................................................................1219 [Deleted] ..................................................................................................1219 [Deleted] ..................................................................................................1219 [Deleted] ..................................................................................................1219
Generating unit response to disturbances (clause S5.2.5.3 of schedule
5.2) ...........................................................................................................1219 [Deleted] ..................................................................................................1220
Excitation control system (clause S.5.2.5.13 of schedule 5.2) ................1220 [Deleted] ..................................................................................................1220
Annual forecast information for planning purposes (schedule 5.7).........1220

Transitional Arrangements for Chapter 6 - Network Pricing ...........1221 [Deleted] ..................................................................................................1221 [Deleted] ..................................................................................................1221 [Deleted] ..................................................................................................1221
Interconnectors between regions .............................................................1221
Transmission pricing for exempted generation agreements ....................1221

Transitional Arrangements for Chapter 7 - Metering ........................1222
Metering installations to which this clause applies .................................1222 [Deleted] ..................................................................................................1222 [Deleted] ..................................................................................................1222 [Deleted] ..................................................................................................1222 [Deleted] ..................................................................................................1222

Transitional Arrangements for Chapter 8 - Administration
Functions ................................................................................................1222 [Deleted] ..................................................................................................1222 [Deleted] ..................................................................................................1222 [Deleted] ..................................................................................................1222

[Deleted] ..................................................................................................1222

Exempted Generation Agreements.......................................................1222

Jurisdictional Derogations for Tasmania.............................................1223

Definitions and interpretation ..............................................................1223
Definitions ...............................................................................................1223
Interpretation............................................................................................1224
National grid, power system and related expressions..............................1224

[Deleted] ..................................................................................................1225

Transitional arrangements for Chapter 2 – Registered Participants and
Registration - Customers (clause 2.3.1(e)) ...........................................1225

Tasmanian Region (clause 3.5)..............................................................1225

Transitional arrangements for Chapter 5- Network Connection ......1225
Existing Connection Agreements ............................................................1225

9.37.20
9.37.21
9.37.22
9.37.23

9.38
9.38.1
9.38.2
9.38.3
9.38.4
9.38.5

9.39
9.39.1
9.39.2
9.39.3
9.39.4
9.39.5

9.40

9.40.1
9.40.2
9.40.3

9.41

Schedule 9E1

Part F

9.42
9.42.1
9.42.2
9.42.3

9.43

9.44

9.45

9.47
9.47.1

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9.48

Transitional arrangements - Transmission and Distribution
Pricing .....................................................................................................1225
Ring fencing.............................................................................................1225
Uniformity of tariffs for small customers ................................................1226
Transmission network ..............................................................................1226
Deemed regulated interconnector ............................................................1226

Schedules to Chapter 9 ..........................................................................1226

Metering Transitional Arrangements ..................................................1226
Introduction..............................................................................................1226 [Deleted] ..................................................................................................1226
General Principle .....................................................................................1226 [Deleted] ..................................................................................................1227
Accuracy Requirements ...........................................................................1227 [Deleted] ..................................................................................................1227 [Deleted] ..................................................................................................1227 [Deleted] ..................................................................................................1227 [Deleted] ..................................................................................................1227 [Deleted] ..................................................................................................1227

9.48.4A
9.48.4B
9.48.5
9.48.6
Part G Schedule 9G1
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

10.

11. Part A Part B
11.2

Glossary.................................................................................1229

Savings and Transitional Rules ...........................................1359

Definitions...............................................................................................1361

System Restart Ancillary Services (2006 amendments) .....................1361

Rules consequent on making of the National Electricity Amendment (System Restart Ancillary Services and pricing under market suspension) Rule 2006............................................................................1361
Transitional provision for acquisition of non-market ancillary services .1361

[Deleted] ..................................................................................................1362

Dispute Resolution for Regulatory Test (2006 amendments).............1362

Rules consequent on making of the National Electricity Amendment
(Dispute Resolution for Regulatory Test) Rule 2006 ..........................1362
Continuation of things done under old clause 5.6.6 ................................1362

Metrology (2006 amendments) .............................................................1363

Rules consequential on the making of the National Electricity
Amendment (Metrology) Rule 2006 .....................................................1363
Definitions ...............................................................................................1363
Metrology procedures continues to apply until 31 December 2006 ........1363
Responsible person ..................................................................................1363
NEMMCO's responsibility to develop a metrology procedure ...............1363
Jurisdictional metrology material in the metrology procedure ................1364

Economic Regulation of Transmission Services (2006
amendments) ..........................................................................................1364

Rules consequent on making of the National Electricity Amendment
(Economic Regulation of Transmission Services) Rule 2006 .............1364

11.2.1

11.3

Part C

11.4

11.4.1

Part D

11.5

11.5.1
11.5.2
11.5.3
11.5.4
11.5.5

Part E

11.6

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11.6.1
11.6.2
11.6.3
11.6.4
11.6.5

Definitions ...............................................................................................1364
New Chapter 6A does not affect existing revenue determinations ..........1366
Old Part C and Schedules 6.2, 6.3, 6.4, 6.7 and 6.8 of old Chapter 6 .....1366
Old Part F of Chapter 6............................................................................1366
Application of new Chapter 6A to Transmission Network Service
Providers ..................................................................................................1366
Application of Chapter 6 to old distribution matters ...............................1366
References to the old Chapter 6 ...............................................................1367
References to provisions of the old Chapter 6 .........................................1367
Roll forward of regulatory asset base for first regulatory control period 1367
Other adjustment carry-over mechanisms from current to first regulatory control period ...........................................................................................1367
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 .1367
Powerlink transitional provisions ............................................................1370
ElectraNet easements transitional provisions ..........................................1373
TransGrid contingent projects..................................................................1374
Transmission determination includes existing revenue determinations ..1374
References to regulatory control period ..................................................1374
Consultation procedure for first proposed guidelines..............................1375
Reliance on proposed guidelines for SP AusNet, VENCorp and
ElectraNet ................................................................................................1375
EnergyAustralia transitional provisions...................................................1376
Basslink transitional provisions ...............................................................1378
SPI Powernet savings and transitional provision.....................................1379
Interim arrangements pricing-related information...................................1381

Reform of Regulatory Test Principles (2006 amendments) ...............1381

Rules consequent on making of the National Electricity Amendment
(Reform of the Regulatory Test Principles) Rule 2006 .......................1381
Definitions ...............................................................................................1381
Amending Rule does not affect old clause 5.6.5A...................................1382

Pricing of Prescribed Transmission Services (2006 amendments) ....1382

Rules consequent on making the National Electricity Amendment
(Pricing of Prescribed Transmission Services) Rule 2006 ..................1382
Definitions ...............................................................................................1382
Regulated interconnectors .......................................................................1383
Application of new Part J of Chapter 6A to Transmission Network Service
Providers ..................................................................................................1383
Reliance on agreed interim guideline for ElectraNet, SPAusNet, and
VenCorp ...................................................................................................1383
Prudent discounts under existing agreements ..........................................1383
Application of prudent discounts regime under rule 6A.26.....................1384
Prudent discounts pending approval of pricing methodology .................1384

Reallocations (2007 amendments) ........................................................1385

Rules consequent on the making of the National Electricity
Amendment (Reallocations) Rule 2007................................................1385
Definitions ...............................................................................................1385

11.6.6
11.6.7
11.6.8
11.6.9
11.6.10

11.6.11

11.6.12
11.6.13
11.6.14
11.6.15
11.6.16
11.6.17
11.6.18

11.6.19
11.6.20
11.6.21
11.6.22

Part F

11.7

11.7.1
11.7.2

Part G

11.8

11.8.1
11.8.2
11.8.3

11.8.4

11.8.5
11.8.6
11.8.7

Part H

11.9

11.9.1

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11.9.2

Part I

11.10

Existing and transitional reallocations .....................................................1385

Technical Standards for Wind Generation (2007 amendments) .......1385

Rules consequent on making of the National Electricity Amendment (Technical Standards for Wind Generation and other Generator Connections) Rule 2007 .........................................................................1385
Definitions ...............................................................................................1385
Provision of information under S5.2.4 in registration application ..........1386
Access standards made under the old Chapter 5......................................1386
Modifications to plant by Generators ......................................................1386
Technical Details to Support Application for Connection and Connection
Agreement................................................................................................1387
Transitional arrangements for establishment of performance standards .1387
Jurisdictional Derogations for Queensland..............................................1387

Rules consequent on the making of the National Electricity Amendment (Central Dispatch and Integration of Wind and Other Intermittent Generation) Rule 2008.....................................................1387
Definitions ...............................................................................................1387
Registration and reclassification of classified generating units...............1388
Registered generating unit .......................................................................1389
Classification of potential semi-scheduled generating unit .....................1389
Participant fees.........................................................................................1389
Timetable .................................................................................................1390
Procedure for contribution factors for ancillary service transactions ......1390
Guidelines for energy conversion model information .............................1390

Cost Recovery of Localised Regulation Services (2007
amendments) ..........................................................................................1390

Rules consequent on making of the National Electricity Amendment
(Cost Recovery of Localised Regulation Services) Rule 2007............1390
Definitions ...............................................................................................1390
Action taken by NEMMCO for the purposes of Amending Rule............1391 [Deleted] ..................................................................................................1391 [Deleted] .................................................................................................1391
Economic Regulation of Distribution Services (2007 amendments) .1391

General Provisions .................................................................................1391

General provisions .................................................................................1391
Application of this Division .....................................................................1391
Definitions ...............................................................................................1391
Preservation of old regulatory regime .....................................................1392
Transfer of regulatory responsibility .......................................................1393
Special requirements with regard to ring fencing ....................................1393
Additional requirements with regard to cost allocation ...........................1394
Construction of documents ......................................................................1394

[Deleted] .................................................................................................1394

Transitional arrangements for first distribution determination for
Queensland Distribution Network Service Providers ........................1394

11.10.1
11.10.2
11.10.3
11.10.4
11.10.5

11.10.6
11.10.7

11.10A

11.10A.1
11.10A.2
11.10A.3
11.10A.4
11.10A.5
11.10A.6
11.10A.7
11.10A.8

Part J

11.11

11.11.1
11.11.2

11.12

Part L Part M Division 1
11.14
11.14.1
11.14.2
11.14.3
11.14.4
11.14.5
11.14.6
11.14.7

Division 2

Division 3

Page xlv

NATIONAL ELECTRICITY RULES
VERSION 123

11.16

Transitional arrangements for first distribution determination for
Queensland Distribution Network Service Providers ........................1394
Definitions ...............................................................................................1394
Application of Part to Queensland 2010 distribution determinations......1395
Treatment of the regulatory asset base.....................................................1395
Efficiency Benefit Sharing Scheme .........................................................1395
Service Target Performance Incentive Scheme .......................................1395
Framework and approach ........................................................................1396
Regulatory Proposal.................................................................................1396
Side constraints ........................................................................................1396
Cost pass throughs ...................................................................................1396
Capital Contributions Policy....................................................................1397

Transitional provisions of specific application to Victoria .................1397

Transitional provisions of specific application to Victoria .................1397
Definitions ...............................................................................................1397
Calculation of estimated cost of corporate income tax............................1398
Decisions made in the absence of a statement of regulatory intent .........1398
Cost allocation guidelines ........................................................................1398
Modification of requirements related to cost allocation method .............1398
AMI Order in Council..............................................................................1399

Registration of Foreign Based Persons and Corporations as Trader
Class Participants (2007 amendments) ................................................1400

Rules consequential on the making of the National Electricity Amendment (Registration of Foreign Based Persons and Corporations as Trader Class Participants) Rule 2007..............................................1400
Definitions ...............................................................................................1400
Auction rules ............................................................................................1400

Process for Region Change (2007 amendments) .................................1400

Rules consequent on making of the National Electricity Amendment
(Process for Region Change) Rule 2007 ...............................................1400
Definitions ...............................................................................................1400
Regions Publication .................................................................................1400

Integration of NEM Metrology Requirements....................................1401

Rules consequential on the making of the National Electricity
Amendment (Integration of NEM Metrology Requirements) Rule
2008 .........................................................................................................1401
Definitions ...............................................................................................1401
Metering installations for non-market generating units immediately prior to
30 June 2008 ............................................................................................1401
First-tier load metering installations ........................................................1401
First-tier load metering installations in Victoria ......................................1402
Minimalist Transitioning Approach in Queensland .................................1402
First-tier jurisdictional requirements publication ....................................1402
Metrology procedure ...............................................................................1402

Reliability Settings: Information Safety Net and Directions .............1403

11.16.1
11.16.2
11.16.3
11.16.4
11.16.5
11.16.6
11.16.7
11.16.8
11.16.9
11.16.10

Division 4

11.17
11.17.1
11.17.2
11.17.3
11.17.4
11.17.5
11.17.6

Part N

11.18

11.18.1
11.18.2

Part O

11.19

11.19.1
11.19.2

Part P

11.20

11.20.1
11.20.2

11.20.3
11.20.4
11.20.5
11.20.6
11.20.7

Part PA

Page xlvi

NATIONAL ELECTRICITY RULES
VERSION 123

11.21

Rules consequential on the making of the National Electricity
Amendment (NEM Reliability Settings: Information Safety Net and
Directions) Rule 2008.............................................................................1403
Definitions ...............................................................................................1403
EAAP guidelines......................................................................................1403 [Deleted] ..................................................................................................1403 [Deleted] ..................................................................................................1403
Timetable .................................................................................................1403
Power system security and reliability standards ......................................1403
Report on statement of opportunities.......................................................1403
Methodology for dispatch prices and ancillary services prices ...............1404

Regulatory Test Thresholds and Information Disclosure on Network
Replacements..........................................................................................1404

Rules consequential on the making of the National Electricity Amendment (Regulatory Test Thresholds and Information Disclosure on Network Replacements) Rule 2008 .................................................1404
Definitions ...............................................................................................1404
Amending Rule does not affect existing regulatory test ..........................1404

Performance Standard Compliance of Generators ............................1405

Rules consequential on the making of the National Electricity
Amendment (Performance Standards Compliance of Generators) Rule
2008 .........................................................................................................1405
Definitions ...............................................................................................1405
Application of rule 11.23 for compliance programs implemented immediately after the commencement of the Amending Rule ................1405
Application of rule 11.23 for compliance programs implemented immediately prior to the commencement of the Amending Rule ............1405
Application of rule 11.23 for compliance programs not implemented immediately prior to the commencement of the Amending Rule ............1405

[Deleted] ..................................................................................................1406

Confidentiality Arrangements concerning Information required for
Power System Studies ............................................................................1406

Rule consequential on the making of the National Electricity Amendment (Confidentiality Arrangements in Respect of Information Required for Power System Studies) Rule 2009..................................1406
Definitions ...............................................................................................1406
Transitional arrangements for the provision of information ....................1406

WACC Reviews: Extension of Time .....................................................1407

Rule consequential on the making of the National Electricity
Amendment (WACC Reviews: Extension of Time) Rule 2009 ..........1407
Definitions ...............................................................................................1407
Extension of time to submit a regulatory proposal for the regulatory control period 2010-2015 .....................................................................................1408

National Transmission Statement.........................................................1408

Rules consequent on the making of the National Electricity
Amendment (National Transmission Statement) Rule 2009 ..............1408

11.21.1
11.21.2
11.21.3
11.21.4
11.21.5
11.21.6
11.21.7
11.21.8

Part Q

11.22

11.22.1
11.22.2

Part R

11.23

11.23.1
11.23.2

11.23.3

11.23.4

Part S

Part U

11.25

11.25.1
11.25.2

Part V

11.26

11.26.1
11.26.2

Part W

11.27

Page xlvii

NATIONAL ELECTRICITY RULES
VERSION 123

11.27.1
11.27.2
11.27.3
11.27.4
11.27.5

Definitions ...............................................................................................1408
Purpose ....................................................................................................1408
Application of rule 11.27 .........................................................................1408
National Transmission Statement ............................................................1409
Scope and Content of National Transmission Network Development
Plan ..........................................................................................................1410
Energy Adequacy Assessment Projection ................................................1411
Amendment to Last Resort Power ...........................................................1411
Actions taken prior to commencement of Rule........................................1411

National Transmission Planning ...........................................................1411

Rules consequential on the making of the National Electricity
(Australian Energy Market Operator) Amendment Rules 2009 .......1411
Definitions ...............................................................................................1411
Jurisdictional planning bodies and representatives..................................1411
Criteria and guidelines published by Inter-regional Planning
Committee................................................................................................1412
Augmentation technical reports ...............................................................1412
Last Resort Planning Power.....................................................................1412
Inter-network power system tests ............................................................1413
Control and protection settings for equipment ........................................1413
Revenue Proposals ...................................................................................1413

Regulatory Investment Test for Transmission ....................................1413

Rules consequent on making of the National Electricity Amendment
(Regulatory Investment Test for Transmission) Rule 2009 ................1413
Definitions ...............................................................................................1413
Period when Amending Rule applies to transmission investment ...........1414

Congestion Information Resource........................................................1415

Rules consequent on the making of the National Electricity
Amendment (Congestion Information Resource) Rule 2009 .............1415
Definitions ...............................................................................................1415
Interim congestion Information resource.................................................1415

Reliability and emergency reserve trader (2009 amendments) .........1417

Rules consequent on the making of the National Electricity Amendment (Improved RERT Flexibility and Short-notice Reserve Contracts) Rule 2009 .............................................................................1417
Definitions ...............................................................................................1417
Purpose ....................................................................................................1417
Amendments to Reliability Panel's RERT Guidelines .............................1417
Amendments to AEMO's RERT procedures for exercising the RERT ....1418

Early Application of Market Impact Parameters ...............................1419

Rules consequent on the making of the National Electricity Amendment (Early Implementation of Market Impact Parameters) Rule 2010 ................................................................................................1419
Definitions ...............................................................................................1419
Purpose ....................................................................................................1419

11.27.6
11.27.7
11.27.8

Part X

11.28

11.28.1
11.28.2
11.28.3

11.28.4
11.28.5
11.28.6
11.28.7
11.28.8

Part Y

11.29

11.29.1
11.29.2

Part Z

11.30

11.30.1
11.30.2

Part ZA

11.31

11.31.1
11.31.2
11.31.3
11.31.4

Part ZB

11.32

11.32.1
11.32.2

Page xlviii

NATIONAL ELECTRICITY RULES
VERSION 123

11.32.3

Early application of the market impact component of the service target
performance incentive scheme.................................................................1419

Transparency of operating data ...........................................................1422

Rules consequential on the making of National Electricity Amendment
(Transparency of Operating Data) Rule 2010 .....................................1422
Definitions ...............................................................................................1422
Spot market operations timetable ............................................................1423

Cost Recovery for Other Services Directions ......................................1424

Rules consequent on making of the National Electricity Amendment
(Cost Recovery for Other Services Directions) Rule 2010 .................1424
Definitions ...............................................................................................1424
Period when Amending Rules applies to funding of compensation ........1425

Payments under Feed-in Schemes and Climate Change Funds ........1425

Rules consequential on the making of the National Electricity Amendment (Payments under Feed-in Schemes and Climate Change Funds) Rule 2010 ...................................................................................1425
Definitions ...............................................................................................1425
Application of recovery of jurisdictional scheme Rules ..........................1426
Reporting on jurisdictional schemes........................................................1427
Revocation and substitution of distribution determination for jurisdictional scheme recovery ......................................................................................1428

Transitional Arrangements for Ministerial Smart Meter Roll Out
Determinations .......................................................................................1428

Ministerial Smart Meter Roll Out Determinations ............................1428
Definitions ...............................................................................................1428
Meaning of relevant metering installation ...............................................1429
Period of application of rule to relevant metering installation ................1429
Designation of responsible person ...........................................................1429 [Deleted] ..................................................................................................1430 [Deleted] ..................................................................................................1430

Provision of Metering Data Services and Clarification of Existing
Metrology Requirements .......................................................................1430

Rules consequential on the making of the National Electricity Amendment (Provision of Metering Data Services and Clarification of Existing Metrology Requirements) Rule 2010 ....................................1430
Definitions ...............................................................................................1430
Commencement of special site or technology related conditions ...........1430
Initial service level procedures ................................................................1430

Spot Market Operations Timetable .....................................................1431

Rules consequential on the making of National Electricity Amendment
(Amendments to PASA-related Rules) Rule 2010 ...............................1431
Definitions ...............................................................................................1431
Spot market operations timetable ............................................................1431

DNSP Recovery of Transmission-related Charges..............................1432

Part ZC

11.33

11.33.1
11.33.2

Part ZD

11.34

11.34.1
11.34.2

Part ZE

11.35

11.35.1
11.35.2
11.35.3
11.35.4

Part ZF

11.36
11.36.1
11.36.2
11.36.3
11.36.4
11.36.5
11.36.6

Part ZG

11.37

11.37.1
11.37.2
11.37.3

Part ZH

11.38

11.38.1
11.38.2

Part ZI

Page xlix

NATIONAL ELECTRICITY RULES
VERSION 123

11.39

Rules consequential on the making of the National Electricity
Amendment (DNSP Recovery of Transmission-related Charges) Rule
2011..........................................................................................................1432
Definitions ...............................................................................................1432
Recovery by Victorian distribution network service providers during current regulatory control period .........................................................................1433
Recovery by Victorian distribution network service providers for shared network augmentations ............................................................................1433
Bairnsdale network support agreement ...................................................1433
Approval of pricing proposal ...................................................................1433
Ergon Energy transitional charges ...........................................................1433
Energex transitional charges ....................................................................1434

Network Support and Control Ancillary Services ..............................1434

Rules consequential on the making of the National Electricity
Amendment (Network Support and Control Ancillary Services) Rule
2011..........................................................................................................1434
Definitions ...............................................................................................1434
Purpose ....................................................................................................1434
Existing NCAS contracts to continue ......................................................1434
Amendments to existing guidelines .........................................................1435
New procedures .......................................................................................1435
Decisions and actions taken prior to Amending Rule..............................1435

Application of Dual Marginal Loss Factors ........................................1435

Rules consequential on the making of the National Electricity
Amendment (Application of Dual Marginal Loss Factors) Rule
2011..........................................................................................................1435
Definitions ...............................................................................................1435
Amendments to loss factor methodology ................................................1436
Procedure applying dual intra-regional loss factors in central dispatch and spot market transactions...........................................................................1436
Publication of intra-regional loss factors .................................................1436

Tasmania Tranche 5a Procedure Changes...........................................1436

Rules consequential on the making of the National Electricity
Amendment (Tasmania Tranche 5a Procedure Changes) Rule 2011 1436
Definitions ...............................................................................................1436
AEMO may amend Relevant Procedures ................................................1437

Application and Operation of Administered Price Periods ...............1437

Rules consequential on the making of National Electricity Amendment
(Application and Operation of Administered Price Periods) Rule
2011..........................................................................................................1437
Definitions ...............................................................................................1437
Administered Price Cap Schedule ...........................................................1437

Negative Intra-regional Settlements Residue ......................................1438

Rules consequential on the making of National Electricity Amendment
(Negative Intra-regional Settlements Residue) Rule 2012 .................1438
Definitions ...............................................................................................1438

11.39.1
11.39.2

11.39.3

11.39.4
11.39.5
11.39.6
11.39.7

Part ZJ

11.40

11.40.1
11.40.2
11.40.3
11.40.4
11.40.5
11.40.6

Part ZK

11.41

11.41.1
11.41.2
11.41.3

11.41.4

Part ZL

11.42

11.42.1
11.42.2

Part ZM

11.43

11.43.1
11.43.2

Part ZO

11.45

11.45.1

Page l

NATIONAL ELECTRICITY RULES
VERSION 123

11.45.2

Recovery of negative settlements residue prior to consultation under the
Amending Rule ........................................................................................1438
First consultation on negative intra-regional settlements residue
procedure .................................................................................................1439

Interim Connection Charging Rules ....................................................1439

Rules consequential to the insertion of Chapter 5A by the National
Electricity (National Energy Retail Law) Amendment Rule 2012 ....1439

Preliminary .............................................................................................1439
Definitions ...............................................................................................1439
Extended meaning of some terms ............................................................1441
Transitional operation of relevant provisions ..........................................1441

Jurisdictional differences ......................................................................1442
Exclusions, qualifications and modifications for ACT ............................1442
Exclusions, qualifications and modifications for NSW...........................1443
Exclusions, qualifications and modifications for Queensland.................1444
Exclusions, qualifications and modifications for SA ..............................1445
Exclusions, qualifications and modifications for Tasmania ....................1446
Exclusions, qualifications and modifications for Victoria .......................1447

General provisions .................................................................................1449
Connection charges ..................................................................................1449
References................................................................................................1449

NSW transitional retail support and credit support rules .................1449

Rules consequential on the insertion of Chapter 6B by the National
Electricity (National Energy Retail Law) Amendment Rule 2012 ....1449

Preliminary .............................................................................................1449
Definitions ...............................................................................................1449
Application...............................................................................................1451
Obligation to pay .....................................................................................1451
Charging and billing ................................................................................1452
Interest on unpaid amounts ......................................................................1452
Circumstances where NSW DNSP may request credit support...............1452
Credit support ..........................................................................................1452
Credit support providers ..........................................................................1453
NSW DNSP to determine required credit support amount ......................1453
NSW Retailer to ensure credit support available .....................................1453
Drawing on credit support .......................................................................1454
Specific transitional arrangements...........................................................1454

Miscellaneous transitional rules—NERL ............................................1454

Rules consequential on the making of the National Electricity (National
Energy Retail Law) Amendment Rule 2012 ........................................1454
Extension of time period for AER to consider certain pass through applications ..............................................................................................1454

Cost pass through arrangements for Network Service Providers .....1455

11.45.3

Part ZP

11.46

Division 1
11.46.1
11.46.2
11.46.3

Division 2
11.46.4
11.46.5
11.46.6
11.46.7
11.46.8
11.46.9

Division 3
11.46.10
11.46.11

Part ZQ

11.47

Division 1
11.47.1
11.47.2
11.47.3
11.47.4
11.47.5
11.47.6
11.47.7
11.47.8
11.47.9
11.47.10
11.47.11
11.47.12

Part ZR

11.48

11.48.1

Part ZS

Page li

NATIONAL ELECTRICITY RULES
VERSION 123

11.49

Rules consequential on the making of National Electricity Amendment
(Cost pass through arrangements for Network Service Providers) Rule
2012 .........................................................................................................1455
Definitions ...............................................................................................1455
Terrorism event is a cost pass through event in the current regulatory
control period ...........................................................................................1455
Transitional arrangement for Powerlink ..................................................1455
Transitional arrangements for ElectraNet and Murraylink ......................1456

Distribution Network Planning and Expansion ..................................1456

Rules consequential on the making of the National Electricity
Amendment (Distribution Network Planning and Expansion) Rule
2012 .........................................................................................................1456
Interpretation............................................................................................1456
Definitions ...............................................................................................1456
Timing for first Distribution Annual Planning Report.............................1457
Contents of Distribution Annual Planning Report ...................................1457
Transition from the regulatory test to the regulatory investment test for distribution ...............................................................................................1458

New Prudential Standard and Framework in the NEM ....................1459

Rules consequential on the making of the National Electricity Amendment (New Prudential Standard and Framework in the NEM) Rule 2012 ................................................................................................1459
Definitions ...............................................................................................1459
AEMO's responsibility to develop and publish the credit limit
procedures ................................................................................................1460
Transition to the framework for determining prudential settings ............1460
Prior consultation, step, decision or action taken by AEMO...................1460

Small Generation Aggregator Framework ..........................................1460

Rules consequential on the making of the National Electricity
Amendment (Small Generation Aggregator Framework) Rule
2012 .........................................................................................................1460
Definitions ...............................................................................................1460
Commencement of participant fees as well as transactions, funding and settlements under Chapter 3 for Market Small Generation Aggregators.1461
Participant fees for Market Small Generation Aggregators.....................1461
Ancillary service transactions, funding of compensation for directions and intervention settlements for directions for Market Small Generation Aggregators..............................................................................................1462
Amendments to the carbon dioxide equivalent intensity index
procedures ................................................................................................1462
Amendments of the metrology procedures ..............................................1463
Amendments to the Market Settlement and Transfer Solution
Procedures................................................................................................1463

Economic Regulation of Network Service Providers (2012
amendments) ..........................................................................................1463

Miscellaneous transitional provisions ..................................................1463

11.49.1
11.49.2

11.49.3
11.49.4

Part ZT

11.50

11.50.1
11.50.2
11.50.3
11.50.4
11.50.5

Part ZU

11.51

11.51.1
11.51.2

11.51.3
11.51.4

Part ZV

11.52

11.52.1
11.52.2

11.52.3
11.52.4

11.52.5

11.52.6
11.52.7

Part ZW

Division 1

Page lii

NATIONAL ELECTRICITY RULES
VERSION 123

11.53
11.53.1
11.53.2
11.53.3
11.53.4
11.53.5
11.53.6

11.54
11.54.1
11.54.2
11.54.3
11.54.4
11.54.5
11.54.6

Division 2

Publication of Chapter 6 Guidelines ....................................................1463
Shared Asset Guidelines ..........................................................................1463
Capital Expenditure Incentive Guidelines ...............................................1464
Rate of Return Guidelines .......................................................................1464
Expenditure Forecast Assessment Guidelines .........................................1464
Distribution Confidentiality Guidelines ..................................................1465
Consultation procedure paper ..................................................................1465

Publication of Chapter 6A Guidelines .................................................1465
Shared Asset Guidelines ..........................................................................1465
Capital Expenditure Incentive Guidelines ...............................................1465
Rate of Return Guidelines .......................................................................1466
Expenditure Forecast Assessment Guidelines .........................................1466
Transmission Confidentiality Guidelines ................................................1466
Consultation paper procedure ..................................................................1467

Transitional provisions for NSW/ACT Distribution Network Service
Providers .................................................................................................1467

General provisions .................................................................................1467
Definitions ...............................................................................................1467
Transitional Chapter 6..............................................................................1468
Application of rule 11.56 .........................................................................1469

Special provisions applying to affected DNSPs ...................................1469
Requirement to make distribution determination ....................................1469
Transitional regulatory proposal ..............................................................1469
Distribution determination for a transitional regulatory control period ..1471
Subsequent regulatory control period ......................................................1475
Review of past capital expenditure ..........................................................1480

Transitional provisions for NSW and Tasmanian Transmission
Network Service Providers and Directlink ..........................................1481

General provisions .................................................................................1481
Definitions ...............................................................................................1481
Transitional Chapter 6A...........................................................................1482
Application of rule 11.58 .........................................................................1483

Special provisions applying to affected TNSPs ...................................1483
Requirement to make transmission determination ..................................1483
Requirement to submit a transitional Revenue Proposal .........................1483
Transmission determination for a transitional regulatory control period 1484
Subsequent regulatory control period ......................................................1487
Review of past capital expenditure ..........................................................1491

Transitional provisions for the Victorian TNSP..................................1492

Special provisions applying to the Victorian TNSP ............................1492
Definitions ...............................................................................................1492
Application of rule 11.59 .........................................................................1492
Former Chapter 6A/10 applies.................................................................1492
Review of past capital expenditure ..........................................................1493

Transitional provisions for Qld/SA and Victorian Distribution Network
Service Providers ...................................................................................1493

11.55
11.55.1
11.55.2
11.55.3

11.56
11.56.1
11.56.2
11.56.3
11.56.4
11.56.5

Division 3

11.57
11.57.1
11.57.2
11.57.3

11.58
11.58.1
11.58.2
11.58.3
11.58.4
11.58.5

Division 4

11.59
11.59.1
11.59.2
11.59.3
11.59.4

Division 5

Page liii

NATIONAL ELECTRICITY RULES
VERSION 123

11.60

Special provisions applying to the Qld/SA and Victorian Distribution
Network Service Providers ...................................................................1493
Definitions ...............................................................................................1493
Application of rule 11.60 .........................................................................1494
Distribution determination for next regulatory control period ................1494
Re-opening of distribution determination for next regulatory control
period .......................................................................................................1496
Review of past capital expenditure ..........................................................1498

Review of past capital expenditure.......................................................1499

Definitions and application ...................................................................1499

Review of past capital expenditure under Chapter 6 .........................1499

Review of past capital expenditure under Chapter 6A ......................1499

Inter-regional Transmission Charging.................................................1500

Rules consequent on the making of the National Electricity
Amendment (Inter-regional Transmission Charging) Rule 2013 ......1500
Definitions ...............................................................................................1500
Amendments to the pricing methodology guidelines ..............................1500
Amendments to the pricing methodologies of Transmission Network
Service Providers .....................................................................................1501
Commencement of clause 6A.23.3(f) for further adjustments ................1501

Network Service Provider Expenditure Objectives ............................1502

Rules consequent on the making of the National Electricity
Amendment (Network Service Provider Expenditure Objectives) Rule
2013 .........................................................................................................1502
Definitions ...............................................................................................1502
Application of rule 11.65 .........................................................................1502

Access to NMI Standing Data ...............................................................1502

Rules consequent on the making of the National Electricity
Amendment (Access to NMI Standing Data) Rule 2013 ....................1502
Definitions ...............................................................................................1502
Minor amendment of the Market Settlement and Transfer Solution
Procedures................................................................................................1502

Publication of Zone Substation Data ...................................................1503

Rules consequent on the making of the National Electricity
Amendment (Publication of Zone Substation Data) Rule 2014.........1503
Definitions ...............................................................................................1503
Distribution Network Service Providers' obligations to commence on the next DAPR date .......................................................................................1503

Connecting Embedded Generators ......................................................1504

Rules consequential on the making of the National Electricity
Amendment (Connecting embedded generators) Rule 2014 .............1504
Definitions ...............................................................................................1504
Continuation of enquiries lodged.............................................................1504

Customer access to information about their energy consumption ....1504

11.60.1
11.60.2
11.60.3
11.60.4

11.60.5

Division 6

11.61

11.62

11.63

Part ZX

11.64

11.64.1
11.64.2
11.64.3

11.64.4

Part ZY

11.65

11.65.1
11.65.2

Part ZZ

11.66

11.66.1
11.66.2

Part ZZA

11.67

11.67.1
11.67.2

Part ZZB

11.68

11.68.1
11.68.2

Part ZZC

Page liv

NATIONAL ELECTRICITY RULES
VERSION 123

11.69

Rules consequential on the making of the National Electricity
Amendment (Customer access to information about their energy consumption) Rule 2014 ........................................................................1504
Definitions ...............................................................................................1504
AEMO to develop and publish the metering data provision procedure...1504

National Electricity Amendment (Distribution Network Pricing
Arrangements) Rule 2014 .....................................................................1505

Miscellaneous transitional provisions ..................................................1505

General provisions .................................................................................1505
Definitions ...............................................................................................1505
Application of Part ZZB ..........................................................................1506

Special provisions applying to SA TNSP .............................................1506

Transitional provisions for NSW/ACT and Qld/SA Distribution
Network Service Providers ...................................................................1507

General provisions .................................................................................1507
Definitions ...............................................................................................1507

Special provisions applying to affected DNSPs ...................................1507
Distribution determination and pricing proposals ...................................1507
Tariff structure statement .........................................................................1507
Dispute resolution ....................................................................................1513

Transitional provisions for Tasmanian Distribution Network Service
Provider ..................................................................................................1513

Application of former Chapter 6 ..........................................................1513

Transitional provisions for Victorian Distribution Network Service
Providers .................................................................................................1513

General provisions .................................................................................1513
Definitions ...............................................................................................1513

Special provisions applying to affected DNSPs ...................................1514
Distribution determination and pricing proposals ...................................1514
Tariff structure statement .........................................................................1514
Dispute resolution ....................................................................................1520

Early Application of Network Capability Component (STPIS) ........1520

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 ................................................................................................1520
Definitions ...............................................................................................1520
Purpose ....................................................................................................1521
Earlier application of the network capability component of the service
target performance incentive scheme ......................................................1521

National Electricity Amendment (Governance arrangements and implementation of the reliability standard and settings) Rule 2015 .1523

11.69.1
11.69.2

Part ZZD

Division 1

11.70
11.70.1
11.70.2

11.71

Division 2

11.72
11.72.1

11.73
11.73.1
11.73.2
11.73.3

Division 3

11.74

Division 4

11.75
11.75.1

11.76
11.76.1
11.76.2
11.76.3

Part ZZE

11.77

11.77.1
11.77.2
11.77.3

Part ZZF

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NATIONAL ELECTRICITY RULES
VERSION 123

11.78

Rules consequent on the making of the National Electricity
Amendment (Governance arrangements and implementation of the reliability standards and settings) Rule 2015 ......................................1523
Definitions ...............................................................................................1523
Existing power system security and reliability standards ........................1524
Reliability standard and settings guidelines ............................................1524
Reliability standard implementation guidelines ......................................1524

Improving demand side participation information provided to AEMO
by registered participants......................................................................1527

Rules consequential on making of the National Electricity Amendment (Improving demand side participation information provided to AEMO by registered participants) Rule 2015 ..................................................1527
AEMO to develop and publish the demand side participation information guidelines .................................................................................................1527

Transitional Arrangements for Aligning TasNetworks' regulatory control periods........................................................................................1527

National Electricity Amendment (Aligning TasNetworks' regulatory control periods) Rule 2015 ....................................................................1527
Definitions ...............................................................................................1527
Application of rule 11.80 .........................................................................1527
Next regulatory control period.................................................................1528
Subsequent regulatory control period ......................................................1528

System Restart Ancillary Services........................................................1528

Rules consequential on the making of the National Electricity
Amendment (System Restart Ancillary Services) Rule 2015 .............1528
Definitions ...............................................................................................1528
System restart standard ............................................................................1528
SRAS Guideline.......................................................................................1528
Regional Benefit Ancillary Services Procedures .....................................1528
Consultation prior to the Commencement Date ......................................1528
Existing SRAS Contract ..........................................................................1529

Demand management incentive scheme ..............................................1529

Rules consequential on making of the National Electricity Amendment
(Demand management incentive scheme) Rule 2015..........................1529
Definitions ...............................................................................................1529
AER to develop and publish the demand management incentive scheme and demand management innovation allowance mechanism.........................1529

AEMO access to demand forecasting information .............................1530

Rules consequential on the making of the National Electricity
Amendment (AEMO access to demand forecasting information) Rule
2015 .........................................................................................................1530
AEMO to include supporting information in NTNDP database ..............1530

Compensation arrangements following application of an Administered
Price Cap or Administered Floor Price................................................1530

11.78.1
11.78.2
11.78.3
11.78.4

Part ZZG

11.79

11.79.1

Part ZZH

11.80

11.80.1
11.80.2
11.80.3
11.80.4

Part ZZI

11.81

11.81.1
11.81.2
11.81.3
11.81.4
11.81.5
11.81.6

Part ZZJ

11.82

11.82.1
11.82.2

Part ZZK

11.83

11.83.1

Part ZZL

Page lvi

NATIONAL ELECTRICITY RULES
VERSION 123

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 .1530
Definitions ...............................................................................................1530
Compensation Guidelines ........................................................................1530

Common definitions of distribution reliability measures ..................1530

Rules consequential on the making of the National Electricity Amendment (Common definitions of distribution reliability measures) Rule 2015 ................................................................................................1530
Definitions ...............................................................................................1530
Distribution reliability measures guidelines ............................................1531
Amended STPIS.......................................................................................1531

Expanding competition in metering and metering related services ..1531

Rules consequent on making of the National Electricity Amendment
(Expanding competition in metering and related services) Rule
2015 .........................................................................................................1531
Definitions ...............................................................................................1531
References to old Chapter 7.....................................................................1531
References to provisions of the old Chapter 7 .........................................1531
References to responsible person.............................................................1532
Continued operation of old Rules until the effective date .......................1532
New and amended procedures .................................................................1532
Metering Coordinator for type 5 or 6 metering installation from effective date...........................................................................................................1533
Distribution Ring Fencing Guidelines .....................................................1536 [Deleted] ..................................................................................................1536

Embedded Networks .............................................................................1536

Rules consequential on the making of the National Electricity
Amendment (Embedded Networks) Rule 2015...................................1536
Definitions ...............................................................................................1536
Amended Procedures and NMI Standing Data Schedule ........................1536
ENM service level procedures and guide to embedded networks and list of
Embedded Network Managers.................................................................1537
Exemptions under section 13 of the National Electricity Law ................1537

Meter Replacement Processes...............................................................1537

Rules consequential on the making of the National Electricity
Amendment (Meter Replacement Processes) Rule 2016 ....................1537
Definitions ...............................................................................................1537
Amended Procedures ...............................................................................1537

Energy Adequacy Assessment Projection ............................................1538

Rules consequential to the National Electricity Amendment (Energy
Adequacy Assessment Projection timeframes) Rule 2016..................1538
Amended guideline and timetable ...........................................................1538

Reliability and emergency reserve trader (2016 amendments) .........1538

11.84.1
11.84.2

Part ZZM

11.85

11.85.1
11.85.2
11.85.3

Part ZZN

11.86

11.86.1
11.86.2
11.86.3
11.86.4
11.86.5
11.86.6
11.86.7

11.86.8
11.86.9

Part ZZO

11.87

11.87.1
11.87.2
11.87.3

11.87.4

Part ZZP

11.88

11.88.1
11.88.2

Part ZZQ

11.89

11.89.1

Part ZZR

Page lvii

NATIONAL ELECTRICITY RULES
VERSION 123

11.90

Rules consequent on the making of the National Electricity
Amendment (Extension of the Reliability and Emergency Reserve
Trader) Rule 2016 ..................................................................................1538
Definitions ...............................................................................................1538
Amendments to Reliability Panel's RERT Guidelines .............................1538
Amendments to AEMO's RERT procedures ............................................1539
Reserve contracts entered into before Schedule 2 commencement date .1539

Updating the electricity B2B framework.............................................1539

Rules consequential on the making of the National Electricity
Amendment (Updating the electricity B2B framework) rule 2016 ...1539
Definitions ...............................................................................................1539
B2B Procedures .......................................................................................1540
Information Exchange Committee Election Procedures and Information
Exchange Committee Operating Manual.................................................1540
The New IEC ...........................................................................................1541
Amended Procedures ...............................................................................1542
B2B e-Hub Participant accreditation process ..........................................1542
New IEC Budget and 2016 Annual Report..............................................1543
Cost recovery ...........................................................................................1543

Application of Offsets in the Prudential Margin Calculation............1544

Rules consequential on the making of the National Electricity Amendment (Application of Offsets in the Prudential Margin Calculation) Rule 2016 ..........................................................................1544
Definitions ...............................................................................................1544
Amended procedures ...............................................................................1544

Rate of Return Guidelines Review .......................................................1544

Rules consequential on the making of the National Electricity
Amendment (Rate of Return Guidelines Review) Rule 2016 ............1544
Definitions ...............................................................................................1544
Application of current rate of return guidelines to making of a distribution determination for the subsequent regulatory control period ....................1545

Demand Response Mechanism and Ancillary Services Unbundling 1546

Rules consequential on the making of the National Electricity Amendment (Demand Response Management and Ancillary Services Unbundling) rule 2016...........................................................................1546
Definitions ...............................................................................................1546
Participant fees for Market Ancillary Service Providers .........................1546

Local Generation Network Credits ......................................................1546

Rules consequential on the making of the National Electricity
Amendment (Local Generation Network Credits) Rule 2016 ...........1546
Definitions ...............................................................................................1546
System limitation template ......................................................................1546

Retailer-Distributor Credit Support Requirements ...........................1547

11.90.1
11.90.2
11.90.3
11.90.4

Part ZZS

11.91

11.91.1
11.91.2
11.91.3

11.91.4
11.91.5
11.91.6
11.91.7
11.91.8

Part ZZT

11.92

11.92.1
11.92.2

Part ZZU

11.93

11.93.1
11.93.2

Part ZZV

11.94

11.94.1
11.94.2

Part ZZW

11.95

11.95.1
11.95.2

Part ZZX

Page lviii

NATIONAL ELECTRICITY RULES
VERSION 123

11.96

Rules consequent on the making of the National Electricity
Amendment (Retailer Distributor Credit Support Requirements) Rule
2017 No. 1................................................................................................1547
Definitions ...............................................................................................1547
Continued operation of old Chapter 6B ...................................................1547
Interaction with Chapter 6 .......................................................................1547
Application of new Chapter 6B ...............................................................1547

Emergency Frequency Control Schemes .............................................1548

Rules consequent on the making of the National Electricity
Amendment (Emergency frequency control schemes) Rule 2017 .....1548
Definitions ..............................................................................................1548
Interim frequency operating standards for protected events....................1548
First power system frequency risk review ...............................................1549
AEMO must review existing load shedding procedures..........................1549
Load shedding procedures .......................................................................1549

Transmission Connection and Planning Arrangements .....................1550

Rules consequential on the making of the National Electricity Amendment (Transmission Connection and Planning Arrangements) Rule 2017 ................................................................................................1550
Definitions ...............................................................................................1550
Grandfathering of existing dedicated connection assets..........................1551
Preparatory steps for registration changes under the Amending Rule.....1552
Participant fees for Dedicated Connection Asset Service Providers .......1552
Existing Connection Agreements ............................................................1552
Connection process ..................................................................................1552
Transmission Annual Planning Report ....................................................1553
Preservation for adoptive jurisdictions ....................................................1553

Replacement expenditure planning arrangements .............................1553

Rules consequential on the making of the National Electricity
Amendment (Replacement expenditure planning arrangements) Rule
2017 .........................................................................................................1553
Definitions ...............................................................................................1553
Interpretation............................................................................................1555
Transitional arrangements for affected DNSPs .......................................1555
Amendments to RIT documentation ........................................................1555
Transitional arrangements relating to excluded projects .........................1555
Transitional arrangements relating to Victorian bushfire mitigation projects.....................................................................................................1556
Transitional arrangements relating to review of costs thresholds............1556

Managing the rate of change of power system frequency .................1556

Rules consequential on the making of the National Electricity Amendment (Managing the rate of change of power system frequency) Rule 2017 ................................................................................................1556
Definitions ...............................................................................................1556
Inertia sub-networks ................................................................................1557
Inertia requirements methodology ...........................................................1557
Inertia requirements .................................................................................1558

11.96.1
11.96.2
11.96.3
11.96.4

Part ZZY

11.97

11.97.1
11.97.2
11.97.3
11.97.4
11.97.5

Part ZZZ

11.98

11.98.1
11.98.2
11.98.3
11.98.4
11.98.5
11.98.6
11.98.7
11.98.8

Part ZZZA

11.99

11.99.1
11.99.2
11.99.3
11.99.4
11.99.5
11.99.6

11.99.7

Part ZZZB

11.100

11.100.1
11.100.2
11.100.3
11.100.4

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NATIONAL ELECTRICITY RULES
VERSION 123

11.100.5
11.100.6

NSCAS not to be used to meet an inertia shortfall after 1 July 2019 ......1558
Inertia network services may be used to meet an NSCAS gap declared in
the NSCAS transition period ...................................................................1559
Inertia network services made available before the commencement date...........................................................................................................1559

Managing power system fault levels.....................................................1560

Rules consequential on the making of the National Electricity
Amendment (Managing power system fault levels) Rule 2017 ..........1560
Definitions ..............................................................................................1560
System strength impact assessment guidelines........................................1561
System strength requirements methodology............................................1561
System strength requirements ..................................................................1561
NSCAS not to be used to meet a fault level shortfall after 1 July 2019 ..1562
System strength services may be used to meet an NSCAS gap declared in
the NSCAS transition period ...................................................................1563
Withdrawal of a system strength-related NSCAS gap already declared .1563
System strength services made available before the commencement date...........................................................................................................1564

Generating System Model Guidelines..................................................1564

Making of Power System Model Guidelines........................................1564

Five Minute Settlement .........................................................................1564

Rules consequential on the making of the National Electricity
Amendment (Five Minute Settlement) Rule 2017...............................1564
Definitions ...............................................................................................1564
Amendments to procedures......................................................................1565
Exemption for certain metering installations...........................................1566
New or replacement meters .....................................................................1566
Metering installations exempt from metering data provision requirements.............................................................................................1566
Exemption from meter data storage requirements ...................................1566
Default offers and bids submitted prior to the commencement date .......1566

Contestability of energy services ..........................................................1567

Rules consequential on the making of the National Electricity
Amendment (Contestability of energy services) Rule 2017 ...............1567
Definitions ...............................................................................................1567
New guidelines ........................................................................................1568
Transitional arrangements for application of Distribution Service
Classification Guidelines and service classification provisions ..............1569
Transitional arrangements for application of Asset Exemption Guidelines, exemption applications and asset exemption decisions ...........................1569
Transitional arrangements for adjustment in value of regulatory asset
base ..........................................................................................................1570

Declaration of lack of reserve conditions.............................................1571

Making of lack of reserve declaration guidelines ...............................1571
Definitions ...............................................................................................1571
Making of lack of reserve declaration guidelines ....................................1571

11.100.7

Part ZZZC

11.101

11.101.1
11.101.2
11.101.3
11.101.4
11.101.5
11.101.6

11.101.7
11.101.8

Part ZZZD

11.102

Part ZZZE

11.103

11.103.1
11.103.2
11.103.3.
11.103.4
11.103.5

11.103.6
11.103.7

Part ZZZF

11.104

11.104.1
11.104.2
11.104.3

11.104.4

11.104.5

Part ZZZG

11.105
11.105.1
11.105.2

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NATIONAL ELECTRICITY RULES
VERSION 123

Part ZZZH
11.106
11.106.1
11.106.2
11.106.3

Part ZZZI

Implementation of demand management incentive scheme ..............1571
Implementation of demand management incentive scheme ....................1571
Definitions ...............................................................................................1571
Purpose ....................................................................................................1571
Early application of revised demand management incentive scheme .....1572

Reinstatement of long notice Reliability and Emergency Reserve
Trader .....................................................................................................1573

Rules consequential on the making of the National Electricity Amendment (Reinstatement of long notice Reliability and Emergency Reserve Trader) Rule 2018....................................................................1573
Definitions ...............................................................................................1573
New RERT guidelines .............................................................................1574
Amendments to RERT procedures...........................................................1577
Reserve contracts entered into before the commencement date ..............1577

Register of distributed energy resources .............................................1577

Rules consequential on the making of the National Electricity
Amendment (Register of distributed energy resources) Rule 2018...1577
Definitions ..............................................................................................1577
AEMO to develop and publish DER register information guidelines .....1578
NSPs to provide AEMO with existing DER generation information ......1578

Generator technical performance standards ......................................1578

Rules consequential on the making of the National Electricity
Amendment (Generator technical performance standards) Rule
2018 .........................................................................................................1578
Definitions ...............................................................................................1578
Application of the Amending Rule to existing connection enquiries ......1579
Application of the Amending Rule to existing applications to connect...1580
Application of the Amending Rule to existing offers to connect.............1582
Application of the Amending Rule to Existing Connection Agreements 1582

Generator three year notice of closure.................................................1583

Rules consequential on the making of the National Electricity
Amendment (Generator three year notice of closure) Rule 2018 ......1583
Definitions ...............................................................................................1583
AER to develop and publish notice of closure exemption guideline .......1583
Application of Amending Rule to AEMO ...............................................1583
Application of Amending Rule to Generators .........................................1583

Participant compensation following market suspension ....................1584

Rules consequential on the making of the National Electricity Amendment (Participant compensation following market suspension) Rule 2018 ................................................................................................1584
Definitions ...............................................................................................1584
Market suspension compensation methodology and schedule of benchmark values .......................................................................................................1584

Global settlement and market reconciliation ......................................1584

11.107

11.107.1
11.107.2
11.107.3
11.107.4

Part ZZZJ

11.108

11.108.1
11.108.2
11.108.3

Part ZZZK

11.109

11.109.1
11.109.2
11.109.3
11.109.4
11.109.5

Part ZZZL

11.110

11.110.1
11.110.2
11.110.3
11.110.4

Part ZZZM

11.111

11.111.1
11.111.2

Part ZZZN

Page lxi

NATIONAL ELECTRICITY RULES
VERSION 123

11.112

Rules consequential on the making of the National Electricity
Amendment (Global settlement and market reconciliation) Rule
2018 .........................................................................................................1584
Definitions ...............................................................................................1584
Amendments to AEMO procedures .........................................................1585
AEMO to publish report on unaccounted for energy trends ....................1585
Continuation of registration for non-market generators ..........................1585
Publication of UFE data by AEMO .........................................................1585
Publication of UFE reporting guidelines .................................................1586

Metering installation timeframes .........................................................1586

Rules consequential on making of the National Electricity Amendment
(Metering installation timeframes) Rule 2018.....................................1586
Definitions ...............................................................................................1586
Timeframes for meters to be installed .....................................................1586

Early implementation of ISP priority projects....................................1587

National Electricity Amendment (Early implementation of ISP priority projects) Rule 2019 ................................................................................1587
Definitions ...............................................................................................1587
Modifications to clause 5.16.6 for ISP VNI and QNI projects ................1588
Modifications to clause 6A.8.2 for ISP projects ......................................1589

Enhancement to the Reliability and Emergency Reserve Trader .....1591

Rules consequential on the making of the National Electricity Amendment (Enhancement to the reliability and emergency reserve trader) Rule 2019 ...................................................................................1591
Definitions ...............................................................................................1591
New RERT guidelines .............................................................................1592
Amendments to RERT procedures...........................................................1592
Reserve contracts entered into before the commencement date ..............1592
Clause 3.20.6 (Reporting on RERT by AEMO) ......................................1592

Retailer Reliability Obligation..............................................................1592

Rules consequential on the making of the National Electricity
Amendment (Retailer Reliability Obligation) Rule 2019 ...................1592
Application...............................................................................................1592
Reliability Instrument Guidelines ............................................................1593
Forecasting Best Practice Guidelines ......................................................1593
Reliability Forecast Guidelines................................................................1593
AER Opt-in Guidelines ............................................................................1594
Contracts and Firmness Guidelines .........................................................1594
Qualifying contracts under interim Contracts and Firmness Guidelines .1594
Grandfathering arrangements ..................................................................1595
Reliability Compliance Procedures and Guidelines ................................1596
MLO Guidelines ......................................................................................1596
Application of Part G, Divisions 2 – 6 (inclusive)...................................1596
Interim deeming of MLO generators and MLO groups ..........................1597
MLO information template ......................................................................1603
Initial MLO register .................................................................................1604
Approved MLO products list ...................................................................1604

11.112.1
11.112.2
11.112.3
11.112.4
11.112.5
11.112.6

Part ZZZO

11.113

11.113.1
11.113.2

Part ZZZP

11.114

11.114.1
11.114.2
11.114.3

Part ZZZQ

11.115

11.115.1
11.115.2
11.115.3
11.115.4
11.115.5

Part ZZZR

11.116

11.116.1
11.116.2
11.116.3
11.116.4
11.116.5
11.116.6
11.116.7
11.116.8
11.116.9
11.116.10
11.116.11
11.116.12
11.116.13
11.116.14
11.116.15

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NATIONAL ELECTRICITY RULES
VERSION 123

11.116.16
11.116.17
11.116.18

Designated MLO exchange .....................................................................1604
Five minute settlement intervals ..............................................................1604
Review by AEMC ....................................................................................1604

Page lxiii