National Electricity Rules Version 101

Historical Information

This version of the National Electricity Rules was current from 1 November 2017 to 16 November 2017.

National Electricity Rules Version 101
Status Information
This is the latest electronically available version of the National Electricity Rules as at 1 November 2017.
This consolidated version of the National Electricity Rules was last updated on 1 November 2017 as a result of the commencement of the following amendments:
Schedule 2 of National Electricity Amendment (Extension of the Reliability and Emergency Reserve Trader) Rule 2016 No. 5
This consolidated version of the Rules reflects the initial Rules made by the SA Minister under section 90 of the National Electricity Law (NEL) as amended by:
Rules made by the South Australian Minister under sections 90A to 90E of the NEL; and 
Rules made by the Australian Energy Market Commission under Part 7 Division 3 of the NEL.
Application of the National Energy Customer Framework related Rule
On 27 June 2012, the South Australian Minister made Rules relating to the implementation of the National Energy Customer Framework (NECF), including amendments to the National Electricity Rules under section 90D of the NEL in relation to small customer connections (Chapter 5A), Retail Markets including billing and credit support (Chapter 6B) and related provisions (NECF related rule).
The NECF related Rule commenced operation as a law of Tasmania, the Australian Capital Territory and the Commonwealth on 1 July 2012; South Australia on 1 February 2013, New South Wales on 1 July 2013 and Queensland on 1 July 2015.
On 1 July 2016, Victoria adopted the provisions of the NECF related rule that relate to small customer connections (Chapter 5A and related provisions). Victoria has not adopted the Retail Market provisions in Chapter 6B of the Rules.
The NECF related Rule does not apply in Western Australia or the Northern Territory until the National Energy Retail Law set out in the Schedule to the National Energy Retail Law (South Australia) Act 2011 is implemented as a law in that jurisdiction (clause 24, Part 11, Schedule 3 NEL).
The NECF related Rule can be found on the Australian Energy Market Commission's website under the 'National Electricity Rules', 'Rules made by the SA Ministers' tabs. 
Provisions in force
All provisions displayed in this consolidated version of the Rules have commenced. As at the date of this consolidation the Australian Energy Market Commission has made the following Rules under Part 7 Division 3 of the NEL that have not yet commenced:
Schedules 1, 2 and 3 of the National Electricity Amendment (Managing power system fault levels) Rule 2017 No. 10 will commence operation on 17 November 2017.
Schedules 2, 3 and 4 of the National Electricity Amendment (Expanding competition in metering and related services) Rule 2015 No. 12 commences operation on 1 December 2017.
Schedules 2, 4 and 5 of the National Electricity Amendment (Embedded Networks) Rule 2015 No. 15 will commence operation on 1 December 2017 immediately after Schedules 2,3 and 4 of the National Electricity Amendment (Expanding Competition in metering and related services) Rule 2015 No. 12.
Schedule 1 of the National Electricity Amendment (Meter Replacement Processes) Rule 2016 No. 2 will commence operation on 1 December 2017.
Schedule 2 of the National Electricity Amendment (Updating the electricity B2B framework) Rule 2016 No. 6 will commence on 1 December 2017 immediately prior to Schedules 2, 3 and 4 of the National Electricity Amendment (Expanding competition in metering and related services) Rule 2015 No.12.
Schedules 3 and 4 of the National Electricity Amendment (Updating the electricity B2B framework) Rule 2016 No. 6 will commence on 1 December 2017.
Schedules 1, 2, 4, 5 and 6 of the National Electricity Amendment (Transmission Connection and Planning Arrangements) Rule 2017 No. 4 will commence on 1 July 2018.
Schedules 1 to 7 of the National Electricity Amendment (Managing the rate of change of power system frequency) Rule 2017 No. 9 will commence on 1 July 2018 immediately after the commencement of Schedules 1,2,4,5 and 6 of the National Electricity Amendment (Transmission Connection and Planning Arrangements) Rule 2017 No. 4.
Schedules 4 to 9 of the National Electricity Amendment (Managing power system fault levels) rule 2017 No. 10 will commence on 1 July 2018 immediately after the commencement of Schedules 1 to 7 of the National Electricity Amendment (Managing the rate of change of power system frequency) Rule 2017 No. 9.
Schedules 1,2,3 and 4 of the National Electricity Amendment (Generating System Model Guidelines) Rule 2017 No. 11 commence operation on 1 July 2018, immediately after Schedules 4 to 9 of the National Electricity Amendment (Managing power system fault levels) Rule 2017 No. 10.

TABLE OF CONTENTS
1.	Introduction	3
1.1	Preliminary	3
1.1.1	References to the Rules	3
1.1.2	Italicised expressions	3
1.1.3	[Deleted]	3
1.2	Background	3
1.3	Nomenclature of and references to provisions of a Chapter	3
1.3.1	Introduction	3
1.3.2	Parts, Divisions and Subdivisions	3
1.3.3	Rules, clauses, paragraphs, subparagraphs and other items	4
1.4	Effect of renumbering of provisions of the Rules	5
1.5	[Deleted]	5
1.6	[Deleted]	5
1.7	Interpretation	5
1.7.1	General	5
1.8	Notices	6
1.8.1	Service of notices under the Rules	6
1.8.2	Time of service	7
1.8.3	Counting of days	7
1.8.4	Reference to addressee	7
1.9	Retention of Records and Documents	8
1.10	[Deleted]	8
1.11	AEMO Rule Funds	8
2.	Registered Participants and Registration	13
2.1	Registered Participants	13
2.1.1	Purpose	13
2.1.2	General	13
2.2	Generator	13
2.2.1	Registration as a Generator	13
2.2.2	Scheduled Generator	14
2.2.3	Non-Scheduled Generator	15
2.2.4	Market Generator	16
2.2.5	Non-Market Generator	17
2.2.6	Ancillary services generating unit	17
2.2.7	Semi-Scheduled Generator	19
2.3	Customer	21
2.3.1	Registration as a Customer	21
2.3.2	First-Tier Customer	21
2.3.3	Second-Tier Customer	22
2.3.4	Market Customer	22
2.3.5	Ancillary services load	23
2.3A	Small Generation Aggregator	26
2.3A.1	Registration	26
2.3AA	Market Ancillary Service Provider	27
2.3AA.1	Registration	27
2.4	Market Participant	27
2.4.1	Registration as a category of Market Participant	27
2.4.2	Eligibility	28
2.4A	Metering Coordinator	28
2.4A.1	Registration as a Metering Coordinator	28
2.4A.2	Eligibility	29
2.5	Network Service Provider	30
2.5.1	Registration as a Network Service Provider	30
2.5.2	Market Network Service	31
2.5.3	Scheduled Network Service	32
2.5A	Trader	33
2.5B	Reallocator	34
2.6	Special Participant	34
2.7	Intention to Commence Activities or Functions	35
2.8	Registered Participant Rights and Obligations	35
2.8.1	Rights and obligations	35
2.9	Application to be Registered as a Registered Participant	36
2.9.1	Applications for Registration	36
2.9.2	Registration as a Registered Participant	36
2.9.3	Registration as an Intermediary	37
2.9A	Transfer of Registration	38
2.9A.1	Definitions	38
2.9A.2	Applications for Transfer of Registration	38
2.9A.3	Approval for Transfer of Registration	39
2.10	Ceasing to be a Registered Participant	40
2.10.1	Notification of intention	40
2.10.2	Ceasing Participation	41
2.10.3	Liability after cessation	42
2.11	Participant Fees	42
2.11.1	Development of Participant fee structure	42
2.11.2	Payment of Participant fees	45
2.11.3	Budgeted revenue requirements	45
2.12	Interpretation of References to Various Registered Participants	46
2A.	Regional Structure	51
Part A	Region change applications and region determinations by AEMC	51
2A.1	Introduction to Chapter 2A	51
2A.1.1	Definitions	51
2A.1.2	AEMC determination of regions	51
2A.1.3	Publication of regions by AEMO	51
2A.2	Region change applications	51
2A.2.1	A complete region change application	51
2A.2.2	Identifying a congestion problem	52
2A.2.3	Explanation of economic efficiency of proposed region solution	52
2A.2.4	Region change application must be technically competent	53
2A.2.5	Alternative congestion management options	53
2A.2.6	Previous application relating to congestion problem	54
2A.2.7	AEMO to provide information to intending applicants	54
2A.2.8	AEMC may refuse to accept incomplete applications	55
2A.3	Acceptance of region change application by AEMC	55
2A.3.1	Acceptance of a region change application by AEMC	55
2A.3.2	Preliminary consultation prior to acceptance of a region change application	56
2A.4	First round consultation on region change application	57
2A.4.1	Notice of first round consultation	57
2A.4.2	Right to make written submissions during first round consultation period	57
2A.4.3	Alternative region solution put forward by third parties	57
2A.4.4	Acceptance as a formal alternative region solution by AEMC	58
2A.5	Provision of supplementary economic analysis	59
2A.5.1	AEMC may direct provision of supplementary analysis	59
2A.5.2	AEMC may direct AEMO to provide information	59
2A.6	Region determinations	60
2A.6.1	AEMC powers to make a region determination	60
2A.6.2	Matters for consideration in making region determination	60
2A.7	Draft region determination and second round consultation	61
2A.7.1	Publishing of draft region determination	61
2A.7.2	Second round consultation	61
2A.7.3	Right to make written submissions during second round consultation	62
2A.8	Final region determination	62
2A.8.1	Final determination for region change	62
2A.8.2	Formal publication of region determination	62
2A.9	Miscellaneous matters for region change process	62
2A.9.1	AEMC may extend periods of time specified in Chapter 2A	62
2A.9.2	Consultation meeting in relation to region change application	63
Part B	Implementation of region determination	63
2A.10	Purpose and application of Part B	63
2A.10.1	Purpose of Part B	63
2A.10.2	Application of Part B	64
2A.11	Region Change Implementation Procedure	64
2A.11.1	Submission of draft Region Change Implementation Procedure	64
2A.11.2	Approved Region Change Implementation Procedure	64
2A.12	AEMO region change implementation functions	65
2A.12.1	General implementation functions	65
2A.12.2	Implementation functions referable to published implementation procedure	65
2A.12.3	Amendment of current or subsequent Regions and Loss Factors Publication	65
2A.13	Continuity of regions	65
Schedule 2A.1	Glossary for Chapter 2A	66
3.	Market Rules	71
3.1	Introduction to Market Rules	71
3.1.1	Purpose	71
3.1.1A	Definitions	71
3.1.2	[Deleted]	72
3.1.3	[Deleted]	72
3.1.4	Market design principles	72
3.1.5	Time for undertaking action	73
3.2	AEMO's Market Responsibilities	73
3.2.1	Market functions of AEMO	73
3.2.2	Spot market	74
3.2.3	Power system operations	74
3.2.4	Non-market ancillary services function	74
3.2.5	[Deleted]	75
3.2.6	Settlements	75
3.3	Prudential Requirements	75
3.3.1	Market Participant criteria	75
3.3.2	Credit support	75
3.3.3	Acceptable credit criteria	76
3.3.4	Acceptable credit rating	77
3.3.4A	Prudential standard	77
3.3.5	Amount of credit support	77
3.3.6	Changes to credit support	77
3.3.7	Drawings on credit support	78
3.3.8	Credit limit procedures and prudential settings	79
3.3.8A	Security Deposits	81
3.3.9	Outstandings	81
3.3.10	Trading limit	81
3.3.11	Call notices	82
3.3.12	Typical accrual	83
3.3.13	Response to Call Notices	83
3.3.13A	Application of monies in the security deposit fund	84
3.3.14	Potential value of a transaction	85
3.3.15	Trading margin	86
3.3.16	Limitation on entry of transactions	86
3.3.17	Scheduled prices	86
3.3.18	Additional credit support	87
3.3.19	Consideration of other Market Participant transactions	87
3.4	Spot Market	87
3.4.1	Establishment of spot market	87
3.4.2	Trading day and trading interval	88
3.4.3	Spot market operations timetable	88
3.5	Regions	88
3.5.1	[Deleted]	88
3.5.2	[Deleted]	88
3.5.3	[Deleted]	88
3.5.4	[Deleted]	88
3.5.5	[Deleted]	88
3.5.6	Abolition of Snowy region	88
3.6	Network Losses and Constraints	89
3.6.1	Inter-regional losses	89
3.6.2	Intra-regional losses	91
3.6.2A	Load and generation data used to determine inter-regional loss factor equations and intra-regional loss factors	95
3.6.3	Distribution losses	96
3.6.4	Network constraints	101
3.6.5	Settlements residue due to network losses and constraints	101
3.7	Projected Assessment of System Adequacy	103
3.7.1	Administration of PASA	103
3.7.2	Medium term PASA	104
3.7.3	Short term PASA	107
3.7A	Congestion information resource	110
3.7B	Unconstrained intermittent generation forecast	112
3.7C	Energy Adequacy Assessment Projection	114
3.7D	Demand side participation information	117
3.8	Central Dispatch and Spot Market Operation	119
3.8.1	Central Dispatch	119
3.8.2	Participation in central dispatch	121
3.8.3	Bid and offer aggregation guidelines	122
3.8.3A	Ramp rates	124
3.8.4	Notification of scheduled capacity	127
3.8.5	Submission timing	128
3.8.6	Generating unit offers for dispatch	128
3.8.6A	Scheduled network service offers for dispatch	131
3.8.7	Bids for scheduled load	132
3.8.7A	Market ancillary services offers	134
3.8.8	Validation of dispatch bids and offers	135
3.8.9	Default offers and bids	136
3.8.10	Network constraints	137
3.8.11	Ancillary services constraints	139
3.8.12	System scheduled reserve constraints	139
3.8.13	Notification of constraints	139
3.8.14	Dispatch under conditions of supply scarcity	139
3.8.15	[Deleted]	140
3.8.16	Equal priced dispatch bids and dispatch offers	140
3.8.17	Self-commitment	140
3.8.18	Self-decommitment	141
3.8.19	Dispatch inflexibilities	141
3.8.20	Pre-dispatch schedule	144
3.8.21	On-line dispatch process	146
3.8.22	Rebidding	147
3.8.22A	Offers, bids and rebids must not be false or misleading	150
3.8.23	Failure to conform to dispatch instructions	151
3.8.24	Scheduling errors	153
3.9	Price Determination	154
3.9.1	Principles applicable to spot price determination	154
3.9.2	Determination of spot prices	155
3.9.2A	Determination of ancillary services prices	157
3.9.2B	Pricing where AEMO determines a manifestly incorrect input	158
3.9.3	Pricing in the event of intervention by AEMO	159
3.9.3A	Reliability standard and settings review	160
3.9.3B	Reliability standard and settings review report	162
3.9.3C	Reliability standard	162
3.9.3D	Implementation of the reliability standard	163
3.9.4	Market Price Cap	164
3.9.5	Application of the Market Price Cap	165
3.9.6	Market Floor Price	165
3.9.6A	Application of the Market Floor Price	166
3.9.7	Pricing for constrained-on scheduled generating units	166
3.10	[Deleted]	166
3.11	Ancillary Services	166
3.11.1	Introduction	166
3.11.2	Market ancillary services	167
3.11.3	Acquisition of Network Support and Control Ancillary Service	169
3.11.4	Guidelines and objectives for acquisition of network support and control ancillary services	169
3.11.5	Tender process for network support and control ancillary services	170
3.11.6	Dispatch of network support and control ancillary services by AEMO	172
3.11.7	Guidelines and objectives for acquisition of system restart ancillary services by AEMO	173
3.11.8	Determination of electrical sub-network boundaries	174
3.11.9	Acquisition of system restart ancillary services by AEMO	174
3.11.10	Reporting	176
3.12	Market Intervention by AEMO	176
3.12.1	Intervention settlement timetable	176
3.12.2	Affected Participants and Market Customers entitlements to compensation in relation to AEMO intervention	177
3.12.3	Role of the Independent Expert in calculating payments in relation to intervention by AEMO	181
3.12A	Mandatory restrictions	184
3.12A.1	Restriction offers	184
3.12A.2	Mandatory restrictions schedule	186
3.12A.3	Acquisition of capacity	186
3.12A.4	Rebid of capacity under restriction offers	187
3.12A.5	Dispatch of restriction offers	187
3.12A.6	Pricing during a restriction price trading interval	187
3.12A.7	Determination of funding restriction shortfalls	188
3.12A.8	Cancellation of a mandatory restriction period	193
3.12A.9	Review by AEMC	193
3.13	Market Information	194
3.13.1	Provision of information	194
3.13.2	Systems and procedures	194
3.13.3	Standing data	196
3.13.4	Spot market	203
3.13.4A	Market ancillary services	207
3.13.5	Ancillary services contracting by AEMO	208
3.13.5A	Settlements residue auctions	208
3.13.6	[Deleted]	208
3.13.6A	Report by AEMO	208
3.13.7	Monitoring of significant variation between forecast and actual prices by AER	209
3.13.8	Public information	211
3.13.9	[Deleted]	211
3.13.10	Market auditor	211
3.13.11	[Deleted]	212
3.13.12	NMI Standing Data	212
3.13.12A	NMI Standing Data Schedule	216
3.13.13	Inter-network tests	217
3.13.14	Carbon Dioxide Equivalent Intensity Index	217
3.14	Administered Price Cap and Market Suspension	220
3.14.1	Cumulative Price Threshold and Administered Price Cap	220
3.14.2	Application of Administered Price Cap	222
3.14.3	Conditions for suspension of the spot market	223
3.14.4	Declaration of market suspension	224
3.14.5	Pricing during market suspension	225
3.14.6	Compensation due to the application of an administered price cap or administered floor price	228
3.15	Settlements	233
3.15.1	Settlements management by AEMO	233
3.15.2	Electronic funds transfer	233
3.15.3	Connection point and virtual transmission node responsibility	233
3.15.4	Adjusted energy amounts connection points	234
3.15.5	Adjusted energy - transmission network connection points	234
3.15.5A	Adjusted energy - virtual transmission nodes	235
3.15.6	Spot market transactions	235
3.15.6A	Ancillary service transactions	236
3.15.7	Payment to Directed Participants	249
3.15.7A	Payment to Directed Participants for services other than energy and market ancillary services	250
3.15.7B	Claim for additional compensation by Directed Participants	254
3.15.8	Funding of Compensation for directions	256
3.15.9	Reserve settlements	260
3.15.10	Administered price cap or administered floor price compensation payments	262
3.15.10A	Goods and services tax	263
3.15.10B	Restriction contract amounts	264
3.15.10C	Intervention Settlements	266
3.15.11	Reallocation transactions	269
3.15.11A	Reallocation procedures	270
3.15.12	Settlement amount	271
3.15.13	Payment of settlement amount	272
3.15.14	Preliminary statements	272
3.15.15	Final statements	272
3.15.15A	Use of estimated settlement amounts by AEMO	272
3.15.16	Payment by market participants	273
3.15.17	Payment to market participants	273
3.15.18	Disputes	273
3.15.19	Revised Statements and Adjustments	274
3.15.20	Payment of adjustments	276
3.15.21	Default procedure	276
3.15.22	Maximum total payment in respect of a billing period	281
3.15.23	Maximum total payment in respect of a financial year	282
3.15.24	Compensation for reductions under clause 3.15.23	284
3.15.25	Interest on overdue amounts	284
3.16	Participant compensation fund	284
3.16.1	Establishment of Participant compensation fund	284
3.16.2	Dispute resolution panel to determine compensation	285
3.17	[Deleted]	287
3.18	Settlements Residue Auctions	287
3.18.1	Settlements residue concepts	287
3.18.2	Auctions and eligible persons	288
3.18.3	Auction rules	289
3.18.3A	Secondary trading of SRD units	291
3.18.4	Proceeds and fees	291
3.18.4A	Secondary trading proceeds and margin	292
3.18.5	Settlement residue committee	293
3.19	Market Management Systems Access Procedures	294
3.20	Reliability and Emergency Reserve Trader	295
3.20.1	[Deleted]	295
3.20.2	Reliability and emergency reserve trader	295
3.20.3	Reserve contracts	296
3.20.4	Dispatch pricing methodology for unscheduled reserve contracts	297
3.20.5	AEMO’s risk management and accounts relating to the reliability safety net	297
3.20.6	Reporting on RERT by AEMO	298
3.20.7	AEMO’s exercise of the RERT	299
3.20.8	RERT Guidelines	300
3.20.9	[Deleted] 	301
Schedule 3.1	Bid and Offer Validation Data	301
Scheduled Generating Unit Data:	301
Semi-Scheduled Generating Unit Data:	302
Scheduled Load Data:	303
Scheduled Network Service Data:	304
Ancillary Service Generating Unit and Ancillary Service Load Data:	304
Dispatch Inflexibility Profile:	304
Aggregation Data:	305
Schedule 3.2	[Deleted]	305
Schedule 3.3	[Deleted]	305
4.	Power System Security	309
4.1	Introduction	309
4.1.1	Purpose	309
4.2	Definitions and Principles	309
4.2.1	[Deleted]	310
4.2.2	Satisfactory Operating State	310
4.2.3	Credible and non-credible contingency events and protected events	310
4.2.3A	Re-classifying contingency events	311
4.2.3B	Criteria for re-classifying contingency events	313
4.2.4	Secure operating state and power system security	313
4.2.5	Technical envelope	314
4.2.6	General principles for maintaining power system security	315
4.2.7	Reliable Operating State	315
4.2.8	Time for undertaking action	316
4.3	Power System Security Responsibilities and Obligations	316
4.3.1	Responsibility of AEMO for power system security	316
4.3.2	System security	318
4.3.3	The role of System Operators	321
4.3.4	Network Service Providers	323
4.3.5	Market Customer obligations	326
4.4	Power System Frequency Control	327
4.4.1	Power system frequency control responsibilities	327
4.4.2	Operational frequency control requirements	327
4.4.3	Generator protection requirements	327
4.5	Control of Power System Voltage	328
4.5.1	Power system voltage control	328
4.5.2	Reactive power reserve requirements	329
4.5.3	Audit and testing	329
4.6	Protection of Power System Equipment	329
4.6.1	Power system fault levels	329
4.6.2	Power system protection co-ordination	330
4.6.3	Audit and testing	330
4.6.4	Short-term thermal ratings of power system	330
4.6.5	Partial outage of power protection systems	330
4.7	Power System Stability Co-ordination	331
4.7.1	Stability analysis co-ordination	331
4.7.2	Audit and testing	331
4.8	Power System Security Operations	331
4.8.1	Registered Participants' advice	331
4.8.2	Protection or control system abnormality	332
4.8.3	AEMO’s advice on power system emergency conditions	332
4.8.4	Declaration of conditions	332
4.8.5	Managing declarations of conditions	333
4.8.5A	Determination of the latest time for AEMO intervention	334
4.8.5B	Notifications of last time of AEMO intervention	335
4.8.6	[Deleted]	335
4.8.7	Managing a power system contingency event	335
4.8.8	[Deleted]	335
4.8.9	Power to issue directions and clause 4.8.9 instructions	335
4.8.9A	System security directions	338
4.8.10	Disconnection of generating units and market network services	338
4.8.11	[Deleted]	338
4.8.12	System restart plan and local black system procedures	338
4.8.13	[Deleted]	340
4.8.14	Power system restoration	340
4.8.15	Review of operating incidents	340
4.9	Power System Security Related Market Operations	342
4.9.1	Load forecasting	342
4.9.2	Instructions to Scheduled Generators and Semi-Scheduled Generators	343
4.9.2A	Dispatch Instructions to Scheduled Network Service Providers	344
4.9.3	Instructions to Registered Participants	345
4.9.3A	Ancillary services instructions	345
4.9.3B	Compliance with dispatch instructions	346
4.9.4	Dispatch related limitations on Scheduled Generators and Semi-Scheduled Generators	346
4.9.4A	Dispatch related limitations on Scheduled Network Service Providers	348
4.9.5	Form of dispatch instructions	349
4.9.6	Commitment of scheduled generating units	350
4.9.7	De-commitment, or output reduction, by Scheduled Generators	351
4.9.8	General responsibilities of Registered Participants	352
4.9.9	Scheduled Generator plant changes	353
4.9.9A	Scheduled Network Service Provider plant changes	353
4.9.9B	Ancillary service plant changes	353
4.10	Power System Operating Procedures	354
4.10.1	Power system operating procedures	354
4.10.2	Transmission network operations	354
4.10.3	Operating interaction with distribution networks	355
4.10.4	Switching of a Distributor's high voltage networks	355
4.10.5	Switching of reactive power facilities	356
4.10.6	Automatic reclose	356
4.10.7	Inspection of facilities by AEMO	357
4.11	Power System Security Support	357
4.11.1	Remote control and monitoring devices	357
4.11.2	Operational control and indication communication facilities	358
4.11.3	Power system voice/data operational communication facilities	359
4.11.4	Records of power system operational communication	361
4.11.5	Agent communications	361
4.12	Nomenclature Standards	362
4.13	[Deleted]	363
4.14	Acceptance of Performance Standards	363
4.15	Compliance with Performance Standards	364
4.16	Transitioning arrangements for establishment of performance standards	369
4.16.1	Definitions	369
4.16.2	Exclusions	371
4.16.3	Notification and acceptance of performance standards	371
4.16.4	Actual capability	376
4.16.5	Criteria for, and negotiation of, performance standards	377
4.16.6	Consultation with and assistance by Network Service Providers	380
4.16.7	Referral to expert determination	380
4.16.8	Prior actions	381
4.16.9	Deemed performance standards	381
4.16.10	Modification of connection agreements	382
4.17	Expert determination	382
4.17.1	Performance standards committee and appointment of performance standards experts	382
4.17.2	Referral to performance standards expert	384
4.17.3	Determinations of performance standards experts	384
4.17.4	Other matters	385
5.	Network Connection, Planning and Expansion	389
Part A	Network Connection	389
5.1	Statement of Purpose	389
5.1.1	[Deleted]	389
5.1.2	Purpose and Application	389
5.1.3	Principles	391
5.2	Obligations	392
5.2.1	Obligations of Registered Participants	392
5.2.2	Connection agreements	393
5.2.3	Obligations of network service providers	393
5.2.4	Obligations of customers	398
5.2.5	Obligations of Generators	399
5.2.6	Obligations of AEMO	399
5.3	Establishing or Modifying Connection	400
5.3.1	Process and procedures	400
5.3.1A	Application of rule to connection of embedded generating units	400
5.3.2	Connection enquiry	401
5.3.3	Response to connection enquiry	402
5.3.4	Application for connection	405
5.3.4A	Negotiated access standards	405
5.3.5	Preparation of offer to connect	407
5.3.6	Offer to connect	408
5.3.7	Finalisation of connection agreements	412
5.3.7A	Application for connection to declared shared network	413
5.3.8	Provision and use of information	414
5.3.9	Procedure to be followed by a Generator proposing to alter a generating system	415
5.3.10	Acceptance of performance standards for generating plant that is altered	417
5.3.11	Notification of request to change normal voltage	418
5.3A	Establishing or modifying connection - embedded generation	418
5.3A.1	Application of rule 5.3A	418
5.3A.2	Definitions and miscellaneous	419
5.3A.3	Publication of Information	419
5.3A.4	Fees	421
5.3A.5	Enquiry	422
5.3A.6	Response to Enquiry	423
5.3A.7	Preliminary Response to Enquiry	423
5.3A.8	Detailed Response to Enquiry	424
5.3A.9	Application for connection	425
5.3A.10	Preparation of offer to connect	426
5.3A.11	Technical Dispute	427
5.4	Design of Connected Equipment	427
5.4.1	Application	427
5.4.2	Advice of inconsistencies	427
5.4.3	Additional information	428
5.4.4	Advice on possible non-compliance	428
5.4.5	Register of completed embedded generation projects	429
5.4A	Access arrangements relating to Transmission Networks	430
5.4AA	Network support payments and functions	432
5.5	Access arrangements relating to Distribution Networks	433
5.5A	[Deleted]	437
5.6	[Deleted]	437
5.6A	[Deleted]	437
5.7	Inspection and Testing	437
5.7.1	Right of entry and inspection	437
5.7.2	Right of testing	439
5.7.3	Tests to demonstrate compliance with connection requirements for generators	440
5.7.4	Routine testing of protection equipment	442
5.7.5	Testing by Registered Participants of their own plant requiring changes to normal operation	443
5.7.6	Tests of generating units requiring changes to normal operation	445
5.7.7	Inter-network power system tests	447
5.8	Commissioning	454
5.8.1	Requirement to inspect and test equipment	454
5.8.2	Co-ordination during commissioning	454
5.8.3	Control and protection settings for equipment	454
5.8.4	Commissioning program	455
5.8.5	Commissioning tests	456
5.9	Disconnection and Reconnection	457
5.9.1	Voluntary disconnection	457
5.9.2	Decommissioning procedures	457
5.9.3	Involuntary disconnection	458
5.9.4	Direction to disconnect	459
5.9.4A	Notification of disconnection	459
5.9.5	Disconnection during an emergency	459
5.9.6	Obligation to reconnect	460
Part D	Network Planning and Expansion	461
5.10	Network development generally	461
5.10.1	Content of Part D	461
5.10.2	Definitions	462
5.10.3	Interpretation	466
5.11	Forecasts of connection to transmission network and identification of system limitations	466
5.11.1	Forecasts for connection to transmission network	466
5.11.2	Identification of network limitations	467
5.12	Transmission annual planning process	467
5.12.1	Transmission annual planning review	467
5.12.2	Transmission Annual Planning Report	468
5.13	Distribution annual planning process	473
5.13.1	Distribution annual planning review	473
5.13.2	Distribution Annual Planning Report	475
5.13.3	Distribution system limitation template	475
5.13A	Distribution zone substation information	476
5.14	Joint planning	479
5.14.1	Joint planning obligations of Transmission Network Service Providers and Distribution Network Service Providers	479
5.14.2	Joint planning obligations of Distribution Network Service Providers and Distribution Network Service Providers	480
5.14.3	Joint planning obligations of Transmission Network Service Providers	481
5.14A	Joint planning in relation to retirement or de-ratings of network assets forming part of the Declared Shared Network	481
5.14B	TAPR Guidelines	481
5.14B.1	Development of TAPR Guidelines	481
5.15	Regulatory investment tests generally	482
5.15.1	Interested parties	482
5.15.2	Identification of a credible option	482
5.15.3	Review of costs thresholds	483
5.15.4	Costs determinations	485
5.16	Regulatory investment test for transmission	486
5.16.1	Principles	486
5.16.2	Regulatory investment test for transmission application guidelines	489
5.16.3	Investments subject to the regulatory investment test for transmission	490
5.16.4	Regulatory investment test for transmission procedures	492
5.16.5	Disputes in relation to application of regulatory investment test for transmission	499
5.16.6	Determination that preferred option satisfies the regulatory investment test for transmission	501
5.17	Regulatory investment test for distribution	502
5.17.1	Principles	502
5.17.2	Regulatory investment test for distribution application guidelines	504
5.17.3	Projects subject to the regulatory investment test for distribution	506
5.17.4	Regulatory investment test for distribution procedures	507
5.17.5	Disputes in relation to application of regulatory investment test for distribution	513
5.18	Construction of funded augmentations	515
5.18A	Large generator connections	516
5.18A.1	Definitions	516
5.18A.2	Register of large generator connections	516
5.18A.3	Impact assessment of large generator connections	517
5.19	SENE Design and Costing Study	518
5.19.1	Definitions	518
5.19.2	Interpretation	519
5.19.3	Request for SENE Design and Costing Study	519
5.19.4	Content of SENE Design and Costing Study	520
5.19.5	Co-operation of other Network Service Providers	521
5.19.6	Publication of SENE Design and Costing Study report	522
5.19.7	Provision and use of information	522
5.20	National transmission planning	523
5.20.1	Preliminary consultation	523
5.20.2	Publication of NTNDP	524
5.20.3	Development strategies for national transmission flow paths	526
5.20.4	NTNDP database	527
5.20.5	Jurisdictional planning bodies and jurisdictional planning representatives	528
5.20.6	NTP Functions	528
5.20A	Frequency management planning	528
5.20A.1	Power system frequency risk review	528
5.20A.2	Power system frequency risk review process	529
5.20A.3	Power system frequency risk review report	530
5.20A.4	Request for protected event declaration	530
5.20A.5	Request to revoke a protected event declaration	531
5.21	AEMO's obligation to publish information and guidelines and provide advice	532
5.22	Last resort planning power	533
Schedule 5.1a	System standards	537
S5.1a.1	Purpose	537
S5.1a.2	Frequency	537
S5.1a.3	System stability	537
S5.1a.4	Power frequency voltage	538
S5.1a.5	Voltage fluctuations	538
S5.1a.6	Voltage waveform distortion	539
S5.1a.7	Voltage unbalance	539
S5.1a.8	Fault clearance times	540
Schedule 5.1	Network Performance Requirements to be Provided or Co-ordinated by Network Service Providers	542
S5.1.1	Introduction	542
S5.1.2	Network reliability	543
S5.1.2.1	Credible contingency events	543
S5.1.2.2	Network service within a region	544
S5.1.2.3	Network service between regions	545
S5.1.3	Frequency variations	545
S5.1.4	Magnitude of power frequency voltage	545
S5.1.5	Voltage fluctuations	547
S5.1.6	Voltage harmonic or voltage notching distortion	548
S5.1.7	Voltage unbalance	549
S5.1.8	Stability	550
S5.1.9	Protection systems and fault clearance times	551
S5.1.10	Load, generation and network control facilities	554
S5.1.10.1	General	554
S5.1.10.1a	Emergency frequency control schemes	555
S5.1.10.2	Distribution Network Service Providers	556
S5.1.10.3	Transmission Network Service Providers	556
S5.1.11	Automatic reclosure of transmission or distribution lines	557
S5.1.12	Rating of transmission lines and equipment	557
S5.1.13	Information to be provided	558
Schedule 5.2	Conditions for Connection of Generators	558
S5.2.1	Outline of requirements	558
S5.2.2	Application of Settings	559
S5.2.3	Technical matters to be coordinated	560
S5.2.4	Provision of information	561
S5.2.5	Technical requirements	563
S5.2.5.1	Reactive power capability	563
S5.2.5.2	Quality of electricity generated	565
S5.2.5.3	Generating unit response to frequency disturbances	565
S5.2.5.4	Generating system response to voltage disturbances	569
S5.2.5.5	Generating system response to disturbances following contingency events	570
S5.2.5.6	Quality of electricity generated and continuous uninterrupted operation	573
S5.2.5.7	Partial load rejection	574
S5.2.5.8	Protection of generating systems from power system disturbances	574
S5.2.5.9	Protection systems that impact on power system security	576
S5.2.5.10	Protection to trip plant for unstable operation	578
S5.2.5.11	Frequency control	579
S5.2.5.12	Impact on network capability	581
S5.2.5.13	Voltage and reactive power control	583
S5.2.5.14	Active power control	589
S5.2.6	Monitoring and control requirements	591
S5.2.6.1	Remote Monitoring	591
S5.2.6.2	Communications equipment	593
S5.2.7	Power station auxiliary supplies	594
S5.2.8	Fault current	594
Schedule 5.3	Conditions for Connection of Customers	595
S5.3.1a	Introduction to the schedule	595
S5.3.1	Information	596
S5.3.2	Design standards	598
S5.3.3	Protection systems and settings	598
S5.3.4	Settings of protection and control systems	599
S5.3.5	Power factor requirements	600
S5.3.6	Balancing of load currents	601
S5.3.7	Voltage fluctuations	602
S5.3.8	Harmonics and voltage notching	602
S5.3.9	Design requirements for Network Users' substations	602
S5.3.10	Load shedding facilities	603
Schedule 5.3a	Conditions for connection of Market Network Services	603
S5.3a.1a	Introduction to the schedule	603
S5.3a.1	Provision of Information	605
S5.3a.2	Application of settings	606
S5.3a.3	Technical matters to be co-ordinated	607
S5.3a.4	Monitoring and control requirements	607
S5.3a.4.1	Remote Monitoring	607
S5.3a.4.2	[Deleted]	608
S5.3a.4.3	Communications equipment	608
S5.3a.5	Design standards	609
S5.3a.6	Protection systems and settings	609
S5.3a.7	[Deleted]	611
S5.3a.8	Reactive power capability	611
S5.3a.9	Balancing of load currents	611
S5.3a.10	Voltage fluctuations	612
S5.3a.11	Harmonics and voltage notching	612
S5.3a.12	Design requirements for Market Network Service Providers’ substations	612
S5.3a.13	Market network service response to disturbances in the power system	613
S5.3a.14	Protection of market network services from power system disturbances	613
Schedule 5.4	Information to be Provided with Preliminary Enquiry	614
Schedule 5.4A	Preliminary Response	615
Schedule 5.4B	Detailed Response to Enquiry	618
Schedule 5.5	Technical Details to Support Application for Connection and Connection Agreement	620
S5.5.1	Introduction to the schedule	620
S5.5.2	Categories of data	620
S5.5.3	Review, change and supply of data	621
S5.5.4	Data Requirements	621
S5.5.5	Asynchronous generating unit data	622
S5.5.6	Generating units equal to or smaller than 30MW data	622
S5.5.7	Generating System Design Data Sheet, Generating System Setting Data Sheet and Generating System Model Guidelines	622
Schedule 5.5.1	[Deleted]	624
Schedule 5.5.2	[Deleted]	624
Schedule 5.5.3	Network and plant technical data of equipment at or near connection point	624
Schedule 5.5.4	Network Plant and Apparatus Setting Data	627
Schedule 5.5.5	Load Characteristics at Connection Point	629
Schedule 5.6	Terms and Conditions of Connection agreements	630
Schedule 5.7	Annual Forecast Information for Planning Purposes	631
Schedule 5.8	Distribution Annual Planning Report	633
Schedule 5.9	Demand side engagement document (clause 5.13.1(h))	640
Chapter 5A	Electricity connection for retail customers	645
Part A	Preliminary	645
5A.A.1	Definitions	645
5A.A.2	Application of this Chapter	648
5A.A.3	Small Generation Aggregator deemed to be agent of a retail customer	649
Part B	Standardised offers to provide basic and standard connection services	649
Division 1	Basic connection services	649
5A.B.1	Obligation to have model standing offer to provide basic connection services	649
5A.B.2	Proposed model standing offer for basic connection services	650
5A.B.3	Approval of terms and conditions of model standing offer to provide basic connection services	651
Division 2	Standard connection services	652
5A.B.4	Standard connection services	652
5A.B.5	Approval of model standing offer to provide standard connection services	653
Division 3	Miscellaneous	653
5A.B.6	Amendment etc of model standing offer	653
5A.B.7	Publication of model standing offers	654
Part C	Negotiated connection	654
5A.C.1	Negotiation of connection	654
5A.C.2	Process of negotiation	655
5A.C.3	Negotiation framework	655
5A.C.4	Fee to cover cost of negotiation	657
Part D	Application for connection service	658
Division 1	Information	658
5A.D.1	Publication of information	658
5A.D.1A	Register of completed embedded generation projects	658
Division 2	Preliminary enquiry	660
5A.D.2	Preliminary enquiry	660
Division 3	Applications	661
5A.D.3	Application process	661
5A.D.4	Site inspection	662
Part E	Connection charges	662
5A.E.1	Connection charge principles	662
5A.E.2	Itemised statement of connection charges	664
5A.E.3	Connection charge guidelines	664
5A.E.4	Payment of connection charges	666
Part F	Formation and integration of connection contracts	667
Division 1	Offer and acceptance – basic and standard connection services	667
5A.F.1	Distribution Network Service Provider’s response to application	667
5A.F.2	Acceptance of connection offer	667
5A.F.3	Offer and acceptance—application for expedited connection	667
Division 2	Offer and acceptance – negotiated connection	668
5A.F.4	Negotiated connection offer	668
Division 3	Formation of contract	669
5A.F.5	Acceptance of connection offer	669
Division 4	Contractual performance	669
5A.F.6	Carrying out connection work	669
5A.F.7	Retailer required for energisation where new connection	670
Part G	Dispute resolution between Distribution Network Service Providers and customers	670
5A.G.1	Relevant disputes	670
5A.G.2	Determination of dispute	670
5A.G.3	Termination of proceedings	671
SCHEDULE 5A.1 – Minimum content requirements for connection contract	671
Part A	Connection offer not involving embedded generation	671
Part B	Connection offer involving embedded generation	672
6	Economic Regulation of Distribution Services	677
Part A	Introduction	677
6.1	Introduction to Chapter 6	677
6.1.1	AER's regulatory responsibility	677
6.1.1A	[Deleted]	677
6.1.2	Structure of this Chapter	677
6.1.3	Access to direct control services and negotiated distribution services	678
6.1.4	Prohibition of DUOS charges for the export of energy	678
Part B	Classification of Distribution Services and Distribution Determinations	679
6.2	Classification	679
6.2.1	Classification of distribution services	679
6.2.2	Classification of direct control services as standard control services or alternative control services	680
6.2.3	Term for which classification operates	681
6.2.4	Duty of AER to make distribution determinations	681
6.2.5	Control mechanisms for direct control services	681
6.2.6	Basis of control mechanisms for direct control services	682
6.2.7	Negotiated distribution services	683
6.2.8	Guidelines	683
Part C	Building Block Determinations for standard control services	684
6.3	Building block determinations	684
6.3.1	Introduction	684
6.3.2	Contents of building block determination	684
6.4	Post-tax revenue model	685
6.4.1	Preparation, publication and amendment of post-tax revenue model	685
6.4.2	Contents of post-tax revenue model	685
6.4.3	Building block approach	685
6.4.4	Shared assets	687
6.4.5	Expenditure Forecast Assessment Guidelines	688
6.4A	Capital expenditure incentive mechanisms	688
6.5	Matters relevant to the making of building block determinations	689
6.5.1	Regulatory asset base	689
6.5.2	Return on capital	690
6.5.3	Estimated cost of corporate income tax	693
6.5.4	[Deleted]	694
6.5.5	Depreciation	694
6.5.6	Forecast operating expenditure	694
6.5.7	Forecast capital expenditure	697
6.5.8	Efficiency benefit sharing scheme	701
6.5.8A	Capital expenditure sharing scheme	702
6.5.9	The X factor	703
6.5.10	Pass through events	704
6.6	Adjustments after making of building block determination.	704
6.6.1	Cost pass through	704
6.6.1A	Reporting on jurisdictional schemes	711
6.6.2	Service target performance incentive scheme	712
6.6.3	Demand management incentive scheme	713
6.6.3A	Demand management innovation allowance mechanism	714
6.6.4	Small-scale incentive scheme	715
6.6.5	Reopening of distribution determination for capital expenditure	717
6.6A	Contingent Projects	720
6.6A.1	Acceptance of a contingent project in a distribution determination	720
6.6A.2	Amendment of distribution determination for contingent project	721
Part D	Negotiated distribution services	726
6.7	Negotiated distribution services	726
6.7.1	Principles relating to access to negotiated distribution services	726
6.7.2	Determination of terms and conditions of access for negotiated distribution services	728
6.7.3	Negotiating framework determination	729
6.7.4	Negotiated Distribution Service Criteria determination	729
6.7.5	Preparation of and requirements for negotiating framework for negotiated distribution services	729
6.7.6	Confidential information	731
Part DA	Connection policies	732
6.7A	Connection policy requirements	732
6.7A.1	Preparation of, and requirements for, connection policy	732
Part E	Regulatory proposal and proposed tariff structure statement	733
6.8	Regulatory proposal and proposed tariff structure statement	733
6.8.1	AER's framework and approach paper	733
6.8.1A	Notification of approach to forecasting expenditure	736
6.8.2	Submission of regulatory proposal and tariff structure statement	736
6.9	Preliminary examination and consultation	738
6.9.1	Preliminary examination	738
6.9.2	Resubmission of proposal	739
6.9.2A	Confidential information	739
6.9.3	Consultation	739
6.10	Draft distribution determination and further consultation	740
6.10.1	Making of draft distribution determination	740
6.10.2	Publication of draft determination and consultation	741
6.10.3	Submission of revised proposal	741
6.10.4	Submissions on specified matters	742
6.11	Distribution determination	742
6.11.1	Making of distribution determination	742
6.11.1A	Out of scope revised regulatory proposal or late submissions	743
6.11.2	Notice of distribution determination	744
6.11.3	Commencement of distribution determination	744
6.12	Requirements relating to draft and final distribution determinations	744
6.12.1	Constituent decisions	744
6.12.2	Reasons for decisions	747
6.12.3	Extent of AER's discretion in making distribution determinations	748
6.13	Revocation and substitution of distribution determination for wrong information or error	749
6.14	Miscellaneous	750
6.14A	Distribution Confidentiality Guidelines	751
Part F	Cost Allocation	751
6.15	Cost allocation	751
6.15.1	Duty to comply with Cost Allocation Method	751
6.15.2	Cost Allocation Principles	751
6.15.3	Cost Allocation Guidelines	752
6.15.4	Cost Allocation Method	753
Part G	Distribution consultation procedures	754
6.16	Distribution consultation procedures	754
Part H	Ring-Fencing Arrangements for Distribution Network Service Providers	756
6.17	Distribution Ring-Fencing Guidelines	756
6.17.1	Compliance with Distribution Ring-Fencing Guidelines	756
6.17.2	Development of Distribution Ring-Fencing Guidelines	756
Part I	Distribution Pricing Rules	757
6.18	Distribution Pricing Rules	757
6.18.1	Application of this Part	757
6.18.1A	Tariff structure statement	757
6.18.1B	Amending a tariff structure statement with the AER's approval	758
6.18.1C	Sub-threshold tariffs	759
6.18.2	Pricing proposals	760
6.18.3	Tariff classes	762
6.18.4	Principles governing assignment or re-assignment of retail customers to tariff classes and assessment and review of basis of charging	762
6.18.5	Pricing principles	763
6.18.6	Side constraints on tariffs for standard control services	765
6.18.7	Recovery of designated pricing proposal charges	766
6.18.7A	Recovery of jurisdictional scheme amounts	767
6.18.8	Approval of pricing proposal	770
6.18.9	Publication of information about tariffs and tariff classes	772
6.19.	Data Required for Distribution Service Pricing	772
6.19.1	Forecast use of networks by Distribution Customers and Embedded Generators	772
6.19.2	Confidentiality of distribution network pricing information	772
Part J	Billing and Settlements	773
6.20	Billing and Settlements Process	773
6.20.1	Billing for distribution services	773
6.20.2	Minimum information to be provided in distribution network service bills	775
6.20.3	Settlement between Distribution Network Service Providers	775
6.20.4	Obligation to pay	775
Part K	Prudential requirements, capital contributions and prepayments	776
6.21	Distribution Network Service Provider Prudential Requirements	776
6.21.1	Prudential requirements for distribution network service	776
6.21.2	Capital contributions, prepayments and financial guarantees	777
6.21.3	Treatment of past prepayments and capital contributions	777
Part L	Dispute resolution	777
6.22	Dispute Resolution	777
6.22.1	Dispute Resolution by the AER	777
6.22.2	Determination of dispute	778
6.22.3	Termination of access dispute without access determination	779
Part M	Separate disclosure of transmission and distribution charges	780
6.23	Separate disclosure of transmission and distribution charges	780
Part N	Dual Function Assets	781
6.24	Dual Function Assets	781
6.24.1	Application of this Part	781
6.24.2	Dual Function Assets	781
6.25	AER determination of applicable pricing regime for Dual Function Assets	781
6.26	Division of Distribution Network Service Provider's revenue	782
Part O	Annual Benchmarking Report	784
6.27	Annual Benchmarking Report	784
Part P	Distribution Reliability Measures Guidelines	784
6.28	Distribution Reliability Measures Guidelines	784
Schedule 6.1	Contents of building block proposals	784
S6.1.1	Information and matters relating to capital expenditure	784
S6.1.2	Information and matters relating to operating expenditure	786
S6.1.3	Additional information and matters	786
Schedule 6.2	Regulatory Asset Base	789
S6.2.1	Establishment of opening regulatory asset base for a regulatory control period	789
S6.2.2	Prudency and efficiency of capital expenditure	794
S6.2.2A	Reduction for inefficient past capital expenditure	794
S6.2.2B	Depreciation	797
S6.2.3	Roll forward of regulatory asset base within the same regulatory control period	797
6A.	Economic Regulation of Transmission Services	801
Part A	Introduction	801
6A.1	Introduction to Chapter 6A	801
6A.1.1	Economic regulation of transmission services generally	801
6A.1.2	Meaning of terms and conditions of access for transmission services	802
6A.1.3	Access to prescribed and negotiated transmission services	802
6A.1.4	National regulatory arrangements	803
6A.1.5	Application of Chapter 6A to Market Network Service Providers	803
6A.1.6	Application of Chapter 6A to AEMO and declared transmission system operators	804
Part B	Transmission Determinations Generally	804
6A.2	Transmission determinations	804
6A.2.1	Duty of AER to make transmission determinations	804
6A.2.2	Components of transmission determinations	804
6A.2.3	Guidelines	804
Part C	Regulation of Revenue - Prescribed Transmission Services	805
6A.3	Allowed revenue from prescribed transmission services	805
6A.3.1	Allowed revenue for regulatory year	805
6A.3.2	Adjustment of maximum allowed revenue	806
6A.4	Revenue determinations	806
6A.4.1	Introduction	806
6A.4.2	Contents of revenue determination	806
6A.5	Post-tax revenue model	807
6A.5.1	Introduction	807
6A.5.2	Preparation, publication and amendment of post-tax revenue model	808
6A.5.3	Contents of post-tax revenue model	808
6A.5.4	Building blocks approach	809
6A.5.5	Shared assets	810
6A.5.6	Expenditure Forecast Assessment Guidelines	811
6A.5A	Capital expenditure incentive mechanisms	812
6A.6	Matters relevant to the making of revenue determinations	812
6A.6.1	Regulatory asset base	812
6A.6.2	Return on capital	814
6A.6.3	Depreciation	816
6A.6.4	Estimated cost of corporate income tax	818
6A.6.5	Efficiency benefit sharing scheme	818
6A.6.5A	Capital expenditure sharing scheme	819
6A.6.6	Forecast operating expenditure	820
6A.6.7	Forecast capital expenditure	823
6A.6.8	The X factor	827
6A.6.9	Pass through events	828
6A.7	Matters relevant to the adjustment of revenue cap after making of revenue determination	828
6A.7.1	Reopening of revenue determination for capital expenditure	828
6A.7.2	Network support pass through	831
6A.7.3	Cost pass through	833
6A.7.4	Service target performance incentive scheme	839
6A.7.5	Small-scale incentive scheme	841
6A.8	Contingent Projects	842
6A.8.1	Acceptance of a Contingent Project in a revenue determination	842
6A.8.2	Amendment of revenue determination for contingent project	843
Part D	Negotiated Transmission Services	848
6A.9	Negotiated transmission services	848
6A.9.1	Principles relating to access to negotiated transmission services	848
6A.9.2	Determination of terms and conditions of access for negotiated transmission services	850
6A.9.3	Negotiating framework determination	850
6A.9.4	Negotiated transmission criteria determination	850
6A.9.5	Preparation of and requirements for negotiating framework	851
6A.9.6	Confidential information	853
6A.9.7	Commercial arbitration for negotiated transmission services	853
Part E	Procedure – Revenue determinations, negotiating frameworks and pricing methodologies	853
6A.10	Revenue Proposal, proposed negotiating framework and proposed pricing methodology	853
6A.10.1A	AER's framework and approach paper	853
6A.10.1B	Notification of approach to forecasting expenditure	855
6A.10.1	Submission of proposal, framework, pricing methodology and information	856
6A.10.2	[Deleted]	857
6A.11	Preliminary examination and consultation	857
6A.11.1	Preliminary examination and determination of non-compliance with relevant requirements	857
6A.11.2	Resubmission of proposal, framework, pricing methodology or information	858
6A.11.2A	Confidential information	858
6A.11.3	Consultation	859
6A.12	Draft decision and further consultation	860
6A.12.1	Making of draft decision	860
6A.12.2	Publication of draft decision and consultation	860
6A.12.3	Submission of revised proposal, framework or pricing methodology	861
6A.12.4	Submissions on specified matters	862
6A.13	Final decision	863
6A.13.1	Making of final decision	863
6A.13.2	Refusal to approve amounts, values, framework or pricing methodology	863
6A.13.2A	Out of scope revised documents or late submissions	864
6A.13.3	Notice of final decision	865
6A.13.4	Making of transmission determination	865
6A.14	Requirements relating to draft and final decisions	865
6A.14.1	Contents of decisions	865
6A.14.2	Reasons for decisions	868
6A.14.3	Circumstances in which matters must be approved or accepted	868
6A.15	Revocation of revenue determination or amendment of pricing methodology for wrong information or error	871
6A.16	Miscellaneous	872
6A.16A	Transmission Confidentiality Guidelines	872
Part F	Information Disclosure	873
6A.17	Information disclosure by Transmission Network Service Providers	873
6A.17.1	Information to be provided to AER	873
6A.17.2	Information Guidelines	874
6A.18	[Deleted]	876
Part G	Cost Allocation	876
6A.19	Cost allocation	876
6A.19.1	Duty to comply with Cost Allocation Methodology	876
6A.19.2	Cost Allocation Principles	876
6A.19.3	Cost Allocation Guidelines	877
6A.19.4	Cost Allocation Methodology	878
Part H	Transmission Consultation Procedures	879
6A.20	Transmission consultation procedures	879
Part I	Ring-Fencing Arrangements for Transmission Network Service Providers	880
6A.21	Transmission Ring-Fencing Guidelines	880
6A.21.1	Compliance with Transmission Ring-Fencing Guidelines	880
6A.21.2	Development of Transmission Ring-Fencing Guidelines	881
Part J	Prescribed Transmission Services - Regulation of Pricing	882
6A.22	Terms used in Part J	882
6A.22.1	Aggregate annual revenue requirement (AARR)	882
6A.22.2	Annual service revenue requirement (ASRR)	882
6A.22.3	Meaning of attributable cost share	882
6A.22.4	Meaning of attributable connection point cost share	883
6A.23	Pricing Principles for Prescribed Transmission Services	883
6A.23.1	Introduction	883
6A.23.2	Principles for the allocation of the aggregate annual revenue requirement	883
6A.23.3	Principles for the allocation of the annual service revenue requirement to connection points	884
6A.23.4	Principles for the recovery of the Annual Service Revenue Requirement as prices	887
6A.24	Pricing methodology	889
6A.24.1	Pricing methodologies generally	889
6A.24.2	Publication of pricing methodology and transmission network prices	890
6A.24.3	Basis for setting prices pending approval of pricing methodology	891
6A.24.4	Basis for setting prices pending approval of maximum allowed revenue	891
6A.25	Pricing methodology guidelines for prescribed transmission services	892
6A.25.1	Making and amending of pricing methodology guidelines	892
6A.25.2	Contents of pricing methodology guidelines	893
6A.26	Prudent discounts	894
6A.26.1	Agreements for prudent discounts for prescribed transmission services	894
6A.26.2	Application to AER for approval of proposed prudent discount amounts	895
6A.27	Billing Process	897
6A.27.1	Billing for prescribed transmission services	897
6A.27.1A	Billing of modified load export charges	897
6A.27.2	Minimum information to be provided in network service bills	897
6A.27.3	Obligation to pay charges for prescribed transmission services	898
6A.27.4	Payments between Transmission Network Service Providers in the same region	898
6A.27.5	Calculation of financial transfers between Transmission Network Service Providers in the same region	899
6A.28	Prudential Requirements	899
6A.28.1	Prudential Requirements for prescribed transmission services	899
6A.28.2	Capital contribution or prepayment for a specific asset	899
6A.28.3	Treatment of past capital contributions	899
6A.29	Multiple Transmission Network Service Providers	900
6A.29.1	Multiple Transmission Network Service Providers within a region	900
6A.29.2	Single Transmission Network Service Provider within a region	901
6A.29.3	Allocation over several regions	901
6A.29A	Modified load export charges	901
6A.29A.1	Single Transmission Network Service Provider in a Region	901
6A.29A.2 	Calculation of the modified load export charges	901
6A.29A.3	Calculation of adjustments to the modified load export charge	902
6A.29A.4	Billing the modified load export charge	902
6A.29A.5	Allocation and billing process where multiple Transmission Network Service Providers in a Region	903
Part K	Commercial arbitration for disputes about terms and conditions of access for prescribed and negotiated transmission services	903
6A.30	Commercial arbitration for prescribed and negotiated transmission services	903
6A.30.1	Notification of transmission services dispute	904
6A.30.2	Appointment of commercial arbitrator	904
6A.30.3	Procedures of commercial arbitrator	905
6A.30.4	Powers of commercial arbitrator in determining transmission services access disputes	905
6A.30.5	Determination of transmission services access disputes	907
6A.30.6	Costs of dispute	907
6A.30.7	Enforcement of agreement or determination and requirement for reasons	908
6A.30.8	Miscellaneous	908
Part L	Annual Benchmarking Report	909
6A.31	Annual Benchmarking Report	909
Schedule 6A.1	Contents of Revenue Proposals	909
S6A.1.1	Information and matters relating to capital expenditure	909
S6A.1.2	Information and matters relating to operating expenditure	910
S6A.1.3	Additional information and matters	911
Schedule 6A.2	Regulatory Asset Base	914
S6A.2.1	Establishment of opening regulatory asset base for a regulatory control period	914
S6A.2.2	Prudency and efficiency of capital expenditure	919
S6A.2.2A	Reduction for inefficient past capital expenditure	920
S6A.2.2B	Depreciation	922
S6A.2.3	Removal of assets from regulatory asset base	922
S6A.2.4	Roll forward of regulatory asset base within the same regulatory control period	924
Schedule 6A.3	CRNP methodology and modified CRNP methodology	925
S6A.3.1	Meaning of optimised replacement cost	925
S6A.3.2	CRNP methodology	925
S6A.3.3	Modified CRNP methodology	926
Schedule 6A.4	Application of this Chapter to AEMO and declared transmission system operators	926
S6A.4.1	Application of this Chapter to AEMO etc	926
S6A.4.2	Exclusions, qualifications and modifications	926
Chapter 6B	Retail markets	937
Part A	Retail support	937
Division 1 – Application and definitions	937
6B.A1.1	Application of this Part	937
Division 2	Billing and payment rules	938
6B.A2.1	Obligation to pay	938
6B.A2.2	Direct customer billing and energy-only contracts	938
6B.A2.3	Calculating network charges	938
6B.A2.4	Statement of charges	938
6B.A2.5	Time and manner of payment	939
Division 3	Matters incidental to billing and payment	939
6B.A3.1 	Adjustment of network charges	939
6B.A3.2	Tariff reassignment	940
6B.A3.3	Disputed statements of charges	941
6B.A3.4	Interest	942
6B.A3.5	Notification of changes to charges	942
Part B	Credit support required for late payment	942
Division 1	Application and definitions	943
6B.B1.1	Application of Part B	943
6B.B1.2	Definitions	943
Division 2	Requirements for credit support	943
6B.B2.1	Distribution Network Service Provider may require credit support in limited circumstances	943
Division 3	Provision of credit support by retailers	944
6B.B3.1	Retailer to provide credit support	944
6B.B3.2	Acceptable form of credit support	944
Division 4	Other Rules relating to credit support	945
6B.B4.1	Application of credit support	945
6B.B4.2	Return of credit support	945
6B.B4.3	Other retailer obligations	945
Schedule 6B.1	Prescribed form of unconditional undertaking for credit support	946
7.	Metering	949
7.1	Introduction to the Metering Chapter	949
7.1.1	Contents	949
7.1.2	Obligations of Market Participants to establish metering installations	949
7.1.3	Obligation to establish, maintain and publish procedures	950
7.1.4	Amendment of procedures in the Metering Chapter	950
7.2	Responsibility for Metering Installation, Metering Data and Market Settlement and Transfer Solution Procedures	951
7.2.1	Responsibility of the responsible person	951
7.2.1A	Responsibility of AEMO for the collection, processing and delivery of metering data	952
7.2.1B	Responsibility for interconnectors	953
7.2.2	Responsibility of the Market Participant	953
7.2.3	Responsibility of the Local Network Service Provider	953
7.2.4	Joint metering installations	955
7.2.4A	Special site or technology related conditions	955
7.2.5	Role of the responsible person	957
7.2.6	[Deleted]	959
7.2.7	Registration of metering installations	959
7.2.8	Market Settlement and Transfer Solution Procedures	960
7.2A	B2B Arrangements	960
7.2A.1	B2B e-Hub	960
7.2A.2	B2B Procedures	961
7.2A.3	Cost Recovery	961
7.3	Metering Installation Arrangements	961
7.3.1A	Metering Installation Requirements	961
7.3.1	Metering installation components	961
7.3.2	Connection and metering point	966
7.3.3	[Deleted]	966
7.3.4	Metering installation types, accuracy and meter churn	966
7.3.5	[Deleted]	968
7.3.6	[Deleted]	968
7.3.7	Meter installation malfunctions	968
7.3A	Payment for Metering Provision and Metering Data Services	969
7.4	Metering Providers and Metering Data Providers	970
7.4.1	Role of Metering Providers	970
7.4.1A	Role of Metering Data Providers	970
7.4.2	Qualifications and registration of Metering Providers	970
7.4.2A	Qualifications and registration of Metering Data Providers	971
7.4.3	Deregistration of Metering Providers and Metering Data Providers	972
7.5	Register of Metering Information	973
7.5.1	Metering register	973
7.5.2	Metering register discrepancy	973
7.5A	Disclosure of NMI information	974
7.5A.1	Application of this Rule	974
7.5A.2	NMI and NMI checksum	974
7.5A.3	NMI Standing Data	974
7.6	Inspection, Testing and Audit of Metering Installations	974
7.6.1	Responsibility for testing	974
7.6.2	Actions in event of non-compliance	976
7.6.3	Audits of information held in metering installations	977
7.6.4	Retention of test records and documents	978
7.7	Entitlement to metering data and access to metering installation	979
7.8	Security of Metering Installations and Data	981
7.8.1	Security of metering installations	981
7.8.2	Security controls	982
7.8.3	Changes to metering equipment, parameters and settings within a metering installation	983
7.8.4	Changes to energy data or to metering data	984
7.9	Processing of Metering Data for Settlements Purposes	985
7.9.1	Metering databases	985
7.9.2	[Deleted]	985
7.9.3	[Deleted]	985
7.9.4	Data validation, substitution and estimation	985
7.9.5	Errors found in metering tests, inspections or audits	986
7.10	Confidentiality	987
7.11	Metering Data Arrangements	987
7.11.1	Metering data performance standards	987
7.11.2	Metering Data Services	988
7.11.3	Data management and storage	989
7.11.4	Use of check metering data	990
7.11.5	Periodic energy metering	990
7.12	Time settings	991
7.13	Evolving Technologies and Processes and Development of the Market	992
7.14	Metrology and service level procedures	994
7.14.1	Requirements of the metrology procedure	994
7.14.1A	Requirements of the service level procedures	995
7.14.2	Jurisdictional metrology material in metrology procedure	996
7.14.3	Additional metrology procedure matters	998
7.14.4	[Deleted]	999
7.15	Miscellaneous	999
7.16	Metering data provision to retail customers	999
Schedule 7.1	Responsibility for metering installation and metering data	1001
Schedule 7.2	Types and Accuracy of Metering Installations	1001
S7.2.1	General requirements	1001
S7.2.2	Metering installations commissioned prior to 13 December 1998	1001
S7.2.3	Accuracy requirements for metering installations	1002
S7.2.4.	Check metering	1008
S7.2.5.	Resolution and accuracy of displayed or captured data	1009
S7.2.6.	General design standards	1009
S7.2.6.1	Design requirements	1009
S7.2.6.2	Design guidelines	1010
Schedule 7.3	Inspection and Testing Requirements	1010
S7.3.1.	General	1010
S7.3.2.	Technical Guidelines	1013
Schedule 7.4	Metering Provider	1013
S7.4.1	General	1013
S7.4.2	Categories of registration	1014
S7.4.3	Capabilities of Metering Providers for metering installations types 1, 2, 3 and 4	1015
S7.4.4	Capabilities of Metering Providers for metering installations types 5 and 6	1018
S7.4.5	Capabilities of the Accredited Service Provider category	1018
Schedule 7.5	Metering Register	1018
S7.5.1.	General	1018
S7.5.2.	Metering register information	1019
Schedule 7.6	Metering Data Provider	1020
S7.6.1	General	1020
S7.6.2	Categories of registration	1021
S7.6.3	Capabilities of Metering Data Providers	1021
8.	Administrative Functions	1027
Part A	Introductory	1027
8.1	Administrative functions	1027
8.1.1	[Deleted]	1027
8.1.2	[Deleted]	1027
8.1.3	Structure of this Chapter	1027
Part B	Disputes	1028
8.2	Dispute Resolution	1028
8.2.1	Application and guiding principles	1028
8.2.2	The Dispute Resolution Adviser	1031
8.2.3	Dispute management systems of Registered Participants and AEMO	1032
8.2.4	Stage 1 - dispute resolution through Registered Participants’ DMS	1032
8.2.5	Stage 2 - dispute resolution process	1035
8.2.6A	Establishment of Dispute Resolution Panel	1035
8.2.6B	Parties to DRP Proceedings	1037
8.2.6C	Proceedings of the DRP	1038
8.2.6D	Decisions of the DRP	1038
8.2.6	[Deleted]	1039
8.2.7	Legal representation	1039
8.2.8	Cost of dispute resolution	1039
8.2.9	Effect of resolution	1040
8.2.10	Recording and publication	1041
8.2.11	Appeals on questions of law	1041
8.2.12	[Deleted]	1041
8.2A	[Deleted]	1041
8.3	Power to make Electricity Procedures	1041
8.4	[Deleted]	1041
8.5	[Deleted]	1041
Part C	Registered Participants' confidentiality obligations	1041
8.6	Confidentiality	1041
8.6.1	Confidentiality	1041
8.6.2	Exceptions	1043
8.6.3	Conditions	1044
8.6.4	[Deleted]	1045
8.6.5	Indemnity to AER, AEMC and AEMO	1045
8.6.6	AEMO information	1045
8.6.7	Information on Rules Bodies	1045
Part D	Monitoring and reporting	1045
8.7	Monitoring and Reporting	1045
8.7.1	Monitoring	1045
8.7.2	Reporting requirements and monitoring standards for Registered Participants and AEMO	1046
8.7.3	Consultation required for making general regulatory information order (Section 28H of the NEL)	1048
8.7.4	Preparation of network service provider performance report (Section 28V of the NEL)	1049
8.7.5	[Deleted]	1050
8.7.6	Recovery of reporting costs	1050
Part E	Reliability panel	1050
8.8	Reliability Panel	1050
8.8.1	Purpose of Reliability Panel	1050
8.8.2	Constitution of the Reliability Panel	1052
8.8.3	Reliability Panel review process	1054
8.8.4	Determination of protected events	1057
Part F	Rules consultation procedures	1058
8.9	Rules Consultation Procedures	1058
Part G	Consumer advocacy funding	1061
8.10	Consumer advocacy funding obligation	1061
Part H	Augmentations	1061
8.11	Augmentations	1061
8.11.1	Application	1061
8.11.2	Object	1061
8.11.3	Definitions	1062
8.11.4	Planning criteria	1062
8.11.5	Construction of augmentation that is not a contestable augmentation	1063
8.11.6	Contestable augmentations	1064
8.11.7	Construction and operation of contestable augmentation	1064
8.11.8	Funded augmentations that are not subject to the tender process	1066
8.11.9	Contractual requirements and principles	1067
8.11.10	Annual planning review	1067
Schedule 8.11	Principles to be reflected in agreements relating to contestable augmentations	1068
S8.11.1	Risk allocation	1068
S8.11.2	Minimum requirements for agreements relating to contestable augmentation	1069
S8.11.3	Matters to be dealt with in relevant agreements	1069
8A.	Participant Derogations	1073
Part 1	Derogations Granted to TransGrid	1073
8A.1	[Deleted]	1073
Part 2	Derogations Granted to EnergyAustralia	1073
8A.2	[Deleted]	1073
8A.2A	[Deleted]	1073
Part 3	[Deleted]	1073
Part 4	[Deleted]	1073
Part 5	[Deleted]	1073
Part 6	Derogations Granted to Victorian Market Participants	1073
Part 7	[Deleted]	1074
Part 8	[Deleted]	1074
Part 9	[Deleted]	1074
Part 10	[Deleted]	1074
Part 11	[Deleted]	1074
Part 12	[Deleted]	1074
Part 13	Derogation granted to Aurora Energy (Tamar Valley) Pty Ltd	1074
8A.13	[Deleted]	1074
Part 14	Derogations granted to Ausgrid, Endeavour Energy and Essential Energy	1074
8A.14	Derogations from Chapter 6 for the current regulatory control period and subsequent regulatory control period	1074
8A.14.1	Definitions	1074
8A.14.2	Expiry date	1079
8A.14.3	Application of Rule 8A.14	1079
8A.14.4	Recovery of revenue across the current regulatory control period and subsequent regulatory control period	1079
8A.14.5	Recovery of revenue in subsequent regulatory control period only and no reopening of subsequent distribution determination required	1081
8A.14.6	Recovery of revenue in subsequent regulatory control period only and reopening of distribution determination is required	1082
8A.14.7	Requirements for adjustment determination	1084
8A.14.8	Application of Chapter 6 under participant derogation	1084
Part 15	Derogations granted to ActewAGL	1086
8A.15	Derogations from Chapter 6 for the current regulatory control period and subsequent regulatory control period	1086
8A.15.1	Definitions	1086
8A.15.2	Expiry date	1090
8A.15.3	Application of Rule 8A.15	1090
8A.15.4	Recovery of revenue across the current regulatory control period and subsequent regulatory control period	1090
8A.15.5	Recovery of revenue in subsequent regulatory control period only and no reopening of subsequent distribution determination required	1092
8A.15.6	Recovery of revenue in subsequent regulatory control period only and reopening of distribution determination is required	1094
8A.15.7	Requirements for adjustment determination	1096
8A.15.8	Application of Chapter 6 under participant derogation	1096
9.	Jurisdictional Derogations and Transitional Arrangements	1101
9.1	Purpose and Application	1101
9.1.1	Purpose	1101
9.1.2	Jurisdictional Derogations	1101
Part A	Jurisdictional Derogations for Victoria	1101
9.2	[Deleted]	1101
9.3	Definitions	1101
9.3.1	General Definitions	1101
9.3.2	[Deleted]	1103
9.3A	Fault levels	1103
9.4	Transitional Arrangements for Chapter 2 - Registered Participants, Registration and Cross Border Networks	1104
9.4.1	[Deleted]	1104
9.4.2	Smelter Trader	1104
9.4.3	Smelter Trader: compliance	1105
9.4.4	Report from AER	1107
9.4.5	Cross Border Networks	1108
9.5	[Deleted]	1108
9.6	Transitional Arrangements for Chapter 4 - System Security	1108
9.6.1	Operating Procedures (clause 4.10.1)	1108
9.6.2	Nomenclature Standards (clause 4.12)	1108
9.7	Transitional Arrangements for Chapter 5 - Network Connection	1109
9.7.1	[Deleted]	1109
9.7.2	[Deleted]	1109
9.7.3	[Deleted]	1109
9.7.4	Regulation of Distribution Network Connection	1109
9.7.5	[Deleted]	1110
9.7.6	[Deleted]	1110
9.7.7	[Deleted]	1110
9.8	Transitional Arrangements for Chapter 6 - Network Pricing	1110
9.8.1	[Deleted]	1110
9.8.2	[Deleted]	1110
9.8.3	[Deleted]	1110
9.8.4	Transmission Network Pricing	1110
9.8.4A	[Deleted]	1112
9.8.4B	[Deleted]	1112
9.8.4C	[Deleted]	1112
9.8.4D	[Deleted]	1112
9.8.4E	[Deleted]	1112
9.8.4F	[Deleted]	1112
9.8.4G	[Deleted]	1112
9.8.5	[Deleted]	1112
9.8.6	[Deleted]	1112
9.8.7	Distribution network pricing – transitional application of former Chapter 6	1112
9.8.8	Exclusion of AER's power to aggregate distribution systems and parts of distribution systems	1113
9.9	Transitional Arrangements for Chapter 7 - Metering	1114
9.9.1	Metering Installations To Which This Schedule Applies	1114
9.9.2	[Deleted]	1114
9.9.3	[Deleted]	1114
9.9.4	[Deleted]	1114
9.9.5	[Deleted]	1114
9.9.6	[Deleted]	1114
9.9.7	[Deleted]	1114
9.9.8	[Deleted]	1114
9.9.9	Periodic Energy Metering (clause 7.9.3)	1114
9.9.10	Use of Alternate Technologies (clause 7.13)	1114
9.9A	[Deleted]	1115
9.9B	[Deleted]	1115
9.9C	Metering services for residential and small business customers	1115
9.9C.1	Definitions	1115
9.9C.2	Expiry Date	1116
9.9C.3	Designation as responsible person	1116
9.9C.4	Classification of relevant metering installations	1116
9.9C.5	Cost recovery of AMI rollout	1116
9.9C.6	Capability for remote acquisition of metering data	1116
Schedule 9A1.1	[Deleted]	1116
Schedule 9A1.2	[Deleted]	1116
Schedule 9A1.3	[Deleted]	1116
Schedule 9A2	[Deleted]	1116
Schedule 9A3	Jurisdictional Derogations Granted to Generators	1116
1.	Interpretation of tables	1116
2.	Continuing effect	1117
3.	Subsequent agreement	1117
4.	[Deleted]	1118
5.	Reactive Power Capability (clause S5.2.5.1 of schedule 5.2)	1118
6.	[Deleted]	1119
7.	[Deleted]	1119
8.	[Deleted]	1119
9.	[Deleted]	1119
10.	[Deleted]	1119
11.	[Deleted	1119
12.	[Deleted]	1119
13.	Governor Systems (load control) (clause S5.2.5.11 of schedule 5.2)	1119
14.	[Deleted]	1119
15.	[Deleted]	1119
16.	Excitation Control System (clause S5.2.5.13 of schedule 5.2)	1119
Part B	Jurisdictional Derogations for New South Wales	1120
9.10	[Deleted]	1120
9.11	Definitions	1120
9.11.1	Definitions used in this Part B	1120
9.12	Transitional Arrangements for Chapter 2 - Generators, Registered Participants, Registration and Cross Border Networks	1121
9.12.1	[Deleted]	1121
9.12.2	Customers	1121
9.12.3	Power Traders	1121
9.12.4	Cross Border Networks	1124
9.13	[Deleted]	1125
9.14	Transitional Arrangements for Chapter 4 - System Security	1125
9.14.1	Power System Operating Procedures	1125
9.15	NSW contestable services for Chapter 5A	1125
9.15.1	Definitions	1125
9.15.2	Chapter 5A not to apply to certain contestable services	1126
9.16	Transitional Arrangements for Chapter 6 - Network Pricing	1126
9.16.1	NSW contestable services	1126
9.16.2	[Deleted]	1126
9.16.3	Jurisdictional Regulator	1126
9.16.4	Deemed Regulated Interconnector	1126
9.16.5	[Deleted]	1126
9.17	Transitional Arrangements for Chapter 7 - Metering	1126
9.17.1	Extent of Derogations	1126
9.17.2	Initial Registration (clause 7.1.2)	1127
9.17.3	Amendments to Schedule 9G1	1127
9.17.4	Compliance with AS/NZ ISO 9002 (clause S7.4.3(f) of schedule 7.4)	1127
9.17A	[Deleted]	1128
9.18	[Deleted]	1128
Part C	Jurisdictional Derogations for the Australian Capital Territory	1128
9.19	[Deleted]	1128
9.20	Definitions and Transitional Arrangements for Cross-Border Networks	1128
9.20.1	Definitions	1128
9.20.2	Cross Border Networks	1128
9.21	[Deleted]	1129
9.22	[Deleted]	1129
9.23	Transitional Arrangements for Chapter 6 - Network Pricing	1129
9.23.1	[Deleted]	1129
9.23.2	[Deleted]	1129
9.23.3	[Deleted	1129
9.23.4	[Deleted]	1129
9.24	Transitional Arrangements	1129
9.24.1	Chapter 7 - Metering	1129
9.24.2	[Deleted]	1129
9.24A	[Deleted]	1129
Part D	Jurisdictional Derogations for South Australia	1129
9.25	Definitions	1129
9.25.1	[Deleted]	1129
9.25.2	Definitions	1129
9.26	Transitional Arrangements for Chapter 2 - Registered Participants, Registration And Cross Border Networks	1132
9.26.1	Registration as a Generator	1132
9.26.2	Registration as a Customer	1133
9.26.3	Cross Border Networks	1133
9.26.4	[Deleted]	1134
9.26.5	Registration as a Network Service Provider	1134
9.27	[Deleted]	1134
9.28	Transitional Arrangements for Chapter 5 - Network Connection	1134
9.28.1	Application of clause 5.2	1134
9.28.2	[Deleted]	1135
9.29	Transitional Arrangements for Chapter 6 - Economic Regulation of Distribution Services	1135
9.29.1	[Deleted]	1135
9.29.2	[Deleted]	1135
9.29.3	[Deleted]	1135
9.29.4	[Deleted]	1135
9.29.5	Distribution Network Pricing – South Australia	1135
9.29.6	Capital contributions, prepayments and financial guarantees	1136
9.29.7	Ring fencing	1137
9.29A	Monitoring and reporting	1137
9.30	Transitional Provisions	1138
9.30.1	Chapter 7 - Metering	1138
Part E	Jurisdictional Derogations for Queensland	1138
9.31	[Deleted]	1138
9.32	Definitions and Interpretation	1138
9.32.1	Definitions	1138
9.32.2	Interpretation	1140
9.33	Transitional Arrangements for Chapter 1	1141
9.33.1	[Deleted]	1141
9.34	Transitional Arrangements for Chapter 2 - Registered Participants and Registration	1141
9.34.1	Application of the Rules in Queensland (clauses 2.2 and 2.5)	1141
9.34.2	Stanwell Cross Border Leases (clause 2.2)	1141
9.34.3	[Deleted]	1141
9.34.4	Registration as a Customer (clause 2.3.1)	1141
9.34.5	There is no clause 9.34.5	1142
9.34.6	Exempted generation agreements (clause 2.2)	1142
9.35	[Deleted]	1147
9.36	[Deleted]	1147
9.37	Transitional Arrangements for Chapter 5 - Network Connection	1147
9.37.1	[Deleted]	1147
9.37.2	Existing connection and access agreements (clause 5.2)	1147
9.37.3	[Deleted]	1148
9.37.4	[Deleted]	1148
9.37.5	Forecasts for connection points to transmission network (clause 5.11.1)	1148
9.37.6	There is no clause 9.37.6	1148
9.37.7	Cross Border Networks	1148
9.37.8	[Deleted]	1148
9.37.9	Credible contingency events (clause S5.1.2.1 of schedule 5.1)	1148
9.37.10	Reactive power capability (clause S5.2.5.1 of schedule 5.2)	1149
9.37.11	[Deleted]	1149
9.37.12	Voltage fluctuations (clause S5.1.5 of schedule 5.1)	1149
9.37.13	[Deleted]	1152
9.37.14	[Deleted]	1152
9.37.15	[Deleted]	1152
9.37.16	[Deleted]	1152
9.37.17	[Deleted]	1152
9.37.18	[Deleted]	1152
9.37.19	Generating unit response to disturbances (clause S5.2.5.3 of schedule 5.2)	1152
9.37.20	[Deleted]	1152
9.37.21	Excitation control system (clause S.5.2.5.13 of schedule 5.2)	1152
9.37.22	[Deleted]	1153
9.37.23	Annual forecast information for planning purposes (schedule 5.7)	1153
9.38	Transitional Arrangements for Chapter 6 - Network Pricing	1153
9.38.1	[Deleted]	1153
9.38.2	[Deleted]	1153
9.38.3	[Deleted]	1153
9.38.4	Interconnectors between regions	1153
9.38.5	Transmission pricing for exempted generation agreements	1154
9.39	Transitional Arrangements for Chapter 7 - Metering	1154
9.39.1	Metering installations to which this clause applies	1154
9.39.2	[Deleted]	1155
9.39.3	[Deleted]	1155
9.39.4	[Deleted]	1155
9.39.5	[Deleted]	1155
9.40	Transitional Arrangements for Chapter 8 - Administration Functions	1155
9.40.1	[Deleted]	1155
9.40.2	[Deleted]	1155
9.40.3	[Deleted]	1155
9.41	[Deleted]	1155
Schedule 9E1	Exempted Generation Agreements	1155
Part F	Jurisdictional Derogations for Tasmania	1156
9.42	Definitions and interpretation	1156
9.42.1	Definitions	1156
9.42.2	Interpretation	1157
9.42.3	National grid, power system and related expressions	1158
9.43	[Deleted]	1158
9.44	Transitional arrangements for Chapter 2 – Registered Participants and Registration - Customers (clause 2.3.1(e))	1158
9.45	Tasmanian Region (clause 3.5)	1158
9.47	Transitional arrangements for Chapter 5- Network Connection	1158
9.47.1	Existing Connection Agreements	1158
9.48	Transitional arrangements - Transmission and Distribution Pricing	1159
9.48.4A	Ring fencing	1159
9.48.4B	Uniformity of tariffs for small customers	1159
9.48.5	Transmission network	1159
9.48.6	Deemed regulated interconnector	1159
Part G	Schedules to Chapter 9	1160
Schedule 9G1	Metering Transitional Arrangements	1160
1.	Introduction	1160
2.	[Deleted]	1160
3.	General Principle	1160
4.	[Deleted]	1160
5.	Accuracy Requirements	1160
6.	[Deleted]	1161
7.	[Deleted]	1161
8.	[Deleted]	1161
9.	[Deleted]	1161
10.	[Deleted]	1161
10.	Glossary	1165
11.	Savings and Transitional Rules	1279
Part A	Definitions	1279
Part B	System Restart Ancillary Services (2006 amendments)	1279
11.2	Rules consequent on making of the National Electricity Amendment (System Restart Ancillary Services and pricing under market suspension) Rule 2006	1279
11.2.1	Transitional provision for acquisition of non-market ancillary services	1279
11.3	[Deleted]	1280
Part C	Dispute Resolution for Regulatory Test (2006 amendments)	1280
11.4	Rules consequent on making of the National Electricity Amendment (Dispute Resolution for Regulatory Test) Rule 2006	1280
11.4.1	Continuation of things done under old clause 5.6.6	1280
Part D	Metrology (2006 amendments)	1281
11.5	Rules consequential on the making of the National Electricity Amendment (Metrology) Rule 2006	1281
11.5.1	Definitions	1281
11.5.2	Metrology procedures continues to apply until 31 December 2006	1281
11.5.3	Responsible person	1281
11.5.4	NEMMCO’s responsibility to develop a metrology procedure	1281
11.5.5	Jurisdictional metrology material in the metrology procedure	1282
Part E	Economic Regulation of Transmission Services (2006 amendments)	1283
11.6	Rules consequent on making of the National Electricity Amendment (Economic Regulation of Transmission Services) Rule 2006	1283
11.6.1	Definitions	1283
11.6.2	New Chapter 6A does not affect existing revenue determinations	1284
11.6.3	Old Part C and Schedules 6.2, 6.3, 6.4, 6.7 and 6.8 of old Chapter 6	1285
11.6.4	Old Part F of Chapter 6	1285
11.6.5	Application of new Chapter 6A to Transmission Network Service Providers	1285
11.6.6	Application of Chapter 6 to old distribution matters	1285
11.6.7	References to the old Chapter 6	1285
11.6.8	References to provisions of the old Chapter 6	1286
11.6.9	Roll forward of regulatory asset base for first regulatory control period	1286
11.6.10	Other adjustment carry-over mechanisms from current to first regulatory control period	1286
11.6.11	Clause consequent upon making National Electricity Amendment (Cost Allocation Arrangements for Transmission Services) Rule No 2009 No 3 - Transition to new Chapter 6A: existing prescribed connection services	1286
11.6.12	Powerlink transitional provisions	1289
11.6.13	ElectraNet easements transitional provisions	1293
11.6.14	TransGrid contingent projects	1293
11.6.15	Transmission determination includes existing revenue determinations	1294
11.6.16	References to regulatory control period	1294
11.6.17	Consultation procedure for first proposed guidelines	1294
11.6.18	Reliance on proposed guidelines for SP AusNet, VENCorp and ElectraNet	1295
11.6.19	EnergyAustralia transitional provisions	1295
11.6.20	Basslink transitional provisions	1298
11.6.21	SPI Powernet savings and transitional provision	1299
11.6.22	Interim arrangements pricing-related information	1301
Part F	Reform of Regulatory Test Principles (2006 amendments)	1301
11.7	Rules consequent on making of the National Electricity Amendment (Reform of the Regulatory Test Principles) Rule 2006	1301
11.7.1	Definitions	1301
11.7.2	Amending Rule does not affect old clause 5.6.5A	1302
Part G	Pricing of Prescribed Transmission Services (2006 amendments)	1302
11.8	Rules consequent on making the National Electricity Amendment (Pricing of Prescribed Transmission Services) Rule 2006	1302
11.8.1	Definitions	1302
11.8.2	Regulated interconnectors	1303
11.8.3	Application of new Part J of Chapter 6A to Transmission Network Service Providers	1303
11.8.4	Reliance on agreed interim guideline for ElectraNet, SPAusNet, and VenCorp	1303
11.8.5	Prudent discounts under existing agreements	1304
11.8.6	Application of prudent discounts regime under rule 6A.26	1304
11.8.7	Prudent discounts pending approval of pricing methodology	1304
Part H	Reallocations (2007 amendments)	1305
11.9	Rules consequent on the making of the National Electricity Amendment (Reallocations) Rule 2007	1305
11.9.1	Definitions	1305
11.9.2	Existing and transitional reallocations	1306
Part I	Technical Standards for Wind Generation (2007 amendments)	1306
11.10	Rules consequent on making of the National Electricity Amendment (Technical Standards for Wind Generation and other Generator Connections) Rule 2007	1306
11.10.1	Definitions	1306
11.10.2	Provision of information under S5.2.4 in registration application	1306
11.10.3	Access standards made under the old Chapter 5	1307
11.10.4	Modifications to plant by Generators	1307
11.10.5	Technical Details to Support Application for Connection and Connection Agreement	1307
11.10.6	Transitional arrangements for establishment of performance standards	1308
11.10.7	Jurisdictional Derogations for Queensland	1308
11.10A	Rules consequent on the making of the National Electricity Amendment (Central Dispatch and Integration of Wind and Other Intermittent Generation) Rule 2008	1308
11.10A.1	Definitions	1308
11.10A.2	Registration and reclassification of classified generating units	1309
11.10A.3	Registered generating unit	1310
11.10A.4	Classification of potential semi-scheduled generating unit	1310
11.10A.5	Participant fees	1310
11.10A.6	Timetable	1311
11.10A.7	Procedure for contribution factors for ancillary service transactions	1311
11.10A.8	Guidelines for energy conversion model information	1311
Part J	Cost Recovery of Localised Regulation Services (2007 amendments)	1312
11.11	Rules consequent on making of the National Electricity Amendment (Cost Recovery of Localised Regulation Services) Rule 2007	1312
11.11.1	Definitions	1312
11.11.2	Action taken by NEMMCO for the purposes of Amending Rule	1312
11.12	[Deleted]	1312
Part L	[Deleted]	1312
Division 1	General Provisions	1316
11.14	General provisions	1316
11.14.1	Application of this Division	1316
11.14.2	Definitions	1316
11.14.3	Preservation of old regulatory regime	1317
11.14.4	Transfer of regulatory responsibility	1318
11.14.5	Special requirements with regard to ring fencing	1318
11.14.6	Additional requirements with regard to cost allocation	1319
11.14.7	Construction of documents	1319
Part M	Economic Regulation of Distribution Services (2007 amendments)	1316
Division 1	General Provisions	1316
11.14	General provisions	1316
Division 2	[Deleted]	1320
Division 3	Transitional arrangements for first distribution determination for Queensland Distribution Network Service Providers	1320
11.16	Transitional arrangements for first distribution determination for Queensland Distribution Network Service Providers	1320
Division 4	Transitional provisions of specific application to Victoria	1323
11.17	Transitional provisions of specific application to Victoria	1323
Part N	Registration of Foreign Based Persons and Corporations as Trader Class Participants (2007 amendments)	1326
11.18	Rules consequential on the making of the National Electricity Amendment (Registration of Foreign Based Persons and Corporations as Trader Class Participants) Rule 2007	1326
11.18.1	Definitions	1326
11.18.2	Auction rules	1326
Part O	Process for Region Change (2007 amendments)	1326
11.19	Rules consequent on making of the National Electricity Amendment (Process for Region Change) Rule 2007	1326
11.19.1	Definitions	1326
11.19.2	Regions Publication	1326
Part P	Integration of NEM Metrology Requirements	1327
11.20	Rules consequential on the making of the National Electricity Amendment (Integration of NEM Metrology Requirements) Rule 2008	1327
11.20.1	Definitions	1327
11.20.2	Metering installations for non-market generating units immediately prior to 30 June 2008	1327
11.20.3	First-tier load metering installations	1328
11.20.4	First-tier load metering installations in Victoria	1328
11.20.5	Minimalist Transitioning Approach in Queensland	1328
11.20.6	First-tier jurisdictional requirements publication	1328
11.20.7	Metrology procedure	1329
Part PA	Reliability Settings: Information Safety Net and Directions	1329
11.21	Rules consequential on the making of the National Electricity Amendment (NEM Reliability Settings: Information Safety Net and Directions) Rule 2008	1329
Part Q	Regulatory Test Thresholds and Information Disclosure on Network Replacements	1330
11.22	Rules consequential on the making of the National Electricity Amendment (Regulatory Test Thresholds and Information Disclosure on Network Replacements) Rule 2008	1330
11.22.1	Definitions	1330
11.22.2	Amending Rule does not affect existing regulatory test	1331
Part R	Performance Standard Compliance of Generators	1331
11.23	Rules consequential on the making of the National Electricity Amendment (Performance Standards Compliance of Generators) Rule 2008	1331
11.23.1	Definitions	1331
11.23.2	Application of rule 11.23 for compliance programs implemented immediately after the commencement of the Amending Rule	1331
11.23.3	Application of rule 11.23 for compliance programs implemented immediately prior to the commencement of the Amending Rule	1332
11.23.4	Application of rule 11.23 for compliance programs not implemented immediately prior to the commencement of the Amending Rule	1332
Part S	[Deleted]	1332
Part U	Confidentiality Arrangements concerning Information required for Power System Studies	1332
11.25	Rule consequential on the making of the National Electricity Amendment (Confidentiality Arrangements in Respect of Information Required for Power System Studies) Rule 2009	1332
11.25.1	Definitions	1332
11.25.2	Transitional arrangements for the provision of information	1332
Part V	WACC Reviews: Extension of Time	1334
11.26	Rule consequential on the making of the National Electricity Amendment (WACC Reviews: Extension of Time) Rule 2009	1334
11.26.1	Definitions	1334
11.26.2	Extension of time to submit a regulatory proposal for the regulatory control period 2010-2015	1334
Part W	National Transmission Statement	1334
11.27	Rules consequent on the making of the National Electricity Amendment (National Transmission Statement) Rule 2009	1334
11.27.1	Definitions	1334
11.27.2	Purpose	1335
11.27.3	Application of rule 11.27	1335
11.27.4	National Transmission Statement	1335
11.27.5	Scope and Content of National Transmission Network Development Plan	1337
11.27.6	Energy Adequacy Assessment Projection	1337
11.27.7	Amendment to Last Resort Power	1338
11.27.8	Actions taken prior to commencement of Rule	1338
Part X	National Transmission Planning	1338
11.28	Rules consequential on the making of the National Electricity (Australian Energy Market Operator) Amendment Rules 2009	1338
11.28.1	Definitions	1338
11.28.2	Jurisdictional planning bodies and representatives	1338
11.28.3	Criteria and guidelines published by Inter-regional Planning Committee	1339
11.28.4	Augmentation technical reports	1339
11.28.5	Last Resort Planning Power	1339
11.28.6	Inter-network power system tests	1340
11.28.7	Control and protection settings for equipment	1340
11.28.8	Revenue Proposals	1340
Part Y	Regulatory Investment Test for Transmission	1340
11.29	Rules consequent on making of the National Electricity Amendment (Regulatory Investment Test for Transmission) Rule 2009	1340
11.29.1	Definitions	1340
11.29.2	Period when Amending Rule applies to transmission investment	1341
Part Z	Congestion Information Resource	1342
11.30	Rules consequent on the making of the National Electricity Amendment (Congestion Information Resource) Rule 2009	1342
11.30.1	Definitions	1342
11.30.2	Interim congestion Information resource	1342
Part ZA	Reliability and emergency reserve trader (2009 amendments)	1344
11.31	Rules consequent on the making of the National Electricity Amendment (Improved RERT Flexibility and Short-notice Reserve Contracts) Rule 2009	1344
Part ZB	Early Application of Market Impact Parameters	1346
11.32	Rules consequent on the making of the National Electricity Amendment (Early Implementation of Market Impact Parameters) Rule 2010	1346
11.32.1	Definitions	1346
11.32.2	Purpose	1347
11.32.3	Early application of the market impact component of the service target performance incentive scheme	1347
Part ZC	Transparency of operating data	1350
11.33	Rules consequential on the making of National Electricity Amendment (Transparency of Operating Data) Rule 2010	1350
11.33.1	Definitions	1350
11.33.2	Spot market operations timetable	1350
Part ZD	Cost Recovery for Other Services Directions	1352
11.34	Rules consequent on making of the National Electricity Amendment (Cost Recovery for Other Services Directions) Rule 2010	1352
11.34.1	Definitions	1352
11.34.2	Period when Amending Rules applies to funding of compensation	1353
Part ZE	Payments under Feed-in Schemes and Climate Change Funds	1353
11.35	Rules consequential on the making of the National Electricity Amendment (Payments under Feed-in Schemes and Climate Change Funds) Rule 2010	1353
11.35.1	Definitions	1353
11.35.2	Application of recovery of jurisdictional scheme Rules	1354
11.35.3	Reporting on jurisdictional schemes	1355
11.35.4	Revocation and substitution of distribution determination for jurisdictional scheme recovery	1356
Part ZF	Transitional Arrangements for Ministerial Smart Meter Roll Out Determinations	1357
11.36	Ministerial Smart Meter Roll Out Determinations	1357
11.36.1	Definitions	1357
11.36.2	Meaning of relevant metering installation	1357
11.36.3	Period of application of rule to relevant metering installation	1358
11.36.4	Designation of responsible person	1358
11.36.5	[Deleted]	1358
11.36.6	[Deleted]	1358
Part ZG	Provision of Metering Data Services and Clarification of Existing Metrology Requirements	1358
11.37	Rules consequential on the making of the National Electricity Amendment (Provision of Metering Data Services and Clarification of Existing Metrology Requirements) Rule 2010	1358
11.37.1	Definitions	1358
11.37.2	Commencement of special site or technology related conditions	1358
11.37.3	Initial service level procedures	1359
Part ZH	Spot Market Operations Timetable	1359
11.38	Rules consequential on the making of National Electricity Amendment (Amendments to PASA-related Rules) Rule 2010	1359
11.38.1	Definitions	1359
11.38.2	Spot market operations timetable	1360
Part ZI	DNSP Recovery of Transmission-related Charges	1360
11.39	Rules consequential on the making of the National Electricity Amendment (DNSP Recovery of Transmission-related Charges) Rule 2011	1360
11.39.1	Definitions	1360
11.39.2	Recovery by Victorian distribution network service providers during current regulatory control period	1361
11.39.3	Recovery by Victorian distribution network service providers for shared network augmentations	1362
11.39.4	Bairnsdale network support agreement	1362
11.39.5	Approval of pricing proposal	1362
11.39.6	Ergon Energy transitional charges	1362
11.39.7	Energex transitional charges	1362
Part ZJ	Network Support and Control Ancillary Services	1362
11.40	Rules consequential on the making of the National Electricity Amendment (Network Support and Control Ancillary Services) Rule 2011	1362
11.40.1	Definitions	1362
11.40.2	Purpose	1363
11.40.3	Existing NCAS contracts to continue	1363
11.40.4	Amendments to existing guidelines	1363
11.40.5	New procedures	1364
11.40.6	Decisions and actions taken prior to Amending Rule	1364
Part ZK	Application of Dual Marginal Loss Factors	1364
11.41	Rules consequential on the making of the National Electricity Amendment (Application of Dual Marginal Loss Factors) Rule 2011	1364
11.41.1	Definitions	1364
11.41.2	Amendments to loss factor methodology	1365
11.41.3	Procedure applying dual intra-regional loss factors in central dispatch and spot market transactions	1365
11.41.4	Publication of intra-regional loss factors	1365
Part ZL	Tasmania Tranche 5a Procedure Changes	1365
11.42	Rules consequential on the making of the National Electricity Amendment (Tasmania Tranche 5a Procedure Changes) Rule 2011	1365
11.42.1	Definitions	1365
11.42.2	AEMO may amend Relevant Procedures	1366
Part ZM	Application and Operation of Administered Price Periods	1366
11.43	Rules consequential on the making of National Electricity Amendment (Application and Operation of Administered Price Periods) Rule 2011	1366
11.43.1	Definitions	1366
11.43.2	Administered Price Cap Schedule	1367
Part ZO	Negative Intra-regional Settlements Residue	1367
11.45	Rules consequential on the making of National Electricity Amendment (Negative Intra-regional Settlements Residue) Rule 2012	1367
11.45.1	Definitions	1367
11.45.2	Recovery of negative settlements residue prior to consultation under the Amending Rule	1368
11.45.3	First consultation on negative intra-regional settlements residue procedure	1368
Part ZP	Interim Connection Charging Rules	1369
11.46	Rules consequential to the insertion of Chapter 5A by the National Electricity (National Energy Retail Law) Amendment Rule 2012	1369
Division 1	Preliminary	1369
Division 2	Jurisdictional differences	1371
Division 3	General provisions	1379
Part ZQ	NSW transitional retail support and credit support rules	1379
11.47	Rules consequential on the insertion of Chapter 6B by the National Electricity (National Energy Retail Law) Amendment Rule 2012	1379
Division 1	Preliminary	1379
Part ZR	Miscellaneous transitional rules—NERL	1385
11.48	Rules consequential on the making of the National Electricity (National Energy Retail Law) Amendment Rule 2012	1385
11.48.1	Extension of time period for AER to consider certain pass through applications	1385
Part ZS	Cost pass through arrangements for Network Service Providers	1386
11.49	Rules consequential on the making of National Electricity Amendment (Cost pass through arrangements for Network Service Providers) Rule 2012	1386
11.49.1	Definitions	1386
11.49.2	Terrorism event is a cost pass through event in the current regulatory control period	1386
11.49.3	Transitional arrangement for Powerlink	1386
11.49.4	Transitional arrangements for ElectraNet and Murraylink	1387
Part ZT	Distribution Network Planning and Expansion	1387
11.50	Rules consequential on the making of the National Electricity Amendment (Distribution Network Planning and Expansion) Rule 2012	1387
11.50.1	Interpretation	1387
11.50.2	Definitions	1388
11.50.3	Timing for first Distribution Annual Planning Report	1388
11.50.4	Contents of Distribution Annual Planning Report	1388
11.50.5	Transition from the regulatory test to the regulatory investment test for distribution	1390
Part ZU	New Prudential Standard and Framework in the NEM	1391
11.51	Rules consequential on the making of the National Electricity Amendment (New Prudential Standard and Framework in the NEM) Rule 2012	1391
11.51.1	Definitions	1391
11.51.2	AEMO's responsibility to develop and publish the credit limit procedures	1391
11.51.3	Transition to the framework for determining prudential settings	1391
11.51.4	Prior consultation, step, decision or action taken by AEMO	1392
Part ZV	Small Generation Aggregator Framework	1392
11.52	Rules consequential on the making of the National Electricity Amendment (Small Generation Aggregator Framework) Rule 2012	1392
11.52.1	Definitions	1392
11.52.2	Commencement of participant fees as well as transactions, funding and settlements under Chapter 3 for Market Small Generation Aggregators	1393
11.52.3	Participant fees for Market Small Generation Aggregators	1393
11.52.4	Ancillary service transactions, funding of compensation for directions and intervention settlements for directions for Market Small Generation Aggregators	1394
11.52.5	Amendments to the carbon dioxide equivalent intensity index procedures	1394
11.52.6	Amendments of the metrology procedures	1395
11.52.7	Amendments to the Market Settlement and Transfer Solution Procedures	1395
Part ZW	Economic Regulation of Network Service Providers (2012 amendments)	1396
Division 1	Miscellaneous transitional provisions	1396
11.53	Publication of Chapter 6 Guidelines	1396
11.54	Publication of Chapter 6A Guidelines	1397
Division 2	Transitional provisions for NSW/ACT Distribution Network Service Providers	1399
11.55	General provisions	1399
11.56	Special provisions applying to affected DNSPs	1402
Division 3	Transitional provisions for NSW and Tasmanian Transmission Network Service Providers and Directlink	1414
11.57	General provisions	1414
11.58	Special provisions applying to affected TNSPs	1417
Division 4	Transitional provisions for the Victorian TNSP	1426
11.59	Special provisions applying to the Victorian TNSP	1426
Division 5	Transitional provisions for Qld/SA and Victorian Distribution Network Service Providers	1428
11.60	Special provisions applying to the Qld/SA and Victorian Distribution Network Service Providers	1428
Division 6	Review of past capital expenditure	1434
11.61	Definitions and application	1434
11.62	Review of past capital expenditure under Chapter 6	1434
11.63	Review of past capital expenditure under Chapter 6A	1435
Part ZX	Inter-regional Transmission Charging	1435
11.64	Rules consequent on the making of the National Electricity Amendment (Inter-regional Transmission Charging) Rule 2013	1435
11.64.1	Definitions	1435
11.64.2	Amendments to the pricing methodology guidelines	1436
11.64.3	Amendments to the pricing methodologies of Transmission Network Service Providers	1436
11.64.4	Commencement of clause 6A.23.3(f) for further adjustments	1437
Part ZY	Network Service Provider Expenditure Objectives	1437
11.65	Rules consequent on the making of the National Electricity Amendment (Network Service Provider Expenditure Objectives) Rule 2013	1437
11.65.1	Definitions	1437
11.65.2	Application of rule 11.65	1438
Part ZZ	Access to NMI Standing Data	1438
11.66	Rules consequent on the making of the National Electricity Amendment (Access to NMI Standing Data) Rule 2013	1438
11.66.1	Definitions	1438
11.66.2	Minor amendment of the Market Settlement and Transfer Solution Procedures	1438
Part ZZA	Publication of Zone Substation Data	1439
11.67	Rules consequent on the making of the National Electricity Amendment (Publication of Zone Substation Data) Rule 2014	1439
11.67.1	Definitions	1439
11.67.2	Distribution Network Service Providers' obligations to commence on the next DAPR date	1439
Part ZZB	Connecting Embedded Generators	1439
11.68	Rules consequential on the making of the National Electricity Amendment (Connecting embedded generators) Rule 2014	1439
11.68.1	Definitions	1439
11.68.2	Continuation of enquiries lodged	1440
Part ZZC	Customer access to information about their energy consumption	1440
11.69	Rules consequential on the making of the National Electricity Amendment (Customer access to information about their energy consumption) Rule 2014	1440
11.69.1	Definitions	1440
11.69.2	AEMO to develop and publish the metering data provision procedure	1440
Part ZZD	National Electricity Amendment (Distribution Network Pricing Arrangements) Rule 2014	1440
Division 1	Miscellaneous transitional provisions	1440
11.70	General provisions	1440
11.70.1	Definitions	1440
Division 2	Transitional provisions for NSW/ACT and Qld/SA Distribution Network Service Providers	1443
11.72	General provisions	1443
11.772.1	Definitions	1443
Division 3	Transitional provisions for Tasmanian Distribution Network Service Provider	1450
11.74	Application of former Chapter 6	1450
Division 4	Transitional provisions for Victorian Distribution Network Service Providers	1450
11.75	General provisions	1450
11.75.1	Definitions	1450
11.76	Special provisions applying to affected DNSPs	1450
11.76.1	Distribution determination and pricing proposals	1450
11.76.2	Tariff structure statement	1451
Part ZZE	Early Application of Network Capability Component (STPIS)	1457
11.77	Rules consequent on the making of the National Electricity Amendment (Early Application of Service Target Performance Incentive Scheme (STPIS) Components for Transmission Businesses) Rule 2015	1457
11. 77.1	Definitions	1457
11.77.2	Purpose	1458
11.77.3	Earlier application of the network capability component of the service target performance incentive scheme	1458
Part ZZF	National Electricity Amendment (Governance arrangements and implementation of the reliability standard and settings) Rule 2015	1460
11.78	Rules consequent on the making of the National Electricity Amendment (Governance arrangements and implementation of the reliability standards and settings) Rule 2015	1460
11.78.1	Definitions	1460
11.78.2	Existing power system security and reliability standards	1461
11.78.3	Reliability standard and settings guidelines	1461
11.78.4	Reliability standard implementation guidelines	1461
Part ZZG	Improving demand side participation information provided to AEMO by registered participants	1464
11.79	Rules consequential on making of the National Electricity Amendment (Improving demand side participation information provided to AEMO by registered participants) Rule 2015	1464
11.79.1	AEMO to develop and publish the demand side participation information guidelines	1464
Part ZZH	Transitional Arrangements for Aligning TasNetworks' regulatory control periods	1464
11.80	National Electricity Amendment (Aligning TasNetworks' regulatory control periods) Rule 2015	1464
11.80.1	Definitions	1464
11.80.2	Application of rule 11.80	1465
11.80.3	Next regulatory control period	1465
11.80.4	Subsequent regulatory control period	1465
Part ZZI	System Restart Ancillary Services	1465
11.81	Rules consequential on the making of the National Electricity Amendment (System Restart Ancillary Services) Rule 2015	1465
11.81.1	Definitions	1465
11.81.2	System restart standard	1466
11.81.3	SRAS Guideline	1466
11.81.4	Regional Benefit Ancillary Services Procedures	1466
11.81.5	Consultation prior to the Commencement Date	1466
11.81.6	Existing SRAS Contract	1466
Part ZZJ	Demand management incentive scheme	1467
11.82	Rules consequential on making of the National Electricity Amendment (Demand management incentive scheme) Rule 2015	1467
11.82.1	Definitions	1467
11.82.2	AER to develop and publish the demand management incentive scheme and demand management innovation allowance mechanism	1467
Part ZZK	AEMO access to demand forecasting information	1467
11.83	Rules consequential on the making of the National Electricity Amendment (AEMO access to demand forecasting information) Rule 2015	1467
11.83.1	AEMO to include supporting information in NTNDP database	1467
Part ZZL	Compensation arrangements following application of an Administered Price Cap or Administered Floor Price	1468
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	1468
11.84.1	Definitions	1468
11.84.2	Compensation Guidelines	1468
Part ZZM	Common definitions of distribution reliability measures	1468
11.85	Rules consequential on the making of the National Electricity Amendment (Common definitions of distribution reliability measures) Rule 2015	1468
11.85.1	Definitions	1468
11.85.2	Distribution reliability measures guidelines	1469
11.85.3	Amended STPIS	1469
Part ZZN	Expanding competition in metering and metering related services	1469
11.86	Rules consequent on making of the National Electricity Amendment (Expanding competition in metering and related services) Rule 2015	1469
11.86.1	Definitions	1469
11.86.2	References to old Chapter 7	1469
11.86.3	References to provisions of the old Chapter 7	1470
11.86.4	References to responsible person	1470
11.86.5	Continued operation of old Rules until the effective date	1470
11.86.6	New and amended procedures	1470
11.86.7	Metering Coordinator for type 5 or 6 metering installation from effective date	1471
11.86.8	Distribution Ring Fencing Guidelines	1473
11.86.9	[Deleted]	1474
Part ZZO	Embedded Networks	1474
11.87	Rules consequential on the making of the National Electricity Amendment (Embedded Networks) Rule 2015	1474
11.87.1	Definitions	1474
11.87.2	Amended Procedures and NMI Standing Data Schedule	1474
11.87.3	ENM service level procedures and guide to embedded networks and list of Embedded Network Managers	1475
11.87.4	Exemptions under section 13 of the National Electricity Law	1475
Part ZZP	Meter Replacement Processes	1475
11.88	Rules consequential on the making of the National Electricity Amendment (Meter Replacement Processes) Rule 2016	1475
11.88.1	Definitions	1475
11.88.2	Amended Procedures	1475
Part ZZQ	Energy Adequacy Assessment Projection	1476
11.89	Rules consequential to the National Electricity Amendment (Energy Adequacy Assessment Projection timeframes) Rule 2016	1476
11.89.1	Amended guideline and timetable	1476
Part ZZR	Reliability and emergency reserve trader (2016 amendments)	1476
11.90	Rules consequent on the making of the National Electricity Amendment (Extension of the Reliability and Emergency Reserve Trader) Rule 2016	1476
11.90.1	Definitions	1476
11.90.2	Amendments to Reliability Panel's RERT Guidelines	1477
11.90.3	Amendments to AEMO's RERT procedures	1477
11.90.4	Reserve contracts entered into before Schedule 2 commencement date	1477
Part ZZS	Updating the electricity B2B framework	1477
11.91	Rules consequential on the making of the National Electricity Amendment (Updating the electricity B2B framework) rule 2016	1477
11.91.1	Definitions	1477
11.91.2	B2B Procedures	1478
11.91.3	Information Exchange Committee Election Procedures and Information Exchange Committee Operating Manual	1478
11.91.4	The New IEC	1479
11.91.5	Amended Procedures	1480
11.91.6	B2B e-Hub Participant accreditation process	1481
11.91.7	New IEC Budget and 2016 Annual Report	1481
11.91.8	Cost recovery	1482
Part ZZT	Application of Offsets in the Prudential Margin Calculation	1482
11.92	Rules consequential on the making of the National Electricity Amendment (Application of Offsets in the Prudential Margin Calculation) Rule 2016	1482
11.92.1	Definitions	1482
11.92.2	Amended procedures	1483
Part ZZU	Rate of Return Guidelines Review	1483
11.93	Rules consequential on the making of the National Electricity Amendment (Rate of Return Guidelines Review) Rule 2016	1483
11.93.1	Definitions	1483
11.93.2	Application of current rate of return guidelines to making of a distribution determination for the subsequent regulatory control period	1484
Part ZZV	Demand Response Mechanism and Ancillary Services Unbundling	1485
11.94	Rules consequential on the making of the National Electricity Amendment (Demand Response Management and Ancillary Services Unbundling) rule 2016	1485
11.94.1	Definitions	1485
11.94.2	Participant fees for Market Ancillary Service Providers	1485
Part ZZW	Local Generation Network Credits	1485
11.95	Rules consequential on the making of the National Electricity Amendment (Local Generation Network Credits) Rule 2016	1485
11.95.1	Definitions	1485
11.95.2	System limitation template	1485
Part ZZX	Retailer-Distributor Credit Support Requirements	1486
11.96	Rules consequent on the making of the National Electricity Amendment (Retailer Distributor Credit Support Requirements) Rule 2017 No. 1	1486
11.96.1	Definitions	1486
11.96.2	Continued operation of old Chapter 6B	1486
11.96.3	Interaction with Chapter 6	1486
11.96.4	Application of new Chapter 6B	1486
Part ZZY	Emergency Frequency Control Schemes	1487
11.97	Rules consequent on the making of the National Electricity Amendment (Emergency frequency control schemes) Rule 2017	1487
11.97.1	 Definitions	1487
11.97.2	Interim frequency operating standards for protected events	1487
11.97.3	First power system frequency risk review	1488
11.97.4	AEMO must review existing load shedding procedures	1488
11.97.5	Load shedding procedures	1488
Part ZZZ	Transmission Connection and Planning Arrangements	1489
11.98	Rules consequential on the making of the National Electricity Amendment (Transmission Connection and Planning Arrangements) Rule 2017	1489
11.98.1	Definitions	1489
11.98.2	Grandfathering of existing dedicated connection assets	1490
11.98.3	Preparatory steps for registration changes under the Amending Rule	1491
11.98.4	Participant fees for Dedicated Connection Asset Service Providers	1491
11.98.5	Existing Connection Agreements	1491
11.98.6	Connection process	1492
11.98.7	Transmission Annual Planning Report	1492
11.98.8	Preservation for adoptive jurisdictions	1492
Part ZZZA	Replacement expenditure planning arrangements	1493
11.99	Rules consequential on the making of the National Electricity Amendment (Replacement expenditure planning arrangements) Rule 2017	1493
11.99.1	Definitions	1493
11.99.2	Interpretation	1494
11.99.3	Transitional arrangements for affected DNSPs	1494
11.99.4	Amendments to RIT documentation	1494
11.99.5	Transitional arrangements relating to excluded projects	1495
11.99.6	Transitional arrangements relating to Victorian bushfire mitigation projects	1495
11.99.7	Transitional arrangements relating to review of costs thresholds	1496
Part ZZZB 	Managing the rate of change of power system frequency	1496
11.100	Rules consequential on the making of the National Electricity Amendment (Managing the rate of change of power system frequency) Rule 2017	1496
11.100.1	Definitions	1496
11.100.2	Inertia sub-networks	1497
11.100.3	Inertia requirements methodology	1497
11.100.4	Inertia requirements	1498
11.100.5	NSCAS not to be used to meet an inertia shortfall after 1 July 2019	1498
11.100.6	Inertia network services may be used to meet an NSCAS gap declared in the NSCAS transition period	1499
11.100.7	Inertia network services made available before the commencement date	1499
Part ZZZC	Managing power system fault levels	1500
11.101 	Rules consequential on the making of the National Electricity Amendment (Managing power system fault levels) Rule 2017	1500
11.101.1 	Definitions	1500
11.101.2	System strength impact assessment guidelines	1501
11.101.3	System strength requirements methodology	1501
11.101.4	System strength requirements	1502
11.101.5	NSCAS not to be used to meet a fault level shortfall after 1 July 2019	1502
11.101.6	System strength services may be used to meet an NSCAS gap declared in the NSCAS transition period	1503
11.101.7	Withdrawal of a system strength-related NSCAS gap already declared	1503
11.101.8	System strength services made available before the commencement date	1504
Part ZZZD	Generating System Model Guidelines	1504
11.102	Making of Power System Model Guidelines	1504