National Electricity Rules Version 62
Status Information
This is the latest electronically available version of the National Electricity Rules as at 17 April 2014.

This consolidated version of the National Electricity Rules was last updated on 17 April 2014 as a result of the commencement of the following amendments:
National Electricity Amendment (AER Authorisation of Software Changes by AEMO) Rule 2014 No. 4
This consolidated version of the Rules reflects the initial Rules made by the SA Minister under section 90 of the National Electricity Law (NEL) as amended by:
Rules made by the South Australian Minister under sections 90A to 90D 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 (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 and New South Wales on 1 July 2013.
The NECF related Rule does not apply in any other jurisdiction 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
Subject to the above, all provisions displayed in this consolidated version of the Rules have commenced.
Schedule 3 of the National Electricity Amendment (Inter-regional Transmission Charging) Rule 2013 No.1 commences operation on 1 July 2014.
Schedule 1 and 2 of the National Electricity Amendment (Inter-regional Transmission Charging) Rule 2013 No.1 commences operation on 1 July 2015.
Schedule 2 of the National Electricity Amendment (Minor Changes) Rule 2012 No. 3 commences operation on 1 July 2016.
Schedules 2 and 3 of the National Electricity Amendment (Expiry of Reliability and Emergency Reserve Trader) Rule 2012 No. 1 will commence operation on 1 July 2016. 

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	25
2.3A.1	Registration	25
2.4	Market Participant	26
2.4.1	Registration as a category of Market Participant	26
2.4.2	Eligibility	26
2.5	Network Service Provider	27
2.5.1	Registration as a Network Service Provider	27
2.5.2	Market Network Service	28
2.5.3	Scheduled Network Service	29
2.5A	Trader	30
2.5B	Reallocator	31
2.6	Special Participant	31
2.7	Intention to Commence Activities or Functions	32
2.8	Registered Participant Rights and Obligations	32
2.8.1	Rights and obligations	32
2.9	Application to be Registered as a Registered Participant	33
2.9.1	Applications for Registration	33
2.9.2	Registration as a Registered Participant	33
2.9.3	Registration as an Intermediary	34
2.9A	Transfer of Registration	35
2.9A.1	Definitions	35
2.9A.2	Applications for Transfer of Registration	35
2.9A.3	Approval for Transfer of Registration	36
2.10	Ceasing to be a Registered Participant	37
2.10.1	Notification of intention	37
2.10.2	Ceasing Participation	38
2.10.3	Liability after cessation	39
2.11	Participant Fees	39
2.11.1	Development of Participant fee structure	39
2.11.2	Payment of Participant fees	42
2.11.3	Budgeted revenue requirements	42
2.12	Interpretation of References to Various Registered Participants	43
2A.	Regional Structure	49
Part A	Region change applications and region determinations by AEMC	49
2A.1	Introduction to Chapter 2A	49
2A.1.1	Definitions	49
2A.1.2	AEMC determination of regions	49
2A.1.3	Publication of regions by AEMO	49
2A.2	Region change applications	49
2A.2.1	A complete region change application	49
2A.2.2	Identifying a congestion problem	50
2A.2.3	Explanation of economic efficiency of proposed region solution	50
2A.2.4	Region change application must be technically competent	51
2A.2.5	Alternative congestion management options	51
2A.2.6	Previous application relating to congestion problem	52
2A.2.7	AEMO to provide information to intending applicants	52
2A.2.8	AEMC may refuse to accept incomplete applications	53
2A.3	Acceptance of region change application by AEMC	53
2A.3.1	Acceptance of a region change application by AEMC	53
2A.3.2	Preliminary consultation prior to acceptance of a region change application	54
2A.4	First round consultation on region change application	55
2A.4.1	Notice of first round consultation	55
2A.4.2	Right to make written submissions during first round consultation period	55
2A.4.3	Alternative region solution put forward by third parties	55
2A.4.4	Acceptance as a formal alternative region solution by AEMC	56
2A.5	Provision of supplementary economic analysis	57
2A.5.1	AEMC may direct provision of supplementary analysis	57
2A.5.2	AEMC may direct AEMO to provide information	57
2A.6	Region determinations	58
2A.6.1	AEMC powers to make a region determination	58
2A.6.2	Matters for consideration in making region determination	58
2A.7	Draft region determination and second round consultation	59
2A.7.1	Publishing of draft region determination	59
2A.7.2	Second round consultation	59
2A.7.3	Right to make written submissions during second round consultation	60
2A.8	Final region determination	60
2A.8.1	Final determination for region change	60
2A.8.2	Formal publication of region determination	60
2A.9	Miscellaneous matters for region change process	60
2A.9.1	AEMC may extend periods of time specified in Chapter 2A	60
2A.9.2	Consultation meeting in relation to region change application	61
Part B	Implementation of region determination	61
2A.10	Purpose and application of Part B	61
2A.10.1	Purpose of Part B	61
2A.10.2	Application of Part B	62
2A.11	Region Change Implementation Procedure	62
2A.11.1	Submission of draft Region Change Implementation Procedure	62
2A.11.2	Approved Region Change Implementation Procedure	62
2A.12	AEMO region change implementation functions	63
2A.12.1	General implementation functions	63
2A.12.2	Implementation functions referable to published implementation procedure	63
2A.12.3	Amendment of current or subsequent Regions and Loss Factors Publication	63
2A.13	Continuity of regions	63
Schedule 2A.1	Glossary for Chapter 2A	64
3.	Market Rules	69
3.1	Introduction to Market Rules	69
3.1.1	Purpose	69
3.1.1A	Definitions	69
3.1.2	[Deleted]	70
3.1.3	[Deleted]	70
3.1.4	Market design principles	70
3.1.5	Time for undertaking action	71
3.2	AEMO's Market Responsibilities	71
3.2.1	Market functions of AEMO	71
3.2.2	Spot market	72
3.2.3	Power system operations	72
3.2.4	Non-market ancillary services function	72
3.2.5	[Deleted]	73
3.2.6	Settlements	73
3.3	Prudential Requirements	73
3.3.1	Market Participant criteria	73
3.3.2	Credit support	73
3.3.3	Acceptable credit criteria	74
3.3.4	Acceptable credit rating	75
3.3.4A	Prudential standard	75
3.3.5	Amount of credit support	75
3.3.6	Changes to credit support	75
3.3.7	Drawings on credit support	76
3.3.8	Credit limit procedures and prudential settings	77
3.3.8A	Security Deposits	79
3.3.9	Outstandings	79
3.3.10	Trading limit	80
3.3.11	Call notices	80
3.3.12	Typical accrual	81
3.3.13	Response to Call Notices	81
3.3.13A	Application of monies in the security deposit fund	82
3.3.14	Potential value of a transaction	83
3.3.15	Trading margin	84
3.3.16	Limitation on entry of transactions	84
3.3.17	Scheduled prices	84
3.3.18	Additional credit support	85
3.3.19	Consideration of other Market Participant transactions	85
3.4	Spot Market	86
3.4.1	Establishment of spot market	86
3.4.2	Trading day and trading interval	86
3.4.3	Spot market operations timetable	86
3.5	Regions	87
3.5.1	[Deleted]	87
3.5.2	[Deleted]	87
3.5.3	[Deleted]	87
3.5.4	[Deleted]	87
3.5.5	[Deleted]	87
3.5.6	Abolition of Snowy region	87
3.6	Network Losses and Constraints	88
3.6.1	Inter-regional losses	88
3.6.2	Intra-regional losses	89
3.6.2A	Load and generation data used to determine inter-regional loss factor equations and intra-regional loss factors	93
3.6.3	Distribution losses	95
3.6.4	Network constraints	99
3.6.5	Settlements residue due to network losses and constraints	100
3.7	Projected Assessment of System Adequacy	102
3.7.1	Administration of PASA	102
3.7.2	Medium term PASA	103
3.7.3	Short term PASA	106
3.7A	Congestion information resource	109
3.7B	Unconstrained intermittent generation forecast	111
3.7C	Energy Adequacy Assessment Projection	113
3.8	Central Dispatch and Spot Market Operation	116
3.8.1	Central Dispatch	116
3.8.2	Participation in central dispatch	118
3.8.3	Bid and offer aggregation guidelines	119
3.8.3A	Ramp rates	121
3.8.4	Notification of scheduled capacity	123
3.8.5	Submission timing	125
3.8.6	Generating unit offers for dispatch	125
3.8.6A	Scheduled network service offers for dispatch	127
3.8.7	Bids for scheduled load	129
3.8.7A	Market ancillary services offers	131
3.8.8	Validation of dispatch bids and offers	132
3.8.9	Default offers and bids	133
3.8.10	Network constraints	133
3.8.11	Ancillary services constraints	135
3.8.12	System scheduled reserve constraints	135
3.8.13	Notification of constraints	136
3.8.14	Dispatch under conditions of supply scarcity	136
3.8.15	[Deleted]	136
3.8.16	Equal priced dispatch bids and dispatch offers	136
3.8.17	Self-commitment	137
3.8.18	Self-decommitment	137
3.8.19	Dispatch inflexibilities	138
3.8.20	Pre-dispatch schedule	141
3.8.21	On-line dispatch process	143
3.8.22	Rebidding	144
3.8.22A	Variation of offer, bid or rebid	146
3.8.23	Failure to conform to dispatch instructions	146
3.8.24	Scheduling errors	148
3.9	Price Determination	149
3.9.1	Principles applicable to spot price determination	149
3.9.2	Determination of spot prices	151
3.9.2A	Determination of ancillary services prices	152
3.9.2B	Pricing where AEMO determines a manifestly incorrect input	153
3.9.3	Pricing in the event of intervention by AEMO	154
3.9.3A	Reliability standard and reliability settings review	155
3.9.3B	Reliability standard and reliability settings review report	156
3.9.4	Market Price Cap	157
3.9.5	Application of the Market Price Cap	158
3.9.6	Market Floor Price	158
3.9.6A	Application of the Market Floor Price	158
3.9.7	Pricing for constrained-on scheduled generating units	159
3.10	[Deleted]	159
3.11	Ancillary Services	159
3.11.1	Introduction	159
3.11.2	Market ancillary services	160
3.11.3	Acquisition of Network Support and Control Ancillary Services	161
3.11.4	Guidelines and objectives for acquisition of network support and control ancillary services	162
3.11.4A	Guidelines and objectives for acquisition of system restart ancillary services	162
3.11.4B	Determination of electrical sub-network boundaries	164
3.11.5	Tender process for non-market ancillary services	164
3.11.6	Dispatch of non-market ancillary services by AEMO	167
3.11.7	Performance and testing	168
3.12	Market Intervention by AEMO	169
3.12.1	Intervention settlement timetable	169
3.12.2	Affected Participants and Market Customers entitlements to compensation in relation to AEMO intervention	169
3.12.3	Role of the Independent Expert in calculating payments in relation to intervention by AEMO	174
3.12A	Mandatory restrictions	176
3.12A.1	Restriction offers	176
3.12A.2	Mandatory restrictions schedule	178
3.12A.3	Acquisition of capacity	179
3.12A.4	Rebid of capacity under restriction offers	179
3.12A.5	Dispatch of restriction offers	179
3.12A.6	Pricing during a restriction price trading interval	180
3.12A.7	Determination of funding restriction shortfalls	180
3.12A.8	Cancellation of a mandatory restriction period	185
3.12A.9	Review by AEMC	185
3.13	Market Information	186
3.13.1	Provision of information	186
3.13.2	Systems and procedures	186
3.13.3	Standing data	188
3.13.4	Spot market	194
3.13.4A	Market ancillary services	199
3.13.5	Ancillary services contracting by AEMO	199
3.13.5A	Settlements residue auctions	200
3.13.6	[Deleted]	200
3.13.6A	Report by AEMO	200
3.13.7	Monitoring of significant variation between forecast and actual prices by AER	201
3.13.8	Public information	203
3.13.9	[Deleted]	203
3.13.10	Market auditor	203
3.13.11	[Deleted]	204
3.13.12	NMI Standing Data	204
3.13.12A	NMI Standing Data Schedule	208
3.13.13	Inter-network tests	209
3.13.14	Carbon Dioxide Equivalent Intensity Index	209
3.14	Administered Price Cap and Market Suspension	212
3.14.1	Cumulative Price Threshold and Administered Price Cap	212
3.14.2	Application of Administered Price Cap	214
3.14.3	Conditions for suspension of the spot market	215
3.14.4	Declaration of market suspension	216
3.14.5	Pricing during market suspension	217
3.14.6	Compensation due to the application of an administered price, market price cap or market floor price	220
3.15	Settlements	223
3.15.1	Settlements management by AEMO	223
3.15.2	Electronic funds transfer	223
3.15.3	Connection point and virtual transmission node responsibility	224
3.15.4	Adjusted energy amounts connection points	224
3.15.5	Adjusted energy - transmission network connection points	225
3.15.5A	Adjusted energy – virtual transmission nodes	225
3.15.6	Spot market transactions	225
3.15.6A	Ancillary service transactions	226
3.15.7	Payment to Directed Participants	239
3.15.7A	Payment to Directed Participants for services other than energy and market ancillary services	240
3.15.7B	Claim for additional compensation by Directed Participants	243
3.15.8	Funding of Compensation for directions	246
3.15.9	Reserve settlements	250
3.15.10	Administered price, market price cap or market floor price compensation payments	252
3.15.10A	Goods and services tax	253
3.15.10B	Restriction contract amounts	254
3.15.10C	Intervention Settlements	255
3.15.11	Reallocation transactions	259
3.15.11A	Reallocation procedures	260
3.15.12	Settlement amount	261
3.15.13	Payment of settlement amount	261
3.15.14	Preliminary statements	262
3.15.15	Final statements	262
3.15.15A	Use of estimated settlement amounts by AEMO	262
3.15.16	Payment by market participants	263
3.15.17	Payment to market participants	263
3.15.18	Disputes	263
3.15.19	Revised Statements and Adjustments	264
3.15.20	Payment of adjustments	266
3.15.21	Default procedure	266
3.15.22	Maximum total payment in respect of a billing period	269
3.15.23	Maximum total payment in respect of a financial year	270
3.15.24	Compensation for reductions under clause 3.15.23	272
3.15.25	Interest on overdue amounts	272
3.16	Participant compensation fund	272
3.16.1	Establishment of Participant compensation fund	272
3.16.2	Dispute resolution panel to determine compensation	273
3.17	[Deleted]	275
3.18	Settlements Residue Auctions	275
3.18.1	Settlements residue concepts	275
3.18.2	Auctions and eligible persons	276
3.18.3	Auction rules	277
3.18.4	Proceeds and fees	278
3.18.5	Settlement residue committee	279
3.19	Market Management Systems Access Procedures	280
3.20	Reliability and Emergency Reserve Trader	281
3.20.1	Expiry of reliability and emergency reserve trader	281
3.20.2	Reliability and emergency reserve trader	281
3.20.3	Reserve contracts	282
3.20.4	Dispatch pricing methodology for unscheduled reserve contracts	283
3.20.5	AEMO’s risk management and accounts relating to the reliability safety net	284
3.20.6	Reporting on RERT by AEMO	284
3.20.7	AEMO’s exercise of the RERT	285
3.20.8	RERT Guidelines	286
3.20.9	[Deleted] 	287
Schedule 3.1	Bid and Offer Validation Data	287
Scheduled Generating Unit Data:	287
Semi-Scheduled Generating Unit Data:	288
Scheduled Load Data:	289
Scheduled Network Service Data:	290
Ancillary Service Generating Unit and Ancillary Service Load Data:	290
Dispatch Inflexibility Profile:	290
Aggregation Data:	291
Schedule 3.2	[Deleted]	291
Schedule 3.3	[Deleted]	291
4.	Power System Security	295
4.1	Introduction	295
4.1.1	Purpose	295
4.2	Definitions and Principles	295
4.2.1	[Deleted]	295
4.2.2	Satisfactory Operating State	295
4.2.3	Credible and non-credible contingency events	296
4.2.3A	Re-classifying contingency events	297
4.2.3B	Criteria for re-classifying contingency events	299
4.2.4	Secure operating state and power system security	299
4.2.5	Technical envelope	299
4.2.6	General principles for maintaining power system security	300
4.2.7	Reliable Operating State	301
4.2.8	Time for undertaking action	301
4.3	Power System Security Responsibilities and Obligations	301
4.3.1	Responsibility of AEMO for power system security	301
4.3.2	System security	304
4.3.3	The role of System Operators	306
4.3.4	Network Service Providers	308
4.3.5	Market Customer obligations	311
4.4	Power System Frequency Control	311
4.4.1	Power system frequency control responsibilities	311
4.4.2	Operational frequency control requirements	311
4.4.3	Generator protection requirements	312
4.5	Control of Power System Voltage	312
4.5.1	Power system voltage control	312
4.5.2	Reactive power reserve requirements	313
4.5.3	Audit and testing	314
4.6	Protection of Power System Equipment	314
4.6.1	Power system fault levels	314
4.6.2	Power system protection co-ordination	314
4.6.3	Audit and testing	314
4.6.4	Short-term thermal ratings of power system	314
4.6.5	Partial outage of power protection systems	315
4.7	Power System Stability Co-ordination	315
4.7.1	Stability analysis co-ordination	315
4.7.2	Audit and testing	316
4.8	Power System Security Operations	316
4.8.1	Registered Participants' advice	316
4.8.2	Protection or control system abnormality	316
4.8.3	AEMO’s advice on power system emergency conditions	316
4.8.4	Declaration of conditions	317
4.8.5	Managing declarations of conditions	318
4.8.5A	Determination of the latest time for AEMO intervention	318
4.8.5B	Notifications of last time of AEMO intervention	319
4.8.6	[Deleted]	320
4.8.7	Managing a power system contingency event	320
4.8.8	[Deleted]	320
4.8.9	Power to issue directions and clause 4.8.9 instructions	320
4.8.9A	System security directions	322
4.8.10	Disconnection of generating units and market network services	323
4.8.11	[Deleted]	323
4.8.12	System restart plan and local black system procedures	323
4.8.13	[Deleted]	324
4.8.14	Power system restoration	324
4.8.15	Review of operating incidents	325
4.9	Power System Security Related Market Operations	327
4.9.1	Load forecasting	327
4.9.2	Instructions to Scheduled Generators and Semi-Scheduled Generators	328
4.9.2A	Dispatch Instructions to Scheduled Network Service Providers	329
4.9.3	Instructions to Registered Participants	330
4.9.3A	Ancillary services instructions	330
4.9.3B	Compliance with dispatch instructions	331
4.9.4	Dispatch related limitations on Scheduled Generators and Semi-Scheduled Generators	331
4.9.4A	Dispatch related limitations on Scheduled Network Service Providers	333
4.9.5	Form of dispatch instructions	333
4.9.6	Commitment of scheduled generating units	334
4.9.7	De-commitment, or output reduction, by Scheduled Generators	335
4.9.8	General responsibilities of Registered Participants	336
4.9.9	Scheduled Generator plant changes	338
4.9.9A	Scheduled Network Service Provider plant changes	338
4.9.9B	Ancillary service plant changes	338
4.10	Power System Operating Procedures	338
4.10.1	Power system operating procedures	338
4.10.2	Transmission network operations	339
4.10.3	Operating interaction with distribution networks	340
4.10.4	Switching of a Distributor's high voltage networks	340
4.10.5	Switching of reactive power facilities	341
4.10.6	Automatic reclose	341
4.10.7	Inspection of facilities by AEMO	341
4.11	Power System Security Support	341
4.11.1	Remote control and monitoring devices	341
4.11.2	Operational control and indication communication facilities	343
4.11.3	Power system voice/data operational communication facilities	344
4.11.4	Records of power system operational communication	345
4.11.5	Agent communications	346
4.12	Nomenclature Standards	347
4.13	[Deleted]	348
4.14	Acceptance of Performance Standards	348
4.15	Compliance with Performance Standards	349
4.16	Transitioning arrangements for establishment of performance standards	353
4.16.1	Definitions	353
4.16.2	Exclusions	355
4.16.3	Notification and acceptance of performance standards	356
4.16.4	Actual capability	361
4.16.5	Criteria for, and negotiation of, performance standards	362
4.16.6	Consultation with and assistance by Network Service Providers	364
4.16.7	Referral to expert determination	365
4.16.8	Prior actions	366
4.16.9	Deemed performance standards	366
4.16.10	Modification of connection agreements	366
4.17	Expert determination	367
4.17.1	Performance standards committee and appointment of performance standards experts	367
4.17.2	Referral to performance standards expert	368
4.17.3	Determinations of performance standards experts	369
4.17.4	Other matters	370
5.	Network Connection, Planning and Expansion	373
Part A	Network Connection	373
5.1	Statement of Purpose	373
5.1.1	[Deleted]	373
5.1.2	Purpose	373
5.1.3	Principles	375
5.2	Obligations	376
5.2.1	Obligations of Registered Participants	376
5.2.2	Connection agreements	376
5.2.3	Obligations of network service providers	377
5.2.4	Obligations of customers	381
5.2.5	Obligations of Generators	382
5.2.6	Obligations of AEMO	383
5.3	Establishing or Modifying Connection	383
5.3.1	Process and procedures	383
5.3.2	Connection enquiry	384
5.3.3	Response to connection enquiry	385
5.3.4	Application for connection	388
5.3.4A	Negotiated access standards	388
5.3.5	Preparation of offer to connect	390
5.3.6	Offer to connect	392
5.3.7	Finalisation of connection agreements	394
5.3.7A	Application for connection to declared shared network	395
5.3.8	Provision and use of information	396
5.3.9	Procedure to be followed by a Generator proposing to alter a generating system	397
5.3.10	Acceptance of performance standards for generating plant that is altered	399
5.3.11	Notification of request to change normal voltage	399
5.4	Design of Connected Equipment	400
5.4.1	Application	400
5.4.2	Advice of inconsistencies	400
5.4.3	Additional information	401
5.4.4	Advice on possible non-compliance	401
5.4A	Access arrangements relating to Transmission Networks	401
5.4AA	Network support payments and functions	404
5.5	Access arrangements relating to Distribution Networks	404
5.5A	[Deleted]	408
5.6	[Deleted]	408
5.6A	[Deleted]	408
5.7	Inspection and Testing	408
5.7.1	Right of entry and inspection	408
5.7.2	Right of testing	410
5.7.3	Tests to demonstrate compliance with connection requirements for generators	412
5.7.4	Routine testing of protection equipment	413
5.7.5	Testing by Registered Participants of their own plant requiring changes to normal operation	415
5.7.6	Tests of generating units requiring changes to normal operation	417
5.7.7	Inter-network power system tests	418
5.8	Commissioning	425
5.8.1	Requirement to inspect and test equipment	425
5.8.2	Co-ordination during commissioning	426
5.8.3	Control and protection settings for equipment	426
5.8.4	Commissioning program	427
5.8.5	Commissioning tests	428
5.9	Disconnection and Reconnection	428
5.9.1	Voluntary disconnection	428
5.9.2	Decommissioning procedures	429
5.9.3	Involuntary disconnection	429
5.9.4	Direction to disconnect	430
5.9.4A	Notification of disconnection	431
5.9.5	Disconnection during an emergency	431
5.9.6	Obligation to reconnect	431
Part B	Network Planning and Expansion	432
5.10	Network development generally	432
5.10.1	Content of Part B	432
5.10.2	Definitions	433
5.10.3	Interpretation	437
5.11	Forecasts of connection to transmission network and identification of system limitations	438
5.11.1	Forecasts for connection to transmission network	438
5.11.2	Identification of network limitations	438
5.12	Transmission annual planning process	439
5.12.1	Transmission annual planning review	439
5.12.2	Transmission Annual Planning Report	439
5.13	Distribution annual planning process	441
5.13.1	Distribution annual planning review	441
5.13.2	Distribution Annual Planning Report	443
5.13A	Distribution zone substation information	444
5.14	Joint planning	447
5.14.1	Joint planning obligations of Transmission Network Service Providers and Distribution Network Service Providers	447
5.14.2	Joint planning obligations of Distribution Network Service Providers and Distribution Network Service Providers	448
5.15	Regulatory investment tests generally	449
5.15.1	Interested parties	449
5.15.2	Identification of a credible option	449
5.15.3	Review of costs thresholds	450
5.15.4	Costs determinations	452
5.16	Regulatory investment test for transmission	453
5.16.1	Principles	453
5.16.2	Regulatory investment test for transmission application guidelines	456
5.16.3	Investments subject to the regulatory investment test for transmission	457
5.16.4	Regulatory investment test for transmission procedures	459
5.16.5	Disputes in relation to application of regulatory investment test for transmission	465
5.16.6	Determination that preferred option satisfies the regulatory investment test for transmission	467
5.17	Regulatory investment test for distribution	468
5.17.1	Principles	468
5.17.2	Regulatory investment test for distribution application guidelines	470
5.17.3	Projects subject to the regulatory investment test for distribution	472
5.17.4	Regulatory investment test for distribution procedures	473
5.17.5	Disputes in relation to application of regulatory investment test for distribution	479
5.18	Construction of funded augmentations	481
5.19	SENE Design and Costing Study	481
5.19.1	Definitions	481
5.19.2	Interpretation	482
5.19.3	Request for SENE Design and Costing Study	482
5.19.4	Content of SENE Design and Costing Study	484
5.19.5	Co-operation of other Network Service Providers	485
5.19.6	Publication of SENE Design and Costing Study report	485
5.19.7	Provision and use of information	485
5.20	National transmission planning	486
5.20.1	Preliminary consultation	486
5.20.2	Publication of NTNDP	487
5.20.3	Development strategies for national transmission flow paths	489
5.20.4	NTNDP database	490
5.20.5	Jurisdictional planning bodies and jurisdictional planning representatives	491
5.21	AEMO's obligation to publish information and guidelines and provide advice	491
5.22	Last resort planning power	493
Schedule 5.1a	System standards	496
S5.1a.1	Purpose	496
S5.1a.2	Frequency	496
S5.1a.3	System stability	496
S5.1a.4	Power frequency voltage	497
S5.1a.5	Voltage fluctuations	498
S5.1a.6	Voltage waveform distortion	498
S5.1a.7	Voltage unbalance	499
S5.1a.8	Fault clearance times	500
Schedule 5.1	Network Performance Requirements to be Provided or Co-ordinated by Network Service Providers	501
S5.1.1	Introduction	501
S5.1.2	Network reliability	502
S5.1.2.1	Credible contingency events	502
S5.1.2.2	Network service within a region	503
S5.1.2.3	Network service between regions	504
S5.1.3	Frequency variations	505
S5.1.4	Magnitude of power frequency voltage	505
S5.1.5	Voltage fluctuations	506
S5.1.6	Voltage harmonic or voltage notching distortion	507
S5.1.7	Voltage unbalance	508
S5.1.8	Stability	509
S5.1.9	Protection systems and fault clearance times	510
S5.1.10	Load and network control facilities	514
S5.1.10.1	General	514
S5.1.10.2	Distribution Network Service Providers	514
S5.1.10.3	Transmission Network Service Providers	515
S5.1.11	Automatic reclosure of transmission or distribution lines	515
S5.1.12	Rating of transmission lines and equipment	515
S5.1.13	Information to be provided	516
Schedule 5.2	Conditions for Connection of Generators	516
S5.2.1	Outline of requirements	516
S5.2.2	Application of Settings	517
S5.2.3	Technical matters to be coordinated	518
S5.2.4	Provision of information	519
S5.2.5	Technical requirements	521
S5.2.5.1	Reactive power capability	521
S5.2.5.2	Quality of electricity generated	523
S5.2.5.3	Generating unit response to frequency disturbances	524
S5.2.5.4	Generating system response to voltage disturbances	527
S5.2.5.5	Generating system response to disturbances following contingency events	529
S5.2.5.6	Quality of electricity generated and continuous uninterrupted operation	532
S5.2.5.7	Partial load rejection	532
S5.2.5.8	Protection of generating systems from power system disturbances	533
S5.2.5.9	Protection systems that impact on power system security	535
S5.2.5.10	Protection to trip plant for unstable operation	536
S5.2.5.11	Frequency control	537
S5.2.5.12	Impact on network capability	540
S5.2.5.13	Voltage and reactive power control	541
S5.2.5.14	Active power control	547
S5.2.6	Monitoring and control requirements	549
S5.2.6.1	Remote Monitoring	549
S5.2.6.2	Communications equipment	551
S5.2.7	Power station auxiliary supplies	552
S5.2.8	Fault current	552
Schedule 5.3	Conditions for Connection of Customers	554
S5.3.1a	Introduction to the schedule	554
S5.3.1	Information	555
S5.3.2	Design standards	556
S5.3.3	Protection systems and settings	556
S5.3.4	Settings of protection and control systems	557
S5.3.5	Power factor requirements	558
S5.3.6	Balancing of load currents	559
S5.3.7	Voltage fluctuations	560
S5.3.8	Harmonics and voltage notching	560
S5.3.9	Design requirements for Network Users' substations	561
S5.3.10	Load shedding facilities	561
Schedule 5.3a	Conditions for connection of Market Network Services	562
S5.3a.1a	Introduction to the schedule	562
S5.3a.1	Provision of Information	563
S5.3a.2	Application of settings	564
S5.3a.3	Technical matters to be co-ordinated	565
S5.3a.4	Monitoring and control requirements	565
S5.3a.4.1	Remote Monitoring	565
S5.3a.4.2	[Deleted]	566
S5.3a.4.3	Communications equipment	566
S5.3a.5	Design standards	567
S5.3a.6	Protection systems and settings	567
S5.3a.7	[Deleted]	569
S5.3a.8	Reactive power capability	569
S5.3a.9	Balancing of load currents	569
S5.3a.10	Voltage fluctuations	570
S5.3a.11	Harmonics and voltage notching	570
S5.3a.12	Design requirements for Market Network Service Providers’ substations	571
S5.3a.13	Market network service response to disturbances in the power system	571
S5.3a.14	Protection of market network services from power system disturbances	572
Schedule 5.4	Information to be Provided with Preliminary Enquiry	573
Schedule 5.5	Technical Details to Support Application for Connection and Connection Agreement	573
S5.5.1	Introduction to the schedule	573
S5.5.2	Categories of data	574
S5.5.3	Review, change and supply of data	574
S5.5.4	Data Requirements	575
S5.5.5	Asynchronous generating unit data	575
S5.5.6	Generating units equal to or smaller than 30MW data	575
S5.5.7	Generating System Design Data Sheet, Generating System Setting Data Sheet and Generating System Model Guidelines	576
Schedule 5.5.1	[Deleted]	577
Schedule 5.5.2	[Deleted]	577
Schedule 5.5.3	Network and plant technical data of equipment at or near connection point	577
Schedule 5.5.4	Network Plant and Apparatus Setting Data	580
Schedule 5.5.5	Load Characteristics at Connection Point	582
Schedule 5.6	Terms and Conditions of Connection agreements	583
Schedule 5.7	Annual Forecast Information for Planning Purposes	584
Schedule 5.8	Distribution Annual Planning Report	586
Schedule 5.9	Demand side engagement document (clause 5.13.1(h))	592
Chapter 5A	Electricity connection for retail customers	597
Part A	Preliminary	597
5A.A.1	Definitions	597
5A.A.2	Application of this Chapter	600
5A.A.3	Small Generation Aggregator deemed to be agent of a retail customer	600
Part B	Standardised offers to provide basic and standard connection services	600
Division 1	Basic connection services	600
5A.B.1	Obligation to have model standing offer to provide basic connection services	600
5A.B.2	Proposed model standing offer for basic connection services	601
Division 2	Standard connection services	603
5A.B.4	Standard connection services	603
5A.B.5	Approval of model standing offer to provide standard connection services	604
Division 3	Miscellaneous	604
5A.B.6	Amendment etc of model standing offer	604
5A.B.7	Publication of model standing offers	605
Part C	Negotiated connection	605
5A.C.1	Negotiation of connection	605
5A.C.2	Process of negotiation	606
5A.C.3	Negotiation framework	606
5A.C.4	Fee to cover cost of negotiation	608
Part D	Application for connection service	609
Division 1	Information	609
5A.D.1	Publication of information	609
Division 2	Preliminary enquiry	609
5A.D.2	Preliminary enquiry	609
Division 3	Applications	610
5A.D.3	Application process	610
5A.D.4	Site inspection	611
Part E	Connection charges	612
5A.E.1	Connection charge principles	612
5A.E.2	Itemised statement of connection charges	613
5A.E.3	Connection charge guidelines	614
5A.E.4	Payment of connection charges	616
Part F	Formation and integration of connection contracts	616
Division 1	Offer and acceptance – basic and standard connection services	616
5A.F.1	Distribution Network Service Provider’s response to application	616
5A.F.2	Acceptance of connection offer	617
5A.F.3	Offer and acceptance—application for expedited connection	617
Division 2	Offer and acceptance – negotiated connection	618
5A.F.4	Negotiated connection offer	618
Division 3	Formation of contract	618
5A.F.5	Acceptance of connection offer	618
Division 4	Contractual performance	619
5A.F.6	Carrying out connection work	619
5A.F.7	Retailer required for energisation where new connection	619
Part G	Dispute resolution between Distribution Network Service Providers and customers	619
5A.G.1	Relevant disputes	619
5A.G.2	Determination of dispute	620
5A.G.3	Termination of proceedings	620
SCHEDULE 5A.1 – Minimum content requirements for connection contract	621
Part A	Connection offer not involving embedded generation	621
Part B	Connection offer involving embedded generation	622
6	Economic Regulation of Distribution Services	627
Part A	Introduction	627
6.1	Introduction to Chapter 6	627
6.1.1	AER's regulatory responsibility	627
6.1.1A	[Deleted]	627
6.1.2	Structure of this Chapter	627
6.1.3	Access to direct control services and negotiated distribution services	628
6.1.4	Prohibition of DUOS charges for the export of energy	628
Part B	Classification of Distribution Services and Distribution Determinations	629
6.2	Classification	629
6.2.1	Classification of distribution services	629
6.2.2	Classification of direct control services as standard control services or alternative control services	630
6.2.3	Term for which classification operates	631
6.2.4	Duty of AER to make distribution determinations	631
6.2.5	Control mechanisms for direct control services	631
6.2.6	Basis of control mechanisms for direct control services	632
6.2.7	Negotiated distribution services	633
6.2.8	Guidelines	633
Part C	Building Block Determinations for standard control services	634
6.3	Building block determinations	634
6.3.1	Introduction	634
6.3.2	Contents of building block determination	634
6.4	Post-tax revenue model	635
6.4.1	Preparation, publication and amendment of post-tax revenue model	635
6.4.2	Contents of post-tax revenue model	635
6.4.3	Building block approach	635
6.4.4	Shared assets	637
6.4.5	Expenditure Forecast Assessment Guidelines	638
6.4A	Capital expenditure incentive mechanisms	638
6.5	Matters relevant to the making of building block determinations	639
6.5.1	Regulatory asset base	639
6.5.2	Return on capital	640
6.5.3	Estimated cost of corporate income tax	643
6.5.4	[Deleted]	643
6.5.5	Depreciation	643
6.5.6	Forecast operating expenditure	644
6.5.7	Forecast capital expenditure	647
6.5.8	Efficiency benefit sharing scheme	651
6.5.8A	Capital expenditure sharing scheme	652
6.5.9	The X factor	653
6.5.10	Pass through events	654
6.6	Adjustments after making of building block determination.	654
6.6.1	Cost pass through	654
6.6.1A	Reporting on jurisdictional schemes	661
6.6.2	Service target performance incentive scheme	662
6.6.3	Demand management and embedded generation connection incentive scheme	663
6.6.4	Small-scale incentive scheme	664
6.6.5	Reopening of distribution determination for capital expenditure	665
6.6A	Contingent Projects	668
6.6A.1	Acceptance of a contingent project in a distribution determination	668
6.6A.2	Amendment of distribution determination for contingent project	670
Part D	Negotiated distribution services	674
6.7	Negotiated distribution services	674
6.7.1	Principles relating to access to negotiated distribution services	674
6.7.2	Determination of terms and conditions of access for negotiated distribution services	676
6.7.3	Negotiating framework determination	677
6.7.4	Negotiated Distribution Service Criteria determination	677
6.7.5	Preparation of and requirements for negotiating framework for negotiated distribution services	678
6.7.6	Confidential information	680
Part DA	Connection policies	680
6.7A	Connection policy requirements	680
6.7A.1	Preparation of, and requirements for, connection policy	680
Part E	Regulatory proposal	681
6.8	Regulatory proposal	681
6.8.1	AER's framework and approach paper	681
6.8.1A	Notification of approach to forecasting expenditure	684
6.8.2	Submission of regulatory proposal	684
6.9	Preliminary examination and consultation	686
6.9.1	Preliminary examination	686
6.9.2	Resubmission of proposal	686
6.9.2A	Confidential information	687
6.9.3	Consultation	687
6.10	Draft distribution determination and further consultation	688
6.10.1	Making of draft distribution determination	688
6.10.2	Publication of draft determination and consultation	688
6.10.3	Submission of revised proposal	689
6.10.4	Submissions on specified matters	690
6.11	Distribution determination	690
6.11.1	Making of distribution determination	690
6.11.1A	Out of scope revised regulatory proposal or late submissions	690
6.11.2	Notice of distribution determination	691
6.11.3	Commencement of distribution determination	691
6.12	Requirements relating to draft and final distribution determinations	692
6.12.1	Constituent decisions	692
6.12.2	Reasons for decisions	695
6.12.3	Extent of AER's discretion in making distribution determinations	695
6.13	Revocation and substitution of distribution determination for wrong information or error	696
6.14	Miscellaneous	697
6.14A	Distribution Confidentiality Guidelines	698
Part F	Cost Allocation	698
6.15	Cost allocation	698
6.15.1	Duty to comply with Cost Allocation Method	698
6.15.2	Cost Allocation Principles	698
6.15.3	Cost Allocation Guidelines	699
6.15.4	Cost Allocation Method	700
Part G	Distribution consultation procedures	701
6.16	Distribution consultation procedures	701
Part H	Ring-Fencing Arrangements for Distribution Network Service Providers	703
6.17	Distribution Ring-Fencing Guidelines	703
6.17.1	Compliance with Distribution Ring-Fencing Guidelines	703
6.17.2	Development of Distribution Ring-Fencing Guidelines	703
Part I	Distribution Pricing Rules	704
6.18	Distribution Pricing Rules	704
6.18.1	Application of this Part	704
6.18.2	Pricing proposals	704
6.18.3	Tariff classes	705
6.18.4	Principles governing assignment or re-assignment of retail customers to tariff classes and assessment and review of basis of charging	706
6.18.5	Pricing principles	706
6.18.6	Side constraints on tariffs for standard control services	707
6.18.7	Recovery of designated pricing proposal charges	708
6.18.7A	Recovery of jurisdictional scheme amounts	709
6.18.8	Approval of pricing proposal	713
6.18.9	Publication of information about tariffs and tariff classes	713
6.19.	Data Required for Distribution Service Pricing	714
6.19.1	Forecast use of networks by Distribution Customers and Embedded Generators	714
6.19.2	Confidentiality of distribution network pricing information	714
Part J	Billing and Settlements	714
6.20	Billing and Settlements Process	714
6.20.1	Billing for distribution services	714
6.20.2	Minimum information to be provided in distribution network service bills	716
6.20.3	Settlement between Distribution Network Service Providers	717
6.20.4	Obligation to pay	717
Part K	Prudential requirements, capital contributions and prepayments	717
6.21	Distribution Network Service Provider Prudential Requirements	717
6.21.1	Prudential requirements for distribution network service	717
6.21.2	Capital contributions, prepayments and financial guarantees	718
6.21.3	Treatment of past prepayments and capital contributions	718
Part L	Dispute resolution	719
6.22	Dispute Resolution	719
6.22.1	Dispute Resolution by the AER	719
6.22.2	Determination of dispute	719
6.22.3	Termination of access dispute without access determination	721
Part M	Separate disclosure of transmission and distribution charges	721
6.23	Separate disclosure of transmission and distribution charges	721
Part N	Dual Function Assets	722
6.24	Dual Function Assets	722
6.24.1	Application of this Part	722
6.24.2	Dual Function Assets	722
6.25	AER determination of applicable pricing regime for Dual Function Assets	723
6.26	Division of Distribution Network Service Provider's revenue	724
Part O	Annual Benchmarking Report	725
6.27	Annual Benchmarking Report	725
Schedule 6.1	Contents of building block proposals	725
S6.1.1	Information and matters relating to capital expenditure	725
S6.1.2	Information and matters relating to operating expenditure	727
S6.1.3	Additional information and matters	727
Schedule 6.2	Regulatory Asset Base	730
S6.2.1	Establishment of opening regulatory asset base for a regulatory control period	730
S6.2.2	Prudency and efficiency of capital expenditure	735
S6.2.2A	Reduction for inefficient past capital expenditure	735
S6.2.2B	Depreciation	738
S6.2.3	Roll forward of regulatory asset base within the same regulatory control period	738
6A.	Economic Regulation of Transmission Services	743
Part A	Introduction	743
6A.1	Introduction to Chapter 6A	743
6A.1.1	Economic regulation of transmission services generally	743
6A.1.2	Meaning of terms and conditions of access for transmission services	744
6A.1.3	Access to prescribed and negotiated transmission services	744
6A.1.4	National regulatory arrangements	745
6A.1.5	Application of Chapter 6A to Market Network Service Providers	745
6A.1.6	Application of Chapter 6A to AEMO and declared transmission system operators	746
Part B	Transmission Determinations Generally	746
6A.2	Transmission determinations	746
6A.2.1	Duty of AER to make transmission determinations	746
6A.2.2	Components of transmission determinations	746
6A.2.3	Guidelines	746
Part C	Regulation of Revenue - Prescribed Transmission Services	747
6A.3	Allowed revenue from prescribed transmission services	747
6A.3.1	Allowed revenue for regulatory year	747
6A.3.2	Adjustment of maximum allowed revenue	748
6A.4	Revenue determinations	748
6A.4.1	Introduction	748
6A.4.2	Contents of revenue determination	748
6A.5	Post-tax revenue model	749
6A.5.1	Introduction	749
6A.5.2	Preparation, publication and amendment of post-tax revenue model	750
6A.5.3	Contents of post-tax revenue model	750
6A.5.4	Building blocks approach	751
6A.5.5	Shared assets	752
6A.5.6	Expenditure Forecast Assessment Guidelines	753
6A.5A	Capital expenditure incentive mechanisms	754
6A.6	Matters relevant to the making of revenue determinations	754
6A.6.1	Regulatory asset base	754
6A.6.2	Return on capital	756
6A.6.3	Depreciation	758
6A.6.4	Estimated cost of corporate income tax	760
6A.6.5	Efficiency benefit sharing scheme	760
6A.6.5A	Capital expenditure sharing scheme	761
6A.6.6	Forecast operating expenditure	762
6A.6.7	Forecast capital expenditure	765
6A.6.8	The X factor	769
6A.6.9	Pass through events	770
6A.7	Matters relevant to the adjustment of revenue cap after making of revenue determination	770
6A.7.1	Reopening of revenue determination for capital expenditure	770
6A.7.2	Network support pass through	773
6A.7.3	Cost pass through	775
6A.7.4	Service target performance incentive scheme	781
6A.7.5	Small-scale incentive scheme	783
6A.8	Contingent Projects	784
6A.8.1	Acceptance of a Contingent Project in a revenue determination	784
6A.8.2	Amendment of revenue determination for contingent project	785
Part D	Negotiated Transmission Services	790
6A.9	Negotiated transmission services	790
6A.9.1	Principles relating to access to negotiated transmission services	790
6A.9.2	Determination of terms and conditions of access for negotiated transmission services	792
6A.9.3	Negotiating framework determination	792
6A.9.4	Negotiated transmission criteria determination	792
6A.9.5	Preparation of and requirements for negotiating framework	793
6A.9.6	Confidential information	795
6A.9.7	Commercial arbitration for negotiated transmission services	795
Part E	Procedure – Revenue determinations, negotiating frameworks and pricing methodologies	795
6A.10	Revenue Proposal, proposed negotiating framework and proposed pricing methodology	795
6A.10.1A	AER's framework and approach paper	795
6A.10.1B	Notification of approach to forecasting expenditure	797
6A.10.1	Submission of proposal, framework, pricing methodology and information	798
6A.10.2	[Deleted]	799
6A.11	Preliminary examination and consultation	799
6A.11.1	Preliminary examination and determination of non-compliance with relevant requirements	799
6A.11.2	Resubmission of proposal, framework, pricing methodology or information	800
6A.11.2A	Confidential information	800
6A.11.3	Consultation	801
6A.12	Draft decision and further consultation	802
6A.12.1	Making of draft decision	802
6A.12.2	Publication of draft decision and consultation	802
6A.12.3	Submission of revised proposal, framework or pricing methodology	803
6A.12.4	Submissions on specified matters	804
6A.13	Final decision	805
6A.13.1	Making of final decision	805
6A.13.2	Refusal to approve amounts, values, framework or pricing methodology	805
6A.13.2A	Out of scope revised documents or late submissions	806
6A.13.3	Notice of final decision	807
6A.13.4	Making of transmission determination	807
6A.14	Requirements relating to draft and final decisions	807
6A.14.1	Contents of decisions	807
6A.14.2	Reasons for decisions	810
6A.14.3	Circumstances in which matters must be approved or accepted	810
6A.15	Revocation of revenue determination or amendment of pricing methodology for wrong information or error	813
6A.16	Miscellaneous	814
6A.16A	Transmission Confidentiality Guidelines	814
Part F	Information Disclosure	815
6A.17	Information disclosure by Transmission Network Service Providers	815
6A.17.1	Information to be provided to AER	815
6A.17.2	Information Guidelines	816
6A.18	[Deleted]	818
Part G	Cost Allocation	818
6A.19	Cost allocation	818
6A.19.1	Duty to comply with Cost Allocation Methodology	818
6A.19.2	Cost Allocation Principles	818
6A.19.3	Cost Allocation Guidelines	819
6A.19.4	Cost Allocation Methodology	820
Part H	Transmission Consultation Procedures	821
6A.20	Transmission consultation procedures	821
Part I	Ring-Fencing Arrangements for Transmission Network Service Providers	822
6A.21	Transmission Ring-Fencing Guidelines	822
6A.21.1	Compliance with Transmission Ring-Fencing Guidelines	822
6A.21.2	Development of Transmission Ring-Fencing Guidelines	823
Part J	Prescribed Transmission Services - Regulation of Pricing	824
6A.22	Terms used in Part J	824
6A.22.1	Aggregate annual revenue requirement (AARR)	824
6A.22.2	Annual service revenue requirement (ASRR)	824
6A.22.3	Meaning of attributable cost share	824
6A.22.4	Meaning of attributable connection point cost share	825
6A.23	Pricing Principles for Prescribed Transmission Services	825
6A.23.1	Introduction	825
6A.23.2	Principles for the allocation of the AARR to categories of prescribed transmission services	825
6A.23.3	Principles for the allocation of the ASRR to transmission network connection points	826
6A.23.4	Price structure principles	828
6A.24	Pricing methodology	829
6A.24.1	Pricing methodologies generally	829
6A.24.2	Publication of pricing methodology and transmission network prices	830
6A.24.3	Basis for setting prices pending approval of pricing methodology	830
6A.24.4	Basis for setting prices pending approval of maximum allowed revenue	831
6A.25	Pricing methodology guidelines for prescribed transmission services	832
6A.25.1	Making and amending of pricing methodology guidelines	832
6A.25.2	Contents of pricing methodology guidelines	832
6A.26	Prudent discounts	833
6A.26.1	Agreements for prudent discounts for prescribed transmission services	833
6A.26.2	Application to AER for approval of proposed prudent discount amounts	834
6A.27	Billing Process	836
6A.27.1	Billing for prescribed transmission services	836
6A.27.2	Minimum information to be provided in network service bills	836
6A.27.3	Obligation to pay charges for prescribed transmission services	837
6A.27.4	Payments between Transmission Network Service Providers	837
6A.27.5	Calculation of financial transfers between Transmission Network Service Providers	837
6A.28	Prudential Requirements	837
6A.28.1	Prudential Requirements for prescribed transmission services	838
6A.28.2	Capital contribution or prepayment for a specific asset	838
6A.28.3	Treatment of past capital contributions	838
6A.29	Multiple Transmission Network Service Providers	838
6A.29.1	Multiple Transmission Network Service Providers within a region	838
6A.29.2	Single Transmission Network Service Provider within a region	839
6A.29.3	Allocation over several regions	839
Part K	Commercial arbitration for disputes about terms and conditions of access for prescribed and negotiated transmission services	839
6A.30	Commercial arbitration for prescribed and negotiated transmission services	839
6A.30.1	Notification of transmission services dispute	840
6A.30.2	Appointment of commercial arbitrator	840
6A.30.3	Procedures of commercial arbitrator	841
6A.30.4	Powers of commercial arbitrator in determining transmission services access disputes	841
6A.30.5	Determination of transmission services access disputes	843
6A.30.6	Costs of dispute	843
6A.30.7	Enforcement of agreement or determination and requirement for reasons	844
6A.30.8	Miscellaneous	844
Part L	Annual Benchmarking Report	845
6A.31	Annual Benchmarking Report	845
Schedule 6A.1	Contents of Revenue Proposals	845
S6A.1.1	Information and matters relating to capital expenditure	845
S6A.1.2	Information and matters relating to operating expenditure	846
S6A.1.3	Additional information and matters	847
Schedule 6A.2	Regulatory Asset Base	850
S6A.2.1	Establishment of opening regulatory asset base for a regulatory control period	850
S6A.2.2	Prudency and efficiency of capital expenditure	855
S6A.2.2A	Reduction for inefficient past capital expenditure	856
S6A.2.2B	Depreciation	858
S6A.2.3	Removal of assets from regulatory asset base	858
S6A.2.4	Roll forward of regulatory asset base within the same regulatory control period	860
Schedule 6A.3	CRNP methodology and modified CRNP methodology	861
S6A.3.1	Meaning of optimised replacement cost	861
S6A.3.2	CRNP methodology	861
S6A.3.3	Modified CRNP methodology	862
Schedule 6A.4	Application of this Chapter to AEMO and declared transmission system operators	862
S6A.4.1	Application of this Chapter to AEMO etc	862
S6A.4.2	Exclusions, qualifications and modifications	862
Chapter 6B	Retail markets	873
Part A	Retail support	873
Division 1 – Application and definitions	873
6B.A1.1	Application of this Part	873
Division 2	Billing and payment rules	874
6B.A2.1	Obligation to pay	874
6B.A2.2	Direct customer billing and energy-only contracts	874
6B.A2.3	Calculating network charges	874
6B.A2.4	Statement of charges	874
6B.A2.5	Time and manner of payment	875
Division 3	Matters incidental to billing and payment	875
6B.A3.1 	Adjustment of network charges	875
6B.A3.2	Tariff reassignment	876
6B.A3.3	Disputed statements of charges	877
6B.A3.4	Interest	878
6B.A3.5	Notification of changes to charges	878
Part B	Credit support regime	878
Division 1	Application and definitions	879
6B.B1.1	Application of Part B	879
6B.B1.2	Definitions	879
Division 2	Requirements for credit support	879
6B.B2.1	Distribution Network Service Provider may require credit support	879
6B.B2.2	Determining required credit support amount	879
Division 3	Determining credit allowance for a retailer	881
6B.B3.1	Calculating retailer credit allowance	881
6B.B3.2	Distribution Network Service Provider's maximum credit allowance	881
6B.B3.3	Credit rating for retailer	881
6B.B3.4	Calculating credit allowance where guarantor	882
6B.B3.5	When no credit allowance will be extended to a retailer	883
Division 4	Provision of credit support by retailers	883
6B.B4.1	Retailer to provide credit support	883
6B.B4.2	Acceptable form of credit support	884
6B.B4.3	Provision of credit support where dispute arises	884
Division 5	Other Rules relating to credit support	884
6B.B5.1	Top up of credit support	884
6B.B5.2	Reduction of credit support	885
6B.B5.3	Application of credit support	885
6B.B5.4	Return of credit support	885
6B.B5.5	Other retailer obligations	885
Schedule 6B.1	886
7.	Metering	891
7.1	Introduction to the Metering Chapter	891
7.1.1	Contents	891
7.1.2	Obligations of Market Participants to establish metering installations	891
7.1.3	Obligation to establish, maintain and publish procedures	892
7.1.4	Amendment of procedures in the Metering Chapter	892
7.2	Responsibility for Metering Installation, Metering Data and Market Settlement and Transfer Solution Procedures	893
7.2.1	Responsibility of the responsible person	893
7.2.1A	Responsibility of AEMO for the collection, processing and delivery of metering data	894
7.2.1B	Responsibility for interconnectors	895
7.2.2	Responsibility of the Market Participant	895
7.2.3	Responsibility of the Local Network Service Provider	895
7.2.4	Joint metering installations	897
7.2.4A	Special site or technology related conditions	897
7.2.5	Role of the responsible person	899
7.2.6	[Deleted]	901
7.2.7	Registration of metering installations	901
7.2.8	Market Settlement and Transfer Solution Procedures	902
7.2A	B2B Arrangements	902
7.2A.1	B2B e-Hub	902
7.2A.2	Information Exchange Committee	903
7.2A.3	Method of making and changing B2B Procedures	906
7.2A.4	Content of the B2B Procedures	909
7.2A.5	[Deleted]	910
7.2A.6	Cost Recovery	910
7.3	Metering Installation Arrangements	911
7.3.1A	Metering Installation Requirements	911
7.3.1	Metering installation components	911
7.3.2	Connection and metering point	916
7.3.3	[Deleted]	916
7.3.4	Metering installation types, accuracy and meter churn	916
7.3.5	[Deleted]	918
7.3.6	[Deleted]	918
7.3.7	Meter installation malfunctions	918
7.3A	Payment for Metering Provision and Metering Data Services	918
7.4	Metering Providers and Metering Data Providers	920
7.4.1	Role of Metering Providers	920
7.4.1A	Role of Metering Data Providers	920
7.4.2	Qualifications and registration of Metering Providers	920
7.4.2A	Qualifications and registration of Metering Data Providers	921
7.4.3	Deregistration of Metering Providers and Metering Data Providers	922
7.5	Register of Metering Information	923
7.5.1	Metering register	923
7.5.2	Metering register discrepancy	923
7.5A	Disclosure of NMI information	923
7.5A.1	Application of this Rule	923
7.5A.2	NMI and NMI checksum	923
7.5A.3	NMI Standing Data	924
7.6	Inspection, Testing and Audit of Metering Installations	924
7.6.1	Responsibility for testing	924
7.6.2	Actions in event of non-compliance	926
7.6.3	Audits of information held in metering installations	926
7.6.4	Retention of test records and documents	927
7.7	Entitlement to metering data and access to metering installation	928
7.8	Security of Metering Installations and Data	930
7.8.1	Security of metering installations	930
7.8.2	Security controls	931
7.8.3	Changes to metering equipment, parameters and settings within a metering installation	932
7.8.4	Changes to energy data or to metering data	933
7.9	Processing of Metering Data for Settlements Purposes	934
7.9.1	Metering databases	934
7.9.2	[Deleted]	934
7.9.3	[Deleted]	934
7.9.4	Data validation, substitution and estimation	934
7.9.5	Errors found in metering tests, inspections or audits	935
7.10	Confidentiality	936
7.11	Metering Data Arrangements	936
7.11.1	Metering data performance standards	936
7.11.2	Metering Data Services	937
7.11.3	Data management and storage	938
7.11.4	Use of check metering data	939
7.11.5	Periodic energy metering	939
7.12	Time settings	940
7.13	Evolving Technologies and Processes and Development of the Market	941
7.14	Metrology and service level procedures	943
7.14.1	Requirements of the metrology procedure	943
7.14.1A	Requirements of the service level procedures	944
7.14.2	Jurisdictional metrology material in metrology procedure	945
7.14.3	Additional metrology procedure matters	947
7.14.4	[Deleted]	948
7.15	Miscellaneous	948
Schedule 7.1	Responsibility for metering installation and metering data	949
Schedule 7.2	Types and Accuracy of Metering Installations	949
S7.2.1	General requirements	949
S7.2.2	Metering installations commissioned prior to 13 December 1998	949
S7.2.3	Accuracy requirements for metering installations	950
S7.2.4.	Check metering	956
S7.2.5.	Resolution and accuracy of displayed or captured data	957
S7.2.6.	General design standards	957
S7.2.6.1	Design requirements	957
S7.2.6.2	Design guidelines	958
Schedule 7.3	Inspection and Testing Requirements	958
S7.3.1.	General	958
S7.3.2.	Technical Guidelines	961
Schedule 7.4	Metering Provider	961
S7.4.1	General	961
S7.4.2	Categories of registration	962
S7.4.3	Capabilities of Metering Providers for metering installations types 1, 2, 3 and 4	963
S7.4.4	Capabilities of Metering Providers for metering installations types 5 and 6	966
S7.4.5	Capabilities of the Accredited Service Provider category	966
Schedule 7.5	Metering Register	966
S7.5.1.	General	966
S7.5.2.	Metering register information	967
Schedule 7.6	Metering Data Provider	968
S7.6.1	General	968
S7.6.2	Categories of registration	969
S7.6.3	Capabilities of Metering Data Providers	969
8.	Administrative Functions	975
Part A	Introductory	975
8.1	Administrative functions	975
8.1.1	[Deleted]	975
8.1.2	[Deleted]	975
8.1.3	Structure of this Chapter	975
Part B	Disputes	976
8.2	Dispute Resolution	976
8.2.1	Application and guiding principles	976
8.2.2	The Dispute Resolution Adviser	979
8.2.3	Dispute management systems of Registered Participants and AEMO	980
8.2.4	Stage 1 - dispute resolution through Registered Participants’ DMS	980
8.2.5	Stage 2 - dispute resolution process	982
8.2.6A	Establishment of Dispute Resolution Panel	983
8.2.6B	Parties to DRP Proceedings	985
8.2.6C	Proceedings of the DRP	985
8.2.6D	Decisions of the DRP	986
8.2.6	[Deleted]	987
8.2.7	Legal representation	987
8.2.8	Cost of dispute resolution	987
8.2.9	Effect of resolution	988
8.2.10	Recording and publication	988
8.2.11	Appeals on questions of law	989
8.2.12	[Deleted]	989
8.2A	B2B Determination Disputes	989
8.2A.1	Application of rule 8.2	989
8.2A.2	How rule 8.2 applies	989
8.3	Power to make Electricity Procedures	992
8.3	[Deleted]	992
8.4	[Deleted]	992
8.5	[Deleted]	992
Part C	Registered Participants' confidentiality obligations	992
8.6	Confidentiality	992
8.6.1	Confidentiality	992
8.6.2	Exceptions	993
8.6.3	Conditions	995
8.6.4	[Deleted]	995
8.6.5	Indemnity to AER, AEMC and AEMO	995
8.6.6	AEMO information	995
8.6.7	Information on Rules Bodies	996
Part D	Monitoring and reporting	996
8.7	Monitoring and Reporting	996
8.7.1	Monitoring	996
8.7.2	Reporting requirements and monitoring standards for Registered Participants and AEMO	997
8.7.3	Consultation required for making general regulatory information order (Section 28H of the NEL)	999
8.7.4	Preparation of network service provider performance report (Section 28V of the NEL)	1000
8.7.5	[Deleted]	1000
8.7.6	Recovery of reporting costs	1000
Part E	Reliability panel	1001
8.8	Reliability Panel	1001
8.8.1	Purpose of Reliability Panel	1001
8.8.2	Constitution of the Reliability Panel	1002
8.8.3	Reliability Panel review process	1004
Part F	Rules consultation procedures	1007
8.9	Rules Consultation Procedures	1007
Part G	Consumer Advocacy Panel	1009
8.10	Consumer advocacy funding obligation	1009
Part H	Augmentations	1009
8.11	Augmentations	1009
8.11.1	Application	1009
8.11.2	Object	1010
8.11.3	Definitions	1010
8.11.4	Planning criteria	1011
8.11.5	Construction of augmentation that is not a contestable augmentation	1011
8.11.6	Contestable augmentations	1012
8.11.7	Construction and operation of contestable augmentation	1012
8.11.8	Funded augmentations that are not subject to the tender process	1014
8.11.9	Contractual requirements and principles	1015
8.11.10	Annual planning review	1015
Schedule 8.11	Principles to be reflected in agreements relating to contestable augmentations	1016
S8.11.1	Risk allocation	1016
S8.11.2	Minimum requirements for agreements relating to contestable augmentation	1017
S8.11.3	Matters to be dealt with in relevant agreements	1018
8A.	Participant Derogations	1021
Part 1	Derogations Granted to TransGrid	1021
8A.1	[Deleted]	1021
Part 2	Derogations Granted to EnergyAustralia	1021
8A.2	[Deleted]	1021
8A.2A	[Deleted]	1021
Part 3	[Deleted]	1021
Part 4	[Deleted]	1021
Part 5	[Deleted]	1021
Part 6	Derogations Granted to Victorian Market Participants	1021
Part 7	[Deleted]	1021
Part 8	[Deleted]	1021
Part 9	[Deleted]	1021
Part 10	[Deleted]	1021
Part 11	[Deleted]	1021
Part 12	[Deleted]	1021
Part 13	Derogation granted to Aurora Energy (Tamar Valley) Pty Ltd	1021
8A.13	[Deleted]	1021
9.	Jurisdictional Derogations and Transitional Arrangements	1025
9.1	Purpose and Application	1025
9.1.1	Purpose	1025
9.1.2	Jurisdictional Derogations	1025
Part A	Jurisdictional Derogations for Victoria	1025
9.2	[Deleted]	1025
9.3	Definitions	1025
9.3.1	General Definitions	1025
9.3.2	[Deleted]	1027
9.3A	Fault levels	1027
9.4	Transitional Arrangements for Chapter 2 - Registered Participants, Registration and Cross Border Networks	1028
9.4.1	[Deleted]	1028
9.4.2	Smelter Trader	1028
9.4.3	Smelter Trader: compliance	1029
9.4.4	Report from AER	1032
9.4.5	Cross Border Networks	1032
9.5	[Deleted]	1033
9.6	Transitional Arrangements for Chapter 4 - System Security	1033
9.6.1	Operating Procedures (clause 4.10.1)	1033
9.6.2	Nomenclature Standards (clause 4.12)	1033
9.7	Transitional Arrangements for Chapter 5 - Network Connection	1033
9.7.1	[Deleted]	1033
9.7.2	[Deleted]	1033
9.7.3	[Deleted]	1033
9.7.4	Regulation of Distribution Network Connection	1033
9.7.5	[Deleted]	1035
9.7.6	[Deleted]	1035
9.7.7	[Deleted]	1035
9.8	Transitional Arrangements for Chapter 6 - Network Pricing	1035
9.8.1	[Deleted]	1035
9.8.2	[Deleted]	1035
9.8.3	[Deleted]	1035
9.8.4	Transmission Network Pricing	1035
9.8.4A	[Deleted]	1036
9.8.4B	[Deleted]	1036
9.8.4C	[Deleted]	1036
9.8.4D	[Deleted]	1036
9.8.4E	[Deleted]	1036
9.8.4F	[Deleted]	1036
9.8.4G	[Deleted]	1036
9.8.5	[Deleted]	1036
9.8.6	[Deleted]	1036
9.8.7	Distribution network pricing – transitional application of former Chapter 6	1036
9.8.8	Exclusion of AER's power to aggregate distribution systems and parts of distribution systems	1038
9.9	Transitional Arrangements for Chapter 7 - Metering	1038
9.9.1	Metering Installations To Which This Schedule Applies	1038
9.9.2	[Deleted]	1039
9.9.3	[Deleted]	1039
9.9.4	[Deleted]	1039
9.9.5	[Deleted]	1039
9.9.6	[Deleted]	1039
9.9.7	[Deleted]	1039
9.9.8	[Deleted]	1039
9.9.9	Periodic Energy Metering (clause 7.9.3)	1039
9.9.10	Use of Alternate Technologies (clause 7.13)	1039
9.9A	[Deleted]	1040
9.9B	[Deleted]	1040
9.9C	Metering services for residential and small business customers	1040
9.9C.1	Definitions	1040
9.9C.2	Expiry Date	1040
9.9C.3	Designation as responsible person	1041
9.9C.4	Classification of relevant metering installations	1041
9.9C.5	Cost recovery of AMI rollout	1041
9.9C.6	Capability for remote acquisition of metering data	1041
Schedule 9A1.1	[Deleted]	1041
Schedule 9A1.2	[Deleted]	1041
Schedule 9A1.3	[Deleted]	1041
Schedule 9A2	[Deleted]	1041
Schedule 9A3	Jurisdictional Derogations Granted to Generators	1041
1.	Interpretation of tables	1041
2.	Continuing effect	1042
3.	Subsequent agreement	1042
4.	[Deleted]	1043
5.	Reactive Power Capability (clause S5.2.5.1 of schedule 5.2)	1043
6.	[Deleted]	1044
7.	[Deleted]	1044
8.	[Deleted]	1044
9.	[Deleted]	1044
10.	[Deleted]	1044
11.	[Deleted	1044
12.	[Deleted]	1044
13.	Governor Systems (load control) (clause S5.2.5.11 of schedule 5.2)	1044
14.	[Deleted]	1044
15.	[Deleted]	1044
16.	Excitation Control System (clause S5.2.5.13 of schedule 5.2)	1044
Part B	Jurisdictional Derogations for New South Wales	1045
9.10	[Deleted]	1045
9.11	Definitions	1045
9.11.1	Definitions used in this Part B	1045
9.12	Transitional Arrangements for Chapter 2 - Generators, Registered Participants, Registration and Cross Border Networks	1046
9.12.1	[Deleted]	1046
9.12.2	Customers	1046
9.12.3	Power Traders	1046
9.12.4	Cross Border Networks	1049
9.13	[Deleted]	1050
9.14	Transitional Arrangements for Chapter 4 - System Security	1050
9.14.1	Power System Operating Procedures	1050
9.15	NSW contestable services for Chapter 5A	1050
9.15.1	Definitions	1050
9.15.2	Chapter 5A not to apply to certain contestable services	1051
9.16	Transitional Arrangements for Chapter 6 - Network Pricing	1051
9.16.1	NSW contestable services	1051
9.16.2	[Deleted]	1051
9.16.3	Jurisdictional Regulator	1051
9.16.4	Deemed Regulated Interconnector	1051
9.16.5	[Deleted]	1051
9.17	Transitional Arrangements for Chapter 7 - Metering	1051
9.17.1	Extent of Derogations	1051
9.17.2	Initial Registration (clause 7.1.2)	1052
9.17.3	Amendments to Schedule 9G1	1052
9.17.4	Compliance with AS/NZ ISO 9002 (clause S7.4.3(f) of schedule 7.4)	1052
9.17A	[Deleted]	1053
9.18	[Deleted]	1053
Part C	Jurisdictional Derogations for the Australian Capital Territory	1053
9.19	[Deleted]	1053
9.20	Definitions and Transitional Arrangements for Cross-Border Networks	1053
9.20.1	Definitions	1053
9.20.2	Cross Border Networks	1053
9.21	[Deleted]	1054
9.22	[Deleted]	1054
9.23	Transitional Arrangements for Chapter 6 - Network Pricing	1054
9.23.1	[Deleted]	1054
9.23.2	[Deleted]	1054
9.23.3	[Deleted	1054
9.23.4	[Deleted]	1054
9.24	Transitional Arrangements	1054
9.24.1	Chapter 7 - Metering	1054
9.24.2	[Deleted]	1054
9.24A	[Deleted]	1054
Part D	Jurisdictional Derogations for South Australia	1054
9.25	Definitions	1054
9.25.1	[Deleted]	1054
9.25.2	Definitions	1054
9.26	Transitional Arrangements for Chapter 2 - Registered Participants, Registration And Cross Border Networks	1057
9.26.1	Registration as a Generator	1057
9.26.2	Registration as a Customer	1058
9.26.3	Cross Border Networks	1058
9.26.4	[Deleted]	1059
9.26.5	Registration as a Network Service Provider	1059
9.27	[Deleted]	1059
9.28	Transitional Arrangements for Chapter 5 - Network Connection	1059
9.28.1	Application of clause 5.2	1059
9.28.2	[Deleted]	1060
9.29	Transitional Arrangements for Chapter 6 - Economic Regulation of Distribution Services	1060
9.29.1	[Deleted]	1060
9.29.2	[Deleted]	1060
9.29.3	[Deleted]	1060
9.29.4	[Deleted]	1060
9.29.5	Distribution Network Pricing – South Australia	1060
9.29.6	Capital contributions, prepayments and financial guarantees	1061
9.29.7	Ring fencing	1062
9.29A	Monitoring and reporting	1062
9.30	Transitional Provisions	1063
9.30.1	Chapter 7 - Metering	1063
Part E	Jurisdictional Derogations for Queensland	1063
9.31	[Deleted]	1063
9.32	Definitions and Interpretation	1063
9.32.1	Definitions	1063
9.32.2	Interpretation	1065
9.33	Transitional Arrangements for Chapter 1	1066
9.33.1	[Deleted]	1066
9.34	Transitional Arrangements for Chapter 2 - Registered Participants and Registration	1066
9.34.1	Application of the Rules in Queensland (clauses 2.2 and 2.5)	1066
9.34.2	Stanwell Cross Border Leases (clause 2.2)	1066
9.34.3	[Deleted]	1066
9.34.4	Registration as a Customer (clause 2.3.1)	1066
9.34.5	There is no clause 9.34.5	1067
9.34.6	Exempted generation agreements (clause 2.2)	1067
9.35	[Deleted]	1072
9.36	[Deleted]	1072
9.37	Transitional Arrangements for Chapter 5 - Network Connection	1072
9.37.1	[Deleted]	1072
9.37.2	Existing connection and access agreements (clause 5.2)	1072
9.37.3	[Deleted]	1073
9.37.4	[Deleted]	1073
9.37.5	Forecasts for connection points to transmission network (clause 5.11.1)	1073
9.37.6	There is no clause 9.37.6	1073
9.37.7	Cross Border Networks	1073
9.37.8	[Deleted]	1073
9.37.9	Credible contingency events (clause S5.1.2.1 of schedule 5.1)	1073
9.37.10	Reactive power capability (clause S5.2.5.1 of schedule 5.2)	1074
9.37.11	[Deleted]	1074
9.37.12	Voltage fluctuations (clause S5.1.5 of schedule 5.1)	1074
9.37.13	[Deleted]	1077
9.37.14	[Deleted]	1077
9.37.15	[Deleted]	1077
9.37.16	[Deleted]	1077
9.37.17	[Deleted]	1077
9.37.18	[Deleted]	1077
9.37.19	Generating unit response to disturbances (clause S5.2.5.3 of schedule 5.2)	1077
9.37.20	[Deleted]	1077
9.37.21	Excitation control system (clause S.5.2.5.13 of schedule 5.2)	1077
9.37.22	[Deleted]	1078
9.37.23	Annual forecast information for planning purposes (schedule 5.7)	1078
9.38	Transitional Arrangements for Chapter 6 - Network Pricing	1078
9.38.1	[Deleted]	1078
9.38.2	[Deleted]	1078
9.38.3	[Deleted]	1078
9.38.4	Interconnectors between regions	1078
9.38.5	Transmission pricing for exempted generation agreements	1079
9.39	Transitional Arrangements for Chapter 7 - Metering	1079
9.39.1	Metering installations to which this clause applies	1079
9.39.2	[Deleted]	1080
9.39.3	[Deleted]	1080
9.39.4	[Deleted]	1080
9.39.5	[Deleted]	1080
9.40	Transitional Arrangements for Chapter 8 - Administration Functions	1080
9.40.1	[Deleted]	1080
9.40.2	[Deleted]	1080
9.40.3	[Deleted]	1080
9.41	[Deleted]	1080
Schedule 9E1	Exempted Generation Agreements	1080
Part F	Jurisdictional Derogations for Tasmania	1081
9.42	Definitions and interpretation	1081
9.42.1	Definitions	1081
9.42.2	Interpretation	1082
9.42.3	National grid, power system and related expressions	1083
9.43	[Deleted]	1083
9.44	Transitional arrangements for Chapter 2 – Registered Participants and Registration - Customers (clause 2.3.1(e))	1083
9.45	Tasmanian Region (clause 3.5)	1083
9.47	Transitional arrangements for Chapter 5- Network Connection	1083
9.47.1	Existing Connection Agreements	1083
9.48	Transitional arrangements - Transmission and Distribution Pricing	1084
9.48.4A	Ring fencing	1084
9.48.4B	Uniformity of tariffs for small customers	1084
9.48.5	Transmission network	1084
9.48.6	Deemed regulated interconnector	1084
Part G	Schedules to Chapter 9	1085
Schedule 9G1	Metering Transitional Arrangements	1085
1.	Introduction	1085
2.	[Deleted]	1085
3.	General Principle	1085
4.	[Deleted]	1085
5.	Accuracy Requirements	1085
6.	[Deleted]	1086
7.	[Deleted]	1086
8.	[Deleted]	1086
9.	[Deleted]	1086
10.	[Deleted]	1086
10.	Glossary	1089
11.	Savings and Transitional Rules	1201
Part A	Definitions	1201
Part B	System Restart Ancillary Services (2006 amendments)	1201
11.2	Rules consequent on making of the National Electricity Amendment (System Restart Ancillary Services and pricing under market suspension) Rule 2006	1201
11.2.1	Transitional provision for acquisition of non-market ancillary services	1201
11.3	[Deleted]	1202
Part C	Dispute Resolution for Regulatory Test (2006 amendments)	1202
11.4	Rules consequent on making of the National Electricity Amendment (Dispute Resolution for Regulatory Test) Rule 2006	1202
11.4.1	Continuation of things done under old clause 5.6.6	1202
Part D	Metrology (2006 amendments)	1203
11.5	Rules consequential on the making of the National Electricity Amendment (Metrology) Rule 2006	1203
11.5.1	Definitions	1203
11.5.2	Metrology procedures continues to apply until 31 December 2006	1203
11.5.3	Responsible person	1203
11.5.4	NEMMCO’s responsibility to develop a metrology procedure	1203
11.5.5	Jurisdictional metrology material in the metrology procedure	1204
Part E	Economic Regulation of Transmission Services (2006 amendments)	1205
11.6	Rules consequent on making of the National Electricity Amendment (Economic Regulation of Transmission Services) Rule 2006	1205
11.6.1	Definitions	1205
11.6.2	New Chapter 6A does not affect existing revenue determinations	1206
11.6.3	Old Part C and Schedules 6.2, 6.3, 6.4, 6.7 and 6.8 of old Chapter 6	1207
11.6.4	Old Part F of Chapter 6	1207
11.6.5	Application of new Chapter 6A to Transmission Network Service Providers	1207
11.6.6	Application of Chapter 6 to old distribution matters	1207
11.6.7	References to the old Chapter 6	1207
11.6.8	References to provisions of the old Chapter 6	1208
11.6.9	Roll forward of regulatory asset base for first regulatory control period	1208
11.6.10	Other adjustment carry-over mechanisms from current to first regulatory control period	1208
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	1208
11.6.12	Powerlink transitional provisions	1211
11.6.13	ElectraNet easements transitional provisions	1215
11.6.14	TransGrid contingent projects	1215
11.6.15	Transmission determination includes existing revenue determinations	1216
11.6.16	References to regulatory control period	1216
11.6.17	Consultation procedure for first proposed guidelines	1216
11.6.18	Reliance on proposed guidelines for SP AusNet, VENCorp and ElectraNet	1217
11.6.19	EnergyAustralia transitional provisions	1217
11.6.20	Basslink transitional provisions	1220
11.6.21	SPI Powernet savings and transitional provision	1221
11.6.22	Interim arrangements pricing-related information	1223
Part F	Reform of Regulatory Test Principles (2006 amendments)	1223
11.7	Rules consequent on making of the National Electricity Amendment (Reform of the Regulatory Test Principles) Rule 2006	1223
11.7.1	Definitions	1223
11.7.2	Amending Rule does not affect old clause 5.6.5A	1224
Part G	Pricing of Prescribed Transmission Services (2006 amendments)	1224
11.8	Rules consequent on making the National Electricity Amendment (Pricing of Prescribed Transmission Services) Rule 2006	1224
11.8.1	Definitions	1224
11.8.2	Regulated interconnectors	1225
11.8.3	Application of new Part J of Chapter 6A to Transmission Network Service Providers	1225
11.8.4	Reliance on agreed interim guideline for ElectraNet, SPAusNet, and VenCorp	1225
11.8.5	Prudent discounts under existing agreements	1226
11.8.6	Application of prudent discounts regime under rule 6A.26	1226
11.8.7	Prudent discounts pending approval of pricing methodology	1226
Part H	Reallocations (2007 amendments)	1227
11.9	Rules consequent on the making of the National Electricity Amendment (Reallocations) Rule 2007	1227
11.9.1	Definitions	1227
11.9.2	Existing and transitional reallocations	1228
Part I	Technical Standards for Wind Generation (2007 amendments)	1228
11.10	Rules consequent on making of the National Electricity Amendment (Technical Standards for Wind Generation and other Generator Connections) Rule 2007	1228
11.10.1	Definitions	1228
11.10.2	Provision of information under S5.2.4 in registration application	1228
11.10.3	Access standards made under the old Chapter 5	1229
11.10.4	Modifications to plant by Generators	1229
11.10.5	Technical Details to Support Application for Connection and Connection Agreement	1229
11.10.6	Transitional arrangements for establishment of performance standards	1230
11.10.7	Jurisdictional Derogations for Queensland	1230
11.10A	Rules consequent on the making of the National Electricity Amendment (Central Dispatch and Integration of Wind and Other Intermittent Generation) Rule 2008	1230
11.10A.1	Definitions	1230
11.10A.2	Registration and reclassification of classified generating units	1231
11.10A.3	Registered generating unit	1232
11.10A.4	Classification of potential semi-scheduled generating unit	1232
11.10A.5	Participant fees	1232
11.10A.6	Timetable	1233
11.10A.7	Procedure for contribution factors for ancillary service transactions	1233
11.10A.8	Guidelines for energy conversion model information	1233
Part J	Cost Recovery of Localised Regulation Services (2007 amendments)	1234
11.11	Rules consequent on making of the National Electricity Amendment (Cost Recovery of Localised Regulation Services) Rule 2007	1234
11.11.1	Definitions	1234
11.11.2	Action taken by NEMMCO for the purposes of Amending Rule	1234
11.12	[Deleted]	1234
Part L	Abolition of Snowy Region (2007 amendments)	1234
11.13	Rules consequent on making the National Electricity Amendment (Abolition of Snowy Region) Rule 2007	1234
11.13.1	Definitions	1234
11.13.2	Purpose of rule 11.13	1235
11.13.3	Application of rule 11.13	1235
11.13.4	Implementation period	1235
11.13.5	Publishing of implementation plan by NEMMCO	1236
11.13.6	NEMMCO implementation functions	1236
11.13.7	Software modifications to implement abolition of Snowy region	1236
11.13.8	Allocation of transmission connection points as a result of abolition of Snowy region	1236
11.13.9	Location of region boundaries	1238
11.13.10	2008/09 Regions Publication and Loss Factors Publication	1238
11.13.11	Reserve margin calculations	1239
11.13.12	Re-calculation of network constraints and transmission loss factors	1239
11.13.13	Transition of settlements residue auction arrangements	1239
11.13.14	Continuity of regions	1240
Part M	Economic Regulation of Distribution Services (2007 amendments)	1240
Division 1	General Provisions	1240
11.14	General provisions	1240
Division 2	Special provisions applying to New South Wales and the Australian Capital Territory for the Regulatory Control Period 2009-2014	1244
11.15	Special provisions applying to New South Wales and the Australian Capital Territory	1244
Division 3	Transitional arrangements for first distribution determination for Queensland Distribution Network Service Providers	1245
11.16	Transitional arrangements for first distribution determination for Queensland Distribution Network Service Providers	1245
Division 4	Transitional provisions of specific application to Victoria	1248
11.17	Transitional provisions of specific application to Victoria	1248
Part N	Registration of Foreign Based Persons and Corporations as Trader Class Participants (2007 amendments)	1251
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	1251
11.18.1	Definitions	1251
11.18.2	Auction rules	1251
Part O	Process for Region Change (2007 amendments)	1252
11.19	Rules consequent on making of the National Electricity Amendment (Process for Region Change) Rule 2007	1252
11.19.1	Definitions	1252
11.19.2	Regions Publication	1252
Part P	Integration of NEM Metrology Requirements	1252
11.20	Rules consequential on the making of the National Electricity Amendment (Integration of NEM Metrology Requirements) Rule 2008	1252
11.20.1	Definitions	1252
11.20.2	Metering installations for non-market generating units immediately prior to 30 June 2008	1253
11.20.3	First-tier load metering installations	1253
11.20.4	First-tier load metering installations in Victoria	1253
11.20.5	Minimalist Transitioning Approach in Queensland	1253
11.20.6	First-tier jurisdictional requirements publication	1254
11.20.7	Metrology procedure	1254
Part PA	Reliability Settings: Information Safety Net and Directions	1254
11.21	Rules consequential on the making of the National Electricity Amendment (NEM Reliability Settings: Information Safety Net and Directions) Rule 2008	1254
Part Q	Regulatory Test Thresholds and Information Disclosure on Network Replacements	1256
11.22	Rules consequential on the making of the National Electricity Amendment (Regulatory Test Thresholds and Information Disclosure on Network Replacements) Rule 2008	1256
11.22.1	Definitions	1256
11.22.2	Amending Rule does not affect existing regulatory test	1256
Part R	Performance Standard Compliance of Generators	1257
11.23	Rules consequential on the making of the National Electricity Amendment (Performance Standards Compliance of Generators) Rule 2008	1257
11.23.1	Definitions	1257
11.23.2	Application of rule 11.23 for compliance programs implemented immediately after the commencement of the Amending Rule	1257
11.23.3	Application of rule 11.23 for compliance programs implemented immediately prior to the commencement of the Amending Rule	1257
11.23.4	Application of rule 11.23 for compliance programs not implemented immediately prior to the commencement of the Amending Rule	1257
Part S	Compensation Arrangements under Administered Pricing	1258
11.24	Rules consequential on the making of National Electricity Amendment (Compensation Arrangements under Administered Pricing) Rule 2008	1258
11.24.1	Definitions	1258
11.24.2	Compensation Guidelines	1258
Part U	Confidentiality Arrangements concerning Information required for Power System Studies	1258
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	1258
11.25.1	Definitions	1258
11.25.2	Transitional arrangements for the provision of information	1258
Part V	WACC Reviews: Extension of Time	1260
11.26	Rule consequential on the making of the National Electricity Amendment (WACC Reviews: Extension of Time) Rule 2009	1260
11.26.1	Definitions	1260
11.26.2	Extension of time to submit a regulatory proposal for the regulatory control period 2010-2015	1260
Part W	National Transmission Statement	1260
11.27	Rules consequent on the making of the National Electricity Amendment (National Transmission Statement) Rule 2009	1260
11.27.1	Definitions	1260
11.27.2	Purpose	1261
11.27.3	Application of rule 11.27	1261
11.27.4	National Transmission Statement	1261
11.27.5	Scope and Content of National Transmission Network Development Plan	1263
11.27.6	Energy Adequacy Assessment Projection	1263
11.27.7	Amendment to Last Resort Power	1264
11.27.8	Actions taken prior to commencement of Rule	1264
Part X	National Transmission Planning	1264
11.28	Rules consequential on the making of the National Electricity (Australian Energy Market Operator) Amendment Rules 2009	1264
11.28.1	Definitions	1264
11.28.2	Jurisdictional planning bodies and representatives	1264
11.28.3	Criteria and guidelines published by Inter-regional Planning Committee	1265
11.28.4	Augmentation technical reports	1265
11.28.5	Last Resort Planning Power	1265
11.28.6	Inter-network power system tests	1266
11.28.7	Control and protection settings for equipment	1266
11.28.8	Revenue Proposals	1266
Part Y	Regulatory Investment Test for Transmission	1266
11.29	Rules consequent on making of the National Electricity Amendment (Regulatory Investment Test for Transmission) Rule 2009	1266
11.29.1	Definitions	1266
11.29.2	Period when Amending Rule applies to transmission investment	1267
Part Z	Congestion Information Resource	1268
11.30	Rules consequent on the making of the National Electricity Amendment (Congestion Information Resource) Rule 2009	1268
11.30.1	Definitions	1268
11.30.2	Interim congestion Information resource	1268
Part ZA	Reliability and emergency reserve trader (2009 amendments)	1270
11.31	Rules consequent on the making of the National Electricity Amendment (Improved RERT Flexibility and Short-notice Reserve Contracts) Rule 2009	1270
Part ZB	Early Application of Market Impact Parameters	1272
11.32	Rules consequent on the making of the National Electricity Amendment (Early Implementation of Market Impact Parameters) Rule 2010	1272
11.32.1	Definitions	1272
11.32.2	Purpose	1273
11.32.3	Early application of the market impact component of the service target performance incentive scheme	1273
Part ZC	Transparency of operating data	1276
11.33	Rules consequential on the making of National Electricity Amendment (Transparency of Operating Data) Rule 2010	1276
11.33.1	Definitions	1276
11.33.2	Spot market operations timetable	1276
Part ZD	Cost Recovery for Other Services Directions	1278
11.34	Rules consequent on making of the National Electricity Amendment (Cost Recovery for Other Services Directions) Rule 2010	1278
11.34.1	Definitions	1278
11.34.2	Period when Amending Rules applies to funding of compensation	1279
Part ZE	Payments under Feed-in Schemes and Climate Change Funds	1279
11.35	Rules consequential on the making of the National Electricity Amendment (Payments under Feed-in Schemes and Climate Change Funds) Rule 2010	1279
11.35.1	Definitions	1279
11.35.2	Application of recovery of jurisdictional scheme Rules	1280
11.35.3	Reporting on jurisdictional schemes	1281
11.35.4	Revocation and substitution of distribution determination for jurisdictional scheme recovery	1282
Part ZF	Transitional Arrangements for Ministerial Smart Meter Roll Out Determinations	1283
11.36	Ministerial Smart Meter Roll Out Determinations	1283
11.36.1	Definitions	1283
11.36.2	Meaning of relevant metering installation	1283
11.36.3	Period of application of rule to relevant metering installation	1284
11.36.4	Designation of responsible person	1284
11.36.5	[Deleted]	1284
11.36.6	[Deleted]	1284
Part ZG	Provision of Metering Data Services and Clarification of Existing Metrology Requirements	1284
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	1284
11.37.1	Definitions	1284
11.37.2	Commencement of special site or technology related conditions	1284
11.37.3	Initial service level procedures	1285
Part ZH	Spot Market Operations Timetable	1285
11.38	Rules consequential on the making of National Electricity Amendment (Amendments to PASA-related Rules) Rule 2010	1285
11.38.1	Definitions	1285
11.38.2	Spot market operations timetable	1286
Part ZI	DNSP Recovery of Transmission-related Charges	1286
11.39	Rules consequential on the making of the National Electricity Amendment (DNSP Recovery of Transmission-related Charges) Rule 2011	1286
11.39.1	Definitions	1286
11.39.2	Recovery by Victorian distribution network service providers during current regulatory control period	1287
11.39.3	Recovery by Victorian distribution network service providers for shared network augmentations	1288
11.39.4	Bairnsdale network support agreement	1288
11.39.5	Approval of pricing proposal	1288
11.39.6	Ergon Energy transitional charges	1288
11.39.7	Energex transitional charges	1288
Part ZJ	Network Support and Control Ancillary Services	1288
11.40	Rules consequential on the making of the National Electricity Amendment (Network Support and Control Ancillary Services) Rule 2011	1288
11.40.1	Definitions	1288
11.40.2	Purpose	1289
11.40.3	Existing NCAS contracts to continue	1289
11.40.4	Amendments to existing guidelines	1289
11.40.5	New procedures	1290
11.40.6	Decisions and actions taken prior to Amending Rule	1290
Part ZK	Application of Dual Marginal Loss Factors	1290
11.41	Rules consequential on the making of the National Electricity Amendment (Application of Dual Marginal Loss Factors) Rule 2011	1290
11.41.1	Definitions	1290
11.41.2	Amendments to loss factor methodology	1291
11.41.3	Procedure applying dual intra-regional loss factors in central dispatch and spot market transactions	1291
11.41.4	Publication of intra-regional loss factors	1291
Part ZL	Tasmania Tranche 5a Procedure Changes	1291
11.42	Rules consequential on the making of the National Electricity Amendment (Tasmania Tranche 5a Procedure Changes) Rule 2011	1291
11.42.1	Definitions	1291
11.42.2	AEMO may amend Relevant Procedures	1292
Part ZM	Application and Operation of Administered Price Periods	1292
11.43	Rules consequential on the making of National Electricity Amendment (Application and Operation of Administered Price Periods) Rule 2011	1292
11.43.1	Definitions	1292
11.43.2	Administered Price Cap Schedule	1293
Part ZO	Negative Intra-regional Settlements Residue	1293
11.45	Rules consequential on the making of National Electricity Amendment (Negative Intra-regional Settlements Residue) Rule 2012	1293
11.45.1	Definitions	1293
11.45.2	Recovery of negative settlements residue prior to consultation under the Amending Rule	1294
11.45.3	First consultation on negative intra-regional settlements residue procedure	1294
Part ZP	Interim Connection Charging Rules	1295
11.46	Rules consequential to the insertion of Chapter 5A by the National Electricity (National Energy Retail Law) Amendment Rule 2012	1295
Division 1	Preliminary	1295
Division 2	Jurisdictional differences	1298
Division 3	General provisions	1305
Part ZQ	NSW transitional retail support and credit support rules	1306
11.47	Rules consequential on the insertion of Chapter 6B by the National Electricity (National Energy Retail Law) Amendment Rule 2012	1306
Division 1	Preliminary	1306
Part ZR	Miscellaneous transitional rules—NERL	1312
11.48	Rules consequential on the making of the National Electricity (National Energy Retail Law) Amendment Rule 2012	1312
11.48.1	Extension of time period for AER to consider certain pass through applications	1312
Part ZS	Cost pass through arrangements for Network Service Providers	1312
11.49	Rules consequential on the making of National Electricity Amendment (Cost pass through arrangements for Network Service Providers) Rule 2012	1312
11.49.1	Definitions	1312
11.49.2	Terrorism event is a cost pass through event in the current regulatory control period	1313
11.49.3	Transitional arrangement for Powerlink	1313
11.49.4	Transitional arrangements for ElectraNet and Murraylink	1314
Part ZT	Distribution Network Planning and Expansion	1314
11.50	Rules consequential on the making of the National Electricity Amendment (Distribution Network Planning and Expansion) Rule 2012	1314
11.50.1	Interpretation	1314
11.50.2	Definitions	1314
11.50.3	Timing for first Distribution Annual Planning Report	1315
11.50.4	Contents of Distribution Annual Planning Report	1315
11.50.5	Transition from the regulatory test to the regulatory investment test for distribution	1316
Part ZU	New Prudential Standard and Framework in the NEM	1317
11.51	Rules consequential on the making of the National Electricity Amendment (New Prudential Standard and Framework in the NEM) Rule 2012	1317
11.51.1	Definitions	1317
11.51.2	AEMO's responsibility to develop and publish the credit limit procedures	1318
11.51.3	Transition to the framework for determining prudential settings	1318
11.51.4	Prior consultation, step, decision or action taken by AEMO	1318
Part ZV	Small Generation Aggregator Framework	1318
11.52	Rules consequential on the making of the National Electricity Amendment (Small Generation Aggregator Framework) Rule 2012	1318
11.52.1	Definitions	1318
11.52.2	Commencement of participant fees as well as transactions, funding and settlements under Chapter 3 for Market Small Generation Aggregators	1319
11.52.3	Participant fees for Market Small Generation Aggregators	1320
11.52.4	Ancillary service transactions, funding of compensation for directions and intervention settlements for directions for Market Small Generation Aggregators	1320
11.52.5	Amendments to the carbon dioxide equivalent intensity index procedures	1321
11.52.6	Amendments of the metrology procedures	1321
11.52.7	Amendments to the Market Settlement and Transfer Solution Procedures	1321
Part ZW	Economic Regulation of Network Service Providers (2012 amendments)	1322
Division 1	Miscellaneous transitional provisions	1322
11.53	Publication of Chapter 6 Guidelines	1322
11.54	Publication of Chapter 6A Guidelines	1324
Division 2	Transitional provisions for NSW/ACT Distribution Network Service Providers	1325
11.55	General provisions	1325
11.56	Special provisions applying to affected DNSPs	1328
Division 3	Transitional provisions for NSW and Tasmanian Transmission Network Service Providers and Directlink	1340
11.57	General provisions	1340
11.58	Special provisions applying to affected TNSPs	1343
Division 4	Transitional provisions for the Victorian TNSP	1353
11.59	Special provisions applying to the Victorian TNSP	1353
Division 5	Transitional provisions for Qld/SA and Victorian Distribution Network Service Providers	1354
11.60	Special provisions applying to the Qld/SA and Victorian Distribution Network Service Providers	1354
Division 6	Review of past capital expenditure	1360
11.61	Definitions and application	1360
11.62	Review of past capital expenditure under Chapter 6	1361
11.63	Review of past capital expenditure under Chapter 6A	1361
Part ZY	Network Service Provider Expenditure Objectives	1362
11.65	Rules consequent on the making of the National Electricity Amendment (Network Service Provider Expenditure Objectives) Rule 2013	1362
11.65.1	Definitions	1362
11.65.2	Application of rule 11.65	1362
Part ZZ	Access to NMI Standing Data	1363
11.66	Rules consequent on the making of the National Electricity Amendment (Access to NMI Standing Data) Rule 2013	1363
11.66.1	Definitions	1363
11.66.2	Minor amendment of the Market Settlement and Transfer Solution Procedures	1363
Part ZZA	Publication of Zone Substation Data	1364
11.67	Rules consequent on the making of the National Electricity Amendment (Publication of Zone Substation Data) Rule 2014	1364
11.67.1	Definitions	1364
11.67.2	Distribution Network Service Providers' obligations to commence on the next DAPR date	1364
Appendix 1	Form in which Chapter 6 applies to New South Wales and the Australian Capital Territory for the Regulatory Control Period 2009-2014	1364
Chapter 6	Economic Regulation of Distribution Services	1365
Part A	Introduction	1365
6.1	Introduction to Chapter 6	1365
6.1.1	AER's regulatory responsibility	1365
6.1.2	Structure of this Chapter	1365
6.1.3	Access to direct control services and negotiated distribution services	1366
6.1.4	Prohibition of DUOS charges for the export of energy	1366
6.1.5	Application of this Chapter to certain transmission assets – ActewAGL, Country Energy and Integral Energy Australia	1367
6.1.6	Application of this Chapter to the EnergyAustralia transmission support network	1367
6.1.7	Definitions	1368
Part B	Classification of Distribution Services and Distribution Determinations	1370
6.2	Classification	1370
6.2.1	*****	1370
6.2.2	*****	1370
6.2.3	*****	1370
6.2.3A	Classes and subclasses of distribution services	1370
6.2.3B	Classification for NSW Distribution Network Service Providers	1371
6.2.3C	Classification for ACT Distribution Network Service Provider	1373
6.2.4	Duty of AER to make distribution determinations	1374
6.2.5	Control mechanisms for direct control services	1374
6.2.6	Basis of control mechanisms for direct control services	1376
6.2.7	EnergyAustralia negotiated distribution services	1376
6.2.7A	Negotiable components of direct control services (NSW and ACT)	1376
6.2.8	Guidelines	1376
Part C	Building Block Determinations for standard control services	1377
6.3	Building block determinations	1377
6.3.1	Introduction	1377
6.3.2	Contents of building block determination	1377
6.4	Post-tax revenue model	1378
6.4.1	Preparation, publication and amendment of post-tax revenue model	1378
6.4.2	Contents of post-tax revenue model	1378
6.4.3	Building block approach	1379
6.5	Matters relevant to the making of building block determinations	1380
6.5.1	Regulatory asset base	1380
6.5.2	Return on capital	1382
6.5.3	Estimated cost of corporate income tax	1384
6.5.4	*****	1384
6.5.5	Depreciation	1384
6.5.6	Forecast operating expenditure	1385
6.5.7	Forecast capital expenditure	1387
6.5.8	Efficiency benefit sharing scheme	1389
6.5.9	The X factor	1391
6.6	Adjustments after making of building block determination	1392
6.6.1	Cost pass through	1392
6.6.1A	****	1397
6.6.2	Service target performance incentive scheme	1397
6.6.3	Demand management incentive scheme	1399
Part D	EnergyAustralia negotiated distribution services	1400
6.7	Negotiated distribution services	1400
6.7.1	Principles relating to access to negotiated distribution services	1400
6.7.2	Determination of terms and conditions of access for negotiated distribution services	1402
6.7.3	Negotiating framework determination	1402
6.7.4	Negotiated Distribution Service Criteria determination	1402
6.7.5	Preparation of and requirements for negotiating framework for negotiated distribution services	1403
6.7.6	Confidential information	1405
Part DA	Negotiable components of direct control services (NSW and ACT)	1405
6.7A	Negotiable components of direct control services	1405
6.7A.1	Principles relating to access to negotiable components	1406
6.7A.2	Determination of terms and conditions of access for negotiable components	1407
6.7A.3	Negotiating framework determination	1408
6.7A.4	Negotiable component criteria determination	1408
6.7A.5	Preparation of and requirements for negotiating framework	1408
6.7A.6	Confidential information	1410
Part E	Regulatory proposal	1411
6.8	Regulatory proposal	1411
6.8.1	*****	1411
6.8.2	Submission of regulatory proposal	1411
6.9	Preliminary examination and consultation	1412
6.9.1	Preliminary examination	1412
6.9.2	Resubmission of proposal	1412
6.9.3	Consultation	1413
6.10	Draft distribution determination and further consultation	1413
6.10.1	Making of draft distribution determination	1413
6.10.2	Publication of draft determination and consultation	1413
6.10.3	Submission of revised proposal	1414
6.11	Distribution determination	1415
6.11.1	Making of distribution determination	1415
6.11.2	Notice of distribution determination	1415
6.11.3	Commencement of distribution determination	1415
6.12	Requirements relating to draft and final distribution determinations	1415
6.12.1	Constituent decisions	1415
6.12.1A	Division of EnergyAustralia’s revenue	1418
6.12.2	Reasons for decisions	1418
6.12.3	Extent of AER's discretion in making distribution determinations	1419
6.13	Revocation and substitution of distribution determination for wrong information or error	1420
6.14	Miscellaneous	1420
Part F	Cost Allocation	1421
6.15	Cost allocation	1421
6.15.1	Duty to comply with Cost Allocation Method	1421
6.15.2	*****	1421
6.15.3	*****	1421
6.15.4	*****	1421
Provisions applicable to the NSW Distribution Network Service Providers	1421
6.15.5	Cost Allocation Guidelines (NSW)	1421
6.15.6	Cost Allocation Method (NSW)	1421
Provisions applicable to the ACT Distribution Network Service Provider	1423
6.15.7	Cost Allocation Principles (ACT)	1423
6.15.8	Cost Allocation Method (ACT)	1423
Part G	*****	1425
Part H	Ring-Fencing Arrangements for Distribution Network Service Providers	1425
6.17	Distribution Ring-Fencing Guidelines	1425
6.17.1	Compliance with Distribution Ring-Fencing Guidelines	1425
6.17.2	Development of Distribution Ring-Fencing Guidelines	1426
Part I	Distribution Pricing Rules	1427
6.18	Distribution Pricing Rules	1427
6.18.1	Application of this Part	1427
6.18.2	Pricing proposals	1427
6.18.3	Tariff classes	1428
6.18.4	Principles governing assignment or re-assignment of customers to tariff classes and assessment and review of basis of charging	1428
6.18.5	Pricing principles	1429
6.18.6	Side constraints on tariffs for standard control services	1430
6.18.7	Recovery of designated pricing proposal charges	1431
6.18.7A	****	1431
6.18.7B	Recovery of Climate Change Fund payments	1431
6.18.7C	Recovery of jurisdictional scheme amounts	1432
6.18.8	Approval of pricing proposal	1434
6.18.9	Publication of information about tariffs and tariff classes	1435
6.19.	Data Required for Distribution Service Pricing	1436
6.19.1	Forecast use of networks by Distribution Customers and Embedded Generators	1436
6.19.2	Confidentiality of distribution network pricing information	1436
Part J	Billing and Settlements	1436
6.20	Billing and Settlements Process	1436
6.20.1	Billing for distribution services	1436
6.20.2	Minimum information to be provided in distribution network service bills	1438
6.20.3	Settlement between Distribution Network Service Providers	1439
6.20.4	Obligation to pay	1439
Part K	Prudential requirements, capital contributions and prepayments	1439
6.21	Distribution Network Service Provider Prudential Requirements	1439
6.21.1	Prudential requirements for distribution network service	1439
6.21.2	Capital contributions, prepayments and financial guarantees	1440
6.21.3	Treatment of past prepayments and capital contributions	1440
6.21.4	Application of IPART and ICRC guidelines regarding capital contribution charges	1441
Part L	Dispute resolution	1441
6.22	Dispute Resolution	1441
6.22.1	Dispute Resolution by the AER	1441
6.22.2	Determination of dispute	1441
6.22.3	Termination of access dispute without access determination	1443
Part M	Separate disclosure of transmission and distribution charges	1444
6.23	Separate disclosure of transmission and distribution charges	1444
Schedule 6.1	Contents of building block proposals	1445
S6.1.1	Information and matters relating to capital expenditure	1445
S6.1.2	Information and matters relating to operating expenditure	1446
S6.1.3	Additional information and matters	1446
Schedule 6.2	Regulatory Asset Base	1448
S6.2.1	Establishment of opening regulatory asset base for a regulatory control period	1448
S6.2.2	*****	1452
S6.2.3	Roll forward of regulatory asset base within the same regulatory control period	1452