MEMBER NEWS
March 2017
AEMC extends consultation on 5 minute rule
change request
Member Updates
In May 2016, the Australian Energy Market Commission (AEMC) began consultation on a rule change
request to reduce the time interval for settlement in the wholesale electricity market from
30 minutes to 5 minutes. The proposal involves compulsory 5 minute settlement for generators,
scheduled loads and market interconnectors. Demand side participants in the wholesale market,
including retailers and large consumers, could choose to be settled on either a 5 or 30 minute basis.
The consultation has generated interest from AFMA’s energy market members, as the request, if
granted, could have significant effects on the liquidity and efficiency of electricity financial markets.
The issue has dominated a number of AFMA’s energy committee meetings in recent months and a
separate discussion between AEMC representatives and AFMA members was held late in 2016.
During consultation, stakeholders noted the range and complexity of issues raised by the rule
change request and asked the Commission to consider a further extension. This would also allow
more consultation on implementation issues.
On 2 February 2017 the AEMC extended the period of time for publishing a draft rule determination
on the rule change request to 6 July 2017. The extension will allow a further consultation period.
During this time, the Commission will seek to understand in more detail the impacts that the rule
change would have on stakeholders. In particular, the AEMC will publish a directions paper on
11 April 2017 setting out the Commission’s initial positions on the key issues raised in the rule
change request. Stakeholders will be able to make submissions on the directions paper and also
participate in further stakeholder engagement ahead of a draft determination in July 2017.
Once the directions paper is released, AFMA will be consulting with member firms again with a view
to making a submission on their behalf.
Australian Financial Markets Association
Level 25, Angel Place, 123 Pitt Street Sydney
Tel: +61 2 9776 7900 Fax: +61 2 9776 4488
Email: [email protected] Web: www.afma.com.au
DISCLAIMER: AFMA Member News articles are intended to provide general information in summary form, current at the time of
production. The information provided should not be treated as advice and no reliance should be placed on its contents.