Current AEMO Consultations & Rule Changes – May 2016
AEMO produces this monthly update to provide participants and interested parties with a consolidated report of:
o
AEMO-led Rule change proposals and timeframes (including upcoming system & process changes),
o
Current consultations being run by AEMO.
For further information please contact [email protected].
AEMO Consultations
Sector
Consultation Name and Objectives
Dates, Contacts and Status
Gas
STTM IIR 15-003 – Contingency Gas Evidentiary Changes
Publication Date
20 Aug 2015
The proposed changes to the Procedures are to align with the
National Gas Amendment (Contingency Gas Evidentiary
Changes) Rule 2015 No. 2, published by the AEMC on 7 May
2015.
Current Status
IIR Subs closed
Submissions Closed
17 Sept 2015
The proposed changes will reflect:



Elect
the process for trading participants to revise price steps
within their contingency bids or offers at the confirmation
stage;
the scope of evidence that AEMO will require to
determine the quantity of contingency gas provided; and
the method that AEMO will use to determine the
resettlement charge payable to trading participants.
Notes:
On 20 August 2015 AEMO published the initial
consultation. Submissions closed on 17
September 2015.
Issues Paper Energy Adequacy Assessment Projection
Reporting
Publication Date
Nov 2015
National Electricity Rule 3.7C requires AEMO to publish an Energy
Adequacy Assessment Projection every three months. AEMO
considers such quarterly reporting may not be necessary to
achieve the objectives of this rule. This Issues Paper invites
stakeholders to comment on the value of quarterly EAAP
reporting.
Current Status
EAAP Issues Paper
Submissions Closed
20 Aug 2015
Notes:
On 13 July 2015, AEMO published the initial
consultation. Submissions closed 20 August
2015. Final Report release date TBC.
In Nov 15, AEMO published the response to
EAAP Issues Paper. AEMO will submit a
rule change proposal to the AEMC.
AEMO RULE CHANGES & CONSULTATIONS – MAY 2016
Sector
Consultation Name and Objectives
Dates, Contacts and Status
Gas
IN031/11 Fast Track Process for release of address
enumerations (Gas)
Publication Date
22 Jun 2012
AEMO proposes extending the existing gas fast track process that
currently applies to Street Type to other address attributes (Street
Suffix, FlatOrUnitType, FloorOrLevelType, and
PostalDeliveryType) and to harmonise the gas and electricity
process. Currently the allowable values for these fields are
prescribed in the procedures and Participants have built their IT
system in accordance with the procedures. This proposal also
requires participants make IT systems changes so they align with
the aseXML enumerations XSD file allowable values.
Current Status
Pending decision
Decision Due
November 2016
Notes:
On 22 Jun 12, AEMO published the initial IIR,
which recommended that changes not proceed
as there are insufficient benefits put forward by
industry that could be considered substantive
enough to outweigh the perceived IT costs
implied by some participants.
Responses to the IIR closed on 20 Jul 12.
Assessment of the responses are “on hold” as
the GRCF considered that there may be
potential that the proposed change for
IN031/11 may be linked to a broader dual fuel
review of customer and site address data
which is targeted for 2014.
On 25 Jun 14, AEMO published a Notice of
time limit, advising a decision will be made by
2 Mar 15.
On 13 Mar 15, AEMO published another
Notice of time limit, advising a decision will be
made by 5 Oct 15.
On 1 Oct 15, AEMO extended the time to
make a decision regarding the making of
Procedures under the Ordinary
Consultation Process. AEMO will now make
its decision by 30 November 2016.
AEMO RULE CHANGES & CONSULTATIONS – MAY 2016
AEMO Rule Changes
Key – Stage of rule change
Stage
AEMC is now undertaking consultation
AEMO has formally submitted to the AEMC
AEMO is currently drafting the proposal
AEMO is exploring the issue with external participants
Sector
AEMC Consultation
Rule Change Name and Objectives
Dates, Contacts and Status
Application of offsets in the prudential margin
calculation
Submitted to AEMC:
The Australian Energy Market Commissions (AEMC) has
commenced consultation on a rule change request from the
Australian Energy Market Operator (AEMO) to amend the
National Electricity Rules (NER) in relation to the application
of offsets in the prudential margin calculation. The rule
change request was received on 28 May 2015.
On 10 Dec 2015, the AEMC published the
initial consultations paper. Submissions closed
4 February 2016.
The AEMC has extended the period of time to
make a draft determination. The draft
determination will be published on 30 June
2016.
The Australian Energy Market Commission’s (AEMC)
consultant, Promontory, is due to provide a draft report on
the Rule change proposal on 29 April. AEMC is expected to
have a draft determination by 30 June.
Elect
Current Status:
Demand Response Mechanism
Submitted to AEMC:
The DRM is a mechanism for measuring and valuing
demand response by electricity consumers. The AEMC
developed a specification to be used by AEMO in developing
a detailed design in the form of a rule change for
consideration by COAG EC. COAG EC have largely
accepted the design and prepared a cost-benefit analysis of
the proposal.
Current Status:
Proposed by:
COAG Energy Council.
Proposed changes:
AEMC Consultation
New category of registered participant “Demand Response
Aggregator”, DRAs would be made financially accountable
for demand response load, procedures to provide for
demand response notices and an obligation to take
reasonable steps to reduce load when a DR notice has been
provided, new process to measure demand response by
deducting actual demand from a calculated baseline load.
AEMO RULE CHANGES & CONSULTATIONS – MAY 2016
28 May 2015
30 March 2015
On 5 November 2015, The AEMC has
published a consultation paper to facilitate
public consultation with stakeholders.
Submissions closed 10 December 2015.
On 16 February 2016, the AEMC has
published the S107 Notice which advises
that the draft determination on Demand
response mechanism and Ancillary
Services has been extended to 9 June
2016.
Stage
Sector
Rule Change Name and Objectives
Dates, Contacts and Status
Energy Adequacy Assessment Projection (EAAP) Rule
Change
Submitted to AEMC:
Issue:
The EAAP was first implemented in 2007 as a response to
the prolonged drought that drove concerns of energy
availability issues in the National Electricity Market (NEM).
Since the end of the drought in 2007-08, the NEM has
become less vulnerable to drought situations to maintain
reliability. Additional capacity has been added that is not
reliant on water for generation, and desalination plant have
been built in Victoria and New South Wales, reducing the
likelihood that fossil fuel-fired generators will have output
restricted in future due to limitations on access to cooling
water in future.
Therefore, AEMO considers that the need for, and value of,
quarterly EAAP reporting has now diminished. AEMO
understands there is value in a centralised assessment of
energy constraints that could impact energy availability,
however, a quarterly EAAP assessment, in the absence of a
water shortage or other trigger event, is most likely achieved
at a net cost to consumers.
Proposed Changes:
AEMO proposed on 27 November 2015 to reduce the
frequency of publication of the EAAP from quarterly to
annual, and include a trigger based mechanism for additional
reporting. The proposed rule would amend rule 3.7C of the
National Electricity Rules (NER).
Submitted by AEMO
On 24 March, the AEMC reviewed AEMO’s proposal and
suggested an alternate rule change which entails the
following :

AEMO to clearly define the factors for triggering
additional EAAP reporting and associated timing for
GELF parameters.

AEMO to publish EAAP annually.

Scheduled generators to update GELF parameters
annually instead of quarterly while retaining the
obligation to report material changes to any
generating units that have an impact on energy
constraints.
Next steps:

AEMO will be running consultations from 30 May
2016 onwards to seek industry input in relation to
the determination of the ‘factors’ that may trigger
additional EAAP reporting, and revised EAAP
guidelines and RSIG.
The consultation scope also includes discussion on validity of
the current “dry scenario”.
AEMO RULE CHANGES & CONSULTATIONS – MAY 2016
24 November 2015
Current Status:
The AEMC has not yet initiated the rule
change process for this request. When this
process is initiated, the AEMC will publish a
consultation paper to facilitate stakeholder
consultation.
On 17 March 2016, the AEMC published the
initial consultation. Submissions closed 21
April 2016.
On 19 May 2016, the AEMC published the
final rule determination.
Stage
Sector
Rule Change Name and Objectives
Registration of Storage Providers
Submitted by AEMO
AEMO has prepared a NER change proposal to facilitate the
registration of storage providers.
Proposed by:
AEMO
Issue:
Chapter 2 of the NER effectively only permits the registration
of storage providers as Generators or Customers.
Registration as a Generator is not feasible as a storage
system does not meet the definition of a ‘generating unit’,
however, the technical requirements imposed on Generators
appear to be the best ‘fit’ from a technical point of view.
Although no applications for registration have been received
to date, there have been a number of inquiries.
Proposal:
AEMO submitted a NER change to facilitate registration of
storage providers as Generators to the AEMC on 11
February 2016.
The AEMC started consultation on a rule change request in
April 2016. The AEMC is assessing this rule change request
as a non-controversial rule under an expedited process,
subject to the receipt of any written objections from
stakeholders by 28 April 2016. A consultation paper has
been prepared to facilitate public consultation on the rule
change proposal and to seek stakeholder submissions.
Submissions on the rule change proposal close Thursday 12
May 2016.
AEMO RULE CHANGES & CONSULTATIONS – MAY 2016
Dates, Contacts and Status
Submitted to AEMC:
11 February 2016
Current Status:
On 14 April 2016, the AEMC published the
initial consultation. Submissions close 12 May
2016.
On 26 May 2016, the AEMC published the
final rule determination.