Sun Metals Pty Ltd has submitted a rule change request to reduce the time interval for settlement in the wholesale electricity market from 30 minutes to five minutes.
On 11 April 2017 the Commission published a directions paper to facilitate public consultation and assist stakeholders to make submissions on the rule change request. The directions paper provides details of how five minute settlement could be implemented subject to stakeholder feedback on detailed costs and benefits. Submissions are due by 18 May 2017.
The AEMC will be hosting a public forum on the discussion paper, which will feature a panel of diverse stakeholders. The forum will be held in Sydney on Thursday 4 May 2017 from 10am to 4pm. It will also be webcast live and a recording will be made available later. Stakeholders who are interested should register here.
Submissions to the directions paper will inform the Commission’s draft decision on the rule change. The draft determination is due to be published on 4 July 2017, and the final determination is due to be published in September 2017.
The rule change proposal involves compulsory five minute settlement for generators, scheduled loads and market interconnectors. Retailers and large consumers could choose to be settled on either a five or 30 minute basis.
On 19 May 2016, the Commission initiated its assessment of the proposed rule with the publication of a consultation paper for stakeholder comment.
On 22 August 2016, the Commission extended the period of time to make the draft determination on the rule change proposal to 30 March 2017, under section 107 of the National Electricity Law. The Commission considered the extension necessary due to the complexity of the issues raised by the rule change request and stakeholder submissions on the consultation paper.
Following requests from stakeholders, on 2 February 2017 the Commission extended the period of time to make the draft determination on the rule change proposal to 6 July 2017, under section 107 of the National Electricity Law. The Commission considered this second extension necessary to enable further consultation to better understand the costs and benefits of the proposal and implementation issues.