Rule Changes: Open

Pricing during market suspension

Reference:
ERC0224
Stage:
Consultation on request for rule change
Proponents:
AEMO
Project Leader:
Claire Rozyn
Date initiated:
15-Aug-2017
Overview

On 15 August 2017, the AEMC published a consultation paper for the Pricing during market suspension rule change request. This rule change will proceed under the expedited rule making process on the basis of urgency.

On 15 August 2017, the AEMC published a consultation paper for the Pricing during market suspension rule change request. This rule change will proceed under the expedited rule making process on the basis of urgency. 

On 15 August, the AEMC also published a notice under section 107 of the National Electricity Law extending the period of time for making the final rule determination under the expedited process, from six to eight weeks.

Stakeholder submissions on the consultation paper are due by 12 September 2017.

Proposed rule change

On 25 July 2017, the AEMC received a rule change request from AEMO to amend the National Electricity Rules in relation to pricing during periods of market suspension.  The rule change request seeks to:

  • reduce the number of suspension pricing regimes available and simplify the decision-making process for applying them
  • harmonise the price-scaling provisions applicable during periods of market suspension with other price scaling provisions in the NER, and
  • allow AEMO to revert to dispatch pricing while the market is suspended, if conditions allow.

This request relates to a number of recommendations made by AEMO in its final incident report for the Black System event which occurred in South Australia on 28 September 2016. It was informed by discussions with industry participants at AEMO’s Market Suspension Technical Working Group.

Expedited rule making process

AEMO submitted that the rule change request should be treated as urgent under s. 96 of the NEL.  The Commission considers that the rule change request is within the meaning of urgent rule on the basis that the operation of market suspension pricing under the current rules has the potential to prejudice the effective operation or administration of the market this summer. 

Extension to the expedited rule making process

The expedited rule making process requires the Commission to publish its final rule determination within six weeks of commencing the rule change process.  However, as the rule change request raises multiple, complex issues in relation to pricing during market suspension, the Commission considers it is necessary to extend the period of time for publication of the final rule determination by an additional two weeks under s. 107 of the NEL.

This extension would extend the time for making the final rule determination from six weeks to eight weeks, with publication of the final rule determination required by 10 October 2017

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