Market Review: Open

Overview

The Reliability Panel (the Panel) has commenced its four-yearly review of the reliability standard and the reliability settings. The panel's 2022 Reliability Standard and Settings review (2022 RSS review) is to consider, in accordance with the National Electricity Rules (NER) whether the existing form and level of the standard and settings remain appropriate for the expected market conditions from 1 July 2024 to 30 June 2028.
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The Reliability Panel (the Panel) has commenced its four-yearly review of the reliability standard and the reliability settings. The panel's 2022 Reliability Standard and Settings review (2022 RSS review) is to consider, in accordance with the National Electricity Rules (NER) whether the existing form and level of the standard and settings remain appropriate for the expected market conditions from 1 July 2024 to 30 June 2028. 

The purpose of the issues paper is to set out the panel's approach and the initial set of issues that will be considered in this RSS review. It is the first step in the extensive consultation process that will be undertaken, with a focus on obtaining views on the approach and issues outlined.

Public Forum

The Reliability Panel is committed to engaging with stakeholders for the 2022 RSS Review. The Panel will therefore be holding a Public forum for the 2022 RSS review on 31 March 2022 from 10am – 12pm. This forum will provide an opportunity for stakeholders to provide further input to the Panel on issues related to the reliability standard and settings.

Stakeholders can register their interest in attending the forum by clicking here.

The Panel also encourages you to provide a written submission to the issues paper. Submissions are due by 3 March 2022. 
 

Related rule change

In October 2021, Dr. Kerry Schott, former chair of the ESB, submitted a rule change request, which proposed to reduce the scope and extend the time of the 2022 RSS review. A draft determination for the rule change was published on 23 December 2021. The Commission’s draft determination is to make a more preferable draft rule that requires the panel, for the 2022 RSS review, to: 

  • consider the reliability standard and settings that it recommends should apply for 1 July 2025 to 30 June 2028; and
  • provide its final report to the AEMC, with any recommendations for changes to the reliability standard and settings, by 30 August 2022.

The timelines for the review will be updated as per the Commission’s final determination and final rule.

Purpose and approach of the review

The review, in accordance with the existing requirements in the NER, must be completed by 30 April 2022. As noted above, there is a rule change currently being considered that proposes amending this existing timeframe, for the 2022 RSS review only.

The panel is required to apply a specific framework when reviewing the standard and settings, which is outlined in the NER and 2021 guidelines. The 2021 guidelines set out the
following principles that the panel must consider:

  • allowing efficient price signals while managing price risk,
  • delivering a level of reliability consistent with the value placed on that reliability by customers, and
  • providing a predictable and flexible regulatory framework.

Under the 2021 guidelines for the 2022 RSS review, the panel will consider whether the existing form of the reliability standard remains appropriate or sufficient to effectively signal reliability risk to the market given the changes in
the power system associated with an increasing variable renewable generation, coupled with storage, and frequency of extreme weather events. The panel will also consider the market price settings (market price cap, market floor price, cumulative price threshold and administered price cap) required to achieve a level of reliability consistent with the standard.

The Panel invites comments from interested parties in response to the issues paper by 3 March 2022.

The first stage of the RSS review consultation process is set out below:

Publish issues paper 27 January 2022
Stakeholder consultation February-March 2022
Public Forum March 2022

 

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