Market Review: Completed
The Reliability Panel has completed its review of the Reliability Standard and Settings Guidelines (Guidelines). These set out the principles, assessment approach and assumptions that the Reliability Panel (Panel) must apply when conducting its Review of the Reliability Standard and Settings (RSS review).
The Panel has reviewed and updated the 2016 guidelines in accordance with the National Electricity Rules (NER). These updated guidelines will apply for the Panel’s future RSS reviews. The next RSS review will commence in mid 2021 and must be completed by 30 April 2022.
The Panel, in making its decision to update the guidelines had regard to their purpose, which is to provide useful and transparent information to market participants about how it intends to conduct future RSS reviews. It also considered stakeholder input received during the review, including to the consultation paper and in stakeholder meetings.
The updated guidelines aim to provide a balance between maintaining stability for participants and allowing flexibility for the Panel to be able to assess and adjust the reliability standard and setting components to meet changing circumstances.
The updated guidelines allow the Panel to consider all the reliability standard and setting components and determine if the approach remains fit for the intended purpose through its review of the reliability standards and settings. However, the Panel must apply a range of criteria to any assessment it undertakes, and to any changes recommended in its final report for the RSS review. Any recommended changes from the RSS review must then be submitted as a rule change request to the AEMC.
The process set out in the guidelines should provide market participants with some certainty about the circumstances for when the Panel is able to assess and recommend a future change to the reliability components.
The updated guidelines set out the following:
- Assessment framework, specifically the key principles the Panel will apply for assessing whether the reliability standard and settings will, or are likely to, contribute to the achievement of the National Electricity Objective (NEO).
- Assessment approach, including the requirements and criteria that the Panel must use when undertaking its assessments of the form and level of the reliability standard and settings. The assessment approach also sets out the materiality criteria the Panel must meet before recommending any change to the reliability standard and settings in its final report.
- General approach to the modelling the Panel will use in each review.
The first guidelines were made in December 2016 and have not been reviewed since that time. The Panel decided to review the guidelines now because:
- A review is timely and appropriate given the rapid and ongoing market transition, including changes in the generation mix and associated policy reforms.
- Significant changes have occurred since the first set of guidelines were introduced
- The guidelines should remain relevant and applicable as the market continues to evolve.
The Panel published a consultation paper in March 2021 that outlined the matters for consideration in the review of the guidelines. Submissions to the consultation paper closed on 8 April 2021.
Public stakeholder meeting
The Reliability Panel held a public stakeholder meeting (webinar) on the 27 May 2021 for its review of the reliability standard and settings guidelines. Around 25 stakeholders participated in the public meeting.