Market Review: Completed
Overview
On 8 October 2015 the Australian Energy Market Commission (AEMC) published its final advice on the implementation of a shared market protocol.
A shared market protocol would define the language or format for the communications sent between businesses seeking access to the services available from smart meters. Having a default standard for communication is expected to promote competition in the market for advanced metering services by reducing barriers to entry for new energy service companies while not inhibiting innovation in the method of communications.
A shared market protocol is an important step in the reform program to establish a competitive market for services enabled by smart meters. Its development has been undertaken alongside the related rule change process on expanding competition in metering and related services.
This advice builds on the AEMC’s advice into open access and common communications standards from 2014, which recommended that a shared market protocol should be introduced. It also follows the Commission’s 2012 Power of Choice review, which set out proposed reforms to support greater participation by consumers in Australia’s electricity market.
Advice
The AEMC has recommended that implementing a shared market protocol would require updating the existing business to business (B2B) framework in the National Electricity Rules (NER). This would involve:
- revising aspects of the governance arrangements for B2B procedures;
- expanding and updating the content requirements for B2B procedures to provide for new B2B communications that support advanced metering services;
- the introduction of an accredited party role for parties using the B2B e-hub; and
- redeveloping the B2B e-hub to support any changes to the B2B procedures.
The final advice was provided to the COAG Energy Council for its consideration.
In developing this advice, the AEMC:
- released a consultation paper on 18 December 2014, which set out the issues to be considered.
- held a stakeholder workshop on 15 April 2015 to discuss initial proposals for implementing a shared market protocol.
- released a draft advice for consultation on 25 June 2015 that set out its draft recommendations on how a shared market protocol could be implemented in the NER.
Documentation, including AEMC publications, stakeholder submissions and workshop presentations, are provided below.