Market Review: Completed
On 5 December 2013, the AEMC published its decision report on the exercise of the last resort planning power (LRPP) in 2013. The Commission did not find a need for the AEMC to exercise the LRPP in 2013.
The LRPP is an oversight mechanism, conferred on the AEMC, to ensure that sufficient investment occurs in those parts of the transmission network related to the flow of electricity between regions in the National Electricity Market (NEM). Accordingly, if the AEMC considers inter-regional transmission priorities are not being addressed, it has the power to direct a participant to undertake a regulatory investment test for transmission in relation to a particular part of the network.
The rules require the AEMC to report on the exercise of the LRPP annually. The decision report fulfils that obligation.
In order to assess the need to exercise the LRPP, the AEMC has reviewed the 2012 National Transmission Network Development Plan (NTNDP), published by AEMO as National Transmission Planner, and the annual planning reports, published by planning bodies for each region of the NEM.
From this analysis, it appears transmission planning bodies in the NEM are actively addressing inter-regional network development priorities in their planning activities.
As in previous years the AEMC has conducted this review, we therefore have not found the need to exercise the last resort planning power.