Market Review: Completed
Overview
On 13 October 2016, the Australian Energy Market Commission (AEMC) published its decision on whether to exercise the last resort planning power for 2016. In this decision, the AEMC determined not to exercise its last resort planning powers in 2016.
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Overview
On 13 October 2016, the Australian Energy Market Commission (AEMC) published its decision on whether to exercise the last resort planning power for 2016. In this decision, the AEMC determined not to exercise its last resort planning powers in 2016.
In conducting its analysis, the AEMC found inter-regional constraints are being considered by transmission network service providers in their 2016 transmission annual planning reports. It has therefore decided not to exercise the last resort planning power in 2016.
Background
The last resort planning power is provided for in the National Electricity Rules. It allows the AEMC to require one or more network service providers to apply the regulatory investment test for transmission to augmentation projects that are likely to relieve a forecast constraint on a national transmission flow path.
The purpose of the power is to ensure timely and efficient inter-regional transmission investment when other mechanisms to provide for the planning of this investment appear to have failed.
The National Electricity Rules require the AEMC to report annually on the matters it has considered during the year in deciding whether to exercise the last resort planning power.
Documentation
Final