Market Review: Completed
On 18 May 2010, the Commission published the final amended Last Resort Planning Power Guidelines (the Guidelines). At this time, the Commission also published an accompanying Final Decision, which outlined the processes followed in developing and publishing the Guidelines. The publication of the final amended Guidelines represented the conclusion of the AEMC's review and amendment of the Guidelines.
Copies of the final amended Guidelines and Final Decision can be found below.
On 17 March 2010, the Commission published an updated version of the draft amended Guidelines. The purpose of this update was to correct minor typographical errors in the original draft amended Guidelines.
On 10 March 2010, the Commission published the draft amended Guidelines. The draft amended Guidelines were substantially similar to the previous version of the Guidelines, however the Commission made some amendments to reflect recent changes in the regulatory and organisational structure of the NEM. Other minor amendments to the Guidelines related to the Commission's processes for consulting with the market on the exercise of the last resort planning power (LRPP).
The Commission also published an explanatory statement which provided further detail about these amendments and set out the provisions of the Rules under which the amendments were made. A copy of the draft amended Guidelines and the explanatory statement can be found below. Stakeholders were invited to provide comment on the proposed amended Guidelines, with submissions due by 23 April 2010.
The LRPP is conferred on the AEMC under clause 5.6.4 of the Rules. As identified in the Rules, the purpose of the LRPP is to ensure timely and efficient interregional transmission investment for the long term interests of consumers. Specifically, the LRPP allows the AEMC to direct a registered participant to identify a project and apply the regulatory investment test for transmission (RIT-T) to that project, or to apply the RIT-T to a project identified by the AEMC.
Clause 5.6.4(o) of the Rules requires the AEMC to develop and publish the Guidelines. The purpose of the Guidelines is to provide market participants with clarification and information regarding the AEMC's processes when exercising the LRPP. As identified in the Rules, the Guidelines are to be developed by the AEMC for and with respect to:
- the process to be followed by the AEMC in exercising the LRPP;
- the advice to be provided to the AEMC by AEMO, including the terms of reference for any such advice;
- the matters that AEMO and the AEMC may consider in recommending or nominating a person as an appropriate directed party; and
- the provision of information to the AEMC in relation to the exercise of the LRPP.
Clause 5.6.4(p) of the Rules requires the Guidelines to be developed and published in accordance with the transmission consultation procedures set out in Rule 6A.20. The transmission consultation procedures require the Commission to:
- publish the proposed Guidelines with an accompanying explanatory statement and an invitation for written submissions;
- allow no less than 30 business days for the making of submissions; and
- within 80 business days of the proposed Guidelines being published, publish the finalised Guidelines, its final decision and a notice of the making of the final decision.
In accordance with these procedures, the Commission first published proposed Guidelines on March 15, 2007, and invited comment from interested stakeholders. Three submissions were received and the Commission published an amended final version of the Guidelines on 10 July 2007. For further information regarding this version of the Guidelines, please click here.