On 3 December 2015, the Australian Energy Market Commission (AEMC) published its decision on whether to exercise the last resort planning power for 2015. In this decision, the AEMC determined not to exercise its last resort planning powers in 2015.

To assist it in determining whether to exercise the last resort planning power in 2015, the AEMC has reviewed the transmission network service providers' (TNSPs’) annual planning reports, published in 2015, against the constraints on the network forecast by the Australian Energy Market Operator AEMO in the National Transmission Network Development Plans (NTNDPs) for 2014 and 2015, published in 2013 and 2014 respectively.  The AEMC has also considered other relevant information published by AEMO and TNSPs.

In conducting its analysis, the AEMC did not find any inter regional constraints that are not being considered by transmission network service providers in their 2015 transmission annual planning reports. It therefore has decided not to exercise the last resort planning power in 2015.

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.