The Australian Energy Market Commission (AEMC) today released a  Discussion Paper setting out its draft policy proposals in respect of establishing the national transmission planning function and the revisions to the regulatory test.

The Council of Australian Governments (COAG) announced in April 2007 that it would establish a new body, the Australian Energy Market Operator (AEMO) which would include a national transmission planning function. The National Transmission Planner within AEMO will be responsible for creating strategic plans to guide electricity sector investment.

The AEMC’s National Transmission Planner Review has been considering options for implementation of this new function, and is developing legislative amendments and Rule changes to implement COAG’s reform agenda.

The Discussion Paper will be the subject of a public forum hosted by the AEMC in Melbourne on 2 April 2008. The forum will consider policy positions relating to the establishment of the National Transmission Planner and introduction of a strategic National Transmission Network Development Plan. It will give you an opportunity to meet with our Commissioners before publication of the AEMC’s Draft Report in mid April 2008. Policy positions formalised in the Draft Report will be used to develop a detailed implementation plan for submission to COAG’s Ministerial Council on Energy.

While the Commission would like you to attend and participate in the forum, it will also have regard to further written submissions, where practicable, received before the Draft Report’s publication.

The Commission has also released a report from the Brattle Group, on models of Inter-Regional Transmission Charging. This report describes the possible approaches to inter-regional charging arrangements, drawing from international experience and provides advice on how to address issues relating to the development of an inter-regional charging system.