The AEMC has decided not to amend the formulas used for financial settlement of non-energy costs because the issue is being resolved in the final determination for a related rule change request.

The rule change request to amend the formulas was submitted by Infigen Energy and aimed to address the settlement risk and equitable distribution of costs in low operational demand. Infigen proposed several possible solutions to deal with this issue, one of which the Commission will implement in its final determination for NEM settlement in low, zero and negative demand conditions.

The resulting rule change in that matter, requested by AEMO, will avoid significant disruption to AEMO’s payments and prudential systems when the demand for grid-sourced electricity is low.

Over the longer term, some of the issues raised by both AEMO and Infigen may be solved by our work on supporting the integration of energy storage systems in the NEM.

The AEMC invites stakeholders to make submissions on this draft determination by 29 July 2021.

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