The 2018 last resort planning power report finds that transmission network service providers are adequately considering the need for inter-regional investment in their transmission planning processes. The Commission also notes that regulatory processes are already underway for all Group 1 projects and some Group 2 projects that were prioritised in AEMO’s Integrated System Plan (ISP). 

Having reviewed reports on transmission system planning from the Australian Energy Market Operator (AEMO) and transmission businesses, the Australian Energy Market Commission (AEMC or Commission) has determined that there was no need to exercise the last resort planning power (LRPP) for 2018. 

The AEMC’s LRPP 2018 report, published today, outlines the analysis and considerations informing this decision.

The LRPP is conferred on the AEMC under the National Electricity Rules. The purpose of the power is to ensure timely and efficient inter-regional transmission investment in the national electricity market (NEM) for the long-term interests of consumers.

Under the LRPP:

  • if there is a constraint that may significantly impact on the efficient inter-regional transportation of electricity in the NEM, and
  • the AEMC identifies that there are no current processes or projects underway to address this constraint, then 
  • the AEMC has the power to direct one or more network service providers to apply the regulatory investment test for transmission (RIT-T) to project(s) that are likely to relieve that constraint. 

The Commission has determined that transmission network service providers are adequately considering the need for inter-regional investment in their transmission planning processes.

The Commission also notes that regulatory processes are already underway for all Group 1 projects and some Group 2 projects that were prioritised in AEMO’s 2018 Integrated System Plan (ISP). 

The Commission will continue to use the LRPP process to monitor inter-regional constraints in the transmission network. This includes monitoring projects identified in the 2018 ISP, as recommended by the Energy Security Board in its December 2018 advice to the Council of Australian Governments (COAG) Energy Council. 

Media: Prudence Anderson, Communication Director, 02 8296 7817; 0404 821 935