The Australian Energy Market Commission has determined not to exercise its last resort planning power (LRPP) in 2019.
The Commission’s LRPP 2019 report, published today, outlines the analysis and considerations that informed this decision.
The LRPP is one of a range of mechanisms that help ensure there is timely and efficient inter-regional transmission investment in the national electricity market for the long-term interests of consumers. The LRPP enables the Commission to direct a transmission business to undertake a regulatory investment test in relation to projects that can relieve network constraints. The Commission can only use this power if transmission businesses are not already taking appropriate steps to address all relevant constraints that have been identified by the Australian Energy Market Operator.
The Commission has determined that transmission businesses are adequately considering the need for inter-regional investment in their transmission planning processes. Transmission providers across the NEM have been carrying out regulatory investment tests in relation to new or expanded interconnectors, including to progress the projects identified in AEMO’s Integrated System Plan (ISP).
The Commission is also working closely with the Energy Security Board to develop new rules to action the ISP and streamline the process for regulatory approval of major transmission investments. The Energy Security Board recently published draft rules for consultation on these changes. These draft changes will speed up the regulatory investment test process for projects that are identified in the ISP. They will also replace the LRPP with new requirements on transmission businesses to publish a regulatory investment test draft report within a period specified by AEMO in the ISP.
Media: Prudence Anderson, Communication Director, 02 8296 7817; 0404 821 935