The Commission has decided to make a more preferable final rule that requires the Reliability Panel to review both the reliability standard and settings in the 2022 RSS Review, not just the standard as was proposed.
It will exclude the financial year 2024 from the 2022 RSS Review due to the extension of time for the final report. The Panel is therefore required to consider the reliability standard and settings of an energy-only market to apply from 1 July 2025 to 30 June 2028 and provide its final report of the 2022 RSS Review to the AEMC by 1 September 2022.
The draft determination and rule had proposed the 30 August 2022. The minor change to the date was made to align with the publication cycle of AEMC and Reliability Panel documents.
The Commission considers the benefits of the proposed rule are:
- Retaining the Panel’s role in reviewing the reliability standard and settings. The Panel has a significant role and undertakes its work per well-established guidelines and stakeholder consultation processes. Stakeholders’ expressed confidence in the Panel’s processes and its ability to consider a wide range of views due to its diverse make-up of industry representatives and experts.
- Delaying the due date for the 2022 RSS Review final report to September 2022 will give the Panel the time that it needs to undertake the thorough analysis and consultation required to make fit for purpose recommendations on the standard and settings. The Reliability Panel is required, as soon as practicable, to submit a rule change to the AEMC where it recommends any changes to the reliability standard and settings. That analysis can then be used, where appropriate, as input into the Energy Security Board's process in designing a capacity mechanism.
- Excluding 2024 from the review will provide adequate time for the market and participants to adjust to any potential changes to the reliability standard and settings that may be implemented following the Reliability Panel’s final report.
The Commission notes that the Reliability Panel has commenced the 2022 Reliability standard and settings review and is consulting with stakeholders through its processes. The Commission also notes Reliability Panel and the Energy Security Board are collaborating and will work together where opportunities arise during the 2022 RSS Review.