The AEMC has made a rule to remove provisions from the National Gas Rules for the Victorian declared wholesale gas market (DWGM). These provisions, including system force majeure and participant force majeure, have been superseded by physical and operational changes in the market.
The Commission has made the rule as proposed by the Australian Energy Market Operator (AEMO). The rule will encourage more appropriate risk management practices and facilitate more accurate decision making.
It clarifies how the market is to operate in times of market stress by,
- Removing provisions that are redundant and counterproductive in managing unexpected events in the Victorian DWGM. As a result, the National Gas Rules (NGR) will be made clearer and more closely aligned with the current market design, reflecting both physical and operational changes that have occurred in the market.
- Defining the cumulative price threshold (CPT) in the NGR. This will clarify the role of the CPT as the main trigger of an administered price cap (APC) for the DWGM.
- Removing NGR provisions that are redundant relating to the obligations on AEMO and market participants with respect to non-compliance with scheduling instructions.
It also introduces a requirement on AEMO to specify the consultation process to be used to determine the APC and the CPT as part of the administered pricing procedures.
This rule implements the proposal submitted by AEMO on 6 February 2014. It will take effect on 4 May 2015.