THE AEMC has today released a consultation paper on the proposed derogation to the National Electricity Rules to introduce multi-year emergency reserve contracts in Victoria ahead of the forthcoming summer. The rule change request was proposed by the Hon Lily D’Ambrosio MP, Minister for Energy, Environment and Climate Change, Minister for Solar Homes (Victoria).  

The rule request is a derogation for the state of Victoria and has been requested until June 2025. 

The Rules currently allow for reserve and emergency reserve trader (RERT) contracts for a maximum of nine months duration. This will extend to 12 months after the recent rule change to “enhance the RERT” of which most of the key components will be introduced on 26 March 2020. 

The proposed derogation would enable the Australian Energy Market Operator (AEMO) to enter into multi-year contracts of up to three years for emergency reserves under the RERT mechanism for the state of Victoria.

In proposing this derogation, the Hon Lily D’Ambrosio MP requested that it be subject to the expedited rule making process on the basis that it is an urgent rule. The Minister states that this is needed to allow the derogation to come into effect prior to Victoria’s peak electricity demand occurring this summer.

The Commission agrees that this derogation request is for an “urgent rule” and has decided to use the expedited rule change request process.

The consultation paper has been prepared to facilitate public consultation on the derogation proposal and to seek stakeholder submissions.

Objections to the Commission’s decision to use the expedited process are due by 7 November 2019.

Submissions to the consultation paper are due by 21 November 2019.

The final determination and final rule are expected to be published under an expedited process by 19 December 2019.

Media: Prudence Anderson, Communication Director, 0404 821 935 or (02) 8296 7817