On 24 October 2019 the AEMC announced our intention to expedite the rule change request received from the Victorian Minister to enable the Australian Energy Market Operator (AEMO) to enter into multi-year contracts of up to three years for emergency reserves under the reliability and emergency reserve trader (RERT) mechanism for the state of Victoria.
We received this request on 8 October 2019 and agreed that this rule change proposal required consideration as an “urgent rule” to enable it to be completed prior to summer.
As required under the Rules, stakeholders were advised of our intention to use the expedited process and were provided with an opportunity to object. Four objections have been received from the Energy Users Association of Australia, Australian Energy Council, Major Energy Users, Queensland Energy Users Network.
The Commission has considered the reasons outlined in the four objections submitted and has come to a view that some of the reasons provided in the requests are not misconceived or lacking in substance. Consequently, the proposed rule change request will proceed under the standard rule making process, rather than through an expedited process.
The due date for submissions in response to the consultation paper remains 21 November 2019. The next milestone for this project will be the publication of a draft determination for public consultation. The Commission recognises the Victorian Government’s concerns about reliability in Victoria this summer and will be working to deliver all milestones in the fastest timeframe possible.
For the avoidance of doubt, the above is the necessary procedural step that follows given the process of objections outlined in the NEL, and does not otherwise have any implications for the substance of the rule change proposal.
Letter from the Energy Users Association of Australia
Letter from the Queensland Electricity Users Network
Letter from the Australian Energy Council
Letter to the Major Energy Users Inc.
Media: Prudence Anderson, Communication Director, 0404 821 935 or (02) 8296 7817