Rule Change: Completed
Clarifying the definition of business day facilitates the smooth operation of the National Electricity Market by minimising the risk of dispute about the timing of participants’ obligations under the Rules.
This is a minor Rule Change which amends the definition of business day in the National Electricity Rules (the Rules). It clarifies which days are recognised as public holidays under the Rules. In particular, it removes the potential for multiple interpretations of the meaning of public holiday.
Clarifying the definition of business day facilitates the smooth operation of the National Electricity Market by minimising the risk of dispute about the timing of participants' obligations under the Rules.
The Rule as made changes the definition of business day in the Glossary of the National Electricity Rules (the Rules). Under the Rule as made, a day that is observed as a public holiday in each participating National Energy Market (NEM) jurisdiction (except the Commonwealth) is not a business day under the Rules.
A public holiday that is observed in one or more participating jurisdictions, but not all participating jurisdictions, is classified as a business day for the purposes of the Rules. A public holiday does not have to observe the same event in each participating jurisdiction in order to be classified as a non-business day.
The Rule as made ensures consistency with the definition of business day under the National Electricity Law (NEL).
The Rule as made commenced on 21 April 2011. As a result, the Rule as made clarified that the coincidence of Anzac Day and Easter Monday on 25th April 2011 was recognised as a public holiday under the Rules, even though some jurisdictions observed this day as Anzac Day, and others observed it as Easter Monday.
On 21 January 2011, the Australian Energy Market Operator (AEMO) submitted a Rule Change Request to the AEMC in relation to the definition of business day in the Glossary of the National Electricity Rules (the Rules). The Rule Change Request sought to clarify the days that are recognised as public holidays and thereby make clear which days are business days under the Rules for the purposes of facilitating smooth operations in the NEM.
Business day is a term with wide reaching application in the Rules. It provides for the timing for the operations and obligations arising within the NEM. Business day is defined independently in the NEL and the Rules. Prior to this Rule change, the definition was drafted differently in each.
The previous drafting of the definition of business day in the Rules could be interpreted in several different ways, which created a risk of misinterpretation for market participants. In addition, each interpretation of business day gave rise to an outcome that, on some occasions, a day which was observed as a public holiday in each participating jurisdiction was a business day under the Rules.
On 8 March 2011, the AEMC gave notice under section 95 to commence consultation on the Rule Change Request. The Rule Change was considered under an expedited process under section 96, for which no objections were received. Submissions for the Rule Change closed on 8 April 2011. Two submissions were received in total, neither of which objected to the draft Rule.
On 21 April 2011, the Commission gave notice under sections 102 and 103 of the National Electricity Law (NEL) to make the Business Day Definition final Rule determination and Rule as made.