Rule Change: Completed
Overview
The AEMC has published final electricity, gas and retail rules that harmonise the national energy rules with the emissions reduction component of the national energy objectives.
The final rule supports the incorporation of emissions reduction in the energy regulatory framework by:
- including changes in Australia’s greenhouse gas emissions as a class of market benefit for the Integrated System Plan (ISP), RIT-T and RIT-D
- updating the ISP public policy clause and other wording in the NER to ensure that emissions reduction policies are considered consistently
- allowing network and pipeline operators to propose expenditure for activities that contribute to achieving emissions reduction targets.
The final rules allow the Australian Energy Regulator (AER) to update guidelines and instruments efficiently, streamlining consultation and reducing administrative burden on stakeholders.
The final rules largely align with the draft rules with minor changes to incorporate stakeholder feedback and improve clarity.
We consolidated two rule change requests to harmonise the national energy rules
We consolidated two rule change requests submitted by energy senior officials that seek to align the rules with the updated energy objectives. This means we have published one final determination that covers both rule change requests.
Background
Energy senior officials on behalf of the Ministerial Council on Energy submitted two rule change requests on 4 July 2023 proposing key changes to harmonise the national energy rules with the emissions reduction component of the updated energy objectives. The two rule change requests were related to:
- electricity network and gas pipeline expenditure provisions, and
- electricity network planning and investment frameworks, as well as the process for updating relevant AER guidelines.
Following the assent of the Statutes Amendment (National Energy Laws) (Emissions Reduction Objectives) Act 2023 on 21 September 2023, the National Energy Objectives now include an emissions reduction component. The AEMC is now applying the emissions reduction objective in its work and has published a targets statement that lists jurisdictional targets to be considered.