Rule Change: Open
The Australian Energy Market Commission (AEMC) has published a draft determination and draft rules on 26 October 2023 that seek to harmonise the national energy rules with the updated energy objectives.
The draft rule would support the incorporation of emissions reduction in the energy regulatory framework by:
- including emissions reduction as a class of market benefit for the 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 properly considered
- allowing network and pipeline operators to propose expenditure for activities that would contribute to achieving emissions reduction targets.
The draft rule allows the Australian Energy Regulator (AER) to update guidelines and instruments efficiently in order to streamline consultation and reduce administrative burden on stakeholders.
We have consolidated the two rule change requests
We have consolidated the two rule change requests submitted by energy senior officials that seek to align the rules with the updated energy objectives. This means we will publish one draft determination and one final determination that covers both rule change requests.
The rule change requests were consolidated to alleviate administrative burden for stakeholders. No complexities arose in response to the consultation paper that the Commission anticipates would delay either rule change request.
We welcome submissions and will hold a public forum on the draft determination
The Commission welcomes feedback on our draft determination and rules. Written submissions are due by 7 December 2023.
The project team will hold a virtual public forum on 21 November 2023 which will discuss the key recommendations described in the draft determination. Stakeholders will have the opportunity to provide their views and ask questions.
The Commission intends to publish its final determination and rules on 1 February 2024.
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 which was expected to be included in 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, 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.