On 25 July 2019 the Commission made a final rule which establishes ongoing reporting requirements on AEMO in relation to the frequency and frequency control performance; and on the AER in relation to the performance of frequency control ancillary services (FCAS) markets.

The final rule was made in response to rule change requests from AEMO and the AER to action the recommendations made in the AEMC’s Frequency control frameworks review final report.

Final determination

The final rule requires:

• the AER to report quarterly on each FCAS market, as well as provide an analysis of key trends and outcomes in these markets
• AEMO to report weekly on key frequency performance metrics as well as on the amount and utilisation of regulation FCAS
• AEMO to report quarterly on frequency performance against the frequency operating standard.

The final rule improves the transparency and consistency of information provided to the market in relation to frequency performance and FCAS market outcomes. This will help market participants make more efficient investment and operational decisions by providing additional information on frequency and frequency control performance.  This is especially important given the degradation of frequency performance in the NEM that is being observed.

Consultation paper

On 30 May 2019 the AEMC published a consultation paper seeking stakeholder input on the proposal, including on:

• the specific metrics AEMO and the AER should report on, and
• the preferred frequency of reporting.

Submissions closed on 27 June 2019. The AEMC received nine submissions, which are available below.

Expedited process

As this rule change request was considered non-controversial and no objections were received , the AEMC assessed it under the expedited rule making process.

Key dates, reflecting this expedited process, were:

• Commencement of this rule change process:  30 May 2019
• Submissions to the consultation paper to be received by (4 weeks):  27 June 2019
• Publication of final determination:  25 July 2019.

Background

On 5 February 2019 the AER submitted a rule change request to require the AER to report quarterly on the performance of FCAS markets.

On 8 May 2019 AEMO submitted a rule change request to establish ongoing reporting requirements on AEMO in relation to frequency and frequency control performance.

Given that both rule change requests related to frequency monitoring and reporting, the Commission determined to consolidate the rule change requests proposed by AEMO and the AER, and they were treated as one request.