The Rule requires NEMMCO to develop and then apply pre-determined risk assessment criteria when considering whether to re-classify a contingency event and to provide market participants with improved information about potential and actual reclassifications of contingency events.

Background

On 17 March 2008 the Commission received a Rule change proposal from the AER relating to the reclassification of contingency events.

The Rule change proposal would require NEMMCO to develop and then apply pre-determined risk assessment criteria when considering whether to re-classify a contingency event and to provide market participants with improved information about potential and actual reclassifications of contingency events.

On 10 April 2008, the Commission published a notice under section 95 of the NEL advising of its intention to commence the Rule change process and initial consultation on this Rule change proposal.

The Commission invited interested parties to provide submissions on the Rule change proposal by 12 May 2008.

On 17 July 2008, the Commission gave notice under section 99 of the NEL of the making of the draft Rule determination and draft Rule on the AER’s Rule change proposal.

The draft Rule generally accepted the AER’s proposed Rule change but with some modifications and enhancements to the implementation of the proposal. The Commission accepted some of the drafting changes proposed in submissions, and added some drafting changes of its own where it considered these changes would further promote the National Electricity Objective (NEO). The Commission invited interested parties to provide submissions on the draft Rule determination and draft Rule by 28 August 2008. No submissions were received to this phase of consultation.

On 2 October 2008, the Commission gave notice under sections 102 and 103 of the National Electricity Law (NEL) making the National Electricity Amendment (Reclassification of Contingency Events) Rule 2008 No.8 and the corresponding Rule determination.

This Rule requires NEMMCO to develop and then apply pre-determined risk assessment criteria when considering whether to re-classify a contingency event and to provide market participants with improved information about potential and actual reclassifications of contingency events.

The Rule commenced operation on 23 October 2008.