Rule Change: Open
The Australian Energy Market Commission (AEMC) has not yet made a decision on the rule change request from Energy Networks Australia (ENA).
On 21 July 2022, the AEMC published a directions paper seeking further feedback on ENA’s rule change request in relation to issues raised in submissions to the consultation paper.
Some submissions to the consultation paper suggest that there is not a substantive issue with the current arrangements to warrant the rule change proposed by ENA.
Stakeholders are invited to make written submissions on the directions paper by 18 August 2022.
The Commission will hold a workshop on 4 August 2022. To register for this forum please visit: Register for workshop on recovering cost of AEMO participant fees | AEMC
The rule change request
The rule change request proposes a new mechanism that would allow TNSPs to more directly recover the cost of AEMO’s participant fees that have been recently allocated to TNSPs.
Key features of ENA’s proposed rule are:
- amendments to revenue and pricing methodologies to allow for direct cost recovery, rather than recovery through an AER revenue determination,
- alignment of AEMO’s budgeting process and TNSPs’ publication of transmission charges, and
- clarifying transfer payment arrangements between a Co-ordinating Network Service Provider (CNSP) and a TNSP.
ENA’s rule change request is closely aligned with current rules relating to CNSPs’ recovery of AEMO participant fees for the National Transmission Planner (NTP) function.
The rule change request is being treated as a non-controversial Rule in accordance with section 96 of the NEL and is proceeding under an expedited process.
Under the National Electricity Rules (NER) AEMO must publish:
- an annual budget of its revenue requirements by the start of each financial year, and
- a structure setting out how its budgeted revenue is to be recovered through participant fees.
In March 2021, AEMO published a final determination of its electricity fee structure for the period from 1 July 2021 to 30 June 2026. Key points included that:
- AEMO will start to charge specific TNSPs a proportion of AEMO’s core NEM fees for the first time, to reflect AEMO’s increasing involvement in network related activities, such as power system security.
- There is a transitional period of two years, so that TNSPs are not charged a proportion of core NEM fees until 1 July 2023, to provide time for a rule change related to TNSP recovery of these participant fees.