This Rule extends the reliability safety net for two years.  It provides for the safety net to be removed before the end of the two year extension should the Reliability Panel so recommend following its comprehensive reliability review.

Background

On 19 December 2005, the Commission received a Rule change request from the Reliability Panel to extend the reliability safety net under clause 3.12.1 (Market Intervention by NEMMCO) and Part 7 of Chapter 8A (Participant Derogations – Provision of non-scheduled reserves by NEMMCO) from 1 July 2006 to 1 July 2008. NEMMCO is a joint proponent of the proposed Rule change in so far as it relates to the derogation contained in Part 7 of Chapter 8A.

Under section 94 of the National Electricity Law ("NEL"), the Commission has decided to commence initial consultation on this Rule change proposal by publishing a notice under s95 of the NEL.

On 2 March, the Commission gave notice under s.99 of the NEL of its draft Rule determination. In making the draft Rule determination, the Commission took into account the submissions received from AGL, the ERAA and TRUenergy.

As indicated in its draft Rule determination, the Commission decided to accept the extension of the reliability safety net but has also provided for the safety net to be removed before the end of the proposed two year extension should the Reliability Panel so recommend as the result of its comprehensive reliability review.

Submissions closed on the draft determination on Friday 28 April, 2006. No submissions were received by the Commission.

On 11 May 2006 the Commission gave notice under s.102 of the NEL of its final Rule determination.

On 18 May 2006, the Commission made the National Electricity Amendment (Reliability Safety Net Extension) Rule No. 7 under s.103 of the NEL. All provisions commence operation on 18 May 2006.