Rescheduling the generator compliance programs review

Rule Change: Completed

Overview

On 28 November 2024, the Australian Energy Market Commission (AEMC) published a final determination and final rule that requires the Reliability Panel (Panel) to commence the next review of the template for generator compliance programs (template) by 19 December 2025.

The AEMC used an expedited rule change process because the rule was considered to be non-controversial as it is unlikely to have a significant effect on the NEM.

The final rule postpones the commencement of the upcoming review by 12 months

The final rule requires the Panel to commence the next template review by 19 December 2025. Prior to this rule, the Panel would need to ‘conduct’ the next review by 19 December 2024.

The additional 12 months provides time for the AEMC to consider two packages of access standard rule changes submitted AEMO. The NER access standards are critical inputs to the Panel's review given the template provides guidance and specifies test methods for demonstrating ongoing compliance with performance standard derived from the NER access standards. A 12-month delay balances the need for clarity on the access standards while also promptly reviewing the template and providing certainty to market participants.

The final rule will only apply to the upcoming template review

The final rule inserts a transitional rule into the NER that solely applies to the upcoming review, with subsequent reviews occurring on the required five-yearly cycle or at the AEMC’s request.

Rule change request

On 29 July 2024, the AEMC received a rule change request from the Reliability Panel (the Panel) to delay the commencement of the next template review by 12 months. As set out in the National Electricity Rules (NER), the Panel is required to conduct a review of the template every five years. As the last review concluded on 19 December 2019, this meant that under previous NER arrangements, the Panel would be required to conduct the next review by 19 December 2024.

The Australian Energy Market Operator (AEMO) has proposed two access standard rule changes that are relevant for the upcoming review. The Panel suggested that the previous NER deadline for the review does not allow it to efficiently progress the scheduled review with consideration of potential changes to the NER’s technical access standards.

The Panel therefore proposed a one-off, 12-month delay to the commencement of the review to both minimise stakeholder and Panel resources and provide the greatest certainty around the review’s timeline.