On 14 March 2024, the Australian Energy Market Commission (AEMC) published a final determination and final rule for a one off reset to Powerlink’s system strength unit prices (SSUPs), a component of the system strength charge, for system strength nodes on Powerlink's network in Queensland.

The AEMC, receiving no objections, used an expedited rule change process because the rule was considered to be non-controversial, because it is unlikely to have a significant effect on the NEM.

Powerlink will have an opportunity to reset its SSUPs to reflect lower system strength costs 

The final rule will allow   Powerlink  to publish revised SSUPs to apply from 1 July 2024 for the remaining four years of its current system strength charging period.

Powerlink will have until 14 April 2024 to publish the revised SSUPs, which must also be lower than the SSUPs it published in March 2023. 

Ensuring connection proponents are able to make the most efficient choice between self-remediation or paying the system strength charge  

In order to make efficient decisions about whether to self-remediate or pay the system strength charge, connection proponents rely on the SSUPs reflecting the costs of providing the required amount of system strength at the proposed location.

A reset to Powerlink’s SSUPs to incorporate new information, which will lower the SSUPs, will support connection proponents making the most efficient choice. 

The final rule allows proponents until 29 July 2024 to consider whether to change their election based on the revised SSUPs. This gives connection proponents time to consider the revised SSUPs and aligns with the timing to change an election under the SSQ final determination. 

Rule change request 

On 7 December 2023 the Australian Energy Market Commission (AEMC) received a rule change request from Powerlink Queensland to amend the National Electricity Rules (NER) to allow it to reset the system strength unit prices (SSUPs), a component of the system strength charge, for system strength nodes in Queensland.

Under the NER, SSUPs must be fixed (subject to consumer price indexation) for each year in the five year system strength charging period. Powerlink's current system strength charging period runs to 30 June 2028.

Key dates for this rule change 

• Rule change request received (ERC0382) -7 December 2024 
• Consultation paper and indicative draft rule published -18 January 2024 
  • Submissions due – 15 February 2024
• Objections to the expedited process due by – 1 February 2024 
• Final determination and rule expected completion -14 March 2024