The AEMC’s has made a more preferable final rule to make non-controversial changes to some National Electricity Rules (NER) definitions that were redundant, had errors or inconsistencies, or could be consolidated or aligned in order to simplify the NER.

The key features of the final rule include the following:

• 17 unused terms, nine rarely used terms, five terms with common meaning and two terms defined globally and locally were deleted from the NER.
• Five terms with errors and six terms with inconsistent use were amended
• Inconsistencies in the placement, font and inclusion of terms in Chapter 10 were addressed
• 12 terms with multiple grammatical forms were consolidated under a single term
• 13 full terms were replaced with an acronym wherever possible
• 10 definitions in the NER were replaced with a reference to the NEL definition.

In addition to this, the AEMC made additional changes to some defined terms for completeness. Changes to six definitions which were proposed in the rule change request were not made due to complexities and potential unintended consequences. 

The final rule will commence on 22 February 2021.

Background 

On 17 September 2020, the AEMC initiated two rule change requests from the Australian Energy Market Operator (AEMO) and Chair of the Energy Security Board Dr Kerry Schott AO aiming to simplify some defined terms in the National Electricity Rules (NER).

Two rule changes have been consolidated under a Simplification of NER Definitions rule change process. The Commission decided to expedite this process, due to the changes proposed being considered non-controversial. 

Rule change request from AEMO

On 3 July 2020 the AEMC received a rule change request from AEMO 3 July 2020 proposing amendments to particular definitions of the NER that could be amended, consolidated, or otherwise removed with little material impact.

Rule change request from Dr Kerry Schott AO

On 14 August 2020, Dr Kerry Schott AO, submitted a rule change request proposing definitions in the NER which were found to be inconsistent with the National Electricity Law (NEL), are amended to align with the definition in the NEL.

Consultation paper

On 17 September 2020, the AEMC published a consultation paper seeking feedback on the proposed changes. Submissions to this rule change process closed 15 October 2020. The Commission received 3 submissions.

The expedited rule change process

The Commission has undertaken an expedited process for these rule change requests as they meet the tests to be considered non-controversial. The Commission received no valid request not to do so by the closing date of 1 October 2020.