On 14 July 2011, the Commission gave notice under sections 102 and 103 of the National Electricity Law (NEL) to make the Tasmania Tranche 5a Procedure Changes Rule and its associated Rule determination.

The Rule enables AEMO to amend its Metrology, Market Settlement and Transfer Solution and B2B Procedures without complying with any process specified in the National Electricity Rules (NER) for the amendment of those Procedures, including the Rules consultation procedures. This would have the effect of facilitating the Tasmanian Government’s extension of retail contestability to customers in Tasmania consuming between 50 and 150MWh per annum (Tranche 5a customers).

Background

On 23 May 2011, the Tasmanian Government submitted a Rule change request to the AEMC seeking a Rule that would allow AEMO to amend its Metrology, Market Settlement and Transfer Solution and B2B Procedures without complying with the amendment processes in the NER, including the Rules consultation procedures in rule 8.9 of the NER.

The Tasmanian Government requested this Rule change to facilitate the extension of retail contestability to Tranche 5a customers in Tasmania. Amending these Procedures through the conventional processes under the NER would take a minimum of 85 business days; therefore, AEMO advised the Tasmanian Government that it would be unable to meet the proposed implementation date of 1 July 2011.

Consequently, the Tasmanian Government requested a one off transitional Rule under Chapter 11 of the NER. The Tasmanian Government also requested that the Rule change request be treated as non-controversial under section 96 of the NEL, as the market participants most likely to be affected by the Rule change, AEMO and Aurora Energy, were consulted during preparation of the Rule change request.

Under the expedited Rule making process, the Commission must seek written submissions from the public. One submission on the Rule change request was received from Aurora Energy, stating its support for the Rule change.