Rule Change: Completed

Overview

On 23 May 2017 the AEMC published a final rule that enables more competition in the provision of transmission connections, while maintaining clear accountability for the safety, security and reliability of the transmission network. The rule also places new obligations on transmission businesses to adopt a more consistent, transparent and coordinated approach when planning their networks.
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On 23 May 2017 the AEMC published a final rule that enables more competition in the provision of transmission connections, while maintaining clear accountability for the safety, security and reliability of the transmission network. The rule also places new obligations on transmission businesses to adopt a more consistent, transparent and coordinated approach when planning their networks.  

The final rule provides more choice, control and certainty for any parties connecting to the transmission network, while at the same time making it clear that the incumbent transmission businesses are unambiguously accountable for providing a safe, reliable and secure transmission network – even if some parts of it are built and owned by other parties.

Transmission businesses will be required to provide more information in their annual planning reports, including more detail on forecast network constraints. Increased transparency should help providers of non-network solutions, such as demand response, to focus on locations where they could defer or reduce the need to invest in the network.

They will also be required to consider investment options in another transmission business’s region so options are not limited by geography or state boundaries. Better planning and coordination should help businesses to identify the lowest cost option to meet future network needs

The planning aspects of the final rule started on 30 May 2017. The connections aspects of the final rule started on 1 July 2018.

The changes to connection arrangements under the final rule will not apply in Victoria, where the regulatory regime for transmission connections is overseen by the Australian Energy Market Operator (AEMO). However, the changes to the planning arrangements under the final rule will apply in Victoria.

On 27 July 2015 the COAG Energy Council made a request to the AEMC to make a rule regarding transmission connection and planning arrangements. The rule change request is largely based on the connection and planning recommendations made by the AEMC in its Transmission Frameworks Review.

Throughout the rule change process, the AEMC published:

  • a consultation paper
  • a discussion paper on the connections aspects of the rule change request
  • a draft determination and draft rule
  • a consultation paper on proposed savings and transitional arrangements.

These documents, and stakeholder submissions on each document, can be found below.

The AEMC held a public forum on the discussion paper (materials can be found below), and workshops on the rule change request and the draft rule determination. Numerous other bilateral meetings were held with stakeholders.

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Documentation