On 13 May 2010, the Commission gave notice under sections 102 and 103 of the National Electricity Law (NEL) of the making of National Electricity Amendment (Transparency of Operating Data) Rule 2010 and its related Rule determination. The Rule determination generally accepts Australian Energy Market Operator's (AEMO's) Rule proposal, with some amendments. The Rule as Made commenced on the same day.

The Rule as Made amended the publication timing requirements for the NEM operating data.  Rather then publishing some of the NEM operating on the next trading day, the Rule as Made requires AEMO the publish the data in dispatch time (that is, near real time every five minutes).

The Commission considers the Rule as Made is likely to reduce information asymmetry in the National Electricity Market (NEM).

The Rule as Made requires that the NEM operating data publication timing requirements be set out in the spot market operations timetable under clause 3.4.3 of the Rules (Timetable), with the Rules giving effect to the Timetable. This is a departure from the previous Rules arrangement where the data publication timing requirements were set out in both the Rules and the Timetable, and the Rules also gave effect to the Timetable.

Background

On 30 October 2009, the AEMO submitted a Rule change proposal seeking to change the publication timing requirements for NEM operating data.

This Rule change proposal sought to require AEMO to publish the NEM operating data in dispatch time rather than on the next trading day.

Clause 3.13.4 of the National Electricity Rules (Rules) requires AEMO to publish spot market information. In particular, clauses 3.13.4(n), 3.13.4(q) and 3.13.4(r) required AEMO to publish details relating to, among other things:

• actual and dispatched generation;
• dispatched network service for scheduled network services, and inter-regional flows; and
• dispatched load for scheduled loads.

These clauses required AEMO to publish the above details for each trading interval (and dispatch interval in some cases) for the previous trading day.  In addition to these Rules provisions, the publishing requirements must be met in accordance with the Timetable. If AEMO wishes to change the Timetable, it must follow the Rules consultation procedures under clause 8.9 of the Rules.

In accordance with the Rules and the Timetable, AEMO was not required to publish the above details until the next trading day.  AEMO understands, however, the estimated power line flow and power station output data is available for purchase in dispatch time from third party private companies.  AEMO also understands that this data is estimated using a technology which remotely senses power line flows, and the estimation does not rely on market information provided by AEMO.

AEMO considered that this arrangement is likely to increase information asymmetries and costs burdens in the NEM, and therefore sought to modify the NEM operating data publishing arrangement.

The modified arrangement sought by AEMO requires it to publish details relating to the following in dispatch time rather than on the following trading day:

• actual generation; and
• actual network service for each scheduled network service - under the current state of the market, this refers to details relating to flows of the unregulated interconnector.

This proposed arrangement also requires AEMO to publish actual load details for scheduled load in dispatch time.

AEMO sought to achieve the proposed publication arrangement by amending the Rules and the Timetable.

In addition, the National Generators Forum (NGF) requested NEMMCO (now AEMO) to "to publish actual scheduled data of power stations in dispatch time to increase spot market data transparency" (see page 2 of the Rule change proposal).

On 12 November 2009, the Commission published a notice under section 95 of the NEL to commence initial consultation on this Rule change proposal.  Accordingly, the Commission invited written submissions or comments from any person or body in relation to the proposed Rule by 14 December 2009.

On 13 November 2009, the Commission published a Consultation Paper to provide guidance to stakeholders who will be preparing first round submissions to inform the draft report.

On 18 November 2009, AEMO gave a presentation on the Rule change proposal to the Commission.

On 18 February 2010, the Commission published a notice under section 99 of the NEL to commence consultation on the draft Rule and draft Rule determination on this Rule proposal.  The draft Rule determination generally accepted AEMO's Rule proposal, with some amendments. This second round consultation closed on 5 April 2010.

All enquiries in relation to this project should be addressed to Ignatius Chin or Rory Campbell on (02) 8296 7800.