On 15 August 2024, the Australian Energy Market Commission (AEMC) made more preferable electricity and retail rules in response to a rule change request submitted by the Australian Energy Market Operator (AEMO). This rule change request was developed as part of the Energy Security Board’s (ESB) consumer energy resources (CER) implementation plan.  

The final rules make a series of changes that, alongside other reforms, will unlock substantial benefits from CER for consumers and the system as a whole. The rules enable three key arrangements:

• Large customers will be able to engage multiple energy service providers at their premises more easily- to manage and obtain more value from their CER.
• Energy service providers for small and large customers will be able to separate and manage ‘flexible’ CER from ‘passive’ loads in the energy market - leading to innovative products and services for consumers.
• Market participants will be able to use in-built measurement capability in technology such as electric vehicle (EV) chargers and smart streetlights - to enable the delivery of innovative and essential products and services at lower cost.

For more information on this project, please refer to the ERC0346 - Unlocking CER benefits through flexible trading project page.

Background

In May 2022, AEMO put forward a rule change request proposing a specific model (with a high-level design) to enable consumers and the market to separate their flexible CER from their passive loads (i.e., lights, fridges) and have them managed and recognised in the wholesale energy market settlements if consumers choose to.  

On 8 December 2022, the Commission published a consultation paper, to which we received 60 submissions.

On 27 April 2023, the Commission extended the period of time for making the draft determination to 12 October 2023 under section 107 of the NEL and section 266 of the NERL.  

On 3 August 2023, the Commission published a directions paper that set out the Commission’s initial views and positions for the unlocking CER benefits through flexible trading rule change. We received 54 submissions to the paper.

On 12 October 2023, the Commission extended the period of time for making the draft determination to 29 February 2024 under section 107 of the NEL and section 266 of the NERL.  

On 29 February 2024, the Commission published a draft determination, to which we received 48 submissions.

On 4 March 2024, the Commission extended the period of time for making the final determination to 11 July 2024 under section 107 of the NEL and section 266 of the NERL.  

On 20 June 2024, the Commission extended the period of time for making the final determination to 15 August 2024 under section 107 of the NEL and section 266 of the NERL.   

For more information on this project, please refer to the ERC0346 - Unlocking CER benefits through flexible trading project page.