Australian electricity and gas markets – April 2024 Update 

In our April update, we take a look at the latest rule changes and market updates affecting participants in the Australian electricity and gas markets.

What you need to do

• Stakeholders should note the market updates below, and note any impacts on their compliance obligations.

National Electricity Rules

On 28 March 2024, the Australian Energy Market Commission (AEMC) released its final determination and final rule on its Improving security frameworks for the energy transition rule change. The new rule:

• aligns procurement timeframes for the inertia and system strength frameworks;
• updates the Network Support and Control Ancillary Services Procedures (NSCAS) framework to allow the procurement of inertia network services and system strength;
• adjusts the Transmission Network Services Provider (TNSP) cost recovery procedures for non-network security options;
• allows the Australian Energy Market Operator (AEMO) to procure and trial system security services through a new transitional Non-Market Ancillary Services (NMAS) framework;
• enables AEMO to schedule system security services across the whole National Electricity Market (NEM);
• implements additional notification requirements for AEMO directions; and
• requires AEMO to report annually on the steps taken to manage security through the energy transition.

On 4 April 2024, the AEMC released a draft determination and draft rule on its Accelerating smart meter deployment rule change. The new rule:

• requires Metering Coordinators (MCs) to conduct testing and inspections in accordance with a regulated Legacy Meter Replacement Plan (LMRP) or Asset Management Strategy (AMS);
• establishes a metering installation malfunction process and shared fusing metering replacement procedure; and
• expands the responsibilities of MCs to include the collection, storage, processing, access management, security management, and delivery of Power Quality Data (PQD).

Stakeholders must respond to the draft rule change by 30 May 2024.

Also on 4 April 2024, the AEMC received a rule change request from AEMO to amend the National Electricity Rules (NER) to improve the technical requirements for the NEM access standards. AEMO has made both a request under the AEMC's fast track rule change process, and under the standard rule change process. The rule change is currently pending with the AEMC yet to publish a consultation paper. For more information see here.

On 11 April 2024, the AEMC initiated its Minor changes 1 2024 rule change, publishing a consultation paper. The rule change seeks to correct minor errors and make non-material changes to the NER. The AEMC is seeking stakeholder responses to the proposed rule change by 9 May 2024.

On 18 April 2024, the AEMC announced it will fast track the Managing ISP project uncertainty through targeted ex post reviews rule change. Stakeholders will have an opportunity to respond to the draft determination and draft rule once published in May 2024.

National Energy Retail Rules

On 4 April 2024, the AEMC released a draft determination and draft rule on its Accelerating smart meter deployment rule change. This rule change amends the National Energy Retail Rules (NERR) to:

• remove the right of small customers to opt-out of receiving a smart meter;
• prohibit retailers from charging upfront costs or exit fees to new small customers for legacy meter replacements until 31 December 2030;
• expand the circumstances in which a meter replacement notice must be provided;
• update the content of meter replacement notices to include additional information; and
• update the notice requirements for site defects and tariff changes if a meter is replaced pursuant to an LMRP.

Stakeholders must respond to the draft rule change by 30 May 2024.

On 11 April 2024, the AEMC initiated its Minor changes 1 2024 rule change, publishing a consultation paper. The rule change seeks to correct minor errors and make non-material changes to the NERR. The AEMC invites submissions on the consultation paper by 9 May 2024.

National Gas Rules

On 11 April 2024, the AEMC published a consultation paper and initiated its Minor changes 1 2024 rule change. The rule change seeks to correct minor errors and make non-material changes to the NGR. The AEMC invites stakeholders to respond to the proposed rule change by 9 May 2024.

Other Updates

On 5 April 2024, the Energy and Climate Change Ministerial Council (ECMC) released its Response to the Review of the Integrated System Plan report, along with a statement on the Integrated System Plan policy direction. The Energy Ministers have considered the review of AEMO's Integrated System Plan (ISP) and accepted its 15 recommendations.

Also on 5 April 2024, the Australian Energy Regulator (AER) released its Annual Information Orders for 2024 – 2028. The orders impose annual reporting obligations on regulated electricity networks and are made by the AER using its information gathering powers under the National Electricity Law. The information orders apply to:

• Electricity distributors;
• Electricity TNSPs; and
• Electricity interconnectors.

On 23 April 2024, the Department of Climate Change, Energy, the Environment and Water released official estimates of Australia's electricity generation in 2022-23 and calendar year 2023 to support decision making. The full statistics will be published in late 2024. For more information see here. 

Authors: Dale Gill, Partner; Andre Dauwalder, Counsel; Alexandria Brown, Lawyer; Murray Rissik, Graduate; and Ethan Low, Paralegal.