Australian electricity and gas markets – July 2023 update
03 August 2023
03 August 2023
Stakeholders should note the market updates below, and note any impacts on their compliance obligations.
On 13 July 2023, the AEMC published a draft rule determination to extend the 'interim reliability measure' (IRM) from 1 July 2025 to 30 June 2028 to support the reliability of the electricity system. The Commission intends to review whether measures like the IRM are needed beyond 30 June 2028 following the 2026 Reliability Standards and Settings Review.
Written submissions to the draft determination and rule are due by 24 August 2023. On 18 July 2023, the AER submitted a rule change request to the AEMC requesting the inclusion of negotiated transmission services within the scope of the transmission ring-fencing framework. The AER has requested the rule change proposal be fast tracked given it has already undertaken extensive stakeholder consultation on the nature of the problem and the proposal forming the basis of this rule change request. For more information, see here. On 20 July 2023, the AEMC published a consultation paper on two rule change requests seeking to harmonise the national energy rules (electricity, gas and retail) with the updated energy objectives.
The AEMC is seeking stakeholder views on the issues and potential solutions raised in both rule change requests. Written submissions are due by 17 August 2023 through the AEMC website.
Other than the consultation paper referred to above, no retail rule change requests were initiated in July. No AEMC determinations relevant to the National Energy Retail Rules were published.
Other than the consultation paper referred to above, no gas rule change requests were initiated in July. No AEMC determinations relevant to the National Gas Rules were published.
On 7 July, the Australian Energy Regulator (AER):
On 10 July 2023, the AER released an issues paper and commenced its Retail performance reporting procedures and guidelines (2023 update) review. The paper proposes various changes to the guidelines which set out the manner and form in which energy retailers must submit performance data to the AER. Stakeholders are invited to make submissions on the issues paper by 7 August 2023.
On 12 July 2023, AEMO published the Engineering Roadmap FY2024 Priority Actions Report, outlining the activities AEMO intends to undertake in the 2023-24 financial year to prepare the National Electricity Market (NEM) for operation at times of 100 percent instantaneous renewables.
AEMO is seeking feedback on the report and encourages stakeholder engagement. For more information see here.
On 27 July 2023, AEMO released its Quarterly Energy Dynamics – Q2 2023 report which outlines detailed market dynamics, trends and outcomes in Australia's electricity and gas market across the period 1 April to 30 June 2023. For more information and previous reports see here.
On 20 July 2023 the AER published its Wholesale markets quarterly - Q2 2023 report, which analyses trends in the electricity and gas wholesale markets, including prices, demand, generation, contracts, market outlook and new entry and exit across the period 1 April to 30 June 2023. For more information see here.
On 24 July 2023, the AER released draft guidance on applying the amended National Energy Objectives (NEOs). The guidance covers:
Authors: Andre Dauwalder, Counsel; Nikita Summers, Graduate; and Murray Rissik, Paralegal.