Australian electricity and gas markets - November 2021 update
07 December 2021
What you need to do:
Stakeholders should note the legislative reforms that have been made, new reports that have been published and any deadlines for making submissions noted below.
National Electricity Rules
No AEMC consultation papers or determinations relevant to the NER were published in November.
On 18 November 2021, the AEMC extended the time for making a draft determination in respect of the Operating reserve market and Introduction of ramping services rules changes, to 30 June 2023. This was due to the complexity of the proposed new market design and other changed circumstances.
National Energy Retail Rules
On 18 November 2021, the AEMC published a consultation paper in respect of the Protecting customers affected by family violence rule change. This rule change aims to better support consumers affected by family violence by requiring retailers to provide assistance, protect consumers’ personal information and publicise external support services available. Written submissions in response to the AEMC's consultation paper close on 3 March 2022, ahead of the AEMC's expected publication of a draft determination on 12 May 2022. More information can be found here.
No AEMC determinations relevant to the NERR were published in November.
National Gas Rules
On 4 November 2021, the AEMC published its final report on the Review of the Gas Supply Guarantee. The report details the AEMC's final recommendations which are:
- for the Australian Government to extend the term of the Gas Supply Guarantee for another three years to March 2026;
- that an assessment on the long term need for the Gas Supply Guarantee be carried out before March 2026; and
- that the definition of gas supply shortfall be amended to clarify that a shortfall is considered in the context of part of a NEM region, rather than the NEM as a whole.
No AEMC consultation papers or determinations relevant to the NGR were published in November.
Other updates
National Cabinet has instructed the ESB to progress a proposed rule change for the congestion management model, which was one of the ESB's key recommendations in its Post-2025 Market Design Review final advice. On 18 November 2021, the ESB published a "Scope of Work and Forward Project Plan" for progressing the design of the congestion management model, with the intent to present a proposed rule change to Energy Ministers by the end of 2022.
On 25 November 2021, the Australian Parliament passed the Offshore Electricity Infrastructure Bill 2021. The legislative framework will facilitate and regulate the construction, operation, maintenance and decommissioning of offshore renewable energy infrastructure and electricity transmission projects in Australian Commonwealth waters. Click here to see our latest Energy Alert on this topic.
On 29 October 2021, leadership changes to the ESB were announced. Under the changes, the board has been reduced from five members down to three and the new Chair of the board is Ms Anna Collyer, who is also the Chair of the AEMC.
Click here to see our latest Energy Alerts, as part of our Energy Alert Series.
Authors: Paul Newman, Partner; Andre Dauwalder, Senior Associate.
