Legal development

Australian electricity and gas markets - March 2022 update

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    What you need to do:

    Stakeholders should note the new rules and reports published below, and note the deadlines for making submissions.

    National Electricity Rules

    On 3 March 2022, the AEMC's Regulated stand-alone power systems 2022 rule change came into effect. The rule change makes amendments to the National Electricity Rules to allow distributors to roll out stand-alone power systems (SAPS) in the NEM. SAPS typically comprise solar panels, batteries and back-up generators and are used in remote communities and communities that have lost access to the network. The final rule can be accessed here.

    On 3 March 2022, the AEMC published its final rule and determination on the Enhancing operational resilience in relation to indistinct events 2022 rule change. This rule change amends the National Electricity Rules to expand the contingency event framework to allow AEMO to manage the risk of 'indistinct events'. This rule change is intended to provide AEMO with the flexibility to manage unpredictable threats to power system security. The final rule and determination can be accessed here.

    On 10 March 2022, AEMC's Extension of time and reduction in scope of the 2022 reliability standard and settings review (2022 RSS Review) rule change came into effect. This rule change requires the Reliability Panel to undertake the review of the reliability standard and settings and provide its final report to the AEMC by 1 September 2022. The 2022 RSS Review will be for the period of 1 July 2025 to 30 June 2028. The final determination and rule can be accessed here.

    On 15 March 2022, AEMC extended the date for publication of the final determination for the Updating Short Term PASA rule change to 5 May 2022.  The extension was made following AEMO providing the AEMC with new information on the implementation timeframes for the proposed rule.

    On 17 March 2022, the AEMC published its final rule determination on the Governance of distributed energy resources technical standards 2022. The final rule determination sets out AEMC's plan on DER technical standards and draft terms of reference to initiate a review to act on this plan. The final rule determination can be accessed here.

    National Energy Retail Rules

    On 3 March 2022, the AEMC's Regulated stand-alone power systems 2022 rule change came into effect. The rule change makes amendments to the National Energy Retail Rules to allow distributors to roll out SAPS in the NEM. The final rule can be accessed here.

    On 17 March 2022, the AEMC published its final rule determination on the Governance of distributed energy resources (DER) technical standards 2022. The final rule determination sets out AEMC's plan on DER technical standards and draft terms of reference to initiate a review to act on this plan. The final rule makes amendments to the National Energy Retail Rules can be accessed here.

    National Gas Rules

    On 17 March 2022, the AEMC invited stakeholders to provide input into the proposed draft rules for the Victorian Declared Wholesale Gas Market (DWGM) distributed connected facilities rule change. The Victorian DWGM currently only recognises transmission connected facilities. A workshop will be held virtually on 8 April 2022 at 10:00am where stakeholders will have the opportunity to provide initial feedback. Stakeholders can register their interest here (registrations close 6 April 2022).

    Other updates

    On 4 March 2022, the ESB published new materials relating to its congestion management work stream on its website.  The materials include the slide pack from the virtual seminar on alternative options for congestion management (held on 24 February 2022), and the papers from the second meeting of the Congestion Management Technical Working Group, a copy of which can be found here.

    On 22 March 2022, AER invited stakeholders to provide their views in relation to its amendment of the transmission pricing methodology guidelines to include how to price system strength services in the NEM based on a corresponding AEMC rule change made in October 2021. An online forum will be run on 8 April 2022 from 2pm. Stakeholders can register their interest here by 6 April 2022 at 5:00pm. Written submissions are due by 26 April 2022 and can be sent via email to AERPricing@aer.gov.au or by mail. More details can be accessed here.

    On 25 March 2022, CSIRO released a Global Power System Transformation (G-PST) Research Roadmap that it has developed with AEMO. The Research Roadmap provides research plans for nine research topics which have been identified as the most important issues in order to accelerate the decarbonisation of our electricity system. The Research Roadmap can be accessed here.

    Click here to see our latest Energy Alerts, as part of our Energy Alert Series.

    Authors: Paul Newman, Partner; Andre Dauwalder, Senior Associate; Harriet Curran, Lawyer

    The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to.
    Readers should take legal advice before applying it to specific issues or transactions.

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