Australian electricity and gas markets – September 2024 Update 

In our September 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 5 September 2024, the Australian Energy Market Commission (AEMC) released a more preferrable final rule and final determination for its Bringing early works forward to improve transmission planning rule change. The rule change: 

• allows Transmission Network Service Providers (TNSPs) to submit an early works contingent project application (CPA) to the Australian Energy Regulator (AER) without completing:
  • a regulatory investment test for transmission (RIT-T); or 
  • the Australian Energy Market Operator's feedback loop assessment;
• defines 'early works' and excludes certain 'incurred early works costs' from the RIT-T and feedback loop assessment;
• improves cost recovery certainty for early works for TNSPs; and
• changes the completion date for the AEMC's Integrated System Plan (ISP) review from 1 July 2025 to 1 July 2027. 

The rule change had immediate effect from 5 September 2024.

On 26 September 2024, the AEMC released a draft rule and draft determination to formalise the role of the Australian Energy Market Operator (AEMO) in maintaining the cyber security of our electricity system. Currently, AEMO's role in preparing for potential cybersecurity incidents and maintaining the cyber security of the National Electricity Market (NEM) is not explicitly defined in the National Electricity Rules. Under the draft rule, AEMO must:

• coordinate a NEM-wide cyber incident response plan;
• support energy businesses in cyber incident preparedness;
• provide expert cyber security advice to government and industry; and
• distribute critical cyber security information to market participants.

The AEMC is seeking feedback on its draft rule by 7 November 2024. 

On 26 September 2024, the AEMC released a draft electricity rule and draft determination for its Better integrating gas and community sentiment into the ISP rule change. The draft electricity rule requires AEMO to include the following details in the ISP:

• gas development projections; 
• inputs, assumptions, and scenarios for gas development projections; and
• discrepancies between gas development projections and existing gas publications.

The AEMC is seeking feedback on its draft rule by 7 November 2024.

On 26 September 2024, the AEMC released its more preferable draft rule and draft determination for its Improving consideration of demand-side factors in the ISP rule change. The draft rule obliges:

• AEMO to publish: 
  • a demand-side factors statement;
  • information collection guidelines for Distribution Network Service Providers (DNSPs); and
  • information provided under the guidelines;
• DNSPs to comply with the guidelines and publish the information required in a distribution annual planning report.

The AEMC is seeking feedback on its draft rule by 7 November 2024.

National Energy Retail Rules

No energy retail rule change requests were initiated in September 2024. No AEMC determinations relevant to the National Energy Retail Rules were published. 

National Gas Rules

On 26 September 2024, the AEMC released a draft gas rule and draft determination for its Better integrating gas and community sentiment into the ISP rule change. The draft gas rule allows AEMO to use information collected under the National Gas Rules in performing its National Transmission Planner functions;

The AEMC is seeking feedback on its draft rule by 7 November 2024.

Other Updates

The AER is seeking feedback on its: 

• draft gas ring-fencing decision guide by 4 October 2024; and
• draft determination on the 2024 cost thresholds review for the regulatory investment test by 8 October 2024. 

The AER also released its 2024 Electricity and gas networks performance report. 

Authors: Dan Brown, Partner; Dale Gill, Partner; Paul Newman, Consultant; Carl Franzmann, Graduate and Ethan Low, Paralegal.