The AEMC prioritisation framework identifies our priority areas for reform. Addressing the key issues under these areas of reform is critical to supporting the Energy Ministers' strategic direction and achieving the national energy objectives.
In May 2023 the AEMC sought public feedback on its draft priorities which highlighted critical issues facing the market. Following that public consultation the AEMC confirmed five key areas of reform to be prioritised in the 2023-2024 financial year;
- Resilience
- Consumer energy resources (CER)
- Transmission
- Emissions reduction
- Reliability, system security and future wholesale market design (post-2030)
Please note; these areas are not exclusive. The AEMC will continue to progress rule changes as a priority when requested by Energy Ministers, critical to the functioning of the energy system or if there is a threat to consumers.
Resilience
The resilience of the energy system is being challenged by the increasing frequency and severity of extreme events. The objective of this priority is to improve the resilience of the energy system and markets so that they can resist, absorb, accommodate, and recover from the effects of disruptive events in a timely and efficient way.
Key projects include:
- Review of the compensation framework
- Compensation and dispute resolution frameworks
- Review into the arrangements for failed retailer’s electricity and gas contracts
Consumer Energy Resources (CER)
CER needs to be better integrated into the market to achieve the national energy objectives. Reform should consider consumers’ freedom to choose how their energy resources are used and market arrangements should enable CER to improve the efficiency of the system to benefit all.
Key projects include:
- Unlocking CER benefits through flexible trading
- Scheduled Lite Mechanism (Integrating price-responsive resources into the NEM)
- Review into consumer energy resources technical standards
- Review of the regulatory framework for metering services
Transmission
More transmission infrastructure and a more interconnected grid is needed to achieve net zero. It is important to ensure regulatory framework is fit-for-purpose to support the timely and efficient delivery of major transmission projects, and better signals are in place to coordinate new battery, generation, and network build.
This priority will include rule changes from the AEMC Transmission review and playing a lead role on the Energy Advisory Panel’s (EAP) Transmission access reform work stream.
Key projects include:
- Transmission Access Reform (TAR)
- Enhancing community engagement in transmission
- Accommodating financeability in the regulatory framework
- Concessional Finance for Transmission Network Service Providers
Emissions reduction
Legislative changes to include an emission reduction component in the national energy objectives significantly impacts the AEMC’s work as the objectives guide our decision-making. We welcome the change and the opportunity to work with governments and our fellow market bodies to include this new component in the energy objectives.
Key projects include:
Reliability, system security and future wholesale market design (post-2030)
The AEMC will consider key changes to reliability settings that aim to provide real time and investment signals to address reliability, progress key reforms in system security including those relating to the connections process and technical access standards. It also involves working with governments and market bodies on issues relating to long-term wholesale market design.
This work will include consideration of rule changes to adjust the market price settings and the Reliability Panel’s work on the form of the reliability standard.
Key projects include: