Rule Change: Open
Overview
On 7 December 2023 the Commission made a more preferable draft rule, which improves the workability of the feedback loop assessment.
The draft rule would promote a clear, consistent and predictable regulatory framework to safeguard consumer interests and support the timely and efficient delivery of major transmission projects.
Key features of the draft rule include the following.
- Enabling the feedback loop to be assessed against the most recent Optimal Development Path in a draft or final Integrated System Plan which is underpinned by the most up-to-date inputs, assumptions and scenarios.
- Requiring the Australian Energy Regulator (AER) to amend its Cost Benefit Analysis guidelines to provide guidance on the timing of a feedback loop request. It would also allow the AER to provide guidance on the timing of when Project Assessment Conclusion Reports are published.
- Providing Transmission Network Service Providers with the flexibility to carry out concurrent feedback loop assessment and Contingent Project Application processes.
- Requiring the Australian Energy Market Operator (AEMO) to complete the feedback loop assessment within 40 business days from the later of the date the request is submitted or additional information is received. AEMO would also have the power to extend its assessment by 60 days if it determines the assessment involves complexities or difficulties.
Test
The draft rule is open for consultation for a period of 7 weeks after publication. Submissions are being accepted until 25 January 2024.
Background
On 29 June 2023, the AEMC received a rule change request from The Honourable Chris Bowen MP, Minister for Climate Change and Energy to amend the National Electricity Rules.
The Commission adopted a fast track process reflecting the consultation carried out on the issues raised in this rule change request during our Transmission Planning and Investment Review.
The rule change seeks to improve the feedback loop assessment by ensuring the process is workable and fit for purpose.