On 28 April 2022, the Australian Energy Market Commission (AEMC) published a consultation paper on a rule change request from Energy Networks Australia (ENA). 

The rule change request proposes a new mechanism that would allow TNSPs to more directly recover the cost of new AEMO participant fees that have been recently allocated to TNSPs.

Key features of the proposed rule are: 
•    amendments to revenue and pricing methodologies to allow for direct cost recovery, rather than recovery through an AER revenue determination, 
•    alignment of AEMO’s budgeting process and TNSPs’ publication of transmission charges, and
•    clarifying transfer payment arrangements between a Co-ordinating Network Service Provider (CNSP) and a TNSP.

ENA’s rule change request is closely aligned with current rules relating to CNSPs’ recovery of AEMO participant fees for the National Transmission Planner (NTP) function.

Stakeholders are invited to make written submissions on the consultation paper by 26 May 2022.

The Commission considers the rule change request to be non-controversial and proposes an expedited process

ENA has requested that the rule change request be treated as a non-controversial Rule in accordance with section 96 of the NEL. The Commission has decided to use an expedited process, provided that it does not receive any valid requests not to use the expedited process by 12 May 2022.

Background 

Under the National Electricity Rules (NER) AEMO must publish: 
•    an annual budget of its revenue requirements by the start of each financial year, and
•    a structure setting out how its budgeted revenue is to be recovered through participant fees. 

In March 2021, AEMO published a final determination of its electricity fee structure for the period from 1 July 2021 to 30 June 2026. Key points included that: 
•    AEMO will start to charge specific TNSPs a proportion of AEMO’s core NEM fees for the first time, to reflect AEMO’s increasing involvement in network related activities, such as power system security. 
•    There is a transitional period of two years, so that TNSPs are not charged a proportion of core NEM fees until 1 July 2023, to provide time for a rule change related to TNSP recovery of these participant fees.