Rule Change: Open
Overview
On 6 December 2023 the AEMC received a rule change request from GloBird Energy (the proponent) to amend the National Electricity Rules (NER).
The proponent is seeking to amend the NER to shorten the settlement cycle from 20 business days following the end of a billing period (as is current practice), to 10 business days.
The proponent’s view is that shortening the settlement cycle will reduce the costs of the prudential regime imposed on market participants by:
- lowering credit support requirements for market participants; and,
- reducing the impact of Call Notices from AEMO.
The proponent considers that change may benefit retailers (particularly smaller retailers) by freeing up working capital, supporting increased investment in service innovations, lowering barriers to market entry, and reducing the risk of retailer failure.
In turn, this may benefit customers through access to better service offerings, increased competition, and a lower risk of customer disruption due to retailer failure.
To assess whether we should make a rule change to shorten the settlement cycle, the AEMC released a consultation paper on 22 February 2024. Submissions are due by 4 April 2024, with other engagement opportunities to follow.