Australian electricity and gas markets – July 2023 update

In our July 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 13 July 2023, the AEMC published a draft rule determination to extend the 'interim reliability measure' (IRM) from 1 July 2025 to 30 June 2028 to support the reliability of the electricity system. The Commission intends to review whether measures like the IRM are needed beyond 30 June 2028 following the 2026 Reliability Standards and Settings Review.

Written submissions to the draft determination and rule are due by 24 August 2023. On 18 July 2023, the AER submitted a rule change request to the AEMC requesting the inclusion of negotiated transmission services within the scope of the transmission ring-fencing framework. The AER has requested the rule change proposal be fast tracked given it has already undertaken extensive stakeholder consultation on the nature of the problem and the proposal forming the basis of this rule change request. For more information, see here. On 20 July 2023, the AEMC published a consultation paper on two rule change requests seeking to harmonise the national energy rules (electricity, gas and retail) with the updated energy objectives.

The AEMC is seeking stakeholder views on the issues and potential solutions raised in both rule change requests. Written submissions are due by 17 August 2023 through the AEMC website.

National Energy Retail Rules

Other than the consultation paper referred to above, no retail rule change requests were initiated in July.  No AEMC determinations relevant to the National Energy Retail Rules were published.

National Gas Rules

Other than the consultation paper referred to above, no gas rule change requests were initiated in July.  No AEMC determinations relevant to the National Gas Rules were published.

Other Updates

On 7 July, the Australian Energy Regulator (AER):

• published its Electricity network performance report 2023 which considers key outcomes and trends in the regulated network services and illustrates how network businesses are performing under the regulatory regime;
• released its NSW Electricity Infrastructure Fund Contribution Determination Guideline outlining how it intends to make contribution determinations under the NSW Electricity Infrastructure Roadmap. The AER is inviting stakeholder submissions until 4 August 2023. For more information see here; and
• published a consultation paper on the Energy Security Board's (ESB) Network Visibility project which seeks to provide market and policy stakeholders with the critical information necessary to make consumer energy resources planning decisions and manage network-related risks. Stakeholders are invited to make submissions by 1 September 2023. 

On 10 July 2023, the AER released an issues paper and commenced its Retail performance reporting procedures and guidelines (2023 update) review. The paper proposes various changes to the guidelines which set out the manner and form in which energy retailers must submit performance data to the AER. Stakeholders are invited to make submissions on the issues paper by 7 August 2023.

On 12 July 2023, AEMO published the Engineering Roadmap FY2024 Priority Actions Report, outlining the activities AEMO intends to undertake in the 2023-24 financial year to prepare the National Electricity Market (NEM) for operation at times of 100 percent instantaneous renewables.

AEMO is seeking feedback on the report and encourages stakeholder engagement. For more information see here.

On 27 July 2023, AEMO released its Quarterly Energy Dynamics – Q2 2023 report which outlines detailed market dynamics, trends and outcomes in Australia's electricity and gas market across the period 1 April to 30 June 2023. For more information and previous reports see here.

On 20 July 2023 the AER published its Wholesale markets quarterly - Q2 2023 report, which analyses trends in the electricity and gas wholesale markets, including prices, demand, generation, contracts, market outlook and new entry and exit across the period 1 April to 30 June 2023. For more information see here.

On 24 July 2023, the AER released draft guidance on applying the amended National Energy Objectives (NEOs). The guidance covers:

• matters the AER is likely to consider in applying the amended NEOs to processes which are underway at the time the amendments take effect; and
• how the AER may operationalise the amended electricity objective. 

The AER is seeking stakeholder submissions until 18 August 2023. For more information see here.

Please click here to see our latest Energy Alerts, as part of our Energy Alert Series.

Authors: Andre Dauwalder, Counsel; Nikita Summers, Graduate; and Murray Rissik, Paralegal.