The STPIS provides a financial incentive to transmission network service providers (TNSPs) to maintain and improve service performance. The scheme is made up of three components, including the market impact component (MIC), which is designed to encourage TNSPs to minimise the impact of planned transmission outages that can affect electricity wholesale market outcomes.

In the lead up to its 2022–27 regulatory control period, Powerlink bought to our attention the issue of the relevant data period for setting the MIC target.

To provide clarity, the AER prepared a draft guidance note in accordance with clause 6A.2.3 of the National Electricity Rules (NER).

We received one submission on our draft guidance note, from Powerlink. The submission was in relation to the overall suitability of the scheme.

In its revised revenue proposal for the 2022–27 regulatory control period, AusNet Services submitted that the MIC is no longer fit-for-purpose because it does not recognise the impact of renewable energy generation penetration or the challenges in managing the change in generation mix.

On 28 April, we published a final guidance note to provide greater clarity for the above issues.

On 5 November 2021, the AER published its draft guidance note that clarifies the data period to be used in setting the Market Impact Component (MIC) performance target under version 5 of the transmission service performance incentive scheme (STPIS).

This guidance note is intended as a supplement to the STPIS scheme instrument, rather than a new appendix to the scheme instrument.

The guidance note covers:

• context to the application of the Scheme to TNSPs and the framework in which it is applied (section 2)
• the requirements of the Scheme with respect to calculation of the MIC performance target, including our expectations in this regard (section 3)
• a worked example (section 4).

TNSPs and other interested parties were invited to make submissions on this draft guidance note by 24 December 2021. Submissions are now closed.

The AER has published a guidance note to provide information on our assessment of the market impact component (MIC) parameters for applying version 5 of the Service Target Performance Incentive Scheme (STPIS) to transmission network service providers (TNSPs). This guidance note has been prepared in accordance with clause 6A.2.3 of the National Electricity Rules.

The purpose of this guidance note is to provide clarification on:

• the data period used in calculating the MIC performance target
• how MIC exclusions 1 and 6 are to be applied to certain MIC counts in the scheme. 

This guidance note applies to TNSPs that are subject to version 5 of the scheme and are required to propose a MIC performance target in their revenue proposal.