Type
Sector
Electricity
Segment
Transmission
Issue date
AER reference
AC 48/22

The Australian Energy Regulator (AER) is amending its transmission pricing methodology guidelines to include how to price system strength services in the National Electricity Market (NEM). We are seeking views from interested stakeholders through a consultation paper and public forum.

System strength is a critical service that supports inverter-based resources such as wind and solar generation, and batteries, as they become a key part of the generation mix in the NEM.

Based on a rule change by the Australian Energy Market Commission in October last year, we are modifying the guidelines to specify

  • the permitted methodologies for determining the system strength unit price, and
  • the principles for forecasting system strength revenues.

We are aiming to make the amendments to the pricing methodology guidelines by 31 August 2022. You can find more information in our website.

Our consultation paper seeks comments on key areas of consideration, as outlined in our list of consultation questions. We welcome submissions by Tuesday 26 April 2022.

Online Forum

Our online forum on Friday 8 April 2022, from 2pm to 4pm (AEST), will be an opportunity to discuss the questions that will help to shape the submissions and the amended guideline.

Register your interest here for the online public forum by Wednesday 6 April 2022 at 5.00pm (AEST).

Submissions

Written submissions can be sent via email to AERPricingataer [dot] gov [dot] au (AERPricing[at]aer[dot]gov[dot]au) or by mail addressed to:

Mr Warwick Anderson
General Manager
Australian Energy Regulator
GPO Box 3131
Canberra, ACT, 2601

We prefer that all submissions be publicly available to facilitate an informed and transparent consultative process. We will treat submissions as public documents unless otherwise requested. All non-confidential submissions will be placed on the AER's website. For further information regarding the AER's use and disclosure of information provided to it, see the ACCC/AER Information Policy.

We request parties wishing to submit confidential information:

  • clearly identify the information that is the subject of the confidentiality claim
  • provide a non-confidential version of the submission in a form suitable for publication