The Australian Energy Regulator (AER) has published a draft System Security Network Support (SSNS) Payment Guideline for consultation.
The Guideline sets out how the AER will determine whether proposed expenditures for SSNS services are likely to result in prudent and efficient expenditures.
The Guideline assists transmission network service providers (TNSPs) to better understand how they can apply for AER review of draft SSNS contracts by providing guidance on the nature of the determination, the criteria we must have regard to, the process we will follow, and the type of information we may have regard to in a review.
Have your say
We invite stakeholders to provide written submissions on our draft SSNS Payment Guideline.
We prefer to make submissions publicly available to facilitate an informed and transparent consultative process. We will treat written submissions as public documents unless otherwise requested.
Stakeholders should email any comments or written submissions to anthony [dot] weir
AER [dot] gov [dot] au (anthony[dot]weir[at]AER[dot]gov[dot]au) by close of business on Wednesday 30 October 2024.
The AER will consider stakeholder feedback in developing the final Guideline, which must be published by 1 December 2024.
Background
TNSPs set out proposed expenditures for SSNS services in a draft contract between the TNSP and the SSNS service provider (i.e. a generator or battery). The AER may determine if the proposed expenditures are likely consistent with the operating expenditure objectives, criteria and factors and network support pass through factors set out in National Electricity Rules (NER) clause 6A.6.6A.
The AER is required to make this new type of determination, and to publish the accompanying Guideline, under the AEMC’s Improving Security Frameworks for the Energy Transition Rule Change, which was published on 28 May 2024. SSNS services include system strength, inertia, and network support and control ancillary services typically provided by a synchronous generator or battery to ensure the power system is secure as we transition to more renewable generation.