AGL responded to the AEMC consultation paper on an urgent rule change proposal that seeks to ensure the national electricity market (NEM) can settle when regional demand is below 1 MWh. The rule will allow the Australian Energy Market Operator (AEMO) to substitute numbers into its non-energy cost allocation formulas to ensure that these will continue to calculate. These formulas rely on numerators and denominators that include adjusted gross energy (AGE), which is a customer's net flow of electricity at a connection point. AEMO notes that if the aggregate AGE for a region falls below 1 MWh for a trading interval, the non-energy cost allocation formulas in rule 3.15 cannot be solved by its market settlement systems. To address this issue, AEMO proposes to substitute a market customer's average usage from the previous four billing periods into the relevant cost allocation equations when regional demand is less than 1 MWh. This rule change is a temporary solution to ensure the NEM continues to settle and AGL supports AEMO’s proposal.
The submission can be accessed here.