AEPC_2026_11 Capacity Credit Allocations

The consultation process

The consultation process is outlined below. Dates are indicative only and subject to change.

Procedure change proposal

Electricity System and Market Rules – Clause 2.10

Date of Notice: 10 August 2026

Matter under consultation

AEMO has commenced the Procedure Change Process to propose amendments to the WEM Procedure: Capacity Credit Allocation as a result of updates to the ESM Rules as a result of the Reserve Capacity Mechanism Review.

AEMO has proposed the following amendments to the Procedure to ensure consistency with the Amending Rules:

• Addition of further information on capacity credit allocation process.
• Addition of peak and updates to the equation for where AEMO approves and rejects capacity credit allocation.
• Addition of information on withdrawing capacity credit allocation submissions to align with updates to the ESM Rules.
• Changes to the section regarding amendments to capacity credit allocations to provide information about how AEMO identifies Peak Capacity Credit Allocations including updates to the relevant equation.
• General updates to the template and Procedure to improve readability and alignment with ESM Rules.

On 6 February 2025 the State Electricity Objective (SEO) replaced the Wholesale Market Objectives under section 3A of the Electricity Industry Act 2004.  Following an assessment, AEMO considers the Procedure is consistent with the SEO.

Invitation to make submissions

AEMO invites written submissions on this Procedure Change Proposal, including any alternative or additional proposals may improve the Procedure or better meet the State Electricity Objective under section 3A of the Electricity Industry Act 2004.

AEMO requests that respondents identify any parts of their submission that they wish to remain confidential, explaining why. AEMO advises that it may still publish that information if it does not consider it to be confidential, but will consult with the respondent before doing so.

When making a claim for confidentiality, AEMO encourages respondents to familiarise themselves with Chapter 10 of the Electricity System and Market Rules (ESM Rules), which imposes obligations in respect to the release of documents. 

Meetings

Before the closing date for submissions, any person may request a meeting with AEMO to discuss the issues and proposed changes raised in the Procedure Change Proposal, stating why they consider a meeting is necessary or desirable.

If appropriate, meetings may be held jointly with other stakeholders.

Subject to confidentiality restrictions, AEMO generally makes details of matters discussed at meetings available to other stakeholders as part of the final published Procedure Change Report (or earlier, where applicable).

Closing date and time

Submissions in response to this Procedure Change Proposal should be sent by email to [email protected], to reach AEMO by 5.00 pm (AWST) on 7 September 2026.

All submissions must be in electronic format (pdf or Microsoft Word) and should use the Procedure Change Submission form.

AEMO is not obliged to consider submissions received after the closing date and time. Any late submissions should explain the reason for delay and the detriment expected if AEMO does not consider the late submission.

Publication

All submissions will be published on AEMO's website. Confidential information will not be published, other than as specified above.