Consultation on minor amendments to the 2021 Inputs, Assumptions and Scenarios, and the ISP Methodology

Section 5.22.10(c)(1) of the National Electricity Rules (NER) requires AEMO to consider a range of market benefits as part of preparing an Integrated System Plan (ISP) unless it can provide reasons why:

• A particular class of market benefit is likely not to materially affect the outcome of the assessment of the development path; or
  The estimated cost of undertaking the analysis to quantify the market benefit is likely to be disproportionate given the level of uncertainty regarding future outcomes.
• These classes of benefits are documented in the NER and further discussed in the Australian Energy Regulator’s Cost benefit analysis guidelines (‘CBA Guidelines’). Competition benefits are one type of market benefit referred to in the NER and CBA Guidelines.

The purpose of this Consultation Paper was to commence a single-stage consultation process in accordance with the Forecasting Best Practice Guidelines on both the IASR and ISP Methodology, specifically in relation to calculating competition benefits in ISP analysis in circumstances where this class of benefit may be material to outcomes. The IASR and ISP Methodology were not otherwise to change.