Electricity Market Participant Fee Structure Review

30/11/2020
Market National Electricity Market
StageDraft Report
ConvenorAEMO NEM
Initiated30/11/2020
Accepting submissions?Yes
Submissions close04/02/2021

AEMO has made a Draft Determination on the structure of electricity participant fees to apply from 1 July 2021. In developing its Draft Determination AEMO has carefully considered the issues raised in its Consultation Paper; stakeholder views on the Consultation Paper; further internal analysis and discussion; and National Electricity Rules (NER) fee structure requirements.
 
AEMO is required to consult on its proposed structure for participant fees in accordance with clause 2.11 and clause 8.9 of the National Electricity Rules (Rules), and in consultation with Registered participants, interested parties and such other persons as AEMO thinks appropriate.

The current structure of Participant fees for electricity commenced on 1 July 2016 for a duration of five years, ending 30 June 2021. Therefore, AEMO is conducting a consultation on the structure of Participant fees to apply from 1 July 2021 for AEMO’s revenue requirements including for:

  • The National Electricity Market (NEM).
  • Retail Markets and administering Retail Competition.
  • The National Transmission Planner (NTP) functions.
  • Major Reform Initiatives, including the Five Minute Settlement program (5MS program) and Distributed Energy Resources (DER) integration.
  • The Energy Consumers Australia (ECA) fees recovered by AEMO from Participant fees.
  • Registrations.
  • NEM Participant Compensation Fund (PCF).
  • Incremental service fees.

The objective of the consultation is to provide stakeholders with the opportunity to have input into the development of the structure of Participant fees to apply from 1 July 2021 and only applies to the structure of fees. The actual amount charged for each fee will be determined on an annual basis, via the AEMO budgeting process.

AEMO has made a Draft Determination on its future electricity fee structures and is accordingly seeking stakeholder views.

The closing date for submissions to this Draft Determination is Thursday, 4 February 2021.

Consultation process

AEMO invites you to provide a submission on the Draft Report and Determination - Electricity Fee Structures in AEMO’s electricity markets.

Please provide your submissions in electronic format (both pdf and Word) as they will be published on the AEMO website.

Electronic submissions are due by 5.00pm AEDT Thursday 4 February 2021 to Kevin.Ly@aemo.com.au.

AEMO plans to publish all submissions on its website. Please identify any part of your submission that is confidential and you do not wish to be published.  Respondents should also note that if material identified as confidential cannot be shared and validated with other stakeholders then it may be accorded less weight in AEMO’s decision making process than published material. 

Stakeholders may also request a meeting in their submission. Please specify why you would like a meeting.  Matters discussed at a meeting may be made available to other stakeholders.

For all inquiries on this process please contact:

Mr Kevin Ly
Group Manager Regulation
kevin.ly@aemo.com.au

Timetable

The following table contains an outline of the consultation process, including key dates. Please note the key dates are proposed and may change.

Milestone

Date

Publication of Draft Report

Monday 30 November 2020

Submissions on Draft Report due

By Thursday 4 February 2021

Publication of Final Report

By Thursday 18 March 2021

Final Report required (no later than)

By Wednesday 31 March 2021

 New fee structure takes effect

Thursday 1 July 2021

Key documents

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