NEM TNSP Negative Settlements Residue Procedure – SSC Changes

Consultation process

Key contact

Email: [email protected]

Matters under consultation

AEMO is implementing the Shortening the Settlement Cycle (SSC) reform following the Australian Energy Market Commission’s final determination, made on 12 December 2024. The change was made in response to GloBird Energy’s rule change request to shorten the settlement cycle.

The final rule shortens the National Electricity Market (NEM) settlement cycle to nine business days following the end of a billing period and introduces a new revision 20 business days following the end of the billing period.

The final rule will commence at the start of billing week 33 on 9 August 2026.

The NEM TNSP Negative Settlements Residue Procedure (Procedure) sets out the matters AEMO is required to determine under clause 3.6.5 of the National Electricity Rules (NER) in relation to the recovery of negative settlements residue amounts from Transmission Network Service Providers (TNSPs), and is a relevant procedure for the purposes of NER 11.179.

AEMO has now completed its consultation on updates to the Procedure.

AEMO received one written submission from Transgrid on the proposed changes outlined in the consultation scope below. AEMO met with Transgrid twice following their submission, and as a result of these discussions AEMO will allow TNSPs an additional business day to provide a negative settlements residue payment to AEMO between 1 October 2026 and 1 November 2026. To support this transitional arrangement, AEMO will include a corresponding transitional clause in its upcoming consultation on changes to the Procedure for Project EnergyConnect – Market Integration scheduled to commence in August 2026.

Scope

The focus of this consultation was proposed updates to the NEM TNSP Negative Settlements Residue Procedure to:

• Implement the National Electricity Amendment (Shortening the settlement cycle) Rule 2024 No. 22 (SSC Rule) by reflecting changes to terms and concepts in the NER under the SSC Rule. Due to reduced settlement statement posting timelines under the SSC Rule, the main change that impacts TNSPs was AEMO’s proposal to:
  • Change the negative settlements residue payment date from the 14th business day after the end of a billing period, to the 5th business day after the end of a billing period