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 is consulting on updates to the Procedure and in accordance with NER 3.6.5 AEMO is interested to hear from all stakeholders, particularly TNSPs, on the changes being proposed.

Stakeholders are invited to provide feedback on the draft Procedure via email to [email protected] by 5pm AEST on Tuesday 30 June 2026. Please note that submissions will be published, other than confidential material, as per AEMO’s Consultation submission guidelines.

Scope

The focus of this consultation is 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 is 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