Settlements

Procedures and guides

NEM Settlement Estimates Policy

This policy describes AEMO's procedures for the use of estimated values in the calculation of settlement results.

In particular, it sets out AEMO's response to its settlement-related obligation under the National Electricity Rules (the Rules) in relation to the development of and consultation for procedures for estimating settlement results when normal processing is not possible under the Rules clause 3.15.12 (c).

This policy also includes details of the calculation of estimates for prudential purposes, determined by AEMO under the Rules clause 3.3.9.

The following guide is not a policy, but it is a supporting guide to help participants understand the Settlement Estimation process that AEMO performs for prudential purposes.

NEM Transmission Network Service Provider Negative Settlements Residue Procedure

AEMO has established a National Electricity Market (NEM) Transmission Network Service Provider Negative Settlements Residue Procedure, to recover amounts arising from negative inter-regional and intra-regional settlements residues in a timeframe that minimises the impact on the settlement of Market Participants. The procedure has been made in accordance with the Rules clauses 3.6.5(a)(4) and 3.6.5(a)(4A), and is effective 11 June 2012.

For more information please see the NEM Transmission Network Service Provider Negative Settlements Residue Procedure document.

Primary Settlement Nomination for Multiple Participant IDs

AEMO has developed this procedure to enable companies with multiple Participant IDs to nominate a single primary identifier, which is used for settlement. All other Participant IDs continue to have statements issued as normal, however all statement amounts are reassigned to the primary identifier.

For more information please view the Primary Settlement Nomination for Multiple Participant IDs document.

Application of the GST to NEM Transactions

The Goods and Service Tax (GST) was applied to NEM transactions commencing midnight 1 July 2000. GST-exclusive pricing has been adopted for the NEM when displaying Electricity Spot Prices.

AEMO is registered for GST, and processes NEM transactions which fall into the various classifications of:

  • Taxable supplies.
  • Financial supplies.
  • GST Free supplies.
  • No supplies.

For GST purposes, electricity is supplied by the Generators to AEMO, and by AEMO to its customers, on a principal to principal basis.

For enquiries about this document, please contact the AEMO Information & Support Hub.

GST Information Note for New Registrations

The GST is applied to most NEM transactions. Below is a GST information note for applicants, addressing the:

  • Adoption of GST-exclusive pricing for NEM transactions.
  • Need to obtain an applicant's written agreement for AEMO to issue Recipient Created Tax Invoices.

Registration applicants are required to complete and forward two copies of the written agreement for AEMO to issue Recipient Created Tax Invoices. The zip file contains a template "Written Agreement" and instructions (520-0012). Once executed by AEMO, one copy of the agreement will be returned to the registration applicant for their own records.

In response to the COVID-19 pandemic, AEMO has adopted digital and remote ways of working to protect our people and critical operations. During this time, applicants can sign and exchange electronically.

NEM Settlement Revisions Policy

This policy sets out the procedure for the preparation and issue of revised settlement statements. In particular, it sets out AEMO's response to its settlement-related obligation under the Rules, in relation to the development of and consultation for policy for revised settlement statements under clause 3.15.19 (e).

To access previous versions please contact the AEMO Information & Support Hub.

Settlements Revisions Liability Deed

This deed is for use when one entity wishes to take liability for the settlement revisions of another, for example in the event of an acquisition.

Application of the Bank Bill Rate to Settlement Dispute Adjustments

This paper outlines AEMO Settlement application of v1.0 of the Rules clauses:

  • 3.15.19(a) Settlement dispute adjustments.
  • 3.15.20 Payment of adjustments.
  • Chapter 10 Glossary – Bank bill rate.

For further information on this document, please contact the AEMO Information & Support Hub.

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