AEPC_2020_10

Procedure Change Proposal

Wholesale Electricity Market Rules – Clause 2.10

Date of Notice: 21 August 2020

This notice informs all Rule Participants and interested parties (Consulted Persons) that AEMO has published a Procedure Change Proposal concerning revisions to the Market Procedure: Declaration of Bilateral Trades and the Reserve Capacity Auction (Procedure) and is conducting a consultation process on this proposal.

This consultation is being conducted in accordance with the Procedure Change Process detailed in clause 2.10 of the Wholesale Electricity Market Rules (WEM Rules).

Matter under Consultation

The Minister for Energy amended the WEM Rules on 11 February 2020 to implement changes to the Reserve Capacity Price from the 2019 Reserve Capacity Cycle (RCM Pricing Amendments). Further information about the changes can be found on Energy Policy WA’s website. 

The RCM Pricing Amendments introduced multiple prices for Reserve Capacity, including a Fixed Reserve Capacity Price for new generation Facilities that meet certain conditions. Market Participants may nominate a Facility to receive the Fixed Reserve Capacity Price during the trade declaration process. 

Demand Side Programmes are now allowed to declare an intention to trade Certified Reserve Capacity bilaterally with another Market Participant, as well as participate in a Reserve Capacity Auction (if held). 

Changes are required to this Procedure to reflect the RCM Pricing Amendments.  The proposed changes to the Market Procedure are summarised below:

• Updates to Appendix A of the Procedure to clarify requirements for new Facilities and Planned Facility Upgrades when applying for Committed Status.
• Drafting and structure improvements throughout to clarify steps of the Procedure and align with the wording in the WEM Rules.
• Removed flow charts for consistency with other Market Procedures.
• Updates to reflect AEMO’s latest Market Procedure template (including formatting, contents, and procedure administration steps in section 1 to be consistent across all procedures). 
• Other minor typographical and formatting changes. 

Further details are provided in the Procedure Change Proposal published with this notice. The proposed revised Market Procedure is published with this notice and the Procedure Change Proposal. 

The Consultation Process

The consultation process is outlined below. Dates in italics are indicative only and subject to change.

Invitation to Make Submissions

AEMO invites written submissions on this Procedure Change Proposal, including any alternative or additional proposals you consider may improve the procedure/s or better meet the Wholesale Market Objectives in section 122(2) of the Electricity Industry Act 2004 (and clause 1.2.1 of the WEM Rules).

Please identify any parts of your submission that you wish to remain confidential, and explain why. AEMO may still publish that information if it does not consider it to be confidential, but will consult with you before doing so. 

Meetings

In your submission, you may request a meeting with AEMO to discuss the Procedure Change Proposal, stating why you consider a meeting is necessary or desirable. 

If appropriate, meetings may be held jointly with other Consulted Persons. Subject to confidentiality restrictions, AEMO will generally make details of matters discussed at a meeting available to other Consulted Persons, and may publish them. 

Closing Date and Time

Submissions in response to this Procedure Change Proposal should be sent by email to wa@aemo.com.au, to reach AEMO by 5.00 pm (AWST) on 18 September 2020. 

All submissions must be forwarded in electronic format (both pdf and Word). Further, all emails relating to this Procedure Change Proposal must be entitled “AEPC_2020_10: Declaration of Bilateral Trades and the Reserve Capacity Auction Market Procedure - [Name of the submitting company or individual]”. Submissions should use the Procedure Change Submission form available at:

http://aemo.com.au/Electricity/Wholesale-Electricity-Market-WEM/Procedures/Procedure-changes.

Stakeholders requiring additional time to make a submission or who have queries in relation to the proposed amended Market Procedure or this Procedure Change Proposal can contact AEMO via email at wa@aemo.com.au.

Publication

All submissions will be published on AEMO’s website. Confidential information will not be published, other than as specified above.