EUAA Submission: AEMC National Electricity Amendment (Inter-Regional Settlements Residue Arrangements For Trnasmission Loops) Rule 2025 Draft Determination
Emily Wood | January 30, 2025
‘… When AEMO first proposed to operate Project Energy Connect (PEC) as a transmission loop, we recognised that this would have detrimental financial implication for consumers. As we suggested to AEMO in our submission to them:
- The EUAA is aware that the building of PEC will already impact customer’s bills through increased TUOS in NSW and SA.
- The integration of PEC into the NEM will impact consumers both directly (changes to spot-price outcomes and indirectly (changes to wholesale market risk premiums and further increases to TUOS charges through the Settlement Residue Auctions (SRA)).
- EUAA is concerned that AEMO have not considered all the costs and risks that will be passed through to consumers if the preferred approach is adopted.
- EUAA Strongly recommends that AEMO undertake the following actions before deciding on the preferred approach to implementing PEC in the most efficient and least distortionary way possible:
- Commission quantitative modelling to compare the dispatch and settlement outcomes for the alternative Victorian micro-slice and loop flow models in terms of impacts to consumers;
- Delay a final decision on how to implement PEC Stage 2 until after the market can observe the initial results of the micro-slice model that will be used for implementing stage 1 of PEC; and
- Should ultimately a network loop flow model be implemented, that negative settlement residues continue to be recovered from TNSPs rather than SRA unit holders.
We were disappointed when AEMO’s final Determination continued with the loop, leaving the Commission in a difficult position….’
Please download attachment to read full submission.
