EUAA Submission: AEMO Draft Report – Consultation on Automation of Negative Residue Management for the Implementation of Transmission Loops
Emily Wood | October 18, 2025
AEMO’s historical minimalist interpretation of the NER has led to some strange and avoidable issues in the past that result in more costs to consumers. This proposal is no different and we will propose more efficient approaches that will reduce costs for consumers.
‘…The EUAA supports proposed guideline changes where evidence points to an issue and the proposed rule change clearly leads to improved efficiency of markets and where the costs and risks are appropriately allocated to those best able to manage them. The EUAA does not support approaches that lack evidence or require consumers to take on risk best managed by others.
When electrical circuits contain “loops”, the loop operates according to Kirchhoff’s Law, that is the electricity will always circulate around the loop in one direction or the other. The legs of the loop will only behave as radial lines when the physical loop is broken, i.e. for the PEC loop, when one of the interconnectors involved is not operating (noting that NSW-Vic has multiple interconnectors that form redundancies in that leg of the loop if one NSW-Vic interconnector is offline)…’
Please download attached document to read our full submission.
