EUAA Submission: Draft Determination – National Electricity Amendment (Calculation of System Strength Quantity) Rule 2024
Emily Wood | January 18, 2024
‘…The EUAA has concerns regarding the negative impact that system strength provided through Transmission Network Service Provider’s who are also System Strength Service Providers (SSSP’s) may have on consumer bills. These concerns include:
- over-investment in system strength that leaves significant under-utilised system strength assets in a TNSP’s Regulatory Asset Base (RAB) which flows through to consumers as part of the Transmission Use of System (TUOS) charges;
- the apparent removal of the “No Harm” principle applied to distributing the costs of TNSP owned system strength assets;
- the higher level (and therefore cost) of system strength purchased through the SSSP than through self-remediation.
The EUAA applauds both AEMO and AEMC on addressing each of these issues through the current proposed rule change, that results in the same comparative cost of system strength however it is acquired and a return to the “No Harm” principle. ..’
