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1. Introduction

The WEM Rules

1.1. Authority of WEM Rules

1.1.1. These are the market rules made under the Regulations and

contemplated by section 123 of the Electricity Industry Act 2004 (“Electricity Industry Act”).

Explanatory Note

Clause 1.1.2 is amended as a consequence of the new Essential System Services framework.

1.1.2. These WEM Rules govern the market and the operation of the South

West interconnected system, including the wholesale sale and purchase of electricity, Reserve Capacity, and Essential System Services.

1.2. Objectives

1.2.1. The objectives of the market are:

\(a\) to promote the economically efficient, safe and reliable production and supply of electricity and electricity related services in the South West interconnected system;

\(b\) to encourage competition among generators and retailers in the South West interconnected system, including by facilitating efficient entry of new competitors;

\(c\) to avoid discrimination in that market against particular energy options and technologies, including sustainable energy options and technologies such as those that make use of renewable resources or that reduce overall greenhouse gas emissions;

\(d\) to minimise the long-term cost of electricity supplied to customers from the South West interconnected system; and

\(e\) to encourage the taking of measures to manage the amount of electricity used and when it is used.

Conventions

1.3. Electricity Industry Act and Regulations

1.3.1. A word or phrase defined in the Electricity Industry Act or the

Regulations has the same meaning when used in these WEM Rules.

1.4. Other rules of interpretation

Explanatory Note

Clause 1.4.1(n) is amended as a consequence of new functions conferred on Network Operators under section 2.2C and the Coordinator of Energy (Coordinator) under section 2.2D, and the transfer of functions from the Rule Change Panel (RCP) to the Coordinator.

1.4.1. In these WEM Rules, unless the contrary intention appears:

\(a\) (Glossary): a word or phrase listed in the Glossary in Chapter 11 has the meaning given in the Glossary;

\(b\) (day): a day means a calendar day;

\(c\) [Blank]

\(d\) (singular and plural): the singular includes the plural and the plural includes the singular;

\(e\) (gender): a reference to a gender includes any gender;

\(f\) (headings): headings (including those in brackets at the beginning of paragraphs) are for convenience only and do not affect the interpretation of these WEM Rules;

\(g\) (persons): a reference to a person includes an individual, a firm, a body corporate, a partnership, a joint venture, an unincorporated body or association, or any government agency;

\(h\) (things): a reference to any thing (including any amount) is a reference to the whole and each part of it;

\(i\) (clauses etc): a reference to a clause, chapter, annexure or schedule is a reference to a clause or chapter in or annexure or schedule to the WEM Rules;

\(j\) (statutes etc): a reference to a statute, ordinance, code or other law includes regulations and other instruments under it and consolidations, amendments, re-enactments or replacements of any of them;

\(k\) (variations): a reference to a document (including the WEM Rules) includes any variation or replacement of it;

\(l\) (other parts of speech): other parts of speech and grammatical forms of a word or phrase defined in the Glossary in chapter 11 have a corresponding meaning;

\(m\) (appointments): where these WEM Rules confer a power on a person to make an appointment to a position, the person also has the power:

i. to specify the period for which any person appointed in exercise of the power (“appointee”) holds the position;

ii. to remove or suspend an appointee and to reappoint or reinstate an appointee; and

iii. where an appointee is suspended or is unable, or expected to become unable, for any other cause to perform the functions of the position, to appoint a person to act temporarily in place of the appointee during the period of suspension or other inability;

\(n\) (amendments): if AEMO, the Economic Regulation Authority, the Coordinator or a Network Operator has the power to make, prescribe, determine, compile, establish or develop a document, instrument, matter or thing, then AEMO, the Economic Regulation Authority, the Coordinator or a Network Operator, as applicable, also has the power to amend, replace or revoke the whole or part of that document, instrument, matter or thing exercisable in like manner and subject to like conditions (if any);

\(o\) (functions): “function” includes function, power, duty, responsibility and authority;

\(p\) (include or including): the words “include” or “including” are not used as, nor are they to be interpreted as, words of limitation, and, when introducing an example, do not limit the meaning of the words to which the example relates;

\(q\) [Blank]

\(r\) (headings and comments): headings and comments appearing in footnotes or boxes in these WEM Rules (other than tables containing data or other information) are for convenience only and do not affect the interpretation of these WEM Rules.

1.4.2. In these WEM Rules, unless the contrary intention appears, any

notice or confirmation required to be issued by the Coordinator, AEMO or the Economic Regulation Authority may be issued by an automated software system employed by the Coordinator, AEMO or the Economic Regulation Authority, as applicable,.

1.4.3. The Wholesale Electricity Market will operate on Western Standard

Time (= Coordinated Universal Time (UTC) + 8 hours). At all times, the times and time limits mentioned in these WEM Rules refer to Western Standard Time.

1.5. Subservient Documents

Explanatory Note

Clause 1.5.1(b) is amended as a consequence of new functions conferred on Network Operators under section 2.2C and the Coordinator under section 2.2D, and the transfer of functions from the RCP to the Coordinator.

1.5.1. The following documents are subservient to the WEM Rules:

\(a\) WEM Procedures; and

\(b\) any other document or instrument issued, made or given by AEMO, the Economic Regulation Authority, a Network Operator or the Coordinator under the WEM Rules.

1.5.2. In the event of conflict between the WEM Rules and other

documents, then the order of precedence is to be, in the following order:

\(a\) the Electricity Industry Act;

\(b\) the Regulations;

\(c\) the WEM Rules;

\(d\) the WEM Procedures;

(dA) any other document or instrument issued, made or given by AEMO under the WEM Rules;

(dB) any other document or instrument issued, made or given by the Economic Regulation Authority under these WEM Rules; and

(dC) any other document or instrument issued, made or given by the Coordinator under these WEM Rules.

\(e\) [Blank]

1.5.3. If a provision of a document which is higher in the order of

precedence (in this clause called the “higher provision”) is inconsistent with a provision of a document which is lower in the order of precedence, then the higher provision prevails, but only to the extent of the inconsistency.

1.6. Notices

1.6.1. The Coordinator must develop a WEM Procedure which sets out the

method by which notices and communications required under, contemplated by or relating to, these WEM Rules are to be given to or by the Coordinator.

1.6.2. AEMO must develop a WEM Procedure which sets out the method by

which notices and communications required under, contemplated by or relating to, these WEM Rules are to be given to or by AEMO.

1.7. Publication

Explanatory Note

Clauses 1.7.1 to 1.7.4 are amended to reflect the new Market Information Framework. AEMO, the ERA and the Coordinator will only be required to publish Public Information, which by its nature should be available to any person. Chapter 10 provides flexibility to AEMO, the ERA and the Coordinator regarding the means by which Confidential Information is disclosed.

The clauses have been further amended to remove the reference to “releasing” documents or information (because some information “released” under WEM Rules is not Public Information) and to clarify the “publishing” a document means publishing it in a place that is accessible all members of the public.

1.7.1. Where AEMO is required by these WEM Rules to publish a document

or information, then AEMO must make that document or information available on the WEM Website, in a place which is publicly accessible.

1.7.2. [Blank]

1.7.3. Where the Economic Regulation Authority is required by these WEM

Rules to publish a document or information, then the Economic Regulation Authority must make that document or information available on its website, in a place which is publicly accessible.

1.7.3A. Where the Coordinator is required by these WEM Rules to publish

a document or information, the Coordinator must make that document or information available on the Coordinator’s Website, in a place which is publicly accessible.

Explanatory Note

Clause 1.7.4 is added as a consequence of new functions conferred on Network Operators under section 2.2C.

1.7.4. Where a Network Operator (in respect to any WEM Procedures the

Network Operator is required to develop and maintain under these WEM Rules) is required by these WEM Rules to publish a document or information, then:

\(a\) the Network Operator must make that document or information available on its website, in a place that is publicly accessible; and

\(b\) if these WEM Rules require that document or information to be published on the WEM Website:

i. the Network Operator must promptly notify AEMO when the document or information is published on the Network Operator’s website;

ii. AEMO must, at a minimum, promptly publish a link to the area of the Network Operator's website where the document or information is published on the WEM Website; and

iii. the Network Operator is deemed to have published the document or information once the Network Operator has published the document or information on its own website, and has notified AEMO.

Staging

1.8. Staging of the WEM Rules

1.8.1. A provision of the WEM Rules commences at the time fixed by the

Minister.

1.8.2. [Blank]

1.8.3. The Minister may fix different times for different provisions of

these WEM Rules under clause 1.8.1.

1.8.4. The Minister must publish notice of the commencement time fixed

for a provision under clause 1.8.1 in the Government Gazette.

1.8.5. [Blank]

1.8.6. To avoid doubt, and without limiting the foregoing, where a word

or phrase listed in the Glossary in Chapter 11 is defined by reference to a provision of these WEM Rules, regard should be had to that provision for the purposes of determining the meaning of that word or phrase, even though the provision has not yet commenced.

1.9. [Blank]

1.10. [Blank]

1.11. [Blank]

1.12. [Blank]

1.13. [Blank]

1.14 [Blank]

1.15 [Blank]

1.16. [Blank]

1.17. [Blank]

1.17A. Transition of certain Economic Regulation Authority functions to

the Coordinator

1.17A.1. On and from the Coordinator Transfer Date:

\(a\) where the Coordinator is required to do an act, matter or thing under a provision of these WEM Rules, and that act, matter or thing was done by the Economic Regulation Authority prior to the Coordinator Transfer Date, then the act, matter or thing is deemed to have been done by the Coordinator in accordance with the relevant provision;

\(b\) where the Coordinator is required to do an act, matter or thing under a provision of a WEM Procedure, and that act, matter or thing was done by the Economic Regulation Authority prior to the Coordinator Transfer Date, then the act, matter or thing is deemed to have been done by the Coordinator in accordance with the relevant provision;

\(c\) notwithstanding the operation of clauses 1.17A.1(a) and

1.17A.1(b), the Coordinator is not liable for any act, matter or thing

done by the Economic Regulation Authority prior to the Coordinator Transfer Date in breach of these WEM Rules or any WEM Procedure;

\(d\) where the Coordinator is required to publish or release any information or document (other than a WEM Procedure) (including, without limitation, a form, protocol, instrument or other thing) and that information or document was published or released by the Economic Regulation Authority prior to the Coordinator Transfer Date, then:

i. the information or document is deemed to have been published or released by the Coordinator in accordance with these WEM Rules; and

ii. any reference to the Economic Regulation Authority in that information or document that should be a reference to the Coordinator having regard to the Coordinator's functions, powers, rights and obligations under these WEM Rules and the WEM Procedures is deemed to be a reference to the Coordinator; and

\(e\) where a person (including, without limitation, a Rule Participant) is required to provide information to, or do an act, matter or thing for the Coordinator under these WEM Rules or a WEM Procedure and the person has provided that information to, or done that act, matter or thing for the Economic Regulation Authority prior to the Coordinator Transfer Date, then the information, act, matter or thing, is deemed to have been provided to, or done for, the Coordinator in accordance with the relevant WEM Rules or WEM Procedure.

1.18. [Blank]

1.18A. Transition of certain Rule Change Panel functions to the

Coordinator

1.18A.1. On and from the Coordinator Transfer Date—

\(a\) where the Coordinator is required to do an act, matter or thing under a provision of these WEM Rules, and that act, matter or thing was done by the Rule Change Panel prior to the Coordinator Transfer Date, then the act, matter or thing is deemed to have been done by the Coordinator in accordance with the relevant provision;

\(b\) where the Coordinator is required to do an act, matter or thing under a provision of a WEM Procedure, and that act, matter or thing was done by the Rule Change Panel prior to the Coordinator Transfer Date, then the act, matter or thing is deemed to have been done by the Coordinator in accordance with the relevant provision;

\(c\) notwithstanding the operation of clauses 1.18A.1(a) and

1.18A.1(b), the Coordinator is not liable for any act, matter or thing

done by the Rule Change Panel prior to the Coordinator Transfer Date in breach of these WEM Rules or any WEM Procedure;

\(d\) where the Coordinator is required to develop or maintain a WEM Procedure, and that WEM Procedure was developed or maintained by the Rule Change Panel prior to the Coordinator Transfer Date, then—

i. the WEM Procedure is deemed to have been developed or maintained by the Coordinator in accordance with these WEM Rules;

ii. a reference to the Rule Change Panel in that WEM Procedure that should be a reference to the Coordinator having regard to the Coordinator's functions, powers, rights and obligations under these WEM Rules and the other WEM Procedures is deemed to be a reference to the Coordinator;

iii. the Coordinator may amend the WEM Procedure to refer to the Coordinator instead of the Rule Change Panel (where appropriate) and make any necessary consequential amendments without undertaking the Procedure Change Process; and

iv. any WEM Procedure which is amended by the Coordinator in accordance with this clause 1.18A.1(d) may commence operation on the date and time determined by the Coordinator and published on the Coordinator’s Website;

\(e\) where the Coordinator is required to publish or release any information or document (other than a WEM Procedure) (including, without limitation, a form, protocol, instrument or other thing) and that information or document was published or released by the Rule Change Panel prior to the Coordinator Transfer Date, then—

i. the information or document is deemed to have been published or released by the Coordinator in accordance with these WEM Rules; and

ii. any reference to the Rule Change Panel in that information or document that should be a reference to the Coordinator having regard to the Coordinator's functions, powers, rights and obligations under these WEM Rules and the WEM Procedures is deemed to be a reference to the Coordinator;

\(f\) where a person (including, without limitation, a Rule Participant) is required to provide information to, or do an act, matter or thing for the Coordinator under these WEM Rules or a WEM Procedure and the person has provided that information to, or done that act, matter or thing for the Rule Change Panel prior to the Coordinator Transfer Date, then the information, act, matter or thing, is deemed to have been provided to, or done for, the Coordinator in accordance with the relevant WEM Rules or WEM Procedure; and

\(g\) if, by operation of this clause 1.18A.1, the Coordinator is deemed to have made a Reviewable Decision that was made by the Rule Change Panel, then, on and from the Coordinator Transfer Date any application to the Electricity Review Board for a review of the Reviewable Decision that might have been brought or continued by a Rule Participant against the Rule Change Panel may be brought or continued against the Coordinator as if all references to the Rule Change Panel as the relevant decision-maker are references to the Coordinator.

1.18A.2. On and from the Coordinator Transfer Date—

\(a\) any Rule Change Proposal that has, prior to the Coordinator Transfer Date, been developed by or submitted to the Rule Change Panel (and in respect of which the rule change process under sections 2.4 to 2.8 is not, as at the Coordinator Transfer Date, complete) will be deemed to have been developed by or submitted to the Coordinator; and

\(b\) notwithstanding any other provision of these WEM Rules, a WEM Procedure or any document referred to in these WEM Rules or a WEM Procedure (including a Draft Rule Change Report), the normal timeframes for the Coordinator or any other person to do any act, matter or thing in relation to a Rule Change Proposal referred to in clause 1.18A.2(a) (including any extended timeframe determined by the Rule Change Panel under clause 2.5.10 in respect of any such proposal) will be automatically extended for such period as determined by the Coordinator (which determination may be made at a date after the date of the expiry of the normal, or previously extended, timeframe).

1.18A.3. The Coordinator must publish a notice of the extended

timeframe(s) determined in accordance with clause 1.18A.2(b), and must update any information already published in accordance with clause 2.5.7(f) (if applicable).

1.18A.4. Notwithstanding clause 2.24.6A, the date by which the

Coordinator must notify AEMO of the dollar amount that the Coordinator may recover under clause 2.24.5B in the Financial Year beginning on 1 July 2021, is 15 July 2021, and the references in clauses 2.24.2 and 2.24.2A, in connection with the Coordinator providing information, to 5 Business Days prior to 30 June are to be read as references to 15 July 2021.

1.19. [Blank]

1.19A. Amendments to WEM Procedures to reflect transfer of functions

1.19A.1. In addition to the amendments to WEM Procedures referred to in

clause 1.18A.1, AEMO, the Economic Regulation Authority, the Coordinator, and Western Power ( as applicable) (each a Transferee) may make the minimum necessary amendments to a WEM Procedure required to be developed or maintained by the Transferee to:

\(a\) reflect the transfer of functions, powers, rights and obligations from Western Power, AEMO or the Rule Change Panel to the Transferee or another Transferee; or

\(b\) maintain consistency between the WEM Procedure and these WEM Rules,

without undertaking the Procedure Change Process.

1.19A .2. Any WEM Procedure which is amended by a Transferee in

accordance with clause 1.19A.1 may commence operation on the date and time determined by the Transferee required to develop or maintain the WEM Procedure and published on the relevant Transferee's website.

1.19A.3. Until such time as the relevant Transferee makes the amendments

referred to in clause 1.19A.1, any reference in any WEM Procedure to the Rule Change Panel that should be a reference to the Coordinator having regard to the Coordinator’s functions, powers, rights and obligations under these WEM Rules and other WEM Procedures is deemed to be a reference to the Coordinator.

1.20. [Blank]

1.21. Deferral of dates for the 2016 Reserve Capacity Cycle

Notwithstanding any other provision of these WEM Rules, the operation of the following clauses is modified in respect of the 2016 Reserve Capacity Cycle as follows:

\(a\) clause 4.1.11(b) is modified so that AEMO must cease to accept lodgement of applications for certification of Reserve Capacity for the 2016 Reserve Capacity Cycle in accordance with clause 4.9.1 from 5:00 PM on 29 September 2017;

\(b\) clause 4.1.12(b) is modified so that AEMO must notify each applicant for certification of Reserve Capacity of the Certified Reserve Capacity to be assigned by 5:00 PM on 17 November 2017;

\(c\) clause 4.1.13(b)(i) is modified so that each Market Participant must provide to AEMO any Reserve Capacity Security required in accordance with clause 4.13.1 not later than 5:00 PM on 1 December 2017 if any of the Facility's Certified Reserve Capacity is specified to be traded bilaterally in accordance with clause 4.14.1(c) or acquired by AEMO under clause 4.14.1(ca) or if the Facility is subject to a Network Control Service Contract;

\(d\) clause 4.1.13(b)(ii) is modified so that each Market Participant must provide to AEMO any Reserve Capacity Security required in accordance with clause 4.13.1 not later than 5:00 PM on 14 December 2017 if any of the Facility's Certified Reserve Capacity is specified to be offered into the Reserve Capacity Auction in accordance with clause 4.14.1(a) and where clause 4.1.13(b)(i) does not apply;

\(e\) clause 4.1.14(c) is modified so that each Market Participant holding Certified Reserve Capacity for the 2016 Reserve Capacity Cycle must provide to AEMO notification in accordance with clause 4.14.1 as to how its Certified Reserve Capacity will be dealt with not later than 5:00 PM on 1 December 2017;

\(f\) clause 4.1.15 is modified so that AEMO must confirm to each Market Participant in accordance with clause 4.14.9 the amount of Certified Reserve Capacity that can be traded from its Facilities by 5:00 PM on 4 December 2017;

\(g\) clause 4.1.15A is modified so that AEMO must publish the Certified Reserve Capacity for each Facility in accordance with clause 4.9.9A by 5:00 PM on 5 December 2017;

\(h\) clause 4.1.16(c) is modified so that AEMO must publish the information required by clauses 4.15.1 and 4.15.2 pertaining to whether or not a Reserve Capacity Auction is required by 5:00 PM on 5 December 2017;

\(i\) clause 4.1.17(a)(iii) is modified so that, if a Reserve Capacity Auction proceeds, then AEMO must accept submission of Reserve Capacity Offers from Market Participants in accordance with clause 4.17.2 from 9:00 AM on 6 December 2017;

\(j\) clause 4.1.17(b)(iii) is modified so that, if a Reserve Capacity Auction proceeds, then AEMO must accept submission of Reserve Capacity Offers from Market Participants in accordance with clause 4.17.2 until 5:00 PM on 14 December 2017;

\(k\) clause 4.1.20 is modified so that each Market Participant holding Certified Reserve Capacity which has been scheduled by AEMO in a Reserve Capacity Auction must provide to AEMO notification, in accordance with clause 4.20, of how many Capacity Credits each Facility will provide not later than 5:00 PM on 21 December 2017;

\(l\) clause 4.1.21 is modified so that a Market Participant may apply to AEMO under clause 4.13.2A for a recalculation of the amount of Reserve Capacity Security required to be held by AEMO for a Facility in accordance with clause 4.13.2(b) after 5:00 PM on 22 December 2017; and

\(m\) clause 4.1.21A is modified so that AEMO must, in the event that a Reserve Capacity Auction was required, assign Capacity Credits in accordance with clause 4.20.5A not later than 5:00 PM on 22 December 2017.

1.22. Deferral of dates for the 2017 Reserve Capacity Cycle

Notwithstanding any other provision of these WEM Rules, the operation of the following clauses is modified in respect of the 2017 Reserve Capacity Cycle as follows:

\(a\) clause 4.1.11(b) is modified so that AEMO must cease to accept lodgement of applications for certification of Reserve Capacity for the 2017 Reserve Capacity Cycle in accordance with clause 4.9.1 from 5:00 PM on 29 December 2017;

\(b\) clause 4.1.12(b) is modified so that AEMO must notify each applicant for certification of Reserve Capacity of the Certified Reserve Capacity to be assigned by 5:00 PM on 19 February 2018;

\(c\) clause 4.1.13(b)(i) is modified so that each Market Participant must provide to AEMO any Reserve Capacity Security required in accordance with clause 4.13.1 not later than 5:00 PM on 2 March 2018 if any of the Facility's Certified Reserve Capacity is specified to be traded bilaterally in accordance with clause 4.14.1(c) or acquired by AEMO under clause 4.14.1(ca) or if the Facility is subject to a Network Control Service Contract;

\(d\) clause 4.1.13(b)(ii) is modified so that each Market Participant must provide to AEMO any Reserve Capacity Security required in accordance with clause 4.13.1 not later than 5:00 PM on 14 March 2018 if any of the Facility's Certified Reserve Capacity is specified to be offered into the Reserve Capacity Auction in accordance with clause 4.14.1(a) and where clause 4.1.13(b)(i) does not apply;

\(e\) clause 4.1.14(c) is modified so that each Market Participant holding Certified Reserve Capacity for the 2017 Reserve Capacity Cycle must provide to AEMO notification in accordance with clause 4.14.1 as to how its Certified Reserve Capacity will be dealt with not later than 5:00 PM on 2 March 2018;

\(f\) clause 4.1.15 is modified so that AEMO must confirm to each Market Participant in accordance with clause 4.14.9 the amount of Certified Reserve Capacity that can be traded from its Facilities by 5:00 PM on 6 March 2018;

\(g\) clause 4.1.15A is modified so that AEMO must publish the Certified Reserve Capacity for each Facility in accordance with clause 4.9.9A by 5:00 PM on 7 March 2018;

\(h\) clause 4.1.16(c) is modified so that AEMO must publish the information required by clauses 4.15.1 and 4.15.2 pertaining to whether or not a Reserve Capacity Auction is required by 5:00 PM on 7 March 2018;

\(i\) clause 4.1.17(a)(iii) is modified so that, if a Reserve Capacity Auction proceeds, then AEMO must accept submission of Reserve Capacity Offers from Market Participants in accordance with clause 4.17.2 from 9:00 AM on 8 March 2018;

\(j\) clause 4.1.17(b)(iii) is modified so that, if a Reserve Capacity Auction proceeds, then AEMO must accept submission of Reserve Capacity Offers from Market Participants in accordance with clause 4.17.2 until 5:00 PM on 14 March 2018;

\(k\) clause 4.1.20 is modified so that each Market Participant holding Certified Reserve Capacity which has been scheduled by AEMO in a Reserve Capacity Auction must provide to AEMO notification, in accordance with clause 4.20, of how many Capacity Credits each Facility will provide not later than 5:00 PM on 21 March 2018;

\(l\) clause 4.1.21 is modified so that a Market Participant may apply to AEMO under clause 4.13.2A for a recalculation of the amount of Reserve Capacity Security required to be held by AEMO for a Facility in accordance with clause 4.13.2(b) after 5:00 PM on 23 March 2018; and

\(m\) clause 4.1.21A is modified so that AEMO must, in the event that a Reserve Capacity Auction was required, assign Capacity Credits in accordance with clause 4.20.5A not later than 5:00 PM on 23 March 2018.

1.23. Application of clauses 1.21 and 1.22

1.23.1. Nothing in clause 1.21 shall affect the operation of Chapter 4

insofar as the clauses of Chapter 4 apply to a Reserve Capacity Cycle other than the 2016 Reserve Capacity Cycle.

1.23.2. Nothing in clause 1.22 shall affect the operation of Chapter 4

insofar as the clauses of Chapter 4 apply to a Reserve Capacity Cycle other than the 2017 Reserve Capacity Cycle.

1.24. Specific Transition Provisions for the 2017 Capacity Year

1.24.1. In this section 1.24:

RCM Amendments: Means the amending rules in Schedule B, Part 3 of the Wholesale Electricity Market Amending Rules 2016 made under regulation 7(4) of the WEM Regulations, published in the Government Gazette on 31 May 2016.

RCM Amendments Commencement Day: Means the Trading Day commencing at 8:00 AM on 1 October 2017, the date and time the RCM Amendments are to commence.

Pre‑Amended Rules: Means the WEM Rules as in force immediately before the RCM Amendments come into effect.

Post‑Amended Rules: Means the WEM Rules as in force immediately after the RCM Amendments come into effect.

1.24.2. Before 8:00 AM on the RCM Amendments Commencement Day,

notwithstanding that the Pre‑Amended Rules continue to apply, each Rule Participant must perform all obligations imposed on that Rule Participant under the Post‑Amended Rules, in relation to the RCM Amendments Commencement Day and subsequent Trading Days, that, if the Post‑Amended Rules were in force, the Rule Participant would have been required to perform under the Post‑Amended Rules. This includes, but is not limited to, obligations relating to:

\(a\) updated Standing Data under section 2.34;

\(b\) Reserve Capacity Obligation Quantity under section 4.12;

\(c\) Relevant Demand under clause 4.26.2CA;

\(d\) Individual Reserve Capacity Requirements under clause 4.28.8;

\(e\) a Non-Balancing Dispatch Merit Order under section 6.12;

\(f\) a Dispatch Instruction or Operating Instruction under Chapter 7; and

\(g\) a Dispatch Advisory under section 7.11.

1.24.3. If before 8:00 AM on the RCM Amendments Commencement Day,

notwithstanding that the Pre‑Amended Rules continue to apply, a Rule Participant performs an obligation under the Post‑Amended Rules under clause 1.24.2, then to the extent that the obligation is performed, the Rule Participant is not required to perform any equivalent obligation under the Pre‑Amended Rules to the extent that these obligations relate to the RCM Amendments Commencement Day or subsequent Trading Days.

1.24.4. If before 8:00 AM on the RCM Amendments Commencement Day,

notwithstanding that the Pre‑Amended Rules continue to apply, a Rule Participant is required to perform an obligation that relates to the RCM Amendments Commencement Day or subsequent Trading Days that it will not be required to perform under the Post‑Amended Rules, the Rule Participant is not required to perform the obligation to the extent that it relates to the RCM Amendments Commencement Day or subsequent Trading Days and to the extent that the obligation will not apply under the Post‑Amended Rules.

1.24.5. After 8:00 AM on the RCM Amendments Commencement Day,

notwithstanding that the Post‑Amended Rules apply, each Rule Participant must perform all obligations imposed on that Rule Participant under the Pre‑Amended Rules, arising in relation to each Trading Day (or part of a Trading Day) up to but excluding the RCM Amendments Commencement Day, that, if the Pre‑Amended Rules were in force, the Rule Participant would have been required to perform under the Pre‑Amended Rules. This includes, but is not limited to, obligations relating to:

\(a\) administration of the market under Chapter 2;

\(b\) administration of the Reserve Capacity Mechanism under Chapter 4;

\(c\) dispatch under Chapter 7;

\(d\) settlement under Chapter 9; and

\(e\) treatment of information under Chapter 10.

1.25. [Blank]

1.26. Transitional calculation of Individual Reserve Capacity

Requirements and the Capacity Credit Allocation Process

1.26.1. In this section 1.26:

New Rules: Means the Amending Rules made in the Prudential Exposure Final Rule Change Report (other than the Amending Rule with respect to this section 1.26).

Post-Amended Rules: Means the WEM Rules as in force immediately after the New Rules come into effect.

Pre-Amended Rules: Means the WEM Rules as in force immediately before the New Rules come into effect.

Prudential Exposure Final Rule Change Report: Means the Rule Change Panel’s Final Rule Change Report for the Rule Change Proposal: Reduction of the prudential exposure in the Reserve Capacity Mechanism (RC_2017_06).

Rule Change Commencement Day: Means the Trading Day when the New Rules come into effect (as determined by the Rule Change Panel under clause 2.8.12).

Rule Change Commencement Month: Means the Trading Month in which the Rule Change Commencement Day falls.

1.26.2. Prior to the Rule Change Commencement Day, notwithstanding that

the Pre‑Amended Rules continue to apply, each Rule Participant must perform all obligations imposed on that Rule Participant under the Post-Amended Rules, in relation to the Rule Change Commencement Month and subsequent Trading Months, that, if the Post-Amended Rules were in force, the Rule Participant would have been required to perform under the Post-Amended Rules. This includes but is not limited to obligations relating to:

\(a\) publication of Indicative Individual Reserve Capacity Requirements under clause 4.1.23C; and

\(b\) Capacity Credit Allocations under sections 9.4 and 9.5.

1.26.3. Prior to the Rule Change Commencement Day, notwithstanding that

the Pre‑Amended Rules continue to apply, each Rule Participant may perform any of the discretionary actions that the Rule Participant is permitted to perform under the Post-Amended Rules, in relation to the Rule Change Commencement Month and subsequent Trading Months, that, if the Post-Amended Rules were in force, the Rule Participant would be permitted to perform under the Post-Amended Rules.

1.26.4 AEMO must determine and publish the 12 Peak SWIS Trading

Intervals for each Hot Season for which the 12 Peak SWIS Trading Intervals will be required for the determination of Individual Reserve Capacity Requirements (including the assessment of Non-Temperature Dependent Loads) under the Post-Amended Rules by the time that is the later of:

\(a\) five Business Days after the commencement of this section 1.26; and

\(b\) the time specified in clause 4.1.23A of the Post-Amended Rules for the relevant Hot Season.

1.26.5. AEMO must determine and publish the 4 Peak SWIS Trading

Intervals for each Trading Month for which the 4 Peak SWIS Trading Intervals will be required for the determination of Individual Reserve Capacity Requirements (including the assessment of Non-Temperature Dependent Loads) under the Post-Amended Rules by the time that is the later of:

\(a\) five Business Days after the commencement of this section 1.26; and

\(b\) the time specified in clause 4.1.23B of the Post-Amended Rules for the relevant Trading Month.

1.26.6. AEMO must, as soon as practicable, publish an updated settlement

cycle timeline for the Financial Year in which the Post-Amended Rules come into effect that meets the requirements under clause 9.16.2 of the Post-Amended Rules for the Trading Months in the Financial Year that will be settled under the Post-Amended Rules.

1.26.7. If before the Rule Change Commencement Day, notwithstanding that

the Pre‑Amended Rules continue to apply, a Rule Participant performs an obligation under the Post-Amended Rules under clause 1.26.2, then to the extent that the obligation is performed, the Rule Participant is not required to perform any equivalent obligation under the Pre-Amended Rules to the extent that these obligations relate to the Rule Change Commencement Month or subsequent Trading Months.

1.26.8. If before the Rule Change Commencement Day, notwithstanding that

the Pre‑Amended Rules continue to apply, a Rule Participant is required to perform an obligation that relates to the Rule Change Commencement Month or subsequent Trading Months that it will not be required to perform under the Post-Amended Rules, the Rule Participant is not required to perform the obligation to the extent that it relates to the Rule Change Commencement Month or subsequent Trading Months and to the extent that the obligation will not apply under the Post-Amended Rules.

1.26.9. From the Rule Change Commencement Day, notwithstanding that the

Post‑Amended Rules apply:

\(a\) each Rule Participant must perform all obligations imposed on that Rule Participant under the Pre-Amended Rules, arising in relation to each Trading Month up to but excluding the Rule Change Commencement Month, that, if the Pre-Amended Rules were in force, the Rule Participant would have been required to perform under the Pre-Amended Rules; and

\(b\) if the Post-Amended Rules require recalculation of the Individual Reserve Capacity Requirements for a Trading Month prior to the Rule Change Commencement Month, then the Post‑Amended Rules do not apply to the extent that it would recalculate the Individual Reserve Capacity Requirements for that Trading Month.

1.26.10. From the Rule Change Commencement Day, notwithstanding that the

Post‑Amended Rules apply, each Rule Participant may perform any of the discretionary actions that the Rule Participant is permitted to perform under the Pre-Amended Rules, in relation to each Trading Month up to but excluding the Rule Change Commencement Month, that, if the Pre-Amended Rules were in force, the Rule Participant would have been permitted to perform under the Pre‑Amended Rules.

1.27. Deferral of dates for the 2018 Reserve Capacity Cycle

1.27.1. Notwithstanding any other provision of these WEM Rules, the

operation of the following clauses is modified in respect of the 2018 Reserve Capacity Cycle as follows:

\(a\) clause 4.1.11(b) is modified so that AEMO must cease to accept lodgement of applications for certification of Reserve Capacity for the 2018 Reserve Capacity Cycle in accordance with clause 4.9.1 from 5:00 PM on 28 February 2019;

\(b\) clause 4.1.12(b) is modified so that AEMO must notify each applicant for certification of Reserve Capacity of the Certified Reserve Capacity to be assigned by 5:00 PM on 29 April 2019;

\(c\) clause 4.1.13(b)(i) is modified so that each Market Participant must provide to AEMO any Reserve Capacity Security required in accordance with clause 4.13.1 not later than 5:00 PM on 13 May 2019 if any of the Facility’s Certified Reserve Capacity is specified to be traded bilaterally in accordance with clause 4.14.1(c) or acquired by AEMO under clause 4.14.1(ca) or if the Facility is subject to a Network Control Service Contract;

\(d\) clause 4.1.13(b)(ii) is modified so that each Market Participant must provide to AEMO any Reserve Capacity Security required in accordance with clause 4.13.1 not later than 5:00 PM on 24 May 2019 if any of the Facility’s Certified Reserve Capacity is specified to be offered into the Reserve Capacity Auction in accordance with clause 4.14.1(a) and where clause 4.1.13(b)(i) does not apply;

\(e\) clause 4.1.14(c) is modified so that each Market Participant holding Certified Reserve Capacity for the 2018 Reserve Capacity Cycle must provide to AEMO notification in accordance with clause 4.14.1 as to how its Certified Reserve Capacity will be dealt with not later than 5:00 PM on 13 May 2019;

\(f\) clause 4.1.15 is modified so that AEMO must confirm to each Market Participant in accordance with clause 4.14.9 the amount of Certified Reserve Capacity that can be traded from its Facilities by 5:00 PM on 14 May 2019;

\(g\) clause 4.1.15A is modified so that AEMO must publish the Certified Reserve Capacity for each Facility in accordance with clause 4.9.9A by 5:00 PM on 15 May 2019;

\(h\) clause 4.1.16(c) is modified so that AEMO must publish the information required by clauses 4.15.1 and 4.15.2 pertaining to whether or not a Reserve Capacity Auction is required by 5:00 PM on 15 May 2019;

\(i\) clause 4.1.16A is modified so that if a Reserve Capacity Auction is cancelled, AEMO must assign Capacity Credits in accordance with clause 4.20.5A(a) and make the determination referred to in clause 4.1.16A(b) by 5.00 PM on 15 May 2019;

\(j\) clause 4.1.17(a)(iii) is modified so that, if a Reserve Capacity Auction proceeds, then AEMO must accept submission of Reserve Capacity Offers from Market Participants in accordance with clause 4.17.2 from 9:00 AM on 17 May 2019;

\(k\) clause 4.1.17(b)(iii) is modified so that, if a Reserve Capacity Auction proceeds, then AEMO must accept submission of Reserve Capacity Offers from Market Participants in accordance with clause 4.17.2 until 5:00 PM on 30 May 2019;

\(l\) clause 4.1.18(a)(iii) is modified so that, if a Reserve Capacity Auction proceeds, AEMO must run the Reserve Capacity Auction on 31 May 2019;

\(m\) clause 4.1.20 is modified so that each Market Participant holding Certified Reserve Capacity which has been scheduled by AEMO in a Reserve Capacity Auction must provide to AEMO notification, in accordance with clause 4.20, of how many Capacity Credits each Facility will provide not later than 5:00 PM on 6 June 2019;

\(n\) clause 4.1.21 is modified so that a Market Participant may apply to AEMO under clause 4.13.2A for a recalculation of the amount of Reserve Capacity Security required to be held by AEMO for a Facility in accordance with clause 4.13.2(b) after 5:00 PM on 11 June 2019; and

\(o\) clause 4.1.21A is modified so that AEMO must, in the event that a Reserve Capacity Auction was required, assign Capacity Credits in accordance with clause 4.20.5A not later than 5:00 PM on 11 June 2019.

1.27.2. Nothing in clause 1.27.1 shall affect the operation of Chapter 4

insofar as the clauses of Chapter 4 apply to a Reserve Capacity Cycle other than the 2018 Reserve Capacity Cycle.

1.28. AEMO to Provide Information to the Minister

1.28.1. At any time before 1 July 2021, the Minister may, by written

notice, request AEMO to provide information or documents to the Minister or a person nominated by the Minister by the date and time specified in the notice where:

\(a\) the Minister has reasonable grounds for believing the information or documents are in AEMO’s possession or control including information which a Rule Participant has provided AEMO regardless of the assigned confidentiality status of the information or documents; and

\(b\) the information or documents are requested for the purpose of delivering the Western Australian Government’s Energy Transformation Strategy.

1.28.2. Before issuing a notice under clause 1.28.1, the Minister must

consult with AEMO about the scope of the request and the time by which the information or documents must be provided and take into account that consultation.

1.28.3 The Minister may delegate the power to request information or

documents under clause 1.28.1 of these WEM Rules by written notice and any request is to be taken to have been made in accordance with the terms of the delegation, unless the contrary is shown.

1.28.4 Subject to the Minister or their delegate, amending the scope of

the request or extending the timeframe by which the information or documents requested are to be provided in a notice issued under clause

1.28.1, AEMO must comply with the request before the date and time

specified in the notice.

1.28.5 The Minister must treat information or documents provided by AEMO

under this section 1.28 as confidential and must not publish any of the information provided unless the information is published in a form that:

\(a\) does not identify the Market Participant or Market Participants to which the information or documents relates or concerns; and

\(b\) the relevant Market Participant or Market Participants cannot be reasonably ascertained as a result of publication of the information or documents.

1.28.6 Any information or documents provided under this section must

only be used for the purpose of delivering the Western Australian Government’s Energy Transformation Strategy, and may only be disclosed to another person:

\(a\) where the person is directly involved in the delivery of the Western Australian Government’s Energy Transformation Strategy; and

\(b\) the person agrees to, or is otherwise bound by, terms that restrict the use, publication and disclosure of the information or documents on substantially the same terms as this section 1.28.

Explanatory Note

Clause 1.29.2 requires AEMO to develop a WEM Procedure for DSM Reserve Capacity Security, which must include the processes relating to requests under clause 4.13A.18 for DSM Reserve Capacity Security to be waived or released. A Market Participant with a Demand Side Programme (DSP) that is first assigned Capacity Credits for the 2019 Reserve Capacity Cycle cannot make an application for DSM Reserve Capacity Security to be waived or released until after 1 October 2021.

Clauses 1.29.4 to 1.29.6 provide a mechanism for AEMO to exempt a Market Participant with an existing DSP from the requirement to provide DSM Reserve Capacity Security. Any such exemption is subject to clause 4.13A.21 which sets out when an exemption can be revoked.

1.29 Transitional Provisions – DSM Reserve Capacity Security

1.29.1. Section 4.13A applies to the 2019 Reserve Capacity Cycle and

onwards.

1.29.2. AEMO is required to complete the Procedure Change Process to

document all of the processes referred to in clause 4.13A.23 in a WEM Procedure no later than 1 July 2020.

1.29.3. Subject to clause 1.29.4, a Market Participant cannot make a

request for the release or waiver of DSM Reserve Capacity Security in accordance with clause 4.13A.18 until after 1 October 2021.

1.29.4. Notwithstanding the requirements of section 4.13A, AEMO may, by

notice in writing:

\(a\) exempt a Market Participant with a Demand Side Programme that was assigned Capacity Credits for the 2019 Reserve Capacity Cycle from the requirement to provide DSM Reserve Capacity Security; and

\(b\) revoke an exemption granted under clause 1.29.4(a) in accordance with clause 4.13A.21.

1.29.5. AEMO may grant an exemption in accordance with clause 1.29.4(a)

where it:

\(a\) is satisfied that the Demand Side Programme has fulfilled its Reserve Capacity Obligations for the 2016 Reserve Capacity Cycle; or

\(b\) considers that, as at the date of the proposed exemption, the Demand Side Programme will be able to continue to meet its Reserve Capacity Obligations.

1.29.6. For the purposes of section 4.13A, an exemption granted under

clause 1.29.4(a) is deemed to be:

\(a\) a request by the relevant Market Participant under clause 4.13A.18(b); and

\(b\) a determination by AEMO under clause 4.13A.19(a) to waive the requirement to give AEMO the benefit of DSM Reserve Capacity Security.

1.30. Specific Transitional Provisions for the 2021 Capacity Year –

Operational Matters

1.30.1. In this section 1.30:

Pre-Amended Rules: Means the WEM Rules as in force immediately before the RCM Pricing Amendments come into effect.

Post-Amended Rules: Means the WEM Rules as in force immediately after the RCM Pricing Amendments come into effect.

RCM Pricing Amendments: Means the Amending Rules that will commence on the RCM Pricing Amendments Commencement Day made by the Minister under regulation 7(5) of the WEM Regulations by a notice published in the Government Gazette.

RCM Pricing Amendments Commencement Day: Means the Trading Day commencing at 8:00 AM on 1 October 2021.

Rule Change Commencement Month: Means the Trading Month in which the RCM Pricing Amendments Commencement Day falls.

1.30.2. Before 8:00 AM on the RCM Pricing Amendments Commencement Day,

notwithstanding that the Pre-Amended Rules continue to apply, each Rule Participant must perform all obligations imposed on that Rule Participant under the Post-Amended Rules, in relation to the RCM Pricing Amendments Commencement Day and subsequent Trading Days, that, if the Post-Amended Rules were in force, the Rule Participant would have been required to perform under the Post-Amended Rules. This includes, but is not limited to, obligations relating to:

\(a\) Individual Reserve Capacity Requirements under clause 4.28.8;

\(b\) a Non-Balancing Dispatch Merit Order under section 6.12;

\(c\) a Dispatch Instruction or Operating Instruction under Chapter 7; and

\(d\) a Dispatch Advisory under section 7.11.

1.30.3. If before 8:00 AM on the RCM Pricing Amendments Commencement

Day, notwithstanding that the Pre-Amended Rules continue to apply, a Rule Participant performs an obligation under the Post-Amended Rules under clause 1.30.2, then to the extent that the obligation is performed, the Rule Participant is not required to perform any equivalent obligation under the Pre-Amended Rules to the extent that these obligations relate to the RCM Pricing Amendments Commencement Day or subsequent Trading Days.

1.30.4. Before 8:00AM on the RCM Pricing Amendments Commencement Day,

notwithstanding that the Pre‑Amended Rules continue to apply, a Rule Participant may perform any of the discretionary actions that the Rule Participant is permitted to perform under the Post-Amended Rules, in relation to the Rule Change Commencement Month and subsequent Trading Months, that, if the Post-Amended Rules were in force, the Rule Participant would be permitted to perform under the Post-Amended Rules.

1.30.5 Capacity Credit Allocations that are made by a Market Participant

prior to the RCM Pricing Amendments Commencement Day for the Rule Change Commencement Month or any subsequent Trading Months must be made by the Market Participant in respect of a Facility in accordance with the Post-Amended Rules.

1.30.6. If before 8:00 AM on the RCM Pricing Amendments Commencement

Day, notwithstanding that the Pre-Amended Rules continue to apply, a Rule Participant is required to perform an obligation that relates to the RCM Pricing Amendments Commencement Day or any subsequent Trading Days that it will not be required to perform under the Post-Amended Rules, the Rule Participant is not required to perform the obligation to the extent that:

\(a\) it relates to the RCM Pricing Amendments Commencement Day or any subsequent Trading Days; and

\(b\) to the extent that the obligation will not apply under the Post-Amended Rules.

1.30.7. After 8:00 AM on the RCM Pricing Amendments Commencement Day,

notwithstanding that the Post-Amended Rules apply, each Rule Participant must perform all obligations imposed on that Rule Participant under the Pre-Amended Rules, arising in relation to each Trading Interval (or part of a Trading Interval) in a Trading Day, each Trading Day (or part of a Trading Day) or each Trading Month (or part of a Trading Month) up to but excluding the RCM Pricing Amendments Commencement Day, that, if the Pre-Amended Rules were in force, the Rule Participant would have been required to perform under the Pre-Amended Rules. This includes, but is not limited to, obligations relating to:

\(a\) administration of the market under Chapter 2;

\(b\) administration of the Reserve Capacity Mechanism under Chapter 4;

\(c\) dispatch under Chapter 7;

\(d\) settlement under Chapter 9; and

\(e\) treatment of information under Chapter 10.

1.30.8. From the RCM Pricing Amendments Commencement Day,

notwithstanding that the Post‑Amended Rules apply, each Rule Participant may perform any of the discretionary actions that the Rule Participant is permitted to perform under the Pre-Amended Rules, in relation to each Trading Month up to but excluding the Rule Change Commencement Month, that, if the Pre-Amended Rules were in force, the Rule Participant would have been permitted to perform under the Pre‑Amended Rules.

1.30.9 Notwithstanding clause 4.5.13, the Statement of Opportunities

Report for the 2021 Reserve Capacity Cycle does not need to include information that is not required to be included in a Statement of Opportunities Report under the Post-Amended Rules.

1.31. Transitional Provisions – Review of Reserve Capacity Price Factors

1.31.1. Clause 2.26.3A is modified so that the Economic Regulation

Authority must not carry out the first review required by clause 2.26.3A before 30 September 2022.

1.32. Transitional Provisions – Publishing Information in Clause

4.20.5AA

1.32.1. For the purposes of the 2019 Reserve Capacity Cycle,

notwithstanding clause 4.1.18A, AEMO must publish the summary of information in clause 4.20.5AA within 10 Business Days of the prices referred to in that clause having been determined by AEMO.

1.33. Specific Transitional Provisions – Network Congestion and

Constraint Equations

Explanatory Note

Clause 1.33.1 specifies the constraint-related preparatory activities that are required to be undertaken by AEMO and each Network Operator, and may be undertaken by the ERA, prior to commencement of the new Wholesale Electricity Market (WEM). These activities include:

  • formulation of Constraint Equations;

  • publication of the Constraints Library (which will contain Constraint Equations and Constraint Sets);

  • provision of Limit Advice by each Network Operator to AEMO; and

  • development of certain Transitional Procedures, which will become WEM Procedures upon commencement of the new Wholesale Electricity Market.

Clause 1.33.1 is amended to allow AEMO and Western Power to undertake activities relating to the 2022 Reserve Capacity Cycle prior to new WEM Commencement Day.

1.33.1. To facilitate the implementation of Wholesale Electricity Market

and Constrained Network Access Reform, prior to the New WEM Commencement Day:

\(a\) AEMO must, without limiting clause 1.20.2:

i. develop the procedures described in clauses 2.27A.10 and 2.27B.8;

ii. consult with Rule Participants and other relevant stakeholders in developing the procedures described in clauses 2.27A.10 and 2.27B.8;

iii. formulate Constraint Equations:

1. in accordance with the relevant procedure required to be developed by AEMO under clause 1.33.1(a)(i); and

2. using the Reference Node to apply from the New WEM Commencement Day;

iv. publish the Constraints Library and any other information relating to Constraints that AEMO determines, acting reasonably, should be published prior to the New WEM Commencement Day; and

v. provide the information specified under clause 4.4B.2 to each Network Operator in accordance with the relevant procedure required to be developed by AEMO under clause 1.33.1(a)(i) for AEMO to complete the activities described in that WEM Procedure; and

\(b\) each Network Operator must:

i. develop the procedure described in clause 2.27A.11;

ii. consult with Rule Participants and other relevant stakeholders in developing the procedure described in clause 2.27A.11;

iii. provide Limit Advice, developed in accordance with the procedure required to be developed by each Network Operator in accordance with clause 1.33.1(b)(i), to AEMO in sufficient time for AEMO to complete the activities described in clauses 1.33.1(a)(iii) and 1.33.1(a)(iv);

iv. provide any clarifications, updates or further information on Limit Advice, or further Limit Advice, as may be reasonably requested by AEMO;

v. do anything else reasonably necessary or desirable to enable AEMO to undertake the activities described in section 1.20 and clause 1.33.1(a);

vi. provide the information specified under clause 4.4B.5 to AEMO in accordance with the relevant procedure required to be developed by AEMO under clause 1.33.1(a)(i) for AEMO to complete the activities described in that WEM Procedure; and

vii. develop RCM Limit Advice in accordance with the relevant procedure required to be developed by each Network Operator in accordance with clause 1.33.1(b)(i) for AEMO to complete the activities described in the WEM Procedure required to be developed by AEMO under clause

1.33.1(a)(i); and

\(c\) the Economic Regulation Authority may do anything reasonably necessary or desirable to prepare for its function of monitoring compliance with the obligations in sections 2.27A and 2.27B.

1.33.2. Each procedure that is required to be developed under clauses

1.33.1(a)(i) and 1.33.1(b)(i) is a Transitional Procedure which:

\(a\) without limiting clauses 1.33.1(a)(ii) and 1.33.1(b)(ii), may, but is not required to, be developed in accordance with the Procedure Change Process; and

\(b\) is, from the New WEM Commencement Day, deemed to be the relevant WEM Procedure required to be developed under section 2.27A or 2.27B.

1.33.3. Except in respect to the obligations under this section 1.33,

prior to the New WEM Commencement Day, AEMO and each Network Operator are not required to:

\(a\) comply with the obligations in sections 2.27A and 2.27B; or

\(b\) respond to any requests issued by the Economic Regulation Authority under clause 2.27C.7.

Explanatory Note

The Reference Node is used in the calculation of Transmission Loss Factors. In accordance with section 2.27, by 1 June each year, each Network Operator is required to recalculate Loss Factors for its connection points and provide updated Transmission Loss Factors and Distribution Loss Factors to AEMO which are then published by AEMO.

The Reference Node from commencement of the new WEM will be the Southern Terminal 330 kV bus-bar. Accordingly, section 1.34 requires Transmission Loss Factors and Distribution Loss Factors to be recalculated by each Network Operator relative to the new Reference Node (as appropriate) and provide them to AEMO by 1 June 2023. AEMO is required to publish the revised values, which will apply from commencement of the new Wholesale Electricity Market, within five business days of receiving them. This will allow Rule Participants sufficient time to identify and update any submission or forecast data that is dependent on Loss Factors prior to commencement of the new WEM.

1.34. Calculation of Loss Factors – Change of Reference Node

1.34.1. Without limiting clauses 2.27.6 and 2.27.7:

\(a\) by 1 June immediately prior to the New WEM Commencement Day, each Network Operator must, in accordance with the WEM Procedure specified in clause 2.27.17:

i. recalculate the Loss Factors for its connection points using the Reference Node to apply from the New WEM Commencement Day; and

ii. provide the updated Transmission Loss Factors and Distribution Loss Factors (as applicable) for each Loss Factor Class in the Network Operator’s classification system to AEMO; and

\(b\) AEMO must publish the Transmission Loss Factors and Distribution Loss Factors provided by a Network Operator in accordance with clause

1.34.1(a) within five Business Days after receiving them.

1.34.2. For the purposes of clause 2.27.8, the Transmission Loss Factors

and Distribution Loss Factors that are recalculated and published in accordance with clause 1.34.1 apply from the New WEM Commencement Day.

1.35. Specific Transitional Provisions for the First Review of the

Minimum STEM Price

1.35.1. Notwithstanding clause 6.20.13, the Economic Regulation

Authority must commence the first review of the Minimum STEM Price under clause 6.20.13 by 1 February 2021.

1.35.2. Notwithstanding clause 6.20.14, for the first review of the

Minimum STEM Price under clause 6.20.13(a), the time period for which the Economic Regulation Authority must consider the matters referred to in clause 6.20.14 is at least the period beginning on 1 October 2019 until the commencement of the first review.

1.36. Specific Transitional Provisions – WEM Procedures for WEM Reforms

Tranche 1 Amending Rules

1.36.1. In this section 1.36:

Pre-Amended Rules: Means the WEM Rules as in force immediately before the Tranche 1 Commencement Date.

Post-Amended Rules: Means the WEM Rules as in force immediately after the Tranche 1 Commencement Date.

WEM Reforms Tranche 1 Amending Rules: Means the Amending Rules made by the Minister under regulation 7(5) of the WEM Regulations by a notice published in the Government Gazette as part of the program of work for the Wholesale Electricity Market and Constrained Network Access Reform.

1.36.2. Before 8:00 AM on the Tranche 1 Commencement Date,

notwithstanding that the Pre-Amended Rules continue to apply, AEMO, each Network Operator and the Coordinator must perform each of their obligations in this section 1.36, as if the Post-Amended Rules were in force.

1.36.3. AEMO must, without limiting clause 1.36.6:

\(a\) develop each of the procedures it is responsible for in accordance with the WEM Reforms Tranche 1 Amending Rules prior to the Tranche 1 Commencement Date; and

\(b\) consult with Rule Participants and other relevant stakeholders in developing the procedures it is responsible for in accordance with the WEM Reforms Tranche 1 Amending Rules.

1.36.4. Each Network Operator must, without limiting clause 1.36.6:

\(a\) develop each of the procedures it is responsible for in accordance with the WEM Reforms Tranche 1 Amending Rules prior to the Tranche 1 Commencement Date; and

\(b\) consult with Rule Participants and other relevant stakeholders in developing the procedures it is responsible for in accordance with the WEM Reforms Tranche 1 Amending Rules.

1.36.5. The Coordinator must, without limiting clause 1.36.6:

\(a\) develop each of the procedures it is responsible for in accordance with the WEM Reforms Tranche 1 Amending Rules prior to the Tranche 1 Commencement Date; and

\(b\) consult with Rule Participants and other relevant stakeholders in developing the procedures it is responsible for in accordance with the WEM Reforms Tranche 1 Amending Rules.

1.36.6. Each WEM Procedure that is required to be developed under

clauses 1.36.3(a), 1.36.4(a) and 1.36.5(a):

\(a\) without limiting clauses 1.36.3(b), 1.36.4(b) and 1.36.5(b), may, but is not required to, be developed in accordance with the Procedure Change Process;

\(b\) is, from the Tranche 1 Commencement Date, deemed to be the relevant WEM Procedure required to be developed under the relevant clause in the WEM Reforms Tranche 1 Amending Rules; and

\(c\) may, with industry consultation, be amended or replaced with a revised WEM Procedure without undertaking the Procedure Change Process by the party responsible for developing the WEM Procedure until six months after the New WEM Commencement Day provided that, in determining a commencement date for the revised WEM Procedure, the party responsible for developing the WEM Procedure gives reasonable consideration of an appropriate commencement date that minimises the impact of the changes to the WEM Procedure on Rule Participants. To avoid doubt, after 6 months from the New WEM Commencement Day, any amendment or replacement of the WEM Procedure must be made in accordance with the Procedure Change Process.

1.36.7. In developing, amending or replacing a WEM Procedure in

accordance with this section 1.36, AEMO, a Network Operator or the Coordinator, as applicable, must:

\(a\) publish a call for submissions on the proposed or revised WEM Procedure, and the due date for submissions must not be less than 15 Business Days from the date the proposed or revised WEM Procedure is published; and

\(b\) publish, together with the final WEM Procedure, a summary of the submissions received and the response of AEMO, the Network Operator or the Coordinator, as applicable, to the issues raised in those submissions.

Explanatory Note

The commencement of the 2021 Reserve Capacity Cycle and the 2022 Reserve Capacity Cycle are to be deferred. This means that the activities that are required to take place during Year 1 of each Reserve Capacity Cycle will also be deferred from the dates and times prescribed in Chapter 4.

Sections 1.36A and 1.36B establish the following framework to enable the dates and times to be set in due course:

  • AEMO will determine and publish a timetable containing the modified dates and times for each of the key events in Year 1 of the 2021 and 2022 Reserve Capacity Cycles;

  • the timetables must be published no later than 1 March 2021;

  • AEMO may subsequently revise the dates and times for one or more key events;

  • AEMO must set the dates and times in the timetable, and make any subsequent amendments, in accordance with the principles specified in the framework;

  • all Year 1 activities are to be completed no later than:

    • for the 2021 Reserve Capacity Cycle, 30 June 2022; and

    • for the 2022 Reserve Capacity Cycle, 31 December 2022; and

  • if AEMO wishes to extend the time and date by when all Year 1 activities are to be completed, AEMO is required to consult on the proposed changes.

The new Network Access Quantity framework will apply from the 2022 Reserve Capacity Cycle.

1.36A. Specific Transitional Provisions – Deferral of Key Events for

Year 1 of the 2021 Reserve Capacity Cycle

1.36A.1. Notwithstanding clause 4.1.1C, for the 2021 Reserve Capacity

Cycle, AEMO has the power to modify and extend the dates and times for key events that are scheduled to occur in Year 1 of that Reserve Capacity Cycle only in accordance with this section 1.36A.

1.36A.2. By 5:00 PM on 1 March 2021, AEMO must determine and publish a

timetable on the WEM Website setting out the modified or extended dates and times for each of the key events specified in clause 1.36A.6 for the 2021 Reserve Capacity Cycle. The modified or extended dates or times take effect from the date that the timetable is published.

1.36A.3. Subject to clause 1.36A.7, AEMO may further modify or extend

the dates or times for any one or more of the key events specified in clause 1.36A.6 by publishing an updated timetable on the WEM Website. Any such further modified or extended dates and times take effect from the date that the updated timetable is published.

1.36A.4. In determining the modified or extended dates and times under

clauses 1.36A.2 or 1.36A.3, AEMO must:

\(a\) seek to preserve investment certainty for Market Participants and other interested stakeholders by allowing a reasonable time for decisions to be made relative to the modified or extended timelines; and

\(b\) minimise the overlap of:

i. key events in Year 1 of the 2021 Reserve Capacity Cycle;

ii. key events in Year 1 of the 2022 Reserve Capacity Cycle; and

iii. commencement of the new fully co-optimised energy and Essential System Service markets on the New WEM Commencement Day.

1.36A.5. In determining the modified or extended dates and times under

clauses 1.36A.2 and 1.36A.3, AEMO may consult with Market Participants and other interested stakeholders prior to setting or amending, as applicable, the modified or extended dates and times.

1.36A.6. Notwithstanding any other provision of these WEM Rules, the

operation of the following clauses is amended in respect of the 2021 Reserve Capacity Cycle as follows:

\(a\) clause 4.1.4 is amended so that AEMO must advertise a Request for Expressions of Interest in accordance with clause 4.2.4 by the date and time specified in the timetable published by AEMO under clause 1.36A.2 and as may be updated by AEMO in accordance with clause 1.36A.3;

\(b\) clause 4.1.5 is amended so that the potential Reserve Capacity providers may respond to the Request for Expressions of Interest in accordance with section 4.2 by the date and time specified in the timetable published by AEMO under clause 1.36A.2 and as may be updated by AEMO in accordance with clause 1.36A.3;

\(c\) clause 4.1.6 is amended so that AEMO must publish a summary of the responses to its Request for Expressions of Interest in accordance with clause 4.2.7 by the date and time specified in the timetable published by AEMO under clause 1.36A.2 and as may be updated by AEMO in accordance with clause 1.36A.3;

\(d\) clause 4.1.7 is amended so that AEMO must accept lodgement of applications for certification of Reserve Capacity in accordance with clause 4.9.1 from the date and time specified in the timetable published by AEMO under clause 1.36A.2 and as may be updated by AEMO in accordance with clause 1.36A.3;

\(e\) clause 4.1.8 is amended so that AEMO must publish a Statement of Opportunities Report produced in accordance with the Long Term PASA process described in clause 4.5.11 by the date and time specified in the timetable published by AEMO under clause 1.36A.2 and as may be updated by AEMO in accordance with clause 1.36A.3;

\(f\) clause 4.1.10 is amended so that AEMO must publish on the WEM Website the Reserve Capacity Information Pack in accordance with clause 4.7.2 by the date and time specified in the timetable published by AEMO under clause 1.36A.2 and as may updated by AEMO in accordance with clause 1.36A.3;

\(g\) clause 4.1.11 is amended so that AEMO must cease to accept lodgement of applications for certification of Reserve Capacity in accordance with clause 4.9.1 from the date and time specified in the timetable published by AEMO under clause 1.36A.2 and as may be updated by AEMO in accordance with clause 1.36A.3;

\(h\) clause 4.1.12 is amended so that AEMO must notify each applicant for certification of Reserve Capacity of the Certified Reserve Capacity to be assigned by the date and time specified in the timetable published by AEMO under clause 1.36A.2 and as may be updated by AEMO in accordance with clause 1.36A.3;

\(i\) clause 4.1.13 is amended so that each Market Participant must provide to AEMO any Reserve Capacity Security required in accordance with clause 4.13.1 and any DSM Reserve Capacity Security required in accordance with clause 4.13A.1 not later than the date and time specified in the timetable published by AEMO under clause 1.36A.2 and as may be updated by AEMO in accordance with clause 1.36A.3;

\(j\) clause 4.1.14 is amended so that each Market Participant holding Certified Reserve Capacity for the Reserve Capacity Cycle must provide to AEMO notification in accordance with clause 4.14.1 as to how its Certified Reserve Capacity will be dealt with not later than the date and time specified in the timetable published by AEMO under clause

1.36A.2 and as may be updated by AEMO in accordance with clause 1.36A.3;

\(k\) clause 4.1.15 is amended so that AEMO must confirm to each Market Participant in accordance with clause 4.14.9 the amount of Certified Reserve Capacity that can be traded bilaterally from its Facilities by the date and time specified in the timetable published by AEMO under clause 1.36A.2 and as may be updated by AEMO in accordance with clause

1.36A.3;

\(l\) clause 4.1.15A is amended so that AEMO must publish the Certified Reserve Capacity for each Facility in accordance with clause 4.9.9A by the date and time specified in the timetable published by AEMO under clause 1.36A.2 and as may be updated by AEMO in accordance with clause

1.36A.3;

\(m\) clause 4.1.16A is amended so that AEMO must:

i. assign Capacity Credits in accordance with clause 4.20.5A(a) as set out in clause 4.1.16A(a); and

ii. determine in accordance with clause 4.20.5A(aA) whether the Reserve Capacity Requirement has been met or exceeded with the Capacity Credits assigned for Year 3 as set out in clause 4.1.16A(b),

by the date and time specified in the timetable published by AEMO under clause 1.36A.2, and as may be updated by AEMO in accordance with clause

1.36A.3, provided that, subject to clause 1.36A.7, the date is not later

than 30 June 2022;

\(n\) clause 4.1.18A is amended so that AEMO must publish the summary of information described in clause 4.20.5AA by the date and time specified in the timetable (which must be the same date and time as specified in the timetable for performance of the obligations under clause 4.1.16A) published by AEMO under clause 1.36A.2 and as may be updated by AEMO in accordance with clause 1.36A.3;

\(o\) clause 4.1.19 is amended so that AEMO must commence the review of the Benchmark Reserve Capacity Price as required by clause 4.16.3 and complete the review in accordance with clause 4.1.19 by the date and time specified in the timetable (which must be the same date and time as specified in the timetable for performance of the obligations under clause 4.1.4) published by AEMO under clause 1.36A.2 and as may be updated by AEMO in accordance with clause 1.36A.3;

\(p\) clause 4.1.21 is amended so that a Market Participant may apply to AEMO under clause 4.13.2A for a recalculation of the amount of Reserve Capacity Security required to be held by AEMO for a Facility in accordance with clause 4.13.2(b) or under clause 4.13A.8 for a recalculation of the amount of DSM Reserve Capacity Security required to be held by AEMO for a Demand Side Programme in accordance with clauses 4.13A.1 or 4.13A.4, as applicable, by the date and time specified in the timetable published by AEMO under clause 1.36A.2 and as may be updated by AEMO in accordance with clause 1.36A.3; and

\(q\) clause 4.1.21A is amended so that each relevant Market Participant must notify AEMO of the number of Capacity Credits that are to be associated with each component of their Facility for the Capacity Year in accordance with clause 4.20.16 by the date and time specified in the timetable published by AEMO under clause 1.36A.2 and as may be updated by AEMO in accordance with clause 1.36A.3.

1.36A.7. If AEMO wishes to modify or extend the date for completion of

the key events referred to in clause 1.36A.6(m) to a date after 30 June 2022, then AEMO must, without limiting its obligations under clause 2.21.6:

\(a\) consult with Market Participants and other interested stakeholders on the proposed modified or extended date;

\(b\) call for submissions; and

\(c\) publish on the WEM Website:

i. AEMO's decision on the modified or extended date;

ii. any submissions received; and

iii. an updated timetable in accordance with clause 1.36A.3.

1.36A.8. Notwithstanding the time and date specified in clause 4.1.4,

for the 2021 Reserve Capacity Cycle, AEMO is not required to advertise a Request for Expression of Interest in accordance with section 4.2 for that Reserve Capacity Cycle until the time and date specified in the timetable to be published by AEMO under clause 1.36A.2 and as may be updated by AEMO in accordance with clause 1.36A.3.

1.36A.9. For the 2021 Reserve Capacity Cycle, any clause that refers to

a clause amended in accordance with clause 1.36A.6, is to be read in the context of the operation of this section 1.36A and the clause as amended.

1.36A.10. Nothing in this section 1.36A shall affect the operation of

Chapter 4 insofar as the clauses of Chapter 4 apply to a Reserve Capacity Cycle other than the 2021 Reserve Capacity Cycle.

1.36B. Specific Transitional Provisions – Deferral of Key Events for

Year 1 of the 2022 Reserve Capacity Cycle

1.36B.1. Notwithstanding clause 4.1.1C, for the 2022 Reserve Capacity

Cycle, AEMO has the power to modify and extend the dates and times for key events that are scheduled to occur in Year 1 of that Reserve Capacity Cycle only in accordance with this section 1.36B.

1.36B.2. By 5:00 PM on 1 March 2021, AEMO must determine and publish a

timetable on the WEM Website setting out the modified or extended dates and times for each of the key events specified in clause 1.36B.6 for the 2022 Reserve Capacity Cycle. The modified or extended dates or times take effect from the date that the timetable is published.

Explanatory Note

Clause 1.36B.2A is added so that any new key events in section 4.1 (e.g. new clause 1.36B.6(qA) below) are included in the timetable to be published by AEMO in accordance with this section 1.36B.

1.36B.2A. If, following the initial publication of the timetable

referred to in clause 1.36B.2, clause 1.36B.6 is amended to include a new key event in section 4.1, AEMO must, within 20 Business Days of the amendment commencing, determine and publish an updated timetable to include the modified or extended date and time, as applicable, for the new key event.

1.36B.3. Subject to clause 1.36B.7, AEMO may further modify or extend

the dates or times for any one or more of the key events specified in clause 1.36B.6 by publishing an updated timetable on the WEM Website. Any such further modified or extended dates and times take effect from the date that the updated timetable is published.

1.36B.4. In determining the modified or extended dates and times under

clause 1.36B.2 or 1.36B.3, AEMO must:

\(a\) seek to preserve investment certainty for Market Participants and other interested stakeholders by allowing a reasonable time for decisions to be made relative to the modified or extended timelines; and

\(b\) minimise the overlap of:

i. key events in Year 1 of the 2021 Reserve Capacity Cycle;

ii. key events in Year 1 of the 2022 Reserve Capacity Cycle; and

iii. commencement of the new fully co-optimised energy and Essential System Service markets on the New WEM Commencement Day.

1.36B.5. In determining the modified or extended dates and times under

clauses 1.36B.2 and 1.36B.3, AEMO may consult with Market Participants and other interested stakeholders prior to setting or amending, as applicable, the modified or extended dates and times.

1.36B.6. Notwithstanding any other provision of these WEM Rules the

operation of the following clauses is amended in respect of the 2022 Reserve Capacity Cycle as follows:

\(a\) clause 4.1.4 is amended so that AEMO must advertise a Request for Expressions of Interest in accordance with clause 4.2.4 by the date and time specified in the timetable published by AEMO under clause 1.36B.2 and as may be updated by AEMO in accordance with clause 1.36B.3;

\(b\) clause 4.1.5 is amended so that the potential Reserve Capacity providers may respond to the Request for Expressions of Interest in accordance with section 4.2 by the date and time specified in the timetable published by AEMO under clause 1.36B.2 and as may be updated by AEMO in accordance with clause 1.36B.3;

\(c\) clause 4.1.6 is amended so that AEMO must publish a summary of the responses to its Request for Expressions of Interest in accordance with clause 4.2.7 by the date and time specified in the timetable published by AEMO under clause 1.36B.2 and as may be updated by AEMO in accordance with clause 1.36B.3;

\(d\) clause 4.1.7 is amended so that AEMO must accept lodgement of applications for certification of Reserve Capacity in accordance with clause 4.9.1 from the date and time specified in the timetable published by AEMO under clause 1.36B.2 and as may be updated by AEMO in accordance with clause 1.36B.3;

\(e\) clause 4.1.8 is amended so that AEMO must publish a Statement of Opportunities Report produced in accordance with the Long Term PASA process described in clause 4.5.11 by the date and time specified in the timetable published by AEMO under clause 1.36B.2 and as may be updated by AEMO in accordance with clause 1.36B.3;

\(f\) clause 4.1.10 is amended so that AEMO must publish on the WEM Website the Reserve Capacity Information Pack in accordance with clause 4.7.2 by the date and time specified in the timetable published by AEMO under clause 1.36B.2 and as may be updated by AEMO in accordance with clause 1.36B.3;

\(g\) clause 4.1.11 is amended so that AEMO must cease to accept lodgement of applications for certification of Reserve Capacity in accordance with clause 4.9.1 from the date and time specified in the timetable published by AEMO under clause 1.36B.2 and as may be updated by AEMO in accordance with clause 1.36B.3;

\(h\) clause 4.1.12 is amended so that AEMO must notify each applicant for certification of Reserve Capacity of the Certified Reserve Capacity to be assigned by the date and time specified in the timetable published by AEMO under clause 1.36B.2 and as may be updated by AEMO in accordance with clause 1.36B.3;

\(i\) clause 4.1.13 is amended so that each Market Participant must provide to AEMO any Reserve Capacity Security required in accordance with clause 4.13.1 and any DSM Reserve Capacity Security required in accordance with clause 4.13A.1 not later than the date and time specified in the timetable published by AEMO under clause 1.36B.2 and as may be updated by AEMO in accordance with clause 1.36B.3;

\(j\) clause 4.1.14 is amended so that each Market Participant holding Certified Reserve Capacity for the Reserve Capacity Cycle must provide to AEMO notification in accordance with clause 4.14.1 as to how its Certified Reserve Capacity will be dealt with not later than the date and time specified in the timetable published by AEMO under clause

1.36B.2 and as may be updated by AEMO in accordance with clause 1.36B.3;

\(k\) clause 4.1.15 is amended so that AEMO must confirm to each Market Participant in accordance with clause 4.14.9 the amount of Certified Reserve Capacity that can be traded bilaterally from its Facilities by the date and time specified in the timetable published by AEMO under clause 1.36B.2 and as may be updated by AEMO in accordance with clause

1.36B.3;

\(l\) clause 4.1.15A is amended so that AEMO must publish the Certified Reserve Capacity for each Facility in accordance with clause 4.9.9A by the date and time specified in the timetable published by AEMO under clause 1.36B.2 and as may be updated by AEMO in accordance with clause

1.36B.3;

\(m\) clause 4.1.16A is amended so that AEMO must:

i. assign Capacity Credits in accordance with clause 4.20.5A(a) as set out in clause 4.1.16A(a);

ii. determine in accordance with clause 4.20.5A(aA) whether the Reserve Capacity Requirement has been met or exceeded with the Capacity Credits assigned for Year 3 as set out in clause 4.1.16A(b);

iii. notify each Market Participant of the Network Access Quantity determined for each of its Facilities in accordance with clause 4.15.11; and

iv. publish the information required to be published under clause 4.15.16,

by the date and time specified in the timetable published by AEMO under clause 1.36B.2, and as may be updated by AEMO in accordance with clause

1.36B.3, provided that, subject to clause 1.36B.7, the date is not later

than 31 December 2022;

\(n\) clause 4.1.18A is amended so that AEMO must publish the summary of information described in clause 4.20.5AA by the date and time specified in the timetable (which must be the same date and time as specified in the timetable for performance of the obligations under clause 4.1.16A) published by AEMO under clause 1.36B.2 and as may be updated by AEMO in accordance with clause 1.36B.3;

\(o\) clause 4.1.19 is amended so that AEMO must commence the review of the Benchmark Reserve Capacity Price as required by clause 4.16.3 and complete the review in accordance with clause 4.1.19 by the date and time specified in the timetable (which must be the same date and time as specified in the timetable for performance of the obligations under clause 4.1.4) published by AEMO under clause 1.36B.2 and as may be updated by AEMO in accordance with clause 1.36B.3;

\(p\) clause 4.1.21 is amended so that a Market Participant may apply to AEMO under clause 4.13.2A for a recalculation of the amount of Reserve Capacity Security required to be held by AEMO for a Facility in accordance with clause 4.13.2(b) or under clause 4.13A.8 for a recalculation of the amount of DSM Reserve Capacity Security required to be held by AEMO for a Demand Side Programme in accordance with clauses 4.13A.1 or 4.13A.4, as applicable, by the date and time specified in the timetable published by AEMO under clause 1.36B.2 and as may be updated by AEMO in accordance with clause 1.36B.3;

\(q\) clause 4.1.21A is amended so that each relevant Market Participant must notify AEMO of the number of Capacity Credits that are to be associated with each component of their Facility for the Capacity Year in accordance with clause 4.20.16 by the date and time specified in the timetable published by AEMO under clause 1.36B.2 and as may be updated by AEMO in accordance with clause 1.36B.3;

(qA) clause 4.1.22 is amended so that AEMO must set the number of Capacity Credits to be associated with each component of a Facility in accordance with clause 4.20.17 and publish that information by the date and time specified in the timetable published by AEMO under clause

1.36B.2 and as may be updated by AEMO in accordance with clause 1.36B.3;

\(r\) clause 4.4B.2 is amended so that AEMO must provide the following information to each relevant Network Operator by the date and time specified in the timetable published by AEMO under clause 1.36B.2 and as may be updated by AEMO in accordance with clause 1.36B.3:

i. details of each Facility specified in an Expression of Interest submitted under clause 4.2.6 for the Reserve Capacity Cycle, including the information in clauses 4.4.1;

ii. details of each Facility for which AEMO has received a notice under clause 4.4A.1 where the intention is for the Facility to cease operation permanently by 1 October of Year 3 of the Reserve Capacity Cycle; and

iii. details of each Facility for which AEMO has received an Early Certified Reserve Capacity application and whether the Facility has nominated to be classified as a Network Augmentation Funding Facility.

\(s\) clause 4.4B.3 is amended so that each Network Operator must, in respect of its Network, provide its reasonable estimate of the configuration at peak demand, and associated Thermal Network Limits of its Network in accordance with that clause by the date and time specified in the timetable published by AEMO under clause 1.36B.2 and as may be updated by AEMO in accordance with clause 1.36B.3;

\(t\) clause 4.4B.5 is amended so that each Network Operator must provide the information specified in that clause in respect of its Network to AEMO by the date and time specified in the timetable published by AEMO under clause 1.36B.2 and as may be updated by AEMO in accordance with clause 1.36B.3; and

\(u\) clause 4.4B.6 is amended so that AEMO must publish the following information in the Constraints Library for the 2022 Reserve Capacity Cycle by the date and time specified in the timetable published by AEMO under clause 1.36B.2 and as may be updated by AEMO in accordance with clause 1.36B.3:

i. the information provided by each Network Operator under clause 4.4B.5; and

ii. the Preliminary RCM Constraint Equations.

1.36B.7. If AEMO wishes to modify or extend the date for completion of

the key events referred to in clause 1.36B.6(m) to a date after 31 December 2022, then AEMO must, without limiting its obligations under clause 2.21.6:

\(a\) consult with Market Participants and other interested stakeholders on the proposed modified or extended date;

\(b\) call for submissions; and

\(c\) publish on the WEM Website:

i. AEMO's decision on the modified or extended date;

ii. any submissions received; and

iii. an updated timetable in accordance with clause 1.36B.3.

1.36B.8. For the 2022 Reserve Capacity Cycle, any clause that refers to

a clause amended in accordance with clause 1.36B.6, is to be read in the context of the operation of this section 1.36B and the clause as amended.

1.36B.9. Nothing in this section 1.36B shall affect the operation of

Chapter 4 insofar as the clauses of Chapter 4 apply to a Reserve Capacity Cycle other than the 2022 Reserve Capacity Cycle.

Explanatory Note

The general transitional provisions in section 1.36C provide for different commencement days for different amending rules.

Section 1.36C is amended so that it applies to amending rules that are made by the Minister and commenced on dates other than on the New WEM Commencement Day (i.e. 1 October 2023), when the new proposed general transitional provisions in sections 1.55 will apply to the amending rules commencing on that day. While there is arguably some cross-over between the obligations under sections 1.55 and 1.36C (e.g. compliance with the WEM Rules pre- and post- amendments), the sections are intended to address amendments to the WEM Rules that commence at different times.

1.36C. General Transitional Provisions – Staging of Amendments

1.36C.1. In this section 1.36C:

Amending Rules Commencement Day: Means a date, other than the New WEM Commencement Day, by notice published in the Government Gazette, that a Specific Amending Rule commences.

Commenced Amending Rule: Means a Specific Amending Rule that has commenced on an Amending Rules Commencement Day.

Post-Amended Rules: Means the WEM Rules as in force immediately after the most recent Amending Rules Commencement Day.

Pre-Amended Rules: Means the WEM Rules as in force immediately before the most recent Amending Rules Commencement Day.

Specific Amending Rule: Means an Amending Rule made by the Minister under regulation 7(5) of the WEM Regulations (at any time) by a notice published in the Government Gazette as part of the program of work for the Wholesale Electricity Market and Constrained Network Access Reform but excludes an Amending Rule which commences on the New WEM Commencement Day.

WEM Participant: Means the Coordinator, a Rule Participant and the Economic Regulation Authority.

1.36C.2. Before 8:00 AM on an Amending Rules Commencement Day,

notwithstanding that the Pre‑Amended Rules continue to apply, each WEM Participant must perform all obligations imposed on that WEM Participant under the Post‑Amended Rules, in relation to that Amending Rules Commencement Day and subsequent Trading Days, that, if the Post‑Amended Rules were in force, the WEM Participant would have been required to perform under the Post‑Amended Rules.

1.36C.3. If before 8:00 AM on an Amending Rules Commencement Day,

notwithstanding that the Pre‑Amended Rules continue to apply, a WEM Participant performs an obligation under the Post‑Amended Rules under clause 1.36C.2, then to the extent that the obligation is performed, the WEM Participant is not required to perform any equivalent obligation under the Pre‑Amended Rules to the extent that these obligations relate to that Amending Rules Commencement Day or subsequent Trading Days.

1.36C.4. If before 8:00 AM on an Amending Rules Commencement Day,

notwithstanding that the Pre‑Amended Rules continue to apply, a WEM Participant is required to perform an obligation that relates to that Amending Rules Commencement Day or subsequent Trading Days that it will not be required to perform under the Post‑Amended Rules, the WEM Participant is not required to perform the obligation to the extent that it relates to that Amending Rules Commencement Day or subsequent Trading Days and to the extent that the obligation will not apply under the Post‑Amended Rules.

1.36C.5. After 8:00 AM on an Amending Rules Commencement Day,

notwithstanding that the Post‑Amended Rules apply, each WEM Participant must perform all obligations imposed on that WEM Participant under the Pre‑Amended Rules, arising in relation to each Trading Day (or part of a Trading Day) up to but excluding that Amending Rules Commencement Day, that, if the Pre‑Amended Rules were in force, the WEM Participant would have been required to perform under the Pre‑Amended Rules other than those obligations the WEM Participant is not required to perform pursuant to clause 1.36C.3.

1.36C.6. Where a Commenced Amending Rule requires the operation of one

or more Specific Amending Rules that have not yet commenced, then regard may be had to those Specific Amending Rules to interpret or give effect to the Commenced Amending Rule even though the Specific Amending Rules have not yet commenced.

1.36C.7. Where any Commenced Amending Rule requires the operation of WEM

Rules which have been amended, repealed or replaced by one or more Commenced Amending Rules, regard may be had to those WEM Rules to interpret or give effect to the Commenced Amending Rule even though those WEM Rules have been amended, repealed or replaced.

1.36D. Specific Transitional Provisions for Publication of Electric

Storage Resource Obligation Intervals for the 2021 Reserve Capacity Cycle

1.36D.1. Notwithstanding clause 4.11.3A, for the purposes of the 2021

Reserve Capacity Cycle, AEMO must publish the Electric Storage Resource Obligation Intervals on the WEM Website at least 20 Business Days before the date and time specified in clause 4.1.7, as set in the timetable published by AEMO in accordance with clause 1.36A.2 and as may be updated by AEMO in accordance with clause 1.36A.3.

Explanatory Note

Section 1.37 sets out the transitional rules that are required to ensure the seamless removal of references to System Management in the WEM Rules. This includes allowing AEMO to update any WEM Procedures to remove any references to System Management and replace them with AEMO.

Clause 1.37.3 makes provision for all market information that is assigned a confidentiality status of 'System Management Confidential' to be classified as 'System Operation Confidential' as a consequence of the amendments to section 10.9 to re-name that confidentiality class.

1.37. Specific Transitional Provisions for Administrative Amendments

1.37.1. In this section 1.37:

Pre-Amended Rules: Means the WEM Rules as in force immediately before the Administrative Amendments come into effect.

Post-Amended Rules: Means the WEM Rules as in force immediately after the Administrative Amendments come into effect.

Administrative Amendments: Means the Amending Rules that will commence at 8:00 AM on the Administrative Amendments Commencement Day made by the Minister under regulation 7(5) of the WEM Regulations by a notice published in the Government Gazette.

Administrative Amendments Commencement Day: Means a day specified by the Minister under regulation 7(5) of the WEM Regulations by a notice published in the Government Gazette.

1.37.2. Where a WEM Procedure refers to System Management (as that term

is defined in the Pre-Amended Rules) then:

\(a\) the relevant Rule Participant responsible for the WEM Procedure must, as soon as practicable after the Administrative Amendments Commencement Day, amend the WEM Procedure to refer to AEMO instead of System Management and make any consequential amendments that AEMO considers reasonably necessary to give effect to the Administrative Amendments without undertaking the Procedure Change Process;

\(b\) any WEM Procedure which is amended in accordance with clause 1.37.2(a) commences operation on the date and time determined by the relevant Rule Participant responsible for the WEM Procedure and published on the WEM Website; and

\(c\) until any WEM Procedure is amended and commenced in accordance with clauses 1.37.2(a) and 1.37.2(b), a reference in a WEM Procedure that should be a reference to AEMO having regard to AEMO’s functions, including System Operation Functions, rights and obligations under these WEM Rules and any other WEM Procedure, is deemed to be a reference to AEMO.

1.37.3. On and from the Administrative Amendments Commencement Day, all

market information that AEMO has set the class of confidentiality status as System Management Confidential in accordance with clause 10.2.1 or section 10.9 of the Pre-Amended Rules, is to be deemed to be the confidentiality status of System Operation Confidential under the Post-Amended Rules.

Explanatory Note

Chapter 3A applies to Western Power. The transitional provisions in section 1.38 exempts other Network Operators from the application of Chapter 3A until such time as determined appropriate by AEMO.

1.38. Specific Transitional Provisions – Application of Chapter 3A to

Network Operators

1.38.1. Notwithstanding the requirements of Chapter 3A, a Network

Operator, other than Western Power, is exempt from the requirement to comply with Chapter 3A and Appendix 12 until such time as it is notified by AEMO, in writing, that it must comply with Chapter 3A and Appendix 12.

1.38.2. AEMO may issue a notice to a Network Operator that it must

comply with Chapter 3A and Appendix 12, where:

\(a\) AEMO has consulted with the Network Operator in respect of the Network Operator's ability to comply with Chapter 3A and Appendix 12; and

\(b\) AEMO reasonably considers that the Network Operator can comply with Chapter 3A and Appendix 12 on and from the date of the notification.

1.38.3. A notice issued under clause 1.38.2 must specify the time by

which the Network Operator is required to comply with Chapter 3A and Appendix 12 which must be no less than six months from the date of the notice.

1.38.4. At the same time AEMO issues a notice to the Network Operator

under clause 1.38.2, AEMO must provide a copy of that notice to the Economic Regulation Authority.

1.39. Application of Chapter 3A to Existing Transmission Connected

Generating Systems

Explanatory Note

Clause 1.39.1 exempts an Existing Transmission Connected Generating System from the application of Chapter 3A as if it was an Exempt Transmission Connected Generating System.

The exemption will apply until the Market Participant has Registered Generator Performance Standards and an approved or determined Generator Monitoring Plan. After that, the Existing Transmission Connected Generating System must comply with the requirements of Chapter 3A and Appendix 12.

1.39.1. A Market Participant responsible for an Existing Transmission

Connected Generating System is exempt from all of the requirements of section 3A.1, section 3A.2 and sections 3A.5 to 3A.14 other than as set out in sections 1.39 to 1.42 until the time at which the Existing Transmission Connected Generating System ceases to be an Existing Transmission Connected Generating System as set out in clause 1.39.13.

Explanatory Note

Clause 1.39.2 sets out the deadline by when a Market Participant responsible for an Existing Transmission Connected Generating System must have a Registered Generator Performance Standard for each Technical Requirement for the Transmission Connected Generating System.

1.39.2. The date by which the Market Participant responsible for an

Existing Transmission Connected Generating System must have a Registered Generator Performance Standard for each Technical Requirement for the Transmission Connected Generating System will be the later of:

\(a\) 31 January 2022; or

\(b\) any date agreed by the relevant Network Operator and the Market Participant responsible for the Existing Transmission Connected Generating System under clause 1.39.4.

Explanatory Note

Clause 1.39.3 provides for a cut-off date. If the Registered Generator Performance Standards are not determined by 31 January 2022 (as may be extended) then any matters remaining between the relevant Network Operator and the Market Participant will be resolved under the dispute resolution mechanism in section 1.42.

Where the parties consider that an extension is required (for example, if they are waiting on additional testing) then the parties may agree to extend the date.

1.39.3. If, by the date set out in clause 1.39.2, a Market Participant

responsible for an Existing Transmission Connected Generating System does not have a Registered Generator Performance Standard for each Technical Requirement then the relevant Network Operator must commence the dispute resolution mechanism contained in section 1.42.

Explanatory Note

Clause 1.39.4 requires the Network Operator to consider and determine the request for an extension to the date Registered Generator Performance Standards are required. The Network Operator must approve the request if it is a legitimate request for extension.

1.39.4. Subject to clause 1.39.5, a Market Participant may request the

date referred to in clause 1.39.2 be extended by the Network Operator, who must agree to extend the date by a reasonable period where the Network Operator considers that the Market Participant is making reasonable progress to having Registered Generator Performance Standards in respect of Technical Requirements for one or more of its Existing Transmission Connected Generating Systems and reasonably requires additional time to have all required Registered Generator Performance Standards. To avoid doubt, the Market Participant may request, and the Network Operator may extend, the date in clause 1.39.2 more than once.

Explanatory Note

Clause 1.39.5 provides that a request must be made at least 20 Business Days before the date of submission.

1.39.5. A request made under clause 1.39.4 must be made at least 20

Business Days before 31 January 2022, or any extended date agreed under clause 1.39.4. Where a request is made within 20 Business Days of the relevant date the Network Operator may, but is not obliged to, consider the request.

Explanatory Note

Clause 1.39.6 provides the time by which the Network Operator must notify the Market Participant.

1.39.6. A Network Operator must notify the Market Participant

responsible for the Existing Transmission Connected Generating System whether the request made under clause 1.39.4 is approved or rejected within 10 Business Days or other date agreed between the parties.

Explanatory Note

Clause 1.39.7 sets out the deadline by when a Market Participant responsible for an Existing Transmission Connected Generating System must have a Generator Monitoring Plan approved by AEMO which is 12 months after the Market Participant must submit a proposed Generator Monitoring Plan to AEMO for approval under clause 1.41.2 or a date agreed between AEMO and the Market Participant.

1.39.7. The time by which the Market Participant responsible for an

Existing Transmission Connected Generating System must have a Generator Monitoring Plan approved by AEMO will be the later of:

\(a\) the date that is 12 months after the date on which the Market Participant submits their proposed Generator Monitoring Plan to AEMO for approval; or

\(b\) any date agreed by AEMO and the Market Participant responsible for the Existing Transmission Connected Generating System under clause

1.39.9.

Explanatory Note

Clause 1.39.8 provides for a cut-off date. If the Generator Monitoring Plan is not approved by the time set out in clause 1.39.7 then it will be determined under the dispute resolution mechanism in section 1.42. Where the parties consider that an extension is required (for example they are waiting on additional testing) then the parties may agree to extend the date.

1.39.8. If, by the date set out in clause 1.39.7, a Market Participant

responsible for an Existing Transmission Connected Generating System does not have a Generator Monitoring Plan approved by AEMO in accordance with section 1.41 then AEMO must commence the dispute resolution mechanism contained in section 1.42.

Explanatory Note

Clause 1.39.9 requires AEMO to consider and determine the request for an extension to the date an approved Generator Monitoring Plan is required. AEMO must approve the request if it is a legitimate request for extension.

1.39.9. Subject to clause 1.39.10, a Market Participant may request the

date referred to in clause 1.39.7 be extended by AEMO, who must agree to extend the date by a reasonable period where AEMO considers that the Market Participant is making reasonable progress towards having a Generator Monitoring Plan for one or more of its Existing Transmission Connected Generating Systems and reasonably requires additional time to complete the Generator Monitoring Plan or Generator Monitoring Plans. To avoid doubt, the Market Participant may request, and AEMO may extend, the date in clause 1.39.7 more than once.

Explanatory Note

Clause 1.39.10 provides that a request must be made at least 20 Business Days before the date of submission.

1.39.10. A request made under clause 1.39.9 must be made at least 20

Business Days before the date described in clause 1.39.7(a), or any extended date agreed under clause 1.39.9. Where a request is made within 20 Business Days of the relevant date AEMO may, but is not obliged to, consider the request.

Explanatory Note

Clause 1.39.11 provides the time by which AEMO must notify the Market Participant.

1.39.11. AEMO must notify the Market Participant whether the request

made under clause 1.39.9 is approved or rejected within 10 Business Days or other date agreed between the parties.

Explanatory Note

Clause 1.39.12 is a general information provision clause similar to clause 3A.2.1. Clause 3A.2.1 only applies to requests under Chapter 3A so this clause provides an obligation to provide information for the purposes of sections 1.39 to 1.42.

1.39.12. A Market Participant responsible for an Existing Transmission

Connected Generating System must use reasonable endeavours to provide all data and information reasonably required by a Network Operator or AEMO under sections 1.39 to 1.42 to assess the impact of the Existing Transmission Connected Generating System on the performance and security of the applicable network.

Explanatory Note

Clause 1.39.13 is intended to provide a mechanism where the transitional regime will no longer apply and Chapter 3A will apply to the Transmission Connected Generating System.

1.39.13. An Existing Transmission Connected Generating System will cease

to be an Existing Transmission Connected Generating System at the time the Market Participant responsible for the Existing Transmission Connected Generating System has:

\(a\) a Registered Generator Performance Standard for each Technical Requirement in accordance with section 1.40; and

\(b\) a Generator Monitoring Plan approved by AEMO in accordance with section 1.41 or determined by an arbitrator in accordance with the dispute resolution mechanism contained in section 1.42.

Explanatory Note

Section 1.40 sets out the regime for the determination and registration of generator performance standards for Existing Transmission Connected Generating Systems.

1.40. Requirements for Existing Transmission Connected Generating

Systems

1.40.1. In this section 1.40:

Access Standard: Means an existing standard or technical level of performance in respect of the same or equivalent matter as a Technical Requirement that is either:

\(a\) set out in and required by an Arrangement for Access; or

\(b\) otherwise previously agreed by the Network Operator at the time of connection of the Existing Transmission Connected Generating System to the SWIS, or prior to the Tranche 1 Commencement Date,

and includes any condition or circumstance which is of similar effect as a Generator Condition in respect of an existing standard or technical level of performance for the Existing Transmission Connected Generating System.

Agreed Generator Performance Standard: Means the standard or technical level of performance in respect of a Technical Requirement that is either:

\(a\) agreed between a Market Participant responsible for an Existing Transmission Connected Generating System and the relevant Network Operator; or

\(b\) deemed to be the applicable standard or technical level of performance in respect of the same matter as a Technical Requirement that applies in respect of an Existing Transmission Connected Generating System,

in accordance with this section 1.40.

Generator Condition: Means one or more circumstances specified in a Proposed Alternative Standard:

\(a\) the occurrence of which requires a Market Participant responsible for an Existing Transmission Connected Generating System to undertake required actions to achieve an agreed outcome and or achieve an agreed higher level of performance than set out in the Proposed Alternative Standard in respect of one or more Technical Requirements; and

\(b\) that specifies or describes each of the matters in clauses 3A.5.6(a) to 3A.5.6(g), where each reference to 'Trigger Event' in those clauses is to be read as 'Generator Condition'.

Proposed Alternative Standard: Means a standard or technical level of performance in respect of a Technical Requirement proposed to apply to an Existing Transmission Connected Generating System that has been submitted in accordance with clause 1.40.6.

Explanatory Note

The Network Operator will set out the relevant reference standards which may apply to an Existing Transmission Connected Generating System in the WEM Procedure referred to in clause 1.40.30. Depending on when the generator was connected these would be the relevant standard that applied in the Technical Rules, the Technical Code, Planning Criterion or other specified document.

Reference Standard: Means a standard or technical level of performance that applied at the time of connection of the Existing Transmission Connected Generating System to the SWIS or a modification of an Existing Transmission Connected Generating System before the Tranche 1 Commencement Date as set out in the WEM Procedure referred to in clause 1.40.30 in respect of the same matter as a Technical Requirement.

Explanatory Note

The process of determining the existing standards that apply will depend on the parties providing all relevant information to each other in order to determine the relevant standard that applies to the generating system. Clause 1.40.2 places an obligation on the Market Participant to provide all relevant information to the Network Operator. The obligation is 'reasonable endeavours' so the Market Participant does not have to spend an unreasonable amount of time looking for contractual information that might not exist or not be accessible.

1.40.2. A Market Participant responsible for an Existing Transmission

Connected Generating System must use reasonable endeavours to provide to the relevant Network Operator any relevant document or information that it is able to provide that is in its possession, power or control which relates to an Access Standard in respect of the Existing Transmission Connected Generating System.

Explanatory Note

The process of determining the existing standards that apply will depend on the parties providing all relevant information to each other in order to determine the relevant standard that applies to the generating system. Clause 1.40.3 places an obligation on the Network Operator to provide all relevant information to the Market Participant. The obligation is 'reasonable endeavours' so the Network Operator does not have to spend an unreasonable amount of time looking for contractual information that might not exist or not be accessible.

1.40.3. A Network Operator must use reasonable endeavours to provide to

a Market Participant responsible for an Existing Transmission Connected Generating System any relevant document or information that it is able to provide that is in its possession, power or control which relates to an Access Standard in respect of the Existing Transmission Connected Generating System.

Explanatory Note

Generators are required to comply with applicable standards available at the time of connection (including any exemptions). Some examples of these standards include Western Power’s Technical Rules, and prior, the Technical Code. Where applicable standards were agreed at the time of connection, or approved modification, these will be the Agreed Generator Performance Standard in respect of any applicable Technical Requirement. Clause 1.40.30 provides for Agreed Generator Performance Standard to be the generator’s Registered Generator Performance Standard.

1.40.4. Subject to clause 1.40.6, an Access Standard in respect of the

same or equivalent matter as a Technical Requirement will be deemed to be the Agreed Generator Performance Standard for that Technical Requirement.

Explanatory Note

Where standards were not agreed at the time of connection or approved modification (or agreed standards cannot be located), but a Reference Standard exists, then that Reference Standard will be deemed to the Agreed Generator Performance Standard.

1.40.5. Subject to clause 1.40.6, where no Access Standard in respect of

the same matter as a Technical Requirement exists and there is an applicable Reference Standard, then the Reference Standard will be deemed to be the Agreed Generator Performance Standard for that Technical Requirement.

Explanatory Note

Appendix 12 contains Technical Requirements which are not covered by Reference Standards. Alternately, there may be disputes as to the application of the standards deemed to apply. Where this occurs then the parties may negotiate the appropriate standard to apply.

1.40.6. Where:

\(a\) these WEM Rules do not deem a standard of performance for a Technical Requirement to be an Agreed Generator Performance Standard in accordance with clause 1.40.4 or clause 1.40.5;

\(b\) a Market Participant responsible for the Existing Transmission Connected Generating System does not reasonably consider that the Existing Transmission Connected Generating System is able to comply with a Reference Standard that is deemed to be an Agreed Generator Performance Standard under clause 1.40.5; or

\(c\) the relevant Network Operator and Market Participant responsible for the Existing Transmission Connected Generating System disagree as to the existence or interpretation of an Access Standard,

the Market Participant responsible for the Existing Transmission Connected Generating System must notify the Network Operator as soon as practicable and submit a Proposed Alternative Standard which may include a Generator Condition.

Explanatory Note

Clause 1.40.7 sets out the information which must be provided by the Market Participant when it submits a Proposed Alternative Standard. The information will vary depending on the circumstances in which the Market Participant is submitting the Proposed Alternative Standard.

1.40.7. Where clause 1.40.6 applies, the Market Participant responsible

for the Existing Transmission Connected Generating System must also submit reasons and supporting evidence as to how the Proposed Alternative Standard meets the applicable criteria listed in clause

1.40.8 and is otherwise appropriate in the circumstances. Where the

Proposed Alternative Standard is less onerous than the Minimum Generator Performance Standard or the Reference Standard (as applicable) for that Technical Requirement, the Market Participant must also submit:

\(a\) technical evidence as to why the Existing Transmission Connected Generating System cannot comply with the Minimum Generator Performance Standard or the Reference Standard (as applicable); and

\(b\) information on the costs the Market Participant is likely to incur in order to meet the Minimum Generator Performance Standard or Reference Standard (as applicable).

Explanatory Note

The criteria in clause 1.40.8 is consistent with the criteria in clause 3A.5.5 for a Proposed Negotiated Generator Performance Standard save that the cost of compliance and the capability of the generator to meet the requirement is an explicit factor.

1.40.8. A Proposed Alternative Standard submitted under clause 1.40.6

must be as consistent as practicable to the Minimum Generator Performance Standard or Reference Standard for the relevant Technical Requirement (as applicable), having regard to:

\(a\) the need to protect the Existing Transmission Connected Generating System from damage;

\(b\) power system conditions at the location of the connection;

\(c\) the commercial and technical feasibility of complying with the Minimum Generator Performance Standard or Reference Standard (as applicable);

\(d\) the costs associated with complying with the Minimum Generator Performance Standard or Reference Standard (as applicable) over the remaining life of the Existing Transmission Connected Generating System; and

\(e\) the capability of the Existing Transmission Connected Generating System in respect of the Technical Requirement.

Explanatory Note

Clause 1.40.9 provides a broad power for the Network Operator to require information in order to assess a Proposed Alternative Standard.

1.40.9. If the relevant Network Operator requires further information

that it considers necessary to determine whether a Proposed Alternative Standard is appropriate it must request the information from the Market Participant responsible for the Existing Transmission Connected Generating System who must use reasonable endeavours to provide the further information that is in its possession, power or control. To avoid doubt, a Market Participant is not required to undertake testing to comply with this obligation.

Explanatory Note

Clause 1.40.10 mirrors the process in clause 3A.5.10 which requires the Network Operator to consult with AEMO.

1.40.10. If:

\(a\) a Proposed Alternative Standard is at or above the Minimum Generator Performance Standard or Reference Standard (as applicable); or

\(b\) the Network Operator reasonably considers it will approve a Proposed Alternative Standard having regard to the matters in clause

1.40.8 and following the receipt of the information and evidence

referred to in clause 1.40.7 and any further information requested under clause 1.40.9,

the Network Operator must:

\(c\) provide any information received from the Market Participant responsible for the Existing Transmission Connected Generating System under clause 1.40.7 and clause 1.40.9 to AEMO; and

\(d\) use best endeavours to consult with AEMO within a reasonable timeframe, in accordance with the process agreed under clause 3A.1.3, in relation to each submitted Proposed Alternative Standard.

Explanatory Note

Clause 1.40.11 requires AEMO to respond within a reasonable timeframe after being consulted by the Network Operator.

1.40.11. AEMO must use best endeavours to respond in a reasonable

timeframe after being consulted in accordance with clause 1.40.10 and provide a recommendation to the Network Operator whether a Proposed Alternative Standard should be approved or rejected, or whether AEMO requires further information to make the recommendation.

Explanatory Note

Clause 1.40.12 mirrors the process in clause 3A.5.12 and allows AEMO to obtain further information if required.

1.40.12. Where AEMO requires further information under clause 1.40.11,

the Network Operator must:

\(a\) provide the further information that is in its possession, power or control; or

\(b\) use reasonable endeavours to obtain that information from the Market Participant responsible for the Existing Transmission Connected Generating System and provide that information to AEMO in accordance with the process agreed under clause 3A.1.3.

Explanatory Note

Clause 1.40.13 mirrors the process in clause 3A.5.13.

1.40.13. In making a recommendation whether a Proposed Alternative

Standard should be approved or rejected in accordance with clause

1.40.11, AEMO is not limited to considering information provided by the

Network Operator and may use any other relevant information available to it.

Explanatory Note

Clauses 1.40.14 and 1.40.15 set out when AEMO must recommend that the Network Operator accept a Proposed Alternative Standard and when it must recommend rejection.

1.40.14. Subject to clause 1.40.15, AEMO must recommend that the Network

Operator accept a Proposed Alternative Standard if:

\(a\) AEMO reasonably considers the Proposed Alternative Standard satisfies clause 1.40.8; or

\(b\) the Proposed Alternative Standard:

i. relates to a standard or technical level of performance for a Technical Requirement for which there is no Agreed Generator Performance Standard that is deemed to apply in accordance with clause 1.40.4 or clause 1.40.5; and

ii. is at or above the Minimum Generator Performance Standard for the relevant Technical Requirement.

1.40.15. AEMO must recommend that the Network Operator reject a Proposed

Alternative Standard if it reasonably considers that the Proposed Alternative Standard may create an unacceptable risk to Power System Security or Power System Reliability.

Explanatory Note

Clause 1.40.16 mirrors the process in clause 3A.5.15.

1.40.16. Where AEMO recommends that the Network Operator reject a

Proposed Alternative Standard in respect of a Technical Requirement, AEMO must:

\(a\) provide written reasons to the Network Operator; and

\(b\) recommend that either:

i. an amended Proposed Alternative Standard is adopted that AEMO considers satisfies clause 1.40.8 which may include a Generator Condition; or

ii. otherwise:

1. where a Reference Standard exists, the Reference Standard is adopted; or

2. where no Reference Standard exists, the Minimum Generator Performance Standard is adopted.

Explanatory Note

Clause 1.40.17 mirrors the process in clause 3A.5.16.

1.40.17. Subject to clauses 1.40.18, 1.40.19 and clause 1.40.24, after a

Network Operator has received the recommendation from AEMO in respect of a Proposed Alternative Standard, the Network Operator must determine whether to approve or reject each Proposed Alternative Standard proposed by the Market Participant responsible for the Existing Transmission Connected Generating System.

Explanatory Note

The effect of clause 1.40.18 is to require the Network Operator to approve a standard that AEMO recommends the Network Operator accept other than where clause 1.40.19 applies.

1.40.18. Subject to clause 1.40.19, a Network Operator must approve a

Proposed Alternative Standard and notify the relevant Market Participant where AEMO recommends that the Network Operator accept a Proposed Alternative Standard.

Explanatory Note

Clause 1.40.19 mirrors the process in clause 3A.5.17.

1.40.19. A Network Operator must reject a Proposed Alternative Standard

where:

\(a\) AEMO has recommended that the Network Operator reject the Proposed Alternative Standard; or

\(b\) the Network Operator reasonably considers the Proposed Alternative Standard may create an unacceptable risk in relation to:

i. Power System Security;

ii. Power System Reliability;

iii. Power Transfer Capability; or

iv. the quality of supply of electricity for other users of the Network.

Explanatory Note

Clause 1.40.20 is equivalent to clause 3A.5.18 for the consideration of a Proposed Negotiated Generator Performance Standard.

1.40.20. If the Network Operator rejects a Proposed Alternative

Standard, the Network Operator must provide to the Market Participant responsible for the Existing Transmission Connected Generating System:

\(a\) written reasons for the decision; and

\(b\) an alternative or amended Proposed Alternative Standard that the Network Operator and AEMO consider is acceptable having regard to each of the matters in clause 1.40.8 which may include a Generator Condition.

Explanatory Note

Clauses 1.40.21 and 1.40.22 mirror the process in clause 3A.5.19 for the consideration of a Proposed Negotiated Generator Performance Standard save that the process will not re-start if the Market Participant feels a different standard is required. Instead, the parties may agree additional testing to prove the appropriateness of the Proposed Alternative Standard or commence the dispute resolution mechanism contained in section 1.42.

1.40.21. Where the Market Participant responsible for the Existing

Transmission Connected Generating System agrees with the amended Proposed Alternative Standard proposed in accordance with clause

1.40.20(b), the amended Proposed Alternative Standard will be the Agreed

Generator Performance Standard for the Technical Requirement.

1.40.22. Where the Market Participant responsible for the Existing

Transmission Connected Generating System disagrees with the amended Proposed Alternative Standard proposed in accordance with clause

1.40.20(b):

\(a\) the Market Participant and Network Operator may agree to a testing regime in accordance with clause 1.40.24; otherwise

\(b\) the Market Participant must commence the dispute resolution mechanism contained in section 1.42.

Explanatory Note

Clause 1.40.23 provides that if the Proposed Alternative Standard is agreed by the Network Operator it will be the Agreed Generator Performance Standard for the Technical Requirement.

1.40.23. Where the Network Operator approves a Proposed Alternative

Standard in accordance with clause 1.40.17, it will be the Agreed Generator Performance Standard for the Technical Requirement.

Explanatory Note

Clause 1.40.24 provides that the Market Participant may agree with the relevant Network Operator an additional testing regime in order to demonstrate the capability of a generating system.

1.40.24. A Market Participant responsible for an Existing Transmission

Connected Generating System may, at any time, agree with a Network Operator to a testing regime or interrogation of data under clause

1.40.26 to demonstrate the performance or capability of the Existing

Transmission Connected Generating System and assist in determining a Proposed Alternative Standard that is likely to be acceptable to both the relevant Network Operator and AEMO.

Explanatory Note

Clause 1.40.25 provides that the Network Operator must obtain the agreement of AEMO before agreeing to a testing regime or interrogation of data under clause 1.40.24. Clause 1.40.26 sets out the requirements of a testing regime or interrogation of data under clause ### 1.40.24.

1.40.25. A Network Operator, must consult with and only agree to a

testing regime or interrogation of data under clause 1.40.24 with the agreement of AEMO.

1.40.26. A testing regime or interrogation of data contemplated by

clause 1.40.24 must include measures which each party will take, at their cost, to demonstrate the performance or capability of the Existing Transmission Connected Generating System. Where possible, the measures agreed should be the lowest cost option available, after considering all other relevant information available. For the avoidance of doubt, the testing regime or interrogation of data may be undertaken by the Existing Transmission Connected Generating System, the Network Operator, or AEMO.

Explanatory Note

Clauses 1.40.27 and 1.40.28 provide that following the further agreed testing the Market Participant and the Network Operator may agree an appropriate standard. Otherwise, the dispute resolution mechanism in section 1.42 will apply.

1.40.27. Following receipt of the testing results or interrogation of

data contemplated by clause 1.40.24, the Market Participant responsible for the Existing Transmission Connected Generating System and the relevant Network Operator must negotiate in good faith to determine if they can agree a Proposed Alternative Standard, which may include a Generator Condition, in respect of the Technical Requirement that the Existing Transmission Connected Generating System can comply with based on the testing results or data. To avoid doubt, the Network Operator may, as part of the negotiations or otherwise, consult with AEMO as to any Proposed Alternative Standard.

1.40.28. If the Market Participant responsible for the Existing

Transmission Connected Generating System and the relevant Network Operator can agree a Proposed Alternative Standard under clause 1.40.27, the agreed Proposed Alternative Standard will be the Agreed Generator Performance Standard for the Technical Requirement. If the Market Participant and Network Operator cannot agree, the Network Operator must commence the dispute resolution mechanism contained in section 1.42.

Explanatory Note

Clause 1.40.29 makes it clear that a generator performance standard determined by the Generator Arbitrator will be an Agreed Generator Performance Standard for the purposes of this section 1.40.

1.40.29. For the purposes of this section 1.40, where the standard or

technical level of performance in respect of a Technical Requirement is determined under the dispute resolution mechanism contained in section

1.42, it will be an Agreed Generator Performance Standard for the

Technical Requirement.

Explanatory Note

Clause 1.40.30 requires each Network Operator to create a WEM Procedure setting out the processes it will follow in assessing a Proposed Alternative Standard and identifying the relevant documents or standards which are to be Reference Standards.

1.40.30. A Network Operator must develop and maintain a WEM Procedure

which includes:

\(a\) the process and considerations it will follow in assessing a Proposed Alternative Standard under this section 1.40; and

\(b\) the relevant Reference Standards which may apply to an Existing Transmission Connected Generating System for the purposes of this section 1.40.

Explanatory Note

Clauses 1.40.31 and 1.40.32 require an Agreed Generator Performance Standard to be recorded on the Generator Register. Once registered, it will become the Registered Generator Performance standard for that Technical Requirement and any Generator Conditions will become Trigger Events.

1.40.31. An Agreed Generator Performance Standard must be recorded by

the relevant Network Operator on the Generator Register and it will be the Registered Generator Performance Standard for the Technical Requirement for that Transmission Connected Generating System.

1.40.32. Where an Agreed Generator Performance Standard includes a

Generator Condition, once the Agreed Generator Performance Standard becomes the Registered Generator Performance Standard under clause

1.40.31, the Generator Condition will be a Trigger Event for the

purposes of Chapter 3A.

Explanatory Note

Section 1.41 sets out the regime for the determination and registration of Generator Monitoring Plans for Existing Transmission Connected Generating Systems.

1.41. Generator Monitoring Plans for Existing Transmission Connected

Generating Systems

Explanatory Note

Clause 1.41.1 defines Existing Monitoring Plan for the purpose of section 1.41.

1.41.1. In this section 1.41:

Existing Monitoring Plan: Means an existing plan approved or agreed by the relevant Network Operator for monitoring the performance of the Existing Transmission Connected Generating System against a Technical Requirement.

Explanatory Note

Clause 1.41.2 requires a Market Participant responsible for an Existing Transmission Connected Generating System to submit a proposed Generator Monitoring Plan within 6 months from the Tranche 1 Commencement Date, or any date mutually agreed.

Clauses 1.41.2 is amended to replace the term “Template Generator Monitoring Plan” with “Generator Monitoring Plan Requirements” (see section 3A.6 for details of the reason for the change).

Clause 1.41.2 will be a civil penalty provision.

1.41.2. Subject to any extension granted under clause 1.41.3, no later

than six months after the Tranche 1 Commencement Date, a Market Participant responsible for an Existing Transmission Connected Generating System must submit a proposed Generator Monitoring Plan to AEMO for approval in accordance with any requirements for submission in the WEM Procedure referred to in clause 1.41.6 that:

\(a\) meets the Generator Monitoring Plan Requirements as applicable to the Existing Transmission Connected Generating System; or

\(b\) meets the Generator Monitoring Plan Requirements as applicable to the Existing Transmission Connected Generating System other than in respect of variations that the Market Participant reasonably considers are required on the basis that:

i. compliance is not possible, or where doing so would impose unreasonable costs on the Market Participant; or

ii. an Existing Monitoring Plan includes a monitoring regime or requirements in respect of the relevant Technical Requirement.

Explanatory Note

Clause 1.41.3 allows a Market Participant to extend the deadline in clause 1.41.2.

1.41.3. Subject to clause 1.41.4, a Market Participant may, by written

notice, request the date referred to in clause 1.41.2 be extended by AEMO, including detailed reasons as to why an extension is necessary. Where AEMO considers that the Market Participant is making reasonable progress towards having a Generator Monitoring Plan for one or more of its Existing Transmission Connected Generating Systems and reasonably requires additional time to complete it, AEMO must agree to extend the date by a reasonable period. To avoid doubt, the Market Participant may request, and AEMO may extend, the date in clause 1.41.2 more than once.

Explanatory Note

Clause 1.41.4 requires a request for extension to be made at least 20 Business Days before the relevant date. Clause 1.41.5 requires AEMO to determine and notify the outcome of the extension within 10 Business Days.

1.41.4. A request made under clause 1.41.3 must be made at least 20

Business Days before the date in clause 1.41.2, or any extended date agreed under clause 1.41.3. Where a request is made within 20 Business Days of the relevant date AEMO may, but is not obliged to, consider the request.

1.41.5. AEMO must notify the Market Participant whether the request made

under clause 1.41.3 is approved or rejected within 10 Business Days or other date agreed between the parties.

Explanatory Note

Clause 1.41.6 provides a head of power for AEMO to document in a WEM Procedure further details as to how AEMO will consider requests for extensions made under clause 1.41.3 and assess a Generator Monitoring Plan for an Existing Transmission Connected Generating System. Given this is a limited regime, this is not mandatory but provides flexibility for AEMO to develop a WEM Procedure if it considers it is necessary.

1.41.6. AEMO may develop a WEM Procedure which sets out:

\(a\) the information required by AEMO to, and the method by which AEMO will, consider a proposed Generator Monitoring Plan submitted under clause 1.41.2; and

\(b\) the information required by AEMO to, and method by which AEMO will, consider and determine requests for an extension made under clause

1.41.3.

Explanatory Note

Where a Market Participant proposes a Generator Monitoring Plan that meets the requirements of AEMO's Template Generator Monitoring Plan, then AEMO must approve it consistent with AEMO's obligations for Generator Monitoring Plans for new Transmission Connected Generating Systems under clause 3A.6.5.

1.41.7. Subject to clauses 1.41.9 and 1.41.12, AEMO must approve a

proposed Generator Monitoring Plan that AEMO reasonably considers satisfies the requirements in clause 1.41.2 and where AEMO considers any variations requested by the Market Participant are justified.

Explanatory Note

An Existing Transmission Connected Generating System may have an Existing Monitoring Plan. Where that is the case, then that monitoring plan will be the Generator Monitoring Plan for the relevant Technical Requirements unless AEMO considers it would pose a safety risk or threat to Power System Security or Power System Reliability.

1.41.8. Where a Market Participant responsible for an Existing

Transmission Connected Generating System proposes a Generator Monitoring Plan that includes required variations on the basis of clause

1.41.2(b)(ii), it must provide a copy of the Existing Monitoring Plan to

AEMO including any supporting documentation that AEMO reasonably considers necessary.

1.41.9. Subject to clause 1.41.10, if AEMO is satisfied an Existing

Monitoring Plan applies in respect of a Technical Requirement, AEMO must approve the method of monitoring as it relates to that Technical Requirement as set out in the Existing Monitoring Plan as part of a Generator Monitoring Plan proposed by a Market Participant.

1.41.10. Where AEMO reasonably considers the method of monitoring in an

Existing Monitoring Plan in accordance with clause 1.41.9 would create an unacceptable risk to Power System Security or Power System Reliability, AEMO must:

\(a\) reject the Existing Monitoring Plan in respect of that Technical Requirement; and

\(b\) in addition to the reasons provided under clause 1.41.14, provide detailed reasons to the Market Participant as to why it considers the Existing Monitoring Plan in respect of that Technical Requirement would create an unacceptable risk to Power System Security or Power System Reliability.

Explanatory Note

AEMO must approve or reject a proposed Generator Monitoring Plan within 12 months of the date it is submitted to AEMO for consideration under clause 1.41.2.

1.41.11. Where a Market Participant responsible for an Existing

Transmission Connected Generating System proposes a Generator Monitoring Plan, AEMO must use reasonable endeavours to respond in a reasonable timeframe and no later than 12 months after AEMO receives the proposed Generator Monitoring Plan, determine whether to approve or reject the proposed Generator Monitoring Plan or request further information.

Explanatory Note

Clause 1.41.12 sets out the criteria for approval by AEMO for Generator Monitoring Plans which vary from the Template Generator Monitoring Plan or are not consistent with the generator's Existing Monitoring Plan. The criteria is different to the criteria in clause 3A.6.5. The criteria is more specific as there is a higher likelihood for variations with Existing Transmission Connected Generating Systems to provide more guidance to AEMO and Market Participants.

Clause1.41.12 is amended to replace the term “Template Generator Monitoring Plan” with “Generator Monitoring Plan Requirements” (see section 3A.6 for details of the reason for the change).

1.41.12. When considering whether or not to approve a proposed Generator

Monitoring Plan under clause 1.41.2(b)(i), AEMO must consider where relevant:

\(a\) the technical feasibility of the Existing Transmission Connected Generating System complying with the Generator Monitoring Plan Requirements;

\(b\) consistency of alternative testing methods proposed with good electricity industry practice including any contained in an Existing Monitoring Plan (if applicable);

\(c\) the age of the Existing Transmission Connected Generating System, in particular the cost of imposing the standard testing method relative to the benefits gained over the expected remaining life of the Existing Transmission Connected Generating System;

\(d\) the risk that the Existing Transmission Connected Generating System poses to power system security and reliability (considering size, location and technology type of generator);

\(e\) the efficacy of an alternative proposed testing method (incorporating cost, risk and accuracy of alternative proposed testing method);

\(f\) any advice from manufacturers and industry experts;

\(g\) specific factors associated with the technology of the Existing Transmission Connected Generating System, including whether its performance is likely to drift or degrade over a particular timeframe, in which case more stringent monitoring may be required; and

\(h\) whether the testing method or data source proposed by the Market Participant responsible for the Existing Transmission Connected Generating System as a modification to the Generator Monitoring Plan Requirements was used to establish the compliance standard as part of the process to determine the Registered Generator Performance Standards for that Existing Transmission Connected Generating System.

Explanatory Note

Clause 1.41.13 provides a discretion for AEMO to consult with the relevant Network Operator but it is not obliged to.

1.41.13. AEMO may, but is not required to, consult the relevant Network

Operator in respect of a proposed Generator Monitoring Plan submitted to AEMO for approval under this section 1.41.

Explanatory Note

Where AEMO rejects a proposed Generator Monitoring Plan it must provide reasons and it may suggest amendments which it considers would meet the Template Generator Monitoring Plan or are otherwise satisfactory.

Clause 1.41.14 is amended to replace the term “Template Generator Monitoring Plan” with “Generator Monitoring Plan Requirements” (see section 3A.6 for details of the reason for the change).

1.41.14. Where AEMO rejects a proposed Generator Monitoring Plan

submitted in accordance with this section 1.41, AEMO:

\(a\) must notify the Market Participant;

\(b\) must provide reasons to the Market Participant for the rejection; and

\(c\) may request amendments to the proposed Generator Monitoring Plan that it considers are required to meet the requirements of the Generator Monitoring Plan Requirements or are otherwise satisfactory to AEMO taking into account the matters referred to in clause 1.41.12 where relevant.

Explanatory Note

Given the need to have the process concluded in a timely manner, where the Market Participant rejects AEMO's proposal the matter will be resolved by the dispute resolution mechanism in section 1.42.

1.41.15. Where AEMO requests amendments under clause 1.41.14(c), the

Market Participant responsible for the Existing Transmission Connected Generating System may either:

\(a\) accept the proposal, in which case the requested amendments will be taken to be made to the proposed Generator Monitoring Plan and it will be deemed to be the approved Generator Monitoring Plan for the Existing Transmission Connected Generating System; or

\(b\) reject the proposal, in which case the Market Participant must commence the dispute resolution mechanism contained in section 1.42.

Explanatory Note

The Generator Monitoring Plan will only commence once there is a Generator Monitoring Plan in place for each Technical Requirement or a later date agreed with AEMO.

1.41.16. A Generator Monitoring Plan for an Existing Transmission

Connected Generating System will commence on the later of:

\(a\) the date on which the Market Participant responsible for the Existing Transmission Connected Generating System has;

i. a Registered Generator Performance Standard for each Technical Requirement in accordance with section 1.40; and

ii. a Generator Monitoring Plan is approved under this section 1.41 or determined to apply by arbitration in accordance with section 1.42; or

\(b\) the date agreed by AEMO and the Market Participant.

Explanatory Note

Clause 1.41.17 requires a Generator Monitoring Plan which is approved under this section or determined by arbitration it will be recorded on the Generator Register.

1.41.17. A Generator Monitoring Plan approved by AEMO under this section

1.41 or determined by arbitration in accordance with section 1.42 must

be recorded by the relevant Network Operator on the Generator Register.

Explanatory Note

Section 1.42 sets out the dispute resolution regime for Existing Transmission Connected Generating Systems.

1.42. Dispute Resolution Mechanism for Existing Transmission Connected

Generating Systems

1.42.1. In this section 1.42:

Confidential Information: Means in relation to arbitral proceedings conducted under this section 1.42, information that relates to the arbitral proceedings or a decision of the Generator Arbitrator in the arbitral proceedings and includes the following:

\(a\) the statement of claim, statement of defence and all other pleadings, submissions, statements or other information supplied to the Generator Arbitrator by a Party;

\(b\) any information supplied by a Party to another Party in compliance with a direction of the Generator Arbitrator;

\(c\) any evidence (whether documentary or otherwise) supplied to the Generator Arbitrator;

\(d\) any notes made by the Generator Arbitrator of oral evidence or submissions given before the Generator Arbitrator;

\(e\) any transcript of oral evidence or submissions given before the Generator Arbitrator; and

\(f\) any other thing declared by the Generator Arbitrator (whether upon submissions by a Party or otherwise) to be Confidential Information.

Dispute: Means a dispute to which the WEM Rules provide that this section 1.42 will apply.

Generator Arbitration Commencement Date: Has the meaning given in clause 1.42.11.

Generator Arbitration Decision: Has the meaning given in clause

1.42.18.

Generator Arbitrator: Means the arbitrator to which the Dispute has been referred by the Coordinator under clause 1.42.5.

Party: Means a party to the Dispute.

Primary Generator Arbitrator: Has the meaning given in clause

1.42.2(a).

Secondary Generator Arbitrator: Has the meaning given in clause

1.42.2(b).

Technical Panel of Experts: Has the meaning given in clause

1.42.2(c).

Explanatory Note

Clause 1.42.2 provides for the power to appoint arbitrators. Note that clause 1.4.1(m) provides for a power for the Coordinator to remove a person that the Coordinator appoints.

1.42.2. The Coordinator must, not later than 1 April 2021, in accordance

with the process referred to in clause 1.42.28, appoint:

\(a\) one primary arbitrator ("Primary Generator Arbitrator");

\(b\) at least two secondary arbitrators ("Secondary Generator Arbitrator"); and

\(c\) an independent panel of not less than three experts for the purpose of performing the function described in 1.42.14 ("Technical Panel of Experts").

The Coordinator may, in accordance with the process referred to in clause 1.42.28, appoint a further Primary Generator Arbitrator, Secondary Generator Arbitrator or person to the Technical Panel of Experts.

Explanatory Note

Clause 1.42.3 provides for the power to appoint experts. Note that clause 1.4.1(n) provides for a power for the Coordinator to remove a person that the Coordinator appoints.

1.42.3. The Coordinator must, in respect of each appointment made under

clause 1.42.2 publish:

\(a\) the names and relevant details of each appointment;

\(b\) respective tenures of each appointment; and

\(c\) the remuneration and expense provisions,

within five Business Days of each appointment.

Explanatory Note

Clause 1.42.4 provides how a party may refer a dispute for arbitration. At a minimum they must provide a written request but the Coordinator may prescribe further pre-conditions which must be satisfied in the WEM Procedure referred to in clause 1.42.10. An example of such pre-conditions would be certification that the relevant processes in sections 1.40 or 1.41 had occurred before the dispute was referred.

1.42.4. Before a Dispute may be resolved in accordance with the arbitral

proceedings set out in this section 1.42, a Party must comply with any relevant processes set out in the WEM Procedure referred to in clause

1.42.10 and deliver a written notification for that Dispute to be

referred to arbitration to:

\(a\) the Coordinator; and

\(b\) each other Party to the Dispute.

Explanatory Note

Clause 1.42.5 obliges the Coordinator to refer the dispute where the process in clause 1.42.4 has been complied with.

1.42.5. On satisfying itself that clause 1.42.4 has been complied with,

the Coordinator must, subject to clauses 1.42.6 to 1.42.9, refer the Dispute for resolution to a Generator Arbitrator in accordance with this section 1.42.

Explanatory Note

The intention is to have one arbitrator deal with disputes under this section. However, it is recognised that there may be situations where that arbitrator cannot properly perform the role. In those cases, a secondary arbitrator will be appointed.

1.42.6. The Generator Arbitrator to which a Dispute is referred under

clause 1.42.5 must be the Primary Generator Arbitrator unless, subject to the WEM Procedure referred to in clause 1.42.10, in the reasonable opinion of the Coordinator:

\(a\) the Primary Generator Arbitrator has an actual, potential or perceived conflict of interest with the subject matter of the Dispute;

\(b\) the Primary Generator Arbitrator has insufficient time to adequately perform their functions under this section 1.42 due to one or more contemporaneous arbitral proceedings being conducted under this section 1.42;

\(c\) the Primary Generator Arbitrator is in ill health such that they are unable to adequately perform their functions under this section

1.42; or

\(d\) the Coordinator otherwise declares for a reason as set out in the WEM Procedure referred to in clause 1.42.10,

in which case, the Primary Generator Arbitrator must be a Secondary Generator Arbitrator (and any references under this section 1.42 to the Primary Generator Arbitrator will be to the Secondary Generator Arbitrator).

Explanatory Note

Where a secondary arbitrator is appointed, the matters in clause ### 1.42.6 will still be considered for that second arbitrator.

1.42.7. For the purpose of clause 1.42.6, where the Generator Arbitrator

is a Secondary Generator Arbitrator, the Coordinator must select which Secondary Generator Arbitrator is to be the Generator Arbitrator, subject to the WEM Procedure referred to in clause 1.42.10 and subject to clause 1.42.6 (which in such case are to apply as if the Secondary Generator Arbitrator is the Primary Generator Arbitrator).

Explanatory Note

Clause 1.42.8 provides for the parties to assist the Coordinator to identify if the primary arbitrator or a secondary arbitrator that is appointed has a conflict.

1.42.8. For the purpose of clause 1.42.6, a Party must:

\(a\) declare if in their reasonable belief the Primary Generator Arbitrator or a Secondary Generator Arbitrator, as relevant, has an actual, potential or perceived conflict of interest with the subject matter of or parties to the Dispute; and

\(b\) provide written reasons to the Coordinator as to why the Generator Arbitrator should not be the Primary Generator Arbitrator or a Secondary Generator Arbitrator, as relevant.

Explanatory Note

Clause 1.42.9 provides a deadlock mechanism if, in the unlikely event, all of the arbitrators are not able to determine the dispute.

1.42.9. Should the Primary Generator Arbitrator and each Secondary

Generator Arbitrator be excluded from being the Generator Arbitrator, the Coordinator and each Party to the Dispute shall decide upon an alternative independent arbitrator to be the Generator Arbitrator by majority vote. The Coordinator will have the deciding vote in the event of a tied vote.

Explanatory Note

Clause 1.42.10 provides a head of power for the Coordinator to develop a WEM Procedure which sets out further details on the processes associated with the arbitration process and the appointment of arbitrators.

1.42.10. The Coordinator must develop a WEM Procedure which sets out:

\(a\) any administrative support the Coordinator will provide to the Primary Generator Arbitrator, Secondary Generator Arbitrators and Technical Panel of Experts;

\(b\) the particulars of how the Coordinator will assess the matters detailed in clauses 1.42.6(a) to 1.42.6(c);

\(c\) any reasons under clause 1.42.6(d) where the Coordinator will declare the Generator Arbitrator to be a Secondary Generator Arbitrator;

\(d\) the process which a Party must follow in order to refer a Dispute for arbitration under this section 1.42;

\(e\) the manner in which the Dispute is to be resolved by the Generator Arbitrator, including, but not limited to, the manner in which evidence is to be presented;

\(f\) the awarding of costs pursuant to clause 1.42.20; and

\(g\) any other particulars in relation to the referral of a Dispute to a Generator Arbitrator.

Explanatory Note

Clause 1.42.11 sets out the time at which an arbitration commences. This is important as an arbitration must generally be completed within six months as per clause 1.42.13.

1.42.11. Unless otherwise agreed by the Parties, the arbitral

proceedings contemplated by this section 1.42 in respect of a particular Dispute commence on the date the Dispute is referred to the Generator Arbitrator in accordance with clause 1.42.5 ("Generator Arbitration Commencement Date").

Explanatory Note

Clause 1.42.12 applies the process in the WEM Procedure referred to in clause 1.42.10 but provides flexibility for the parties and the arbitrator to agree a process which they consider suits them better.

1.42.12. Unless otherwise agreed by the Parties and the Generator

Arbitrator, the Dispute will be resolved in accordance with the WEM Procedure referred to in clause 1.42.10.

Explanatory Note

Clause 1.42.13 provides a general time frame of 6 months to resolve a dispute. It is not a hard deadline as the arbitrator must use best endeavours to resolve the dispute in 6 months. Where the arbitrator does not consider that the dispute will be resolved within 6 months the arbitrator must notify the parties of the reasons.

1.42.13. The Generator Arbitrator:

\(a\) must use best endeavours to resolve a Dispute within six months from the Generator Arbitration Commencement Date; and

\(b\) if the Generator Arbitrator reasonably considers that the Dispute will not be resolved within six months from the Generator Arbitration Commencement Date, the Generator Arbitrator:

i. must notify the Parties in writing of the reasons for the belief and the estimated date by which the Generator Arbitrator reasonably believes that the Dispute will be resolved; and

ii. must update the Parties should the Generator Arbitrator's reasonable belief contemplated in 1.42.13(b)(i) materially change.

Explanatory Note

Clause 1.42.14 provides power for the arbitrator to have reference to the panel of experts.

1.42.14. Subject to clause 1.42.15, the Generator Arbitrator may:

\(a\) appoint one or more experts from the Technical Panel of Experts to report to it on specific issues to be determined by the Generator Arbitrator; and

\(b\) may require a Party to give any expert appointed in accordance with clause 1.42.14(a) any relevant information or to produce, or to provide access to, any relevant documents, goods or other property for inspection by the expert,

and unless otherwise agreed by the Parties, if a Party so requests or if the Generator Arbitrator considers it necessary, any expert appointed in accordance with clause 1.42.14(a) must, after delivery of a written or oral report from the expert, participate in a hearing where the Parties have the opportunity to put questions to the expert.

Explanatory Note

Before the arbitrator has reference to the panel of experts it must disclose the details of the expert and the likely cost to the parties so there is transparency.

1.42.15. Prior to appointing an expert from the Technical Panel of

Experts, the Generator Arbitrator must advise each Party that it intends to appoint an expert from the Technical Panel of Experts, and provide the Parties:

\(a\) the identification of the particular expert;

\(b\) the nature of the advice being sought;

\(c\) the approximate cost of appointing the expert; and

\(d\) an opportunity for each Party to make submissions to the Generator Arbitrator as to whether the particular expert has an actual, potential or perceived conflict of interest in respect of the matter or the advice being sought.

Explanatory Note

Clause 1.42.16 provides power for the arbitrator to short circuit the process if the arbitrator considers that the request is frivolous, vexatious, trivial or lacking in substance.

1.42.16. If the Generator Arbitrator reasonably considers a request for

arbitration to be frivolous, vexatious, trivial or lacking in substance, the Generator Arbitrator may:

\(a\) require that the Parties undertake negotiations on terms the Generator Arbitrator reasonably considers appropriate; or

\(b\) make a Generator Arbitration Decision in accordance with clause

1.42.18 without conducting arbitral proceedings.

Explanatory Note

If the parties settle the dispute there is the option to have the settlement recorded as a decision by the arbitrator. This can be useful to establish a precedent for other parties. It also provides transparency to the market.

1.42.17. If, during the arbitral proceedings, the Parties settle the

Dispute:

\(a\) the Generator Arbitrator must terminate the proceedings in accordance with clause 1.42.21 and, if requested by the Parties and not objected to by the Generator Arbitrator, record the settlement in the form contemplated in clause 1.42.18; and

\(b\) such settlement will have the same status and effect as a Generator Arbitration Decision.

Explanatory Note

Clause 1.42.18 sets out the requirements for the determination and makes it clear that it is final and binding. A party will not be able to appeal the decision under the WEM Rules although there will remain administrative law remedies before the Courts.

1.42.18. Subject to clause 1.42.17(a), on determination of the Dispute,

the Generator Arbitrator must:

\(a\) record the decision in writing; and

\(b\) state the reasons upon which the decision is based, unless the Parties have agreed that no reasons are to be given or the award is an award on agreed terms,

and such determination is final and binding (the "Generator Arbitration Decision").

Explanatory Note

Clause 1.42.19 sets out the general position on costs which is that each party will bear its own costs. This may be altered by the arbitrator under clause 1.42.20.

1.42.19. In relation to the costs associated with arbitral proceedings

conducted under this section 1.42, unless otherwise determined by the Generator Arbitrator in accordance with clause 1.42.20:

\(a\) all administrative costs will be borne equally by the Parties; and

\(b\) all legal and other costs will be borne by the Party that incurred such cost.

Explanatory Note

Clause 1.42.20 provides for discretion for the arbitrator to award costs where the arbitrator considers that the conduct of a party justifies it, the dispute may have been avoided by a settlement or there are any public interest considerations in awarding or not awarding costs (for example, it could be a 'test case' which allows a Network Operator to apply the decision to multiple disputes).

The arbitrator may award costs during the proceedings where appropriate. For example, where a dispute is particularly lengthy and an independent expert needs to be paid.

Further details will be set out in the WEM Procedure referred to in clause 1.42.10.

1.42.20. Notwithstanding clause 1.42.19, a Generator Arbitrator may

assign any costs associated with the arbitral proceedings as they reasonably consider and in doing so must consider the following factors:

\(a\) the final Generator Arbitration Decision;

\(b\) the conduct of the Parties during the arbitral proceedings;

\(c\) any prior settlement offers or positions of the Parties;

\(d\) any material public interest considerations; and

\(e\) any information or requirements in the WEM Procedure referred to in clause 1.42.10.

To avoid doubt, a Generator Arbitrator may assign costs associated with the arbitral proceedings at any stage during the arbitral proceedings and may make payment of those costs a condition to continuing proceedings.

Explanatory Note

Clause 1.42.21 sets out the circumstances in which the arbitration may be terminated.

1.42.21. If:

\(a\) the Party requesting arbitration withdraws their request, unless another Party objects and the Generator Arbitrator recognises a legitimate interest in obtaining a final settlement of the Dispute;

\(b\) the Parties agree on the termination of the proceedings;

\(c\) the Generator Arbitrator finds that the continuation of the proceedings has for any other reason become unnecessary or impossible;

\(d\) the Parties fail to comply with any requirements set out by the Generator Arbitrator as a condition to continue proceedings;

\(e\) the Dispute is settled as contemplated in clause 1.42.17; or

\(f\) the Generator Arbitrator makes a Generator Arbitration Decision,

the arbitral proceedings terminate and the Generator Arbitrator must notify the Parties of the termination.

Explanatory Note

The arbitrator must publish the decision and reasons for the decision as well as any costs order in order to provide transparency to the market. The arbitrator must not publish confidential information.

1.42.22. The Generator Arbitrator must publish:

\(a\) the Generator Arbitration Decision;

\(b\) any reasons for the Generator Arbitration Decision; and

\(c\) any cost orders made in accordance with clause 1.42.20,

provided that any commercially sensitive information is redacted and the Generator Arbitrator does not publish any Confidential Information unless the disclosure is permitted under clause 1.42.24.

Explanatory Note

As a general proposition, the parties must keep information confidential in respect of the proceedings.

1.42.23. The Parties, the Generator Arbitrator, or any member of the

Technical Panel of Experts must not disclose Confidential Information in relation to the Parties, the Dispute or any arbitral proceedings unless the disclosure is permitted under clause 1.42.24.

Explanatory Note

Clause 1.42.24 sets out the circumstances where confidential information may be disclosed.

1.42.24. Confidential Information may be disclosed in the following

circumstances:

\(a\) where written consent has been obtained from each Party;

\(b\) the disclosure is to a professional or other adviser of a Party for the purpose of the arbitral proceedings conducted under this section

1.42;

\(c\) the disclosure is necessary to ensure that a Party has a reasonable opportunity to present the Party’s case and the disclosure is no more than reasonable for that purpose;

\(d\) the disclosure is necessary for the establishment or protection of a Party’s legal rights in relation to a third party and the disclosure is no more than reasonable for that purpose;

\(e\) the disclosure is for the purpose of enforcing a Generator Arbitration Decision or an associated cost order and the disclosure is no more than reasonable for that purpose;

\(f\) the disclosure is in accordance with an order made or a subpoena issued by a Court; or

\(g\) the disclosure or publication is authorised or required by these WEM Rules, any applicable law or required by a competent regulatory body, and the person making the disclosure gives written details of the disclosure (including an explanation of the reasons for the disclosure) to:

i. if the person is a Party, the other Parties and the Generator Arbitrator; and

ii. if the Generator Arbitrator is making the disclosure, all the Parties.

Explanatory Note

Clause 1.42.25 provides for immunity for the arbitrator when the arbitrator acts in good faith. This provision is the same as section 39 of the Commercial Arbitration Act 2012 (WA) and reflects the usual practice for the appointment of arbitrators.

1.42.25. A Generator Arbitrator is not liable for anything done or

omitted to be done in good faith in their capacity as the arbitrator of a Dispute under these WEM Rules.

Explanatory Note

Clause 1.42.26 provides for immunity for the Coordinator in appointing the arbitrator. This provision is the same as section 39 of the Commercial Arbitration Act 2012 (WA).

1.42.26. Where the Coordinator appoints, fails to appoint or refuses to

appoint a person as a Generator Arbitrator in respect of a Dispute under these WEM Rules, the Coordinator will not be liable in relation to the appointment, failure or refusal if done in good faith.

Explanatory Note

Clause 1.42.27 provides power for the Generator Arbitrator to procure support and services reasonably required to conduct the proceedings and recover the costs of that support from the parties as appropriate.

1.42.27. A Generator Arbitrator in respect of a Dispute under these WEM

Rules may procure any support and services reasonably required in respect of arbitral proceedings conducted under this section 1.42 and may recover any associated costs as administrative costs associated with the arbitral proceedings.

1.42.28. The Coordinator must publish the process the Coordinator will

follow in appointing a Primary Generator Arbitrator, Secondary Generator Arbitrators and members of the Technical Panel of Experts in the event a new Primary Generator Arbitrator, Secondary Generator Arbitrator or new appointments to the Technical Panel of Experts are considered by the Coordinator to be required after the Tranche 1 Commencement Date.

Explanatory Note

Section 1.43 requires AEMO, Network Operators and the ERA to develop WEM Procedures they are required to develop or document notwithstanding the WEM Rules requiring them to do so may not yet be commenced. This will ensure all WEM Procedures are in place by the time the relevant WEM Rules relating or relevant to the WEM Procedure commence.

1.43. Specific Transitional Provisions – WEM Procedures for Tranches 2

and 3 Amending Rules

1.43.1. In this section 1.43:

Tranches 2 and 3 Amending Rules: Means the Amending Rules in the Wholesale Electricity Market Amendment (Tranches 2 and 3 Amendments) Rules 2020 made by the Minister under regulation 7(5) of the WEM Regulations by a notice published in the Government Gazette as part of the program of work for the Wholesale Electricity Market and Constrained Network Access Reform, and any Amending Rules deemed by the Minister to form part of those Amending Rules in a subsequent instrument made by the Minister for the purposes of this section 1.43.

1.43.2. Where the Tranches 2 and 3 Amending Rules oblige AEMO, a Network

Operator or the Economic Regulation Authority to develop or document a WEM Procedure then, notwithstanding that the relevant WEM Rule has not commenced, AEMO, each Network Operator and the Economic Regulation Authority must comply with their obligations in this section 1.43, as if the relevant WEM Rule was in force.

1.43.3 AEMO must, without limiting clause 1.43.6:

\(a\) develop each procedure it is responsible for in accordance with the Tranches 2 and 3 Amending Rules prior to the commencement of the relevant Amending Rule in the Tranches 2 and 3 Amending Rules that requires AEMO to develop or document that procedure; and

\(b\) consult with Rule Participants and other relevant stakeholders in developing the procedures it is responsible for in accordance with the Tranches 2 and 3 Amending Rules.

1.43.4. Each Network Operator must, without limiting clause 1.43.6:

\(a\) develop each procedure it is responsible for in accordance with the Tranches 2 and 3 Amending Rules prior to the commencement of the relevant Amending Rule in the Tranches 2 and 3 Amending Rules that requires the Network Operator to develop or document that procedure; and

\(b\) consult with Rule Participants and other relevant stakeholders in developing the procedures it is responsible for in accordance with the Tranches 2 and 3 Amending Rules.

1.43.5. The Economic Regulation Authority must, without limiting clause

1.43.6:

\(a\) develop each procedure it is responsible for in accordance with the Tranches 2 and 3 Amending Rules prior to the commencement of the relevant Amending Rule in the Tranches 2 and 3 Amending Rules that requires the Economic Regulation Authority to develop or document that procedure; and

\(b\) consult with Rule Participants and other relevant stakeholders in developing the procedures it is responsible for in accordance with the Tranches 2 and 3 Amending Rules.

1.43.6. Each WEM Procedure that is required to be developed under

clauses 1.43.3(a), 1.43.4(a) and 1.43.5(a):

\(a\) without limiting clauses 1.43.3(b), 1.43.4(b) and 1.43.5(b), may, but is not required to, be developed in accordance with the Procedure Change Process;

\(b\) is, from the commencement of the relevant Amending Rule in the Tranches 2 and 3 Amending Rules that requires the person to develop or document the procedure, deemed to be the relevant WEM Procedure required to be developed under the relevant clause in the Tranches 2 and 3 Amending Rules; and

\(c\) may, with industry consultation, be amended or replaced with a revised WEM Procedure without undertaking the Procedure Change Process by the party responsible for developing the WEM Procedure until six months after the New WEM Commencement Day provided that, in determining a commencement date for the revised WEM Procedure, the party responsible for developing the WEM Procedure gives reasonable consideration of an appropriate commencement date that minimises the impact of the changes to the WEM Procedure on Rule Participants. To avoid doubt, after six months from the New WEM Commencement Day, any amendment or replacement of the WEM Procedure must be made in accordance with the Procedure Change Process.

1.43.7. In developing, amending or replacing a WEM Procedure in

accordance with this section 1.43, AEMO, a Network Operator or the Economic Regulation Authority, as applicable, must:

\(a\) publish a call for submissions on the proposed or revised WEM Procedure, and the due date for submissions must not be less than 15 Business Days from the date the proposed or revised WEM Procedure is published; and

\(b\) publish, together with the final WEM Procedure, a summary of the submissions received and the response of AEMO, the Network Operator or the Economic Regulation Authority, as applicable, to the issues raised in those submissions.

1.43A. Specific Transitional Provisions – WEM Procedures for Particular

Wholesale Electricity Market and Constrained Network Access Reform Amending Rules

1.43A.1. In this section 1.43A:

Specified Amending Rules: Means the Amending Rules in the Wholesale Electricity Market Amendment (Tranche 5 Amendments) Rules 2021 and the Wholesale Electricity Market (Miscellaneous Amendments No. 2) Rules 2021 made by the Minister under regulation 7(5) of the WEM Regulations by a notice published in the Government Gazette as part of the program of work for the Wholesale Electricity Market and Constrained Network Access Reform, and any Amending Rules deemed by the Minister to form part of those Amending Rules in a subsequent instrument made by the Minister for the purposes of this section 1.43A.

1.43A.2. Where the Specified Amending Rules oblige AEMO or the

Coordinator to develop or document a WEM Procedure then, notwithstanding that the relevant WEM Rule has not commenced, AEMO and the Coordinator must comply with their obligations in this section 1.43A, as if the relevant WEM Rule was in force.

1.43A.3. AEMO must, without limiting clause 1.43A.6:

\(a\) develop each procedure it is responsible for in accordance with the Specified Amending Rules prior to the commencement of the relevant Amending Rule in the Specified Amending Rules that requires AEMO to develop or document that procedure; and

\(b\) consult with Rule Participants and other relevant stakeholders in developing the procedures it is responsible for in accordance with the Specified Amending Rules.

1.43A.4. The Coordinator must, without limiting clause 1.43A.6:

\(a\) develop each procedure it is responsible for in accordance with the Specified Amending Rules prior to the commencement of the relevant Amending Rule in the Specified Amending Rules that requires the Coordinator to develop or document that procedure; and

\(b\) consult with Rule Participants and other relevant stakeholders in developing the procedures it is responsible for in accordance with the Specified Amending Rules.

1.43A.5. Each WEM Procedure that is required to be developed under

clauses 1.43A.3(a) and 1.43A.4(a):

\(a\) without limiting clauses 1.43A.3(b) and 1.43A.4(b) may, but is not required to, be developed in accordance with the Procedure Change Process;

\(b\) is, from the commencement of the relevant Amending Rule in the Specified Amending Rules that requires the person to develop or document the procedure, deemed to be the relevant WEM Procedure required to be developed under the relevant clause in the Specified Amending Rules; and

\(c\) may, with industry consultation, be amended or replaced with a revised WEM Procedure without undertaking the Procedure Change Process by the party responsible for developing the WEM Procedure until six months after the New WEM Commencement Day provided that in determining a commencement date for the revised WEM Procedure, the party responsible for developing the WEM Procedure gives reasonable consideration of an appropriate commencement date that minimises the impact of the changes to the WEM Procedure on Rule Participants. To avoid doubt, after six months from the New WEM Commencement Day, any amendment or replacement of the WEM Procedure must be made in accordance with the Procedure Change Process.

1.43A.6. In developing, amending or replacing a WEM Procedure in

accordance with this section 1.43, AEMO or the Coordinator, as applicable, must:

\(a\) publish a call for submissions on the proposed or revised WEM Procedure and the due date for submissions must not be less than 15 Business Days from the date the proposed or revised WEM Procedure is published; and

\(b\) publish, together with the final WEM Procedure, a summary of the submissions received and the response of AEMO or the Coordinator, as applicable, to the issues raised in those submissions.

1.43B. Specific Transitional Provisions – Application of Section 1.43A

to WEM Procedures for Particular Wholesale Electricity Market and Constrained Network Access Reform Amending Rules

1.43B.1. Where an Amending Rule in the Wholesale Electricity Market

(Tranche 6 Amendments) Rules 2022 and the Wholesale Electricity Market (Tranche 6A Amendments) Rules 2023 requires or provides for a WEM Procedure to be developed or documented (however described) by the Coordinator, AEMO or a Network Operator, then the provisions of clause

1.43A will apply to that Amending Rule as if:

\(a\) the Amending Rule was a Specified Amending Rule as defined in clause 1.43A.1; and

\(b\) where the Amending Rule obliges a Network Operator to develop or document a WEM Procedure, section 1.43A was amended to apply to WEM Procedures required to be developed by a Network Operator.

Explanatory Note

Gate Closure is to be 15 minutes before the start of the Trading Interval for the first 6 months of the new Real-Time Market. Thereafter, Gate Closure will be the period published by AEMO on the WEM Website, which will be zero unless there is expected to be a significant and quantifiable impact on power system security and reliability. AEMO could choose to leave the Gate Closure period at 15 minutes or reduce it to a period less than 15 minutes and as close to real-time as possible (i.e. allowing AEMO sufficient time to process Real-Time Market Submission and issue Dispatch Instructions, etc).

1.44. Specific Transitional Provisions – Gate Closure

1.44.1. Notwithstanding that AEMO must publish and determine Gate

Closure under clause 7.4.30, for the first 6 Trading Months commencing from the New WEM Commencement Day, Gate Closure will be 15 minutes for each Dispatch Interval.

1.44.2. After the 6 Trading Month period referred to in clause 1.44.1,

Gate Closure will be the period determined by AEMO and published in accordance with clause 7.4.30.

Explanatory Note

The reforms to registration include requiring various participants to register in different classes to ensure that the relevant obligations are placed on individual participants or a group of participants with similar characteristics (in respect of facilities they own, control or operate). A new registration taxonomy is to be introduced into the WEM. However, transitional provisions are required so that the new registration taxonomy applies to Market Participants participating in the Reserve Capacity Mechanism for the 2021, 2022 and 2023 Reserve Capacity Cycles.

Section 1.45 enables the new registration taxonomy to apply to the 2021, 2022 and 2023 RCM Capacity Cycles while maintaining the existing registration concepts under the current market arrangements until the New WEM Commencement Day, which is when the new registration taxonomy will apply.

The intent of section 1.45 is set out below.

  • Automatically transition (via deeming provisions) all existing Market Participants (e.g. Market Generators and Market Customers registered under the current WEM Rules) participating in the 2021, 2022 and 2023 Reserve Capacity Cycles to the relevant RCM Market Participant class.

  • Automatically transition (via deeming provisions) all existing Market Participants' Registered Facilities to new equivalent Facility Classes unless certain conditions apply. Where those conditions apply, the transitional WEM Procedure will apply and AEMO will be required to determine a different Facility Class as per the new Facility Classes specified in new section 2.29.

  • If there is an existing unregistered facility, the facility will be assessed as per the new Facility Technology Types specified in new section 2.29 and will be assigned a Facility Class.

  • Any new facility participating in the Reserve Capacity Mechanism for the first time will be required to follow the processes under Chapter 4.

Interruptible Loads are not included in the table as they are not assigned Capacity Credits.

1.45. Specific Transitional Provisions – Registration for the 2021

Reserve Capacity Cycle, the 2022 Reserve Capacity Cycle and the 2023 Reserve Capacity Cycle

1.45.1. In this section 1.45:

RCM Market Participant: Means a Market Generator or Market Customer deemed to be registered as an RCM Market Participant pursuant to clause

1.45.2(a) for the purpose of this section 1.45; and

RCM Facility Class: Means a Facility Class referred to in clause

1.45.3 that applies to:

\(a\) an RCM Market Participant under clause 1.45.2(b); or

\(b\) a facility or facility upgrade deemed to be assigned to the facility under clause 1.45.10(b).

1.45.2. For the 2021 Reserve Capacity Cycle, the 2022 Reserve Capacity

Cycle and the 2023 Reserve Capacity Cycle only:

\(a\) a Market Generator and Market Customer registered under these WEM Rules on the New RCM Transition Date is deemed to be registered as an RCM Market Participant; and

\(b\) subject to clause 1.45.4, a Registered Facility that is registered to a Market Generator or Market Customer referred to in clause 1.45.2(a) is deemed to be registered under the equivalent RCM Facility Class set out in clause 1.45.3.

1.45.3. For the purpose of clause 1.45.2(b), the table below sets out

the equivalent RCM Facility Class that is deemed to apply to a Registered Facility for the 2021 Reserve Capacity Cycle, the 2022 Reserve Capacity Cycle and the 2023 Reserve Capacity Cycle.

Facility Class as at the last Trading Interval immediately preceding the New RCM Transition Date Equivalent RCM Facility Class from the New RCM Transition Date
Scheduled Generator Scheduled Facility
Non-Scheduled Generator with a System Size below 10 MW Non-Scheduled Facility
Non-Scheduled Generator with a System Size at or above 10 MW Semi-Scheduled Facility
Demand Side Programme Demand Side Programme

1.45.4. For the purpose of clause 1.45.2(b), where any of the following

conditions apply to a Registered Facility, the RCM Market Participant for that Registered Facility must apply to AEMO to seek an assessment for an applicable RCM Facility Class in accordance with the timeframe and processes specified in the WEM Procedure under clause 4.8A.7:

\(a\) the Registered Facility’s System Size is anticipated to increase or decrease;

\(b\) any new equipment is planned to be added to the Registered Facility;

\(c\) any equipment is planned to be removed from the Registered Facility; or

\(d\) the RCM Market Participant considers that registration in a different RCM Facility Class for that Registered Facility is more appropriate than the RCM Facility Class deemed by clause 1.45.3.

1.45.5. AEMO must process and assess any application for assessment it

receives under clause 1.45.4 or clause 1.45.8 by the date and time specified in clause 4.1.7, in accordance with the WEM Procedure specified in clause 4.8A.7.

1.45.6. When conducting an assessment under clause 1.45.5, where AEMO

considers that the RCM Facility Class assigned to that Registered Facility is no longer appropriate, or another RCM Facility Class is more appropriate, AEMO must assign that Registered Facility another RCM Facility Class which must be a Facility Class specified in clause

1.45.6A.

1.45.6A. The Facility Classes for the purposes of clause 1.45.6 are:

\(a\) a Scheduled Facility;

\(b\) a Semi-Scheduled Facility;

\(c\) a Non-Scheduled Facility; and

\(d\) a Demand Side Programme.

1.45.7. AEMO's determination of an RCM Facility Class under this section

1.45 is final.

Explanatory Note

The intent of clause 1.45.8 is to allow an intending RCM Market Participant in respect to its unregistered facility (that is not already dealt with under clauses 4.8A.1 or 4.8A.3), to apply to AEMO for an indicative Facility Class and indicative Facility Technology Type.

1.45.8. A person intending to participate in the 2021 Reserve Capacity

Cycle and/or the 2022 Reserve Capacity Cycle and/or the 2023 Reserve Capacity Cycle in respect of a facility that is unregistered as at the New RCM Transition Date, must, except where clauses 4.8A.1 or 4.8A.3 applies to the facility (including a facility upgrade), apply to AEMO for an indicative Facility Class and an indicative Facility Technology Type in accordance with the WEM Procedure specified in clause 4.8A.7.

1.45.9. AEMO must determine and assign an indicative Facility Class and

one or more indicative Facility Technology Type to an unregistered facility pursuant to an application under clause 1.45.8 in accordance with the WEM Procedure specified in clause 4.8A.7.

1.45.10. For the 2021 Reserve Capacity Cycle, the 2022 Reserve Capacity

Cycle and the 2023 Reserve Capacity Cycle:

\(a\) the indicative Facility Class assigned to a facility or facility upgrade by AEMO pursuant to clauses 1.45.9, 4.8A.1(a) or 4.8A.5(a) must be a Facility Class specified in clause 1.45.6A; and

\(b\) the indicative Facility Class assigned to a facility or facility upgrade by AEMO pursuant to clauses 1.45.9, 4.8A.1(a) or 4.8A.5(a) is deemed to be the RCM Facility Class assigned to the facility or facility upgrade.

1.45.11. For the 2021 Reserve Capacity Cycle, the 2022 Reserve Capacity

Cycle and the 2023 Reserve Capacity Cycle only, AEMO must assign one or more Facility Technology Type to a Registered Facility by the date and time specified in clause 4.1.7, in accordance with the WEM Procedure specified in clause 4.8A.7.

Explanatory Note

The processes in Appendix 3 utilise the Network Access Quantity values from the prior year's Reserve Capacity Cycle. Therefore, section ### 1.46 sets out the quantities that will be deemed to be the relevant quantities for the 2022 Reserve Capacity Cycle, and also the classification for each Facility to align the Facilities to the definitions set out in Appendix 3.

Clause 1.46.1(b) is amended to refer to Facilities that were assessed under the RLM and not Intermittent Generating Systems.

1.46. Specific Transitional Provisions – Appendix 3

1.46.1. For the purposes of Appendix 3 and the 2022 Reserve Capacity

Cycle:

\(a\) a Facility is to be deemed to be an NAQ Facility (as defined in Appendix 3) where the Facility:

i. was assigned Capacity Credits for the 2021 Reserve Capacity Cycle; and

ii. has been assigned Certified Reserve Capacity for the 2022 Reserve Capacity Cycle; and

\(b\) a Facility that is deemed to be an NAQ Facility (as defined in Appendix 3) under clause 1.46.1(a) is to be deemed to have a Network Access Quantity for the purposes of Step 3A(a) of Appendix 3, equal to:

i. for a Facility, other than a GIA Facility, the Initial Network Access Quantity determined by AEMO for the Facility under clause 4.1A.1; and

ii. for a GIA Facility, the Certified Reserve Capacity assigned to the Facility for the 2022 Reserve Capacity Cycle that is intended to be traded bilaterally in accordance with 4.14.1(c); and

\(c\) a Facility is to be deemed to be an Indicative NAQ Facility (as defined in Appendix 3) where the Facility was assigned Early Certified Reserve Capacity and Capacity Credits for a Reserve Capacity Cycle after the 2022 Reserve Capacity Cycle; and

\(d\) a Facility that is deemed to be an Indicative NAQ Facility (as defined in Appendix 3) under clause 1.46.1(c) is to be deemed to have an Indicative Network Access Quantity for the purposes of Step 3A(a) of Appendix 3, equal to the Early Certified Reserve Capacity assigned to the Facility for a Reserve Capacity Cycle by AEMO pursuant to an application for Early Certified Reserve Capacity under section 4.28C.

Explanatory Note

Section 1.47 makes provision for the automatic transition (via deeming provisions) of all existing registered Market Participants and Registered Facilities, including aggregated facilities, to the relevant new registration taxonomy that will apply from the start of the new WEM.

1.47. Specific Transitional Provisions – Registration from New WEM

Commencement Day

1.47.1. In this section 1.47:

Post-Amended Rules: Means the WEM Rules as in force immediately after the New WEM Commencement Day.

Pre-Amended Rules: Means the WEM Rules as in force immediately before the New WEM Commencement Day.

1.47.2. With effect from the New WEM Commencement Day:

\(a\) a Rule Participant registered in the Market Customer class, Market Generator class or Ancillary Service Provider class under these WEM Rules is deemed to be registered in the Market Participant class;

\(b\) subject to clause 1.47.4, a Scheduled Generator, Non‑Scheduled Generator or Demand Side Programme that is registered to a Rule Participant in the Market Customer class or Market Generator class referred to in clause 1.47.2(a) is deemed to be registered under the Facility Class set out in clause 1.47.3;

\(c\) subject to clauses 1.47.4 and 1.47.8, a Facility registered as a single Facility under the Pre-Amended Rules, is deemed to be registered as a single Facility under the Post-Amended Rules;

\(d\) subject to clauses 1.47.4 and 1.47.8, a Facility registered as an aggregated Facility under the Pre-Amended Rules, is deemed to be registered as an Aggregated Facility under the Post-Amended Rules; and

\(e\) a Facility registered as an Interruptible Load under the Pre-Amended Rules is deemed to be a Non-Dispatchable Load and no longer a Registered Facility under the Post-Amended Rules.

1.47.3. For the purposes of clause 1.47.2(b), the table below sets out

the Facility Class that is deemed to apply to a Registered Facility.

Facility Class as at the last Trading Interval immediately preceding the New WEM Commencement Day Facility Class from the New WEM Commencement Day
Scheduled Generator Scheduled Facility
Non-Scheduled Generator with a System Size below 10 MW Non-Scheduled Facility
Non-Scheduled Generator with a System Size at or above 10 MW Semi-Scheduled Facility
Demand Side Programme Demand Side Programme

1.47.4. For the purposes of clauses 1.47.2(b), 1.47.2(c) and 1.47.2(d),

where any of the following conditions apply to a Registered Facility, the Market Participant for that Registered Facility must apply to AEMO to seek an assessment for an applicable Facility Class in accordance with the timeframe and processes specified in the WEM Procedure under clause 1.47.12:

\(a\) the Registered Facility’s System Size is anticipated to increase or decrease; and

\(b\) the Market Participant considers that registration in a different Facility Class for that Registered Facility is more appropriate than the Facility Class deemed by clause 1.47.3.

1.47.5. AEMO must assess any application it receives under clause

1.47.4, in accordance with the WEM Procedure specified in clause 1.47.9.

1.47.6. When conducting an assessment under clause 1.47.5, where AEMO

considers that the existing Facility Class assigned to that Registered Facility is no longer appropriate or another Facility Class is more appropriate, AEMO must assign that Registered Facility another Facility Class which must be a Facility Class specified in clause 2.29.1A.

1.47.7. A Market Participant intending to register a facility prior to 1

October 2023 with an intended effective registration date on or after 1 October 2023, must apply to AEMO for a Facility Class assessment in accordance with the timeframe specified in the WEM Procedure referred to in clause 1.47.12.

1.47.8. A Market Participant applying to:

\(a\) register a facility as an Aggregated Facility; or

\(b\) disaggregate an Aggregated Facility,

prior to 1 October 2023 with an intended effective date on or after 1 October 2023, must apply to AEMO for a Facility Class assessment in accordance with clause 1.47.7,and the timeframe specified in the WEM Procedure referred to in clause 1.47.9.

Explanatory Note

New clause 1.47.8A allows a Market Participant or Ancillary Service Provider to set up a new Interruptible Load Facility ready to commence operation on New WEM Commencement Day.

1.47.8A. A Market Participant or Ancillary Service Provider may apply to

AEMO to:

\(a\) register a Facility as an Interruptible Load (as defined under the Post‑Amended Rules) with an intended effective registration date on or after the New WEM Commencement Day;

\(b\) associate Non-Dispatchable Loads (as defined under the Post‑Amended Rules) with the Interruptible Load; and

\(c\) accredit the Interruptible Load to provide Contingency Reserve Raise,

prior to the New WEM Commencement Day, with an intended effective date on or after the New WEM Commencement Day.

1.47.9. AEMO must assess an application it receives under clauses 1.47.7

or 1.47.8 and assign a Facility Class in accordance with the WEM Procedure referred to in clause 1.47.12.

1.47.10. AEMO may consult with, and request additional information or

clarifications from, relevant Market Participants prior to making its determination under this section 1.47.

1.47.11. AEMO’s determination of a Facility Class under this section

1.47 is final.

1.47.12. By 1 June 2023, AEMO must develop a WEM Procedure specifying:

\(a\) the information to be provided to AEMO, and the processes and timeframes a Market Participant must adhere to, when applying to AEMO for an assessment under clauses 1.47.4, 1.47.7 or 1.47.8;

\(b\) the process and timeframes AEMO must adhere to when conducting an assessment and assigning a Facility Class to a facility in respect of an application made under clauses 1.47.4, 1.47.7 or 1.47.8, which must take into account the Facility Technology Types comprising a facility; and

\(c\) the process and timeframes AEMO and Market Participants must adhere to with respect to consultations and requests under clause

1.47.10; and

\(d\) any other matters that AEMO considers are relevant to this section

1.47.

Explanatory Note

The concept of Intermittent Loads will continue to be available for new connections comprising load and co-located generation behind the same network connection point. The differential treatment of Intermittent Loads registered before and after New WEM Commencement Day is now captured in the relevant sections of these WEM Rules.

Before the New WEM Commencement Day, an Intermittent Load is all or part of a Non-Dispatchable Load (defined at connection point level). In the new market, an Intermittent Load is always part of a Facility. It is a special type of 'Load' Facility Technology Type, which refers to an entity behind the connection point.

1.48. Specific Transitional Provisions – Intermittent Loads

1.48.1. In this section 1.48:

Post-Amended Rules: Means the WEM Rules as in force immediately after the New WEM Commencement Day.

Pre-Amended Rules: Means the WEM Rules as in force immediately before the New WEM Commencement Day.

1.48.2. Notwithstanding clause 2.30B.1, a Non-Dispatchable Load or part

of a Non-Dispatchable Load that was treated by AEMO as an Intermittent Load on the day before the New WEM Commencement Day is deemed to have met the requirements of clause 2.30B.2 for the relevant Non-Dispatchable Load or part of the Non-Dispatchable Load to be treated as an Intermittent Load from the New WEM Commencement Day.

Explanatory Note

Clause 1.48.3 is amended to clarify that the deemed exemption described in the clause only applies to an Energy Producing System that supplies an Intermittent Load prior to New WEM Commencement Day.

1.48.3. An Energy Producing System that supplies an Intermittent Load

referred to in clause 1.48.2 prior to the New WEM Commencement Day and was not registered as a Facility under the Pre-Amended Rules, will be deemed to be exempted from the requirement to register under clause 2.29.4 of the Post-Amended Rules.

1.48.4. For the avoidance of doubt, the purpose of clauses 1.48.2 and

1.48.3 is to clarify the status of Intermittent Loads under the

Pre-Amended Rules on the New WEM Commencement Day and the clauses do not in any way constitute a perpetual exemption from complying with the obligations and requirements in section 2.30B of the Post-Amended Rules.

1.48.5. The Market Participant for an Intermittent Load referred to in

clause 1.48.2 must provide the data specified in clauses 2.30B.3 to AEMO before 1 July 2023.

1.48.6. Notwithstanding clause 1.48.2, a Market Participant for a

Facility containing an Intermittent Load must, where clause 2.30B.8E applies, register the Facility or apply for an exemption as required by clause 2.30B.8E.

1.48.7. Where a Market Participant registers a Facility containing an

Intermittent Load referred to in clause 1.48.2 in accordance with clause 2.30B.8E, the Market Participant may elect to register the Facility as either:

\(a\) a Non-Scheduled Facility even where its System Size or Nominated Export Quantity would otherwise require it to register as a Semi-Scheduled or Scheduled Facility; or

\(b\) a Semi-Scheduled Facility even where AEMO’s controllability assessment would otherwise require it to register as a Scheduled Facility.

1.48A. Specific Transitional Provisions – Miscellaneous

1.48A.1. AEMO must document the WEM Procedure referred to in clause

4.11.3A(c) by the date specified in clause 4.1.4 for the 2021 Reserve Capacity Cycle.

1.48A.2. Notwithstanding clause 1.33.3, AEMO and each Network Operator

must comply with their obligations under section 2.27A in performing their obligations under, or in connection with, section 4.4B.

1.49. Specific Transitional Provisions – Mandatory Essential System

Services Accreditation for Specific Facilities

1.49.1. A Market Participant, other than Synergy, that owns, operates or

controls an LFAS Facility at any time from 1 October 2020 to 30 September 2021, must, unless the Market Participant no longer owns, operates or controls the relevant LFAS Facility, at least 12 months prior to the New WEM Commencement Day:

\(a\) apply to AEMO for accreditation of its LFAS Facility to provide Regulation Raise and Regulation Lower; and

\(b\) conduct any tests or provide any information that AEMO reasonably requires to accredit the LFAS Facility for Regulation Raise and Regulation Lower,

in accordance with the processes set out in the WEM Procedure specified in clause 2.34A.13.

1.49.2. A Market Participant or Ancillary Service Provider, other than

Synergy, that is contracted to provide Spinning Reserve or Load Rejection Reserve under an Ancillary Service Contract at any time from 1 October 2020 to 30 September 2021, must, unless the Market Participant or Ancillary Service Provider no longer owns, operates or controls the Facility the subject of the Ancillary Service Contract, at least 12 months prior to the New WEM Commencement Day:

\(a\) apply to AEMO for accreditation of its Facility to provide Contingency Reserve Raise or Contingency Reserve Lower, as applicable; and

\(b\) conduct any tests or provide any information that AEMO reasonably requires to accredit the Facility for Contingency Reserve Raise or Contingency Reserve Lower, as applicable,

in accordance with the processes set out in the WEM Procedure specified in clause 2.34A.13.

1.49.3. At any time from 1 October 2020 and prior to the New WEM

Commencement Day, a Market Participant, other than Synergy, may request AEMO to accredit its Facility for RoCoF Control Service in accordance with section 2.34A and the WEM Procedure specified in clause 2.34A.13.

Specific obligations for Synergy

1.49.4. Unless otherwise agreed with AEMO under clause 1.49.5, for each

Synergy Facility that is capable of providing LFAS, Spinning Reserve, Load Rejection Reserve or RoCoF Control Service, Synergy must, at least 12 months prior to the New WEM Commencement Day:

\(a\) apply to AEMO for accreditation of each such Facility to provide Regulation Raise, Regulation Lower, Contingency Reserve Raise, Contingency Reserve Lower or RoCoF Control Service, as applicable; and

\(b\) conduct any tests or provide any information that AEMO reasonably requires to accredit each such Facility for Regulation Raise, Regulation Lower, Contingency Reserve Raise, Contingency Reserve Lower or RoCoF Control Service, as applicable,

in accordance with the processes outlined by AEMO in the WEM Procedure specified under clause 2.34A.13.

1.49.5. Synergy must consult with AEMO to determine which of its

Facilities are to be considered as capable of providing Regulation Raise, Regulation Lower, Contingency Reserve Raise, Contingency Reserve Lower or RoCoF Control Service, and must seek accreditation, for the purposes of clause 1.49.4.

AEMO’s obligations

1.49.6. AEMO must process and determine applications made under this

section 1.49 for accreditation of a Facility for any Frequency Co-optimised Essential System Services in accordance with the WEM Procedure specified in clause 2.34A.13.

1.49.7. AEMO may prioritise applications for accreditation of a Facility

for any Frequency Co-optimised Essential System Services made under this section 1.49 over any applications for accreditation made under section 2.34A.

1.49.7A. Where AEMO has received an application for accreditation of a

Frequency Co-optimised Essential System Service under clause 2.34A.2 and has prioritised an application for a Frequency Co-optimised Essential System Service made under this section 1.49 over that application, then:

\(a\) AEMO must notify the applicant that an application made under this section 1.49 has been prioritised over its application under clause 2.34A.2; and

\(b\) the timeframe for AEMO to accept or reject the applicant's application under clause 2.34A.4 does not apply, and instead will be the timeframe specified by AEMO, acting reasonably, in the notice from AEMO to the applicant under clause 1.49.7A(a).

1.49.8. Notwithstanding any other provisions in this section 1.49 or

section 2.34A, AEMO may, but is not required to, process or determine any applications made under this section 1.49 or section 2.34A for accreditation of RoCoF Ride-Through Capability for a Non-Dispatchable Load, before 12 months after New WEM Commencement Day.

Obligation to offer in Frequency Co-optimised Essential System Service markets

1.49.9. For each Dispatch Interval in the six month period following the

New WEM Commencement Day, a Market Participant must, in respect of each of its Facilities accredited for a Frequency Co-optimised Essential System Service pursuant to an application made under this section 1.49:

\(a\) submit offers in its Real-Time Market Submissions for each Frequency Co-optimised Essential System Service the Facility is accredited for; and

\(b\) ensure the quantity offered for each Frequency Co-optimised Essential System Service is the largest quantity of the Frequency Co‑optimised Essential System Service that the Market Participant reasonably expects could be provided by its Facility in the Dispatch Interval, up to the maximum quantity the Facility is accredited for.

Application of this section 1.49

1.49.10. This section 1.49 applies for the initial accreditation by AEMO

of the Facilities specified in clauses 1.49.1, 1.49.2, 1.49.3 and 1.49.4 for a Frequency Co-optimised Essential System Service. Without limiting section 2.34A, section 2.34A is to apply for:

\(a\) the accreditation of all Facilities for a Frequency Co-optimised Essential System Service or RoCoF Ride-Through Capability other than the Facilities specified in clauses 1.49.1, 1.49.2, 1.49.3 and 1.49.4; and

\(b\) any subsequent re-accreditation of a Facility initially accredited for a Frequency Co-optimised Essential System Service under this section

1.49.

1.50. Application of Section 1.43 to the WEM Procedures Specified in

Clauses 2.34A.13, 2.35.4 and 2.36A.5

1.50.1. The WEM Procedures specified in clauses 2.34A.13, 2.35.4 and

2.36A.5 are each deemed to be a WEM Procedure forming part of the Amending Rules in the Tranches 2 and 3 Amending Rules (as defined in clause 1.43.1) to which section 1.43 applies.

1.50.2. Notwithstanding whether AEMO's obligation to develop the WEM

Procedures specified in clauses 2.34A.13, 2.35.4 and 2.36A.5 have commenced, AEMO must, by 1 October 2021, develop those WEM Procedures in accordance with section 1.43. To avoid doubt, section 1.43 applies to the preparation and documentation of the WEM Procedures specified in clauses 2.34A.13, 2.35.4 and 2.36A.5, and will, from the commencement of clauses 2.34A.13, 2.35.4 and 2.36A.5, as applicable, that requires AEMO to develop or document the WEM Procedures, be deemed to be the relevant WEM Procedures required to be developed under clauses 2.34A.13, 2.35.4 and 2.36A.5, in accordance with clause 1.43.6(b).

Explanatory Note

Market Participants can voluntarily participate in trialling central ramping dispatch of their Facilities to facilitate new market readiness. The new transitional rules in section 1.51 enable AEMO to take operational control of a Market Participant’s Facility for this purpose, while ensuring compliance with Dispatch Instructions as issued under the current Balancing and LFAS Markets. To the extent AEMO ensures its operational control of the Facility remains consistent with the applicable Dispatch Instruction, the Market Participant is required to maintain its dispatch compliance.

It should be highlighted that these transitional rules do not affect any existing aspects of market operation or compensation. They are purely intended for the purposes of testing a Facility’s physical ability to ramp linearly in response to a Dispatch Instruction in the new market and to help Market Participants prepare for cutover.

1.51. Specific Transitional Provisions – Automatic Generation Control

Dispatch

1.51.1. Where AEMO considers that it is necessary to test or implement

operational controls required for AEMO and Market Participants to operate under any of the provisions of the Tranches 2 and 3 Amending Rules (as defined in clause 1.43.1) and associated WEM Procedures, AEMO may request approval from a Market Participant to control specified operations of the Market Participant's Registered Facility. Where a Market Participant approves AEMO's request, AEMO’s operational control of the Registered Facility may include:

\(a\) the starting, loading and stopping of the Registered Facility; and

\(b\) limiting the injection of the Registered Facility.

1.51.2. AEMO's operational control of a Registered Facility pursuant to

clause 1.51.1:

\(a\) does not remove AEMO’s obligation to issue and record Dispatch Instructions for the Registered Facility during the period of AEMO's operational control; and

\(b\) does not affect, modify or limit a Market Participant’s rights and obligations in respect of the Registered Facility under these WEM Rules including the obligation to comply with the most recently issued Dispatch Instruction.

1.51.3. Where AEMO has operational control of a Registered Facility

pursuant to clause 1.51.1:

\(a\) AEMO is not required to issue a Dispatch Instruction to the Registered Facility with respect to an operational control that relates to the implementation of a previously issued Dispatch Instruction; and

\(b\) AEMO must seek to operate the Registered Facility in compliance with Dispatch Instructions recorded for the Registered Facility.

1.51.4. Where AEMO does not operate the Registered Facility in

accordance with clause 1.51.3(b), the relevant Market Participant is not taken to be non-compliant with the relevant Dispatch Instruction.

Explanatory Note

Clause 2.8.14 sets out the WEM Technical Standards that are to be 'protected' under the rule change process to ensure that technical and engineering advice is sought from AEMO and/or Western Power when any of these clauses are the subject of a Rule Change Proposal. The effect of new section 1.52 is to defer commencement of some of those provisions as WEM Technical Standards until new market start.

1.52. Specific Transitional Provisions – Staged Commencement of

Prescribed WEM Technical Standards

1.52.1. Notwithstanding any other provision of these WEM Rules:

\(a\) a reference to each of the provisions specified in clauses 2.8.14(b), 2.8.14(c), 2.8.14(d) and 2.8.14(e) is a reference to a Specific Amending Rule (as defined in clause 1.36C.1);

\(b\) clauses 2.4.3B and 2.5.1D do not apply to a Specific Amending Rule specified in clause 1.52.1(a) until the Specific Amending Rule (as defined in clause 1.36C.1) is a Commenced Amending Rule (as defined in clause 1.36C.1); and

\(c\) for the purposes of this clause 1.52.1 a Specific Amending Rule (as defined in clause 1.36C.1) includes any subsequent amendment or replacement of the Specific Amending Rule in a subsequent instrument made by the Minister under regulation 7(5) of the WEM Regulations.

1.53. Specific Transitional Provision – Early Certification of Reserve

Capacity for the 2022 Reserve Capacity Cycle and any subsequent Reserve Capacity Cycle

1.53.1. Notwithstanding section 4.28C, an application for Early

Certified Reserve Capacity for the 2022 Reserve Capacity Cycle and any subsequent Reserve Capacity Cycle cannot be made under section 4.28C prior to:

\(a\) where the application includes a nomination that the Facility is expected to be classified as a Network Augmentation Funding Facility pursuant to clause 4.4.1(d)(vi), 1 March 2022; and

\(b\) otherwise, 1 November 2021.

1.53.2. Notwithstanding clause 4.28C.15, AEMO is not required to

document the processes relating to or in connection with the following clauses in a WEM Procedure until 1 March 2023:

\(a\) clause 4.28C.7A;

\(b\) clause 4.28C.7AA;

\(c\) clause 4.28C.7B;

\(d\) clause 4.28C.7C;

\(e\) clause 4.28C.7D; and

\(f\) clause 4.28C.8A (but only in respect of the processes relating to the lapsing of any Indicative Network Access Quantity determined for the Facility).

Explanatory Note

The transitional arrangements for System Restart in section 1.54 provide for:

  • AEMO to develop and consult on the standard form contract before it takes effect;

  • existing System Restart Service Contracts to continue unaffected by new section 3.7; and

  • all new System Restart Service Contracts to be procured under the new rules.

1.54. Specific Transitional Provisions – System Restart

1.54.1. Prior to the New WEM Commencement Day, AEMO must develop and

consult with stakeholders on a standard form contract for System Restart Service submissions for a period of at least two weeks. The standard form contract must include, at a minimum, the matters specified in clause 3.7.30.

1.54.2. AEMO must publish the standard form contract on the WEM Website.

1.54.3. AEMO must take into account stakeholder feedback received during

the consultation process and make any reasonable amendments to the standard form contract that it considers appropriate, and republish the standard form contact for System Restart Service submissions, before the New WEM Commencement Day.

1.54.4. Any existing System Restart Service Contracts on the New WEM

Commencement Day continue to apply, and are deemed to comply with section 3.7, for the remainder of their contract term.

1.54.5. Any System Restart Service Contracts entered into after the New

WEM Commencement Day are subject to section 3.7.

Explanatory Note

Section 1.54A outlines transitional provisions to enable existing Rule Participants to provide new, and update existing, Standing Data required in the new market.

The section also outlines AEMO’s obligations to facilitate collection, storing and processing of Standing Data.

Clause 1.54A.2 requires AEMO to specify on its website a list of Standing Data required from Rule Participants, at least 3 months before New WEM Commencement Day. The Standing Data will be published as a list on AEMO’s website to enable Rule Participants to have sufficient time to provide the data before the new market commences. AEMO will also be able to use this Standing Data to enable market and dispatch processes that will apply from new market start.

On the New WEM Commencement Day, the list will be populated into Appendix 1 of the Standing Data to become a formal rule requirement.

1.54A. Specific Transitional Provisions – Standing Data

1.54A.1. Where a Rule Participant is required to provide new Standing

Data or modify current Standing Data in respect to a Rule Participant or Facility pursuant to the Tranches 2 and 3 Amending Rules (as defined in clause 1.43.1) or any other Amending Rules made by the Minister under regulation 7(5) of the WEM Regulations by a notice published in the Government Gazette prior to the New WEM Commencement Day, the Rule Participant must do so in accordance with the processes and by the times specified by AEMO under clause 1.54A.2.

1.54A.2. Not less than four months before the New WEM Commencement Day,

AEMO must publish on the WEM Website:

\(a\) the Standing Data required to be provided to AEMO for a Rule Participant or Facility in relation to the Post-Amended Rules (as defined in clause 1.47.1); and

\(b\) the form and manner in which the Standing Data referred to in clause 1.54A.2(a) is to be provided to AEMO.

Explanatory Note

Section 1.55 is a general transitional provision that provides that all:

  • acts, matters or things that need to be done with respect to obligations that will commence at the start of the new market (i.e. 1 October 2023) but are required to be done before that date are done (e.g. Scheduling Day activities); and

  • acts, matters or things that need to be done with respect to obligations under the WEM Rules in force before commencement of the new market prior to commencement of the new market will be required to be done under the WEM Rules in force prior to commencement of the new market (e.g. settlement).

These are general 'catch-all' provisions to ensure that all relevant operational activities in respect of the current and new markets are able to be performed under the applicable WEM Rules.

1.55. General Transitional Provisions – Operational Matters

1.55.1. In this section 1.55:

Commenced Amending Rule: Means a Specific Amending Rule that has commenced on the New WEM Commencement Day.

New WEM Commencement Month: Means the Trading Month in which the New WEM Commencement Day falls.

Post-Amended Rules: Means the WEM Rules as in force immediately after the New WEM Commencement Day.

Pre-Amended Rules: Means the WEM Rules as in force immediately before the New WEM Commencement Day.

Specific Amending Rule: Means an Amending Rule made by the Minister under regulation 7(5) of the WEM Regulations (whether made before or after the date this section 1.55 commenced) by a notice published in the Government Gazette as part of the program of work for the Wholesale Electricity Market and Constrained Network Access Reform.

1.55.2. Before 8:00 AM on the New WEM Commencement Day, notwithstanding

that the Pre-Amended Rules continue to apply, each Rule Participant must, subject to clause 1.55.8, perform all obligations imposed on that Rule Participant under the Post-Amended Rules, in relation to the New WEM Commencement Day and subsequent Trading Days, that, if the Post-Amended Rules were in force, the Rule Participant would have been required to perform under the Post-Amended Rules. This includes, but is not limited to, obligations relating to:

\(a\) operation of the Real-Time Market under Chapter 7, including scheduling and dispatch of Market Services and Non-Co-optimised Essential System Services;

\(b\) PASA assessments and Outages under Chapter 3;

\(c\) operation of the STEM under Chapter 6;

\(d\) administration of the market under Chapter 2;

\(e\) administration of the Reserve Capacity Mechanism under Chapter 4; and

\(f\) settlement under Chapter 9.

1.55.3. If before 8:00 AM on the New WEM Commencement Day,

notwithstanding that the Pre-Amended Rules continue to apply, a Rule Participant performs an obligation under the Post-Amended Rules under clause 1.55.2, then to the extent that the obligation is performed, the Rule Participant is not required to perform any equivalent obligation under the Pre-Amended Rules to the extent that these obligations relate to the New WEM Commencement Day or subsequent Trading Days.

1.55.4. Before 8:00 AM on the New WEM Commencement Day, notwithstanding

that the Pre‑Amended Rules continue to apply, a Rule Participant may, subject to clause 1.55.8, perform any of the discretionary actions that the Rule Participant is permitted to perform under the Post-Amended Rules, in relation to the New WEM Commencement Month and subsequent Trading Months, that, if the Post-Amended Rules were in force, the Rule Participant would be permitted to perform under the Post-Amended Rules.

1.55.5. If before 8:00 AM on the New WEM Commencement Day,

notwithstanding that the Pre-Amended Rules continue to apply, a Rule Participant is required to perform an obligation that relates to the New WEM Commencement Day or any subsequent Trading Days that it will not be required to perform under the Post-Amended Rules, the Rule Participant is not required to perform the obligation to the extent that:

\(a\) it relates to the New WEM Commencement Day or any subsequent Trading Days; and

\(b\) to the extent that the obligation will not apply under the Post-Amended Rules.

1.55.6. After 8:00 AM on the New WEM Commencement Day, notwithstanding

that the Post-Amended Rules apply, each Rule Participant must, subject to clause 1.55.8, perform all obligations imposed on that Rule Participant under the Pre-Amended Rules, arising in relation to each Trading Interval (or part of a Trading Interval) in a Trading Day, each Trading Day (or part of a Trading Day) or each Trading Month (or part of a Trading Month) up to but excluding the New WEM Commencement Day, that, if the Pre-Amended Rules were in force, the Rule Participant would have been required to perform under the Pre-Amended Rules. This includes, but is not limited to, obligations relating to, or in connection with:

\(a\) administration of the market under Chapter 2, including compliance monitoring and enforcement;

\(b\) dispatch under Chapter 7; and

\(c\) settlement under Chapter 9.

1.55.7. From the New WEM Commencement Day, notwithstanding that the

Post-Amended Rules apply, each Rule Participant may, subject to clause

1.55.8, perform any of the discretionary actions that the Rule

Participant is permitted to perform under the Pre-Amended Rules, in relation to each Trading Month up to but excluding the New WEM Commencement Month, that, if the Pre-Amended Rules were in force, the Rule Participant would have been permitted to perform under the Pre‑Amended Rules.

1.55.8. Where a Rule Participant:

\(a\) intends to perform an obligation under the Post-Amended Rules pursuant to clause 1.55.4 or the Pre-Amended Rules pursuant to clause

1.55.7; or

\(b\) is required by clauses 1.55.2 or 1.55.6 or sections 1.56 or 1.57 to perform an obligation under the Pre-Amended Rules or the Post-Amended Rules, as applicable,

that utilises a market system or other software system maintained by AEMO, the Rule Participant is only permitted, or required, as applicable, to perform the obligation if the relevant market system or software system in respect of the obligation is available and fully operational, including all associated dependent links or interfaces, at the time the obligation is intended or required to be performed.

Explanatory Note

Clause 1.55.9 provides that in respect of any calculations or determinations made after the start of the new market that use data or information that was produced or exchanged under the WEM Rules in force before the start of the new market and there is a difference between defined terms in the pre-and post-new market data or information, then AEMO can apply the relevant defined term in the new market that is intended to apply for the purposes of that determination or calculation. For example, a Scheduled Generator under the WEM Rules in force before the start of the new market is defined as a Scheduled Facility under the WEM Rules that will apply from the start of the new market.

1.55.9. For any calculations or determinations under the Post-Amended

Rules that require or rely on data or other market related information or documents produced or exchanged under the Pre-Amended Rules that contains a term that is defined under the Pre-Amended Rules that does not exist or have the same meaning under the Post-Amended Rules, AEMO may:

\(a\) use the term defined under the Post-Amended Rules that AEMO reasonably determines is intended to apply in respect of the relevant act, matter or thing, to give effect to the calculation or determination; and

\(b\) apply and use the data or other market related information or documents in a manner consistent with, or to give effect to, the term to be used by AEMO pursuant to clause 1.55.9(a).

Explanatory Note

Clause 1.55.10 gives AEMO the power to reject, decline, not approve or withdraw its approval with respect to any activities that affect intervals before and after the start of the new market if it considers that Power System Security and Power System Reliability may be adversely affected. For example, Commissioning Test Plans.

1.55.10. Despite anything to the contrary in the Pre-Amended Rules,

where any act, matter or thing is scheduled, expected or approved to occur before the New WEM Commencement Day or after the New WEM Commencement Day and AEMO reasonably determines that the act, matter or thing could adversely affect Power System Security or Power System Reliability from the New WEM Commencement Day, AEMO may:

\(a\) reject, decline, or not approve, a request by a Market Participant for the act, matter or thing;

\(b\) where the act, matter or thing was approved under the Pre-Amended Rules, notify the relevant Market Participant that AEMO's approval is withdrawn; or

\(c\) direct a Rule Participant to cease doing the act, matter or thing.

Explanatory Note

Clause 1.55.11 clarifies the treatment of information in reports and other documents that contain information relating to periods falling before and after the start of the new market.

1.55.11. Notwithstanding any provision to the contrary, where a report

or other document is required to be prepared under these WEM Rules that is to contain or be based on information concerning a period where the Pre-Amended Rules are in force and a period where the Post-Amended Rules will be in force, then:

\(a\) the report or other document does not need to include information that is not required to be included in the report or document, as applicable, under the Post-Amended Rules; and

\(b\) subject to clause 1.55.11(a), the report or document, as applicable, must contain or be based on the information relevant to the period where the Pre-Amended Rules were in force and the period where the Post-Amended Rules were in force even though the report or document may only be finalised or published (if applicable) under the Post-Amended Rules.

For the avoidance of doubt, for information based on a period where the Pre-Amended Rules were in force, AEMO may, acting reasonably, utilise or reflect that information in the report or document, as applicable, in a manner consistent with the utilisation or reflection of information based on a period under the Post-Amended Rules in that report or document, as applicable.

Explanatory Note

As section 1.36C is proposed to be amended to exclude amending rules made by the Minister that are commenced on the New WEM Commencement Day (as this section 1.55 will apply to those provisions), clauses 1.55.12 and 1.55.13 (which are similar to clauses 1.36C.6 and 1.36C.7) address the situation where the interpretation or operation of an amending rule commenced on the New WEM Commencement Day relies on an amending rule that is not yet commenced. For example, a commenced amending rule refers to a definition that has not yet commenced. In those situations regard can be had to those yet to be commenced amending rules to interpret or give effect to the relevant amending rule.

1.55.12. Where a Commenced Amending Rule requires the operation of one

or more Specific Amending Rules that have not yet commenced, then regard may be had to those Specific Amending Rules to interpret or give effect to the Commenced Amending Rule even though the Specific Amending Rules have not yet commenced.

1.55.13. Where any Commenced Amending Rule requires the operation of WEM

Rules which have been amended, repealed or replaced by one or more Commenced Amending Rules, regard may be had to those WEM Rules to interpret or give effect to the Commenced Amending Rule even though those WEM Rules have been amended, repealed or replaced.

Explanatory Note

To ensure a smooth transition to the new market arrangements, section ### 1.56 gives AEMO the power to create a Transition Schedule specifying the activities required to be done (and the dates and times by when such activities are to be done) under the WEM Rules that will apply from the start of the new market.

After obtaining the Coordinator's approval of the Transition Schedule, AEMO is required to publish the Transition Schedule on the WEM Website by 1 July 2023. AEMO may amend the schedule – including to add new activities or change the dates and times by when activities need to be done – with the Coordinator's approval.

1.56. Specific Transitional Provisions – Transition Schedule

1.56.1. In this section 1.56:

Post-Amended Rules: Means the WEM Rules as in force immediately after the New WEM Commencement Day.

Pre-Amended Rules: Means the WEM Rules as in force immediately before the New WEM Commencement Day.

1.56.2. Subject to clause 1.56.3, by 5:00 PM on 30 June 2023, AEMO must

determine, and publish on the WEM Website, a document ("Transition Schedule") specifying:

\(a\) the acts, matters or things to be done, which includes information to be provided or published, by AEMO and other Rule Participants relating to key operational activities under the Post-Amended Rules in respect of the Scheduling Day for the Trading Day that is also the New WEM Commencement Day and any subsequent Trading Day for which activities are required to be done before commencement of the Post-Amended Rules;

\(b\) any other acts, matters or things to be done by AEMO or any other Rule Participant that are reasonably necessary or desirable to enable AEMO or any other Rule Participant to perform their respective functions under the Post-Amended Rules, including, without limitation:

i. operation of the Real-Time Market;

ii. scheduling and dispatch of Market Services and Non-Co-optimised Essential System Services;

iii. PASA assessments and Outages;

iv. operation of the STEM;

v. administration of the market under Chapter 2;

vi. administration of the Reserve Capacity Mechanism under Chapter 4; and

vii. settlement under Chapter 9; and

\(c\) the dates and times and, where applicable, the format, for when each of those acts, matters or things must be done.

1.56.3. Prior to publishing the Transition Schedule under clause 1.56.2,

AEMO must obtain the Coordinator's approval of the Transition Schedule.

1.56.4. Subject to clause 1.56.5, AEMO may:

\(a\) amend the Transition Schedule to add or remove any acts, matters or things; and

\(b\) modify or extend the dates or times for any one or more of the acts, matters or things specified in Transition Schedule by publishing an updated Transition Schedule on the WEM Website.

Any such further acts, matters or things, or modified or extended dates and times, take effect from the date that the updated Transition Schedule is published.

1.56.5. Prior to making any amendments to the Transition Schedule

pursuant to clause 1.56.4, AEMO:

\(a\) may consult with other Rule Participants or interested stakeholders on the proposed amendment; and

\(b\) must obtain the Coordinator's approval to the proposed amendment.

Explanatory Note

Clause 1.56.6 provides that even though the Transition Schedule will require information to be provided and published with respect to various activities that will commence from the start of the new market – for example, Dispatch Schedules, Dispatch Targets and Dispatch Instructions – the relevant Market Participants will only need to comply with the effect of those activities – for example, following Dispatch Instructions – from the start of the new market.

1.56.6. Each Rule Participant must perform their obligations specified

in the Transition Schedule by the dates and times, and in accordance with, the Transition Schedule.

Explanatory Note

Clauses 1.56.7 and 1.56.8 clarify that the activities specified in the Transition Schedule are to be done in accordance with the WEM Rules that will apply from the start of the new market, except where AEMO specifies in the Transition Schedule that an activity is to be done under the WEM Rules that apply before the start of the new market.

1.56.7. Except where expressed to be done under the Pre-Amended Rules or

the WEM Procedures in place under the Pre-Amended Rules in the Transition Schedule, all acts, matters or things specified in the Transition Schedule are to be done in accordance with the Post-Amended Rules or the WEM Procedures under the Post-Amended Rules that will apply on and from the New WEM Commencement Day notwithstanding that at the time the act, matter or thing is done the Post-Amended Rules or the WEM Procedures under the Post-Amended Rules have not yet commenced.

1.56.8. Without limiting clause 1.56.7, where any assessment or

determination, which includes a decision to accept, approve or reject, specified in the Transition Schedule to be done by AEMO prior to the New WEM Commencement Day affects periods falling both before and after the New WEM Commencement Day, AEMO may specify in the Transition Schedule whether the act, matter or thing is to be done by AEMO in accordance with the Pre-Amended Rules or the Post-Amended Rules notwithstanding that at the time the act, matter or thing is done the Post-Amended Rules have not yet commenced.

Explanatory Note

To avoid duplication of published material, clause 1.56.9 gives AEMO the discretion to not have to publish information under WEM Rules that will apply from the start of the new market where the information has already been published in accordance with the WEM Rules that apply prior to the start of the new market.

1.56.9. Any information to be published by AEMO pursuant to the

Transition Schedule under the Post-Amended Rules may, but is not required, to include any information that is also published under the Pre-Amended Rules.

Explanatory Note

Clause 1.56.10 gives AEMO the discretion to publish a single settlement timeline for the settlement dates (and adjustments) under the WEM Rules that apply before the start of the new market and the WEM Rules that apply from the start of the new market.

The general transitional provisions in section 1.55 provide that settlement and associated adjustments for Trading Months (or parts thereof) before the start of the new market will be carried out in accordance with the WEM Rules that apply before the start of the new market, even though those settlements and adjustments will take place after the start of the new market.

1.56.10. For the settlement cycle timeline, which includes associated

adjustment processes, to be published by AEMO pursuant to the Transition Schedule, AEMO may, but is not required to, publish a single timeline that sets out the settlement cycle timeline in respect of:

\(a\) each Trading Month (or part of a Trading Month) in the Financial Year that is to be settled under the Pre-Amended Rules;

\(b\) each Trading Week (or part of a Trading Week) in the Financial Year that is to be settled under the Post-Amended Rules,

provided that the timeline must comply with:

\(c\) the requirements in section 9.16 of the Pre-Amended Rules for each period referred to in clause 1.56.10(a); and

\(d\) the requirements in section 9.3 of the Post-Amended Rules for each period referred to in clause 1.56.10(b).

AEMO may amend the dates in the timeline if AEMO’s expectation of the New WEM Commencement Day has changed since the time the most recent timeline was published. The amended settlement timeline will take effect from the date the amended timeline is published.

1.57. Specific Transitional Provisions – Key Operational Matters

1.57.1. In this section 1.57:

Post-Amended Rules: Means the WEM Rules as in force immediately after the New WEM Commencement Day.

Pre-Amended Rules: Means the WEM Rules as in force immediately before the New WEM Commencement Day.

Explanatory Note

Clause 1.57.2(a) provides that Synergy's Dispatch Plan is not required to contain any periods after the start of the new market and, if it does, Synergy is not required to follow the Dispatch Plan for those intervals.

Clause 1.57.2(b) requires Market Participants to ensure their market-related submissions before and after the start of the new market are consistent.

Clause 1.57.2(c) requires Market Participants (except Synergy) to ensure their market-related submissions after the start of the new market are consistent with any Ancillary Service Contracts in force prior to the start of the new market.

1.57.2. Without limiting section 1.56:

\(a\) the Dispatch Plan for Synergy under the Pre-Amended Rules is not required to contain any Trading Intervals with effect from the New WEM Commencement Day, but to the extent it does contain any such Trading Intervals, Synergy is not required to comply with the Dispatch Plan for those Trading Intervals from 08:00 AM on the New WEM Commencement Day;

\(b\) each Market Participant must make reasonable endeavours to ensure its Balancing Submissions and LFAS Submissions, as applicable, under the Pre-Amended Rules for each Trading Interval falling within the period seven Trading Days prior to the New WEM Commencement Day result in dispatch outcomes that are consistent with forecast dispatch outcomes resulting from the Market Participant's Real-Time Market Submissions under the Post-Amended Rules that take effect from the New WEM Commencement Day; and

\(c\) each Market Participant, other than Synergy, that is subject to an Ancillary Service Contract that is in force under the Pre-Amended Rules as at the New WEM Commencement Day must make reasonable endeavours to ensure that the Market Participant's Real-Time Market Submissions are consistent with the terms of each such Ancillary Service Contract until the end of the last Trading Interval at the end of the New WEM Commencement Day.

Explanatory Note

Clause 1.57.3 requires Market Participants that are scheduled or expected to be dispatched at the start of the new market (i.e. 8:00 AM on 1 October 2023) to ensure their Facilities are ready and able to comply with the relevant Dispatch Instruction applicable to that interval.

1.57.3. Where a Reference Scenario for a Pre-Dispatch Interval or

Dispatch Interval specified in the Transition Schedule published in accordance with section 1.56 determines that a Registered Facility will be cleared to provide a Market Service in the first Dispatch Interval of the New WEM Commencement Day, the Market Participant must ensure that its Registered Facility is ready and able to provide the Market Service in accordance with the Dispatch Instruction that will take effect from commencement of that Dispatch Interval.

Explanatory Note

Clause 1.57.4 requires AEMO to consider the expected dispatch of Synergy's Facilities from the start of the new market when scheduling and dispatching the Balancing Portfolio prior to the start of the new market.

1.57.4. For each Trading Interval that falls within three Trading Days

prior to the New WEM Commencement Day, AEMO must, when scheduling and dispatching Registered Facilities in the Balancing Portfolio under the Pre-Amended Rules:

\(a\) take into account the expected dispatch of each such Registered Facility with effect from the New WEM Commencement Day; and

\(b\) make reasonable endeavours to ensure that notwithstanding the information provided by Synergy under clause 7.6A.2 of the Pre-Amended Rules, that each such Registered Facility is dispatched in a manner that will enable the Registered Facility to comply with the Dispatch Instruction for that Registered Facility that will take effect from the commencement of the first Dispatch Interval of the New WEM Commencement Day.

Explanatory Note

Clause 1.57.5 gives AEMO the power to dispatch Facilities out of merit in the lead up to the start of the new market (between 4:00 AM and 8:00 AM on 1 October 2023) to ensure that Facilities which are expected to be dispatched from the start of the new market are ready to provide the relevant Market Service having regard to the ramp rates applicable to the Facility.

1.57.5. Notwithstanding the provisions of the Pre-Amended Rules, between

the start of the 4:00 AM Trading Interval and the end of the 7:30 AM Trading Interval on the Trading Day immediately prior to the New WEM Commencement Day, AEMO may dispatch a Registered Facility Out of Merit where the:

\(a\) expected position of the Registered Facility pursuant to the last Dispatch Instruction issued to the Registered Facility during those Trading Intervals; and

\(b\) expected starting dispatch position of the Registered Facility pursuant to a Dispatch Instruction under the Post-Amended Rules for the first Dispatch Interval of the New WEM Commencement Day,

differs by more than the Ramp Rate Limit of the Registered Facility as specified in the Standing Data for the Registered Facility at the relevant time.

Explanatory Note

Clause 1.57.6 provides that any Market Advisories and Dispatch Advisories that are still in place prior to the start of the new market are deemed to be withdrawn. However, AEMO is required to assess whether the circumstances that gave rise to those advisories is continuing and, if so, issue a Market Advisory in accordance with the WEM Rules that apply from the start of the new market.

1.57.6. In respect of any Market Advisories or Dispatch Advisories

issued under the Pre-Amended Rules that are still in force at the New WEM Commencement Day:

\(a\) each such Market Advisory and Dispatch Advisory will be deemed to be withdrawn under the Pre-Amended Rules and will cease to apply from the New WEM Commencement Day; and

\(b\) prior to the New WEM Commencement Day, AEMO must assess, in the context of the criteria set out in section 7.11 of the Post-Amended Rules, whether the matters or circumstances specified in those Market Advisories or Dispatch Advisories continue to apply. Where the matter or circumstance continues to apply, AEMO must issue a Market Advisory in respect of that matter or circumstance in accordance with section 7.11 of the Post-Amended Rules.

Explanatory Note

Clause 1.57.7(a) requires that until the start of the new market, AEMO must use the Medium Term PASA for periods in it that fall after the start of the new market, and can have regard to the information in any the Medium Term PASA in anticipation of the new market.

Clause 1.57.7(b) gives AEMO the discretion after the start of the new market to consider any information in the Medium Term PASA carried out under the WEM Rules that apply prior to the start of the new market in respect of any periods after the start of the new market but AEMO is not obliged to use the information.

1.57.7. For the purposes of carrying out a Medium Term PASA study or

assessment under section 3.16 of the Pre-Amended Rules or the Post-Amended Rules:

\(a\) until the New WEM Commencement Day, AEMO:

i. must use the Medium Term PASA carried out under the Pre-Amended Rules in respect to any periods in that Medium Term PASA falling after the New WEM Commencement Day; and

ii. may take into account information in any Medium Term PASA carried out under the Post-Amended Rules in respect to any periods in that Medium Term PASA falling on or after the New WEM Commencement Day; and

\(b\) after the New WEM Commencement Day, AEMO may, but is not required to, consider information in any Medium Term PASA carried out under the Pre-Amended Rules with respect to any Trading Interval commencing on or after the New WEM Commencement Day.

Explanatory Note

Clause 1.57.8 gives AEMO the discretion to consider any information in the Short Term PASA or the Medium Term PASA carried out under the WEM Rules that apply before the start of the new market for the purpose of any assessments or determinations relating to matters involving Power System Security and Power System Reliability under the WEM Rules that will apply from the start of the new market.

1.57.8. For the purposes of any assessments or determinations by AEMO

prior to the New WEM Commencement Day relating to or in connection with Power System Security and Power System Reliability under the Post-Amended Rules for any period after the New WEM Commencement Day, AEMO may take into account information in any PASA carried out under the Pre-Amended Rules or the Post-Amended Rules that relates to Trading Intervals commencing on or after the New WEM Commencement Day.

Explanatory Note

Clauses 1.57.9, 1.57.10 and 1.57.11 establish a framework for the conversion and verification of outage data from the current market systems to the new market systems. AEMO is required to set out the relevant processes, steps and actions in a procedure and publish the procedure on the WEM Website.

The procedure is not a 'WEM Procedure' as defined in the WEM Rules. Even though the current WEM Rules relating to WEM Procedures will not apply to the 'Outage Data Conversion Procedure', clause 1.57.11 requires AEMO to consult with relevant stakeholders, including the Coordinator and other Rule Participants, in the process of documenting the procedure.

1.57.9. AEMO must transfer and convert, as applicable, data and other

information relating to or in connection with Outages under the Pre-Amended Rules to the relevant systems under the Post-Amended Rules ("Outage Data Conversion") that AEMO determines is necessary or desirable to:

\(a\) enable AEMO to perform its functions in respect of Outages under Chapter 3 of the Post-Amended Rules;

\(b\) enable a Market Participant to comply with its obligations in respect of Outages under Chapter 3 of the Post-Amended Rules; and

\(c\) enable a Network Operator to comply with its obligations in respect of Outages under Chapter 3 of the Post-Amended Rules.

1.57.10. AEMO must document, and publish on the WEM Website, the

procedure ("Outage Data Conversion Procedure") in respect of the Outage Data Conversion by the date and time specified in the Transition Schedule. The Outage Data Conversion Procedure must include, without limitation:

\(a\) the processes to be followed by AEMO (which AEMO must follow), including how AEMO will convert any Outage-related data and other information having regard to any differences between the defined terms and requirements under the Pre-Amended Rules and the Post-Amended Rules;

\(b\) the processes to be followed by Market Participants (which Market Participants must follow), including with respect to any Outage-related data or information that the Market Participant must review or submit to AEMO for assessment;

\(c\) the processes and obligations with respect to the provision or management of any Outage-related data and information that is required to be provided but is to be excluded from the Outage Data Conversion;

\(d\) the dates and times by which acts, matters and things must be done, which may be specified in the Transition Schedule; and

\(e\) any other matters AEMO considers relevant.

For the avoidance of doubt, the Outage Data Conversion Procedure is not a WEM Procedure for the purposes of the Pre-Amended Rules or the Post-Amended Rules and consequently none of the provisions applying to WEM Procedures under the Pre-Amended Rules or the Post-Amended Rules will apply to the procedure.

1.57.11. In documenting the procedure referred to in clause 1.57.10,

AEMO must:

\(a\) consult with the Coordinator and other Rule Participants; and

\(b\) take into account any feedback from the Coordinator or other Rule Participants.

Explanatory Note

Clause 1.57.12 clarifies that Rule Participants are only required to comply with the WEM Rule relating to Outage Intention Plans from 1 January 2025.

1.57.12. Despite anything to the contrary in the Post-Amended Rules, on

and from the New WEM Commencement Day, AEMO and other Rule Participants are not required to comply with their respective obligations specified in:

\(a\) clauses 3.18C.5(b) and 3.18C.12(c);

\(b\) section 3.19; and

\(c\) any other provisions relating to Outage Intention Plans under the Post-Amended Rules,

until after 1 January 2025.

Explanatory Note

Clause 1.57.13 gives AEMO the power to reject any applications for registration as a Market Participant or for registration or transfer of a Facility where the registration process will not be fully completed by the start of the new market. After the start of the new market, Applicants will need to submit a 'rejected' application in accordance with the WEM Rules that will apply from the start of the new market.

1.57.13. Despite anything to the contrary in the Pre-Amended Rules, if,

prior to the New WEM Commencement Day, a person submits an application for registration as a Market Participant under section 2.28 or for a Facility under section 2.29, or for a Facility transfer or de-registration as a Rule Participant or a Facility under section 2.31 of the Pre-Amended Rules and AEMO reasonably determines that the registration, transfer or de-registration process, as applicable, will not be fully completed prior to the New WEM Commencement Day, then:

\(a\) AEMO may reject the application; and

\(b\) the person who submitted the application must submit a new application in accordance with the relevant Post-Amended Rules after the New WEM Commencement Day.

Explanatory Note

The intent of section 1.58 is to ensure that information produced or exchanged under the current WEM Rules maintains the same confidentiality status in the new market, but only in so far as the information was produced or exchanged under the current WEM Rules. In other words, the same or similar types of information or documents produced or exchanged under the WEM Rules that will apply from the start of the new market may be assigned a different confidentiality status (e.g. a type of information is confidential under the current WEM Rules but is to be public for the same type of information produced under the new WEM Rules).

However, as market related information will be classified only as either Confidential Information or Public Information under the new Chapter 10 Market Information Framework, the six different confidentiality classes as per the current classifications (listed in sub-clause 1.58.3(a)) will be treated as Confidential Information under the new framework.

Any market related information or documents produced or exchanged under the current WEM Rules or WEM Procedures that is not specified in the list published by AEMO on the WEM Website (which was last updated as at 1 July 2012) or otherwise prescribed a confidentiality status pursuant to the current WEM Rules or WEM Procedures, will be managed by the new Information Manager in accordance with the new Chapter 10 Market Information Framework.

1.58. Specific Transitional Provisions – Market Information

1.58.1. In this section 1.58:

Confidentiality Status List: Means the document published by AEMO on the WEM Website specifying the confidentiality status of market related information and documents produced or exchanged in accordance with the Pre-Amended Rules or Pre-Amended Procedures set by AEMO pursuant to Chapter 10 of the Pre-Amended Rules.

Post-Amended Rules: Means the WEM Rules as in force immediately after the New WEM Commencement Day.

Pre-Amended Rules: Means the WEM Rules as in force immediately before the New WEM Commencement Day.

Pre-Amended Procedures: Means the WEM Procedures as in force under the Pre-Amended Rules immediately prior to the New WEM Commencement Day.

1.58.2. On and from the New WEM Commencement Day, AEMO must continue to

publish the Confidentiality Status List on the WEM Website that was published on the WEM Website immediately prior to the New WEM Commencement Day.

1.58.3. On and from the New WEM Commencement Day:

\(a\) all market related information and documents specified in the Confidentiality Status List as:

i. Rule Participant Market Restricted;

ii. Rule Participant Dispatch Restricted;

iii. System Operation Confidential;

iv. AEMO Confidential;

v. Rule Participant Network Restricted; and

vi. Coordinator Restricted,

in accordance with clause 10.2.1 and sections 10.7, 10.8 and 10.9 of the Pre-Amended Rules, as applicable, or otherwise prescribed to be so classified pursuant to the Pre-Amended Rules or Pre‑Amended Procedures, will, on and from the New WEM Commencement Day, be deemed to be classified as Confidential Information by the Information Manager pursuant to Chapter 10 of the Post-Amended Rules, but only in so far as the market related information and documents were produced or exchanged under the Pre-Amended Rules or Pre-Amended Procedures;

\(b\) all market related information and documents specified in the Confidentiality Status List as Public in accordance with clause 10.2.1 and section 10.5 of the Pre-Amended Rules, or otherwise prescribed to be so classified pursuant to the Pre-Amended Rules or Pre-Amended Procedures, will, on and from the New WEM Commencement Day, be deemed to be classified as Public Information by the Information Manager pursuant to Chapter 10 of the Post-Amended Rules; and

\(c\) all other market related information and documents produced or exchanged in accordance with the Pre-Amended Rules or Pre‑Amended Procedures is to be managed by the Information Manager in accordance with Chapter 10 of the Post-Amended Rules on and from the New WEM Commencement Day notwithstanding that the market related information and documents were produced or exchanged in accordance with the Pre-Amended Rules or Pre-Amended Procedures.

For the avoidance of doubt, all market related information and documents produced or exchanged under the Post-Amended Rules (however described) will be managed by the Information Manager pursuant to Chapter 10 of the Post‑Amended Rules, which could result in market related information and documents being set or assigned a confidentiality status under the Post-Amended Rules that is different to the confidentiality status set for the same or similar type of market related information and documents produced or exchanged under the Pre-Amended Rules.

1.59. Specific Transitional Provisions – Compliance Monitoring

1.59.1. Notwithstanding clauses 2.16.2A and 2.16.2AA, the Coordinator

and the Economic Regulation Authority are only required to develop, provide to AEMO and publish the initial combined list of data items and WEM Rules as required by and in accordance with clauses 2.16.2A and 2.16.2AA by the New WEM Commencement Day.

1.59.2. Notwithstanding clause 2.16.2B, AEMO is only required to ensure

that the Coordinator and the Economic Regulation Authority have access to all data items in the Market Surveillance Data Catalogue in accordance with clause 2.16.2B by the New WEM Commencement Day.

1.60. Specific Transitional Provisions for Reviews of the Energy Price

Limits and FCESS Offer Price Ceilings

1.60.1. In this section 1.60:

Post-Amended Rules: Means the WEM Rules as in force immediately after the New WEM Commencement Day.

1.60.2. Notwithstanding clause 6.20.6, the Economic Regulation Authority

is not required to annually review the appropriateness of the value of the Maximum STEM Price and the Alternative Maximum STEM Price under clause 6.20.6 after 30 June 2023.

1.60.3. Notwithstanding clause 6.20.13, the Economic Regulation

Authority is not required to annually review the value of the Minimum STEM Price under clause 6.20.13 after 1 February 2023.

1.60.4. Subject to clause 1.60.5, prior to the New WEM Commencement Day,

the Economic Regulation Authority must determine the values of the Contingency Reserve Raise Offer Price Ceiling, Contingency Reserve Lower Offer Price Ceiling, RoCoF Control Service Offer Price Ceiling, Regulation Raise Offer Price Ceiling and Regulation Lower Offer Price Ceiling (as defined in the Post-Amended Rules) that will take effect from the New WEM Commencement Day, in accordance with clause 2.26.2A of the Post‑Amended Rules.

1.60.5. Notwithstanding clause 2.26.2A, for the period commencing from

the New WEM Commencement Day to the end of the Trading Interval starting at 7:30 AM on 1 March 2024, the value determined by the Economic Regulation Authority for each FCESS Offer Price Ceiling in accordance with clauses 1.60.4 and 2.26.2A must be a single identical price.

1.61. Specific Transitional Provisions for the Market Price Limits

1.61.1. In this section 1.61:

Pre-Amended Rules: Means the WEM Rules as in force immediately before the New WEM Commencement Day.

1.61.2. Notwithstanding clause 2.26.1, the Economic Regulation Authority

must complete its first review of the Energy Offer Price Ceiling under clause 2.26.1 by 1 June 2024.

1.61.3. Notwithstanding clause 2.26.2A, the Economic Regulation

Authority must complete its first review of the FCESS Offer Price Ceilings under clause 2.26.2A by 1 June 2026.

1.61.4. Notwithstanding clause 2.26.2C, the Economic Regulation

Authority must complete its first review of the Energy Offer Price Floor under clause 2.26.2C by 1 June 2025.

1.61.5. For the purposes of section 2.26, the last review of the Minimum

STEM Price in accordance with clause 6.20.6 of the Pre-Amended Rules will be taken to be the previous review of the Energy Offer Price Floor until the first review of the Energy Offer Price Floor under clause 2.26.2C has been completed.

1.61.6. Subject to clause 2.26.2V, the Energy Offer Price Ceiling that

will apply from the New WEM Commencement Day is deemed to be the value equal to the Alternative Maximum STEM Price under the Pre-Amended Rules immediately prior to the New WEM Commencement Day.

1.61.7. Subject to clause 2.26.2V, the Energy Offer Price Floor that

will apply from the New WEM Commencement Day is deemed to be the value equal to the Minimum STEM Price that applied under the Pre-Amending Rules immediately prior to the New WEM Commencement Day.

1.62. Specific Transitional Provisions for Portfolio Assessments

1.62.1. Notwithstanding section 2.16B, the Economic Regulation Authority

is not required to:

\(a\) complete its initial assessment to identify each Portfolio operating in the Wholesale Electricity Market in accordance with clause 2.16B.1 until 1 December 2023; and

\(b\) complete its initial assessment to identify each Constrained Portfolio in accordance with clause 2.16B.2 until 10 Business Days after the end of the first Rolling Test Window commencing on the New WEM Commencement Day.