2. Administration

Functions and Governance

2.1. [Blank]

2.1A. Australian Energy Market Operator

2.1A.1. AEMO is conferred functions in respect of the Wholesale

Electricity Market under the WEM Regulations and AEMO Regulations.

2.1A.1A. The function of ensuring that the SWIS operates in a secure and

reliable manner for the purposes of the WEM Regulations is conferred on AEMO.

2.1A.2. The WEM Regulations also provide for the WEM Rules to confer

additional functions on AEMO. The functions conferred on AEMO are:

$a$ to operate the Reserve Capacity Mechanism, the Short Term Energy Market and the Real-Time Market;

$b$ to settle such transactions as it is required to under these WEM Rules;

$c$ to carry out a Long Term PASA study and to publish the Statement of Opportunities Report;

$d$ to do anything that AEMO determines to be conducive or incidental to the performance of the functions set out in this clause 2.1A.2;

$e$ to process applications for participation, and for the registration, de-registration, transfer and Essential System Services accreditation of facilities;

(eA) to procure, schedule and dispatch Essential System Services to meet the Essential System Service Standards;

(eB) to monitor Rule Participants' compliance with the WEM Rules in accordance with clause 2.13.7;

(eC) to trigger and administer the SESSM in accordance with section 3.15A;

(eD) to procure, schedule and dispatch Non-Co-optimised Essential System Services in accordance with these WEM Rules;

$f$ to release information required to be released by these WEM Rules;

$g$ to publish information required to be published by these WEM Rules;

$h$ to develop WEM Procedures, and amendments and replacements for them, where required by these WEM Rules;

$i$ to make available copies of the WEM Procedures, as are in force at the relevant time;

(iA) to monitor Rule Participants’ compliance with WEM Rules relating to dispatch and Power System Security and Power System Reliability;

$j$ to support:

i. the Economic Regulation Authority's monitoring of other Rule Participants’ compliance with the WEM Rules;

ii. the Economic Regulation Authority's investigation of potential breaches of the WEM Rules (including by reporting potential breaches to the Economic Regulation Authority); and

iii. any enforcement action taken by the Economic Regulation Authority under the Regulations and these WEM Rules;

$k$ to support the Economic Regulation Authority in its market surveillance role, including providing any market related information required by the Economic Regulation Authority;

$l$ to support the Coordinator and the Economic Regulation Authority in their roles of monitoring market effectiveness, including providing any market related information required by the Coordinator or the Economic Regulation Authority;

(lA) to contribute to the development and improve the effectiveness of the operation and administration of the Wholesale Electricity Market, by:

i. developing Rule Change Proposals;

ii. providing support and assistance to other parties to develop Rule Change Proposals;

iii. providing information to the Coordinator as required to support the Coordinator’s functions under these WEM Rules; and

iv. providing information and assistance to the Coordinator and the Economic Regulation Authority as required to support the reviews they carry out under the WEM Rules;

(lB) to develop and maintain a Congestion Information Resource;

(lC) to establish, maintain and update a DER Register in accordance with clause 3.24;

(lD) to participate in the Technical Rules Committee and provide advice on Technical Rules Change Proposals as required by the Economic Regulation Authority under the Access Code, to provide submissions as part of the public consultation process in respect of Technical Rules Change Proposals and to develop and submit Technical Rules Change Proposals relating to System Operation Functions;

(IE) to support each Network Operator in relation to the standard or technical level of performance in respect of a Technical Requirement applicable to Transmission Connected Generating Systems and perform the associated functions set out in Chapter 3A of these WEM Rules;

(lF) to advise and consult with each Network Operator in respect of AEMO's System Operation Functions as contemplated under the Technical Rules applicable to their Network;

(lG) to provide information and assistance to the Coordinator relating to the preparation of the Whole of System Plan by the Coordinator;

(lH) to contribute to, provide information and assist with, the development of the Transmission System Plan in accordance with section 4.5B;

(lI) to support the Coordinator's role, and to facilitate and implement decisions by the Coordinator and the Minister regarding the evolution and development of the Wholesale Electricity Market and the WEM Rules, and the management of Power System Security and Power System Reliability in the SWIS; and

$m$ to carry out any other functions conferred, and perform any obligations imposed, on it under these WEM Rules.

2.1A.3. AEMO may delegate any of its functions under the WEM Rules

(other than the power to do the things indicated as not able to be delegated in the WEM Regulations) to a Delegate. A function performed by a Delegate is to be taken to be performed by AEMO. A Delegate performing a function under this clause 2.1A.3 is to be taken to do so in accordance with the terms of the delegation unless the contrary is shown. Nothing in this clause 2.1A.3 limits the ability of AEMO to perform a function through an officer, employee or agent.

2.1A.4. Where AEMO appoints a Delegate, AEMO must publish on the WEM

Website information as to:

$a$ the appointment of the Delegate;

$b$ the identity of the Delegate; and

$c$ the scope of the delegation, including, without limitation, the activities in relation to which the delegation applies.

2.1A.5. Where AEMO appoints a Delegate:

$a$ AEMO may notify a Market Participant of the scope of the delegation and require that the communications from the Market Participant to AEMO are made through the Delegate; and

$b$ a Market Participant must ensure that any communications from the Market Participant to AEMO under these WEM Rules within the scope of the delegation are made through the Delegate to the extent notified to the Market Participant by AEMO.

2.1A.6. A Delegate must carry out the relevant function, and other

rights and obligations, in respect of which it has been appointed by AEMO, in accordance with the provisions of these WEM Rules, the WEM Procedures, and the instrument of delegation.

2.1A.7. A Delegate is a "market governance participant" for the purposes

of section 126 of the Electricity Industry Act to the extent that it performs a function conferred on it under clause 2.1A.3.

2.1A.8. Notwithstanding that AEMO may have appointed a Delegate, AEMO

remains liable under these WEM Rules for the performance of any function conferred on the Delegate under clause 2.1A.3.

2.2. [Blank]

2.2A. The Economic Regulation Authority

2.2A.1. The following functions are conferred on the Economic Regulation

Authority under these WEM Rules:

$a$ to monitor other Rule Participants’ compliance with these WEM Rules, to investigate potential breaches of these WEM Rules, and if thought appropriate, initiate enforcement action under the Regulations and these WEM Rules;

$b$ [Blank]

(bA) [Blank]

(bB) to contribute to the development and improve the effectiveness of the operation and administration of the Wholesale Electricity Market and these WEM Rules, by developing Rule Change Proposals;

(bC) to support the Coordinator's role, and to facilitate and implement decisions by the Coordinator and the Minister regarding the evolution and development of the Wholesale Electricity Market and the WEM Rules;

$c$ to carry out any other functions conferred, and perform any obligations imposed, on it under these WEM Rules; and

$d$ to do anything that the Economic Regulation Authority determines to be conducive or incidental to the performance of the functions set out in this clause 2.2A.1.

2.2B. [Blank]

2.2C. Network Operators

2.2C.1. The WEM Regulations provide for the WEM Rules to confer

functions on registered participants of a specified class. The functions conferred on each Network Operator are to:

$a$ calculate and provide Loss Factors to AEMO;

$b$ provide Limit Advice to AEMO;

(bA) provide information and assistance to the Coordinator relating to the preparation of the Whole of System Plan by the Coordinator;

(bB) procure Non-Co-optimised Essential System Services in accordance with sections 3.11A and 3.11B;

(bC) develop and publish a Transmission System Plan in accordance with section 4.5B;

(bD) to facilitate and support the Coordinator's role under clause

2.2D.1(h), and to prepare for and enable the evolution and development

of the Wholesale Electricity Market and the WEM Rules;

$c$ develop WEM Procedures, and amendments to and replacements for them, as required by these WEM Rules;

(cA) perform the functions in relation to the standard or technical level of performance in respect of a Technical Requirement applicable to Transmission Connected Generating Systems electrically connected to the Network that the Network Operator operates as set out in Chapter 3A and Appendix 12 of these WEM Rules;

$d$ do anything that the Network Operator determines to be conducive or incidental to the performance of the functions set out in this clause

2.2C.1; and

$e$ carry out any other functions conferred, and perform any other obligations imposed, on Network Operators under these WEM Rules.

2.2D. Coordinator of Energy

2.2D.1. The WEM Regulations provide for the WEM Rules to confer

functions on the Coordinator. The functions conferred on the Coordinator are to:

$a$ carry out the tasks necessary to establish the dispute resolution mechanism contained in section 1.42 including but not limited to the appointment of arbitrators and establishment of any expert panels;

$b$ provide any administrative services deemed necessary by the Coordinator to facilitate the referral of disputes to an arbitrator in accordance with section 1.42;

$c$ develop WEM Procedures, and amendments to and replacements for them, as required by these WEM Rules;

$d$ do anything that the Coordinator determines to be conducive or incidental to the performance of the functions set out in this clause

2.2D.1;

$e$ develop and publish a Whole of System Plan in accordance with section 4.5A;

$f$ administer these WEM Rules;

$g$ develop amendments to these WEM Rules and replacements for them;

$h$ consider and, in consultation with the Market Advisory Committee, progress the evolution and development of the Wholesale Electricity Market and these WEM Rules;

$i$ provide MAC Secretariat services to the Market Advisory Committee and support its independent Chair;

(iA) trigger the procurement of Non-Co-optimised Essential System Services in accordance with section 3.11A;

(iB) to perform any obligations imposed on the Coordinator under section 4.5B;

$j$ undertake reviews and consultation as required under these WEM Rules; and

$k$ carry out any other functions conferred, and perform any other obligations imposed, on the Coordinator under these WEM Rules.

2.3. The Market Advisory Committee

2.3.1. The Market Advisory Committee is a committee of industry

representatives convened by the Coordinator:

$a$ to advise the Coordinator regarding Rule Change Proposals;

$b$ to advise AEMO, the Economic Regulation Authority, the Coordinator and Network Operators regarding Procedure Change Proposals;

$c$ to advise the Coordinator, AEMO and the Economic Regulation Authority on the development of Rule Change Proposals where requested by the Coordinator, AEMO or the Economic Regulation Authority in accordance with clauses 2.5.1A or 2.5.1B or 2.5.1C;

$d$ to advise the Coordinator regarding matters concerning, and the Coordinator’s plans for, the evolution and development of the Wholesale Electricity Market and these WEM Rules; and

$e$ to provide assistance to the Coordinator in its monitoring role under clauses 2.16.13A and 2.16.13B.

2.3.1A. The Market Advisory Committee is a non-voting committee.

2.3.1B. The Market Advisory Committee must endeavour where practicable

to reach a consensus position on any issue before it.

2.3.1C. If, after allowing a reasonable time for discussion, the

independent Chair of the Market Advisory Committee determines that a consensus position either will not be achieved, or is unlikely to be achieved within a time which is reasonable in the circumstances, then the independent Chair must provide advice to the Coordinator which reflects any majority view and which includes or is accompanied by the dissenting views.

2.3.2. The Coordinator must develop and publish a constitution for the

Market Advisory Committee detailing matters including:

$a$ the process for convening the Market Advisory Committee;

$b$ the terms of reference of the Market Advisory Committee;

$c$ the membership terms of Market Advisory Committee members;

$d$ the process for appointing and replacing Market Advisory Committee members by the Coordinator;

$e$ the conduct of Market Advisory Committee meetings;

$f$ the role of the MAC Secretariat in respect of the Market Advisory Committee;

$g$ the interaction between the Market Advisory Committee and the Coordinator, AEMO, the Economic Regulation Authority and Network Operators;

$h$ the ability of the Market Advisory Committee to delegate any of the roles described in clause 2.3.1 to a Working Group; and

$i$ the governance arrangements to apply between the Market Advisory Committee and any Working Groups where the Market Advisory Committee delegates any of the roles described in clause 2.3.1 to a Working Group.

2.3.3. The constitution of the Market Advisory Committee must be

consistent with the WEM Rules.

2.3.4. The Coordinator must invite public submissions when developing or

amending the constitution of the Market Advisory Committee.

2.3.5. Subject to clause 2.3.13, the Market Advisory Committee must

comprise:

$a$ at least six and not more than eight members representing Market Participants, excluding Synergy;

$b$ at least one member and not more than two representing Contestable Customers;

$c$ at least one and not more than two members representing Network Operators, of whom one must represent Western Power;

$d$ [Blank]

$e$ at least two independent members nominated by the Minister to represent small-use consumers;

$f$ [Blank]

$g$ two members representing AEMO;

$h$ one member representing Synergy; and

$i$ an independent Chair, to be appointed by the Minister under clause

2.3.8A.

2.3.5A. Subject to clause 2.3.13, when appointing or removing members of

the Market Advisory Committee of the class described in clause 2.3.5(a), the Coordinator must use its reasonable endeavours to ensure equal representation of Market Participants that:

$a$ own, control or operate an Energy Producing System or Energy Producing Systems in the South West Interconnected System; and

$b$ sell electricity to customers in the South West Interconnected System.

2.3.5B. The same organisation cannot be represented by more than one

member on the Market Advisory Committee simultaneously (other than the 2 members representing AEMO under clause 2.3.5(g)).

2.3.5C. Candidates for appointment under clause 2.3.5(c), (g) and (h)

must be proposed to the Coordinator by Western Power, AEMO and Synergy respectively.

2.3.6. The Minister may appoint a representative to attend Market

Advisory Committee meetings as an observer.

2.3.7. The Economic Regulation Authority may appoint a representative to

attend Market Advisory Committee meetings as an observer.

2.3.7A. The Coordinator or the independent Chair of the Market Advisory

Committee may invite a person to attend Market Advisory Committee meetings as an observer, either for a specified meeting or meetings or until further notice.

2.3.8. The Coordinator may appoint and remove members of the Market

Advisory Committee in consultation with the independent Chair.

2.3.8A. The Minister must appoint an independent Chair of the Market

Advisory Committee, who in the opinion of the Minister:

$a$ is free from any business or other relationship that could materially interfere with the independent exercise of the independent Chair’s judgment; and

$b$ has the skills and experience necessary to carry out the responsibilities and functions of the independent Chair of the Market Advisory Committee.

2.3.8B. Each independent Chair of the Market Advisory Committee will be

appointed for a term of three years, with the possibility of one three-year extension.

2.3.8C. The Minister may remove an independent Chair of the Market

Advisory Committee at any time in the following circumstances:

$a$ the person becomes an undischarged bankrupt; or

$b$ the person becomes of unsound mind or his or her estate is liable to be dealt with in any way under law relating to mental health;

$c$ an event specified in the independent Chair terms of engagement; or

$d$ in the Minister’s opinion the person no longer adequately meets the criteria in clause 2.3.8A.

2.3.8D. The Minister may appoint an interim Chair of the Market Advisory

Committee in the event that the independent Chair becomes temporarily unavailable or the position is otherwise vacant for any reason. The interim Chair may be appointed for an initial term of up to six months and may be reappointed for further six months. The interim Chair must meet, so far as is practicable, the criteria in clause 2.3.8A.

2.3.8E. The Coordinator may appoint an interim member representing

small-use consumers if both positions under clause 2.3.5(e) are vacant for any reason.

2.3.9. The Coordinator must annually review the composition of the

Market Advisory Committee in consultation with the independent Chair of the Market Advisory Committee and may remove and appoint members following the review.

2.3.10. When appointing and removing members of the Market Advisory

Committee, the Coordinator must consult with the independent Chair of the Market Advisory Committee, and (except in the case of candidates for appointment under clause 2.3.5(c), (g) and (h), to whom clause 2.3.5C applies) take nominations from Rule Participants and industry groups, that it considers relevant to the Wholesale Electricity Market, and, if practicable, must choose members from persons nominated.

2.3.11. The Coordinator may remove a member of the Market Advisory

Committee at any time in the following circumstances:

$a$ the person becomes an undischarged bankrupt;

$b$ the person becomes of unsound mind or his or her estate is liable to be dealt with in any way under law relating to mental health; or

$c$ an event specified for this purpose in the constitution for the Market Advisory Committee occurs; or

$d$ in the Coordinator’s opinion the person no longer adequately represents the person or class of persons that they were appointed to represent in accordance with clause 2.3.5.

2.3.12. A member of the Market Advisory Committee may resign by giving

notice to the Coordinator in writing.

2.3.13. Where a position on the Market Advisory Committee is vacant at

any time, the Coordinator must use its reasonable endeavours to appoint a person to fill the position, but the Market Advisory Committee may continue to perform its functions under this clause 2.3 despite any vacancy.

2.3.14. [Blank]

2.3.15. The independent Chair must convene the Market Advisory

Committee:

$a$ on any occasion where these WEM Rules require a meeting to discuss a Rule Change Proposal;

(aA) on any occasion where these WEM Rules require a meeting to discuss a Procedure Change Proposal;

$b$ [Blank];

$c$ on any occasion when two or more members of the Market Advisory Committee have informed the independent Chair in writing that they wish to bring a matter regarding the evolution or the development of the Wholesale Electricity Market or these WEM Rules before the Market Advisory Committee for discussion; and

$d$ on any occasion the Coordinator has informed the independent Chair that she or he wishes to bring a matter regarding the evolution or the development of the Wholesale Electricity Market or these WEM Rules before the Market Advisory Committee for discussion.

2.3.16. Subject to her or his obligations of confidentiality under these

Rules and otherwise, the Coordinator must use reasonable endeavours to provide the Market Advisory Committee any information in the Coordinator’s possession obtained in the course of performing a function under these WEM Rules that is pertinent to the issues being addressed by the Market Advisory Committee.

2.3.17. The Market Advisory Committee may:

$a$ establish one or more Working Groups comprising Representatives of Rule Participants and other interested persons, to assist the Market Advisory Committee in advising the Coordinator, Economic Regulation Authority, AEMO and Network Operators on any of the matters listed in clause 2.3.1 of these WEM Rules; and

$b$ disband any Working Groups where it considers that the Working Group is no longer required, or will no longer be required, to assist the Market Advisory Committee in advising the Coordinator, Economic Regulation Authority and AEMO on any of the matters listed in clause

2.3.1 of these WEM Rules.

Market Documents

2.4. WEM Rules made by the Coordinator

2.4.1. The Coordinator:

$a$ is responsible for maintaining and publishing the WEM Rules;

$b$ is responsible for ensuring the development of amendments of, and replacements for, the WEM Rules; and

$c$ may make amending rules (as defined in the Regulations) (“Amending Rules”) in accordance with this Chapter.

2.4.2. The Coordinator must not make Amending Rules unless it is

satisfied that the WEM Rules, as proposed to be amended or replaced, are consistent with the Wholesale Market Objectives.

Explanatory Note

The proposed new Amending Rules – clauses 2.4.3(f), 2.4.3B, 2.4.3C, ### 2.4.3D and 2.4.3E – enable the Coordinator to seek technical or engineering advice or information from Western Power and AEMO when a Rule Change Proposal relates to amending a WEM Technical Standard. This additional step ensures that when standards relating to Power System Security and Reliability are proposed to be modified, proper engineering advice is provided by the two primary entities responsible for system security and reliability. The Coordinator retains the discretion to request technical advice at any time throughout the Standard Rule Change Process.

2.4.3. In deciding whether to make Amending Rules, the Coordinator must

have regard to the following:

$a$ any applicable statement of policy principles given to the Coordinator under clause 2.5.2;

(aA) any advice provided by the Market Advisory Committee regarding the evolution or the development of the Wholesale Electricity Market or these WEM Rules;

$b$ the practicality and cost of implementing the Rule Change Proposal;

$c$ the views expressed in any submissions on the Rule Change Proposal;

$d$ any advice by the Market Advisory Committee where the Market Advisory Committee met to consider the Rule Change Proposal;

(dA) whether the advice from the Market Advisory Committee provided under clause 2.4.3(d) reflects a consensus view or a majority view, and, if the latter, any dissenting views included in or accompanying the advice and how these views have been taken into account by the Coordinator;

$e$ any technical studies that the Coordinator considers are necessary to assist in assessing the Rule Change Proposal; and

$f$ any advice or information provided by AEMO or a Network Operator under clause 2.4.3C.

2.4.3A. Without limiting clause 2.4.3, in deciding whether or not to

make Amending Rules, the Coordinator may seek information or advice, and the Coordinator may have regard to that information or advice, from any person that the Coordinator considers is appropriate to assist it in assessing the relevant Rule Change Proposal.

2.4.3B. If the Coordinator considers that making Amending Rules will

directly or indirectly affect a WEM Technical Standard, the Coordinator must request advice, which may include a request to provide information, from AEMO and each Network Operator that the Coordinator considers will be affected by the relevant Amending Rules to assist the Coordinator in assessing the relevant Rule Change Proposal. The following applies to a request:

$a$ the Coordinator must consult with each recipient of the request, on the requirements in the request and the timeframes for responding to the request; and

$b$ the Coordinator may, at her or his discretion, require each recipient of the request to provide the advice jointly or independently.

2.4.3C. Subject to clause 2.4.3D, each recipient of a request under

clause 2.4.3B must provide the advice or information requested by the Coordinator under clause 2.4.3B in accordance with the timeframes and any other requirements specified in the request.

2.4.3D. If a recipient of a request under clause 2.4.3B requires a

longer timeframe to provide the advice or information requested by the Coordinator under clause 2.4.3B, the recipient:

$a$ may seek an extension to the timeframe from the Coordinator; and

$b$ must outline the reasons for seeking the extension.

2.4.3E. The Coordinator may, in her or his sole discretion, approve or

decline a request for an extension of time made under clause 2.4.3D.

2.4.4. The Coordinator must maintain on the Coordinator's Website a Rule

Change Proposal form which must include:

$a$ contact details for proposing rule changes; and

$b$ information that must be provided in proposing a change, including:

i. the name of the person submitting the Rule Change Proposal, and where relevant, details of the organisation that person represents;

ii. the issue to be addressed;

iii. the degree of urgency of the proposed change;

iv. any proposed specific changes to particular rules;

v. a description of how the rule change would allow the WEM Rules to better address the Wholesale Market Objectives; and

vi. any identifiable costs and benefits of the change.

2.4A. WEM Rules made by the Minister

2.4A.1. This section 2.4A applies from 21 September 2019 until 1 July

2021, being the date on which the Minister's power to make Amending Rules under regulation 7(5) of the WEM Regulations ends.

2.4A.2. Despite anything in these WEM Rules, the Minister may develop

and make Amending Rules in accordance with regulation 7(5) of the WEM Regulations.

2.5. Rule Change Proposals

2.5.1. Any person may make a Rule Change Proposal by completing a Rule

Change Proposal form and submitting it to the Coordinator.

2.5.1A. AEMO must, before commencing the development of a Rule Change

Proposal or providing material support or assistance to another party to develop a Rule Change Proposal, consult with the Market Advisory Committee on:

$a$ the matters to be addressed by the Rule Change Proposal and if applicable the nature and scope of the support or assistance requested by the other party;

$b$ what options exist to resolve the matters to be addressed by the Rule Change Proposal;

$c$ AEMO’s estimated costs of developing the Rule Change Proposal or providing the support or assistance requested by the other party;

$d$ whether and when AEMO should develop the Rule Change Proposal or if AEMO should provide the support or assistance requested by the other party; and

$e$ whether and how the Market Advisory Committee will be consulted during the development of the Rule Change Proposal,

and take into account any advice, comments or objections provided by any member or observer of the Market Advisory Committee in deciding whether, when and how to develop the Rule Change Proposal or provide material support or assistance to another party to develop the Rule Change Proposal.

2.5.1B. The Economic Regulation Authority must, before commencing the

development of a Rule Change Proposal or providing material support or assistance to another party to develop a Rule Change Proposal, consult with the Market Advisory Committee on:

$a$ the matters to be addressed by the Rule Change Proposal and if applicable the nature and scope of the support or assistance requested by the other party;

$b$ what options exist to resolve the matters to be addressed by the Rule Change Proposal;

$c$ the Economic Regulation Authority’s estimated costs of developing the Rule Change Proposal or providing the support or assistance requested by the other party;

$d$ whether and when the Economic Regulation Authority should develop the Rule Change Proposal or if the Economic Regulation Authority should provide the support or assistance requested by the other party; and

$e$ whether and how the Market Advisory Committee will be consulted during the development of the Rule Change Proposal,

and take into account any advice, comments or objections provided by any member or observer of the Market Advisory Committee in deciding whether, when and how to develop the Rule Change Proposal or provide material support or assistance to another party to develop the Rule Change Proposal.

2.5.1C. The Coordinator must, before commencing the development of a

Rule Change Proposal or providing material support or assistance to another party to develop a Rule Change Proposal, consult with the Market Advisory Committee on:

$a$ the matters to be addressed by the Rule Change Proposal and if applicable the nature and scope of the support or assistance requested by the other party;

$b$ what options exist to resolve the matters to be addressed by the Rule Change Proposal;

$c$ the Coordinator’s estimated costs to be recovered through Coordinator Fees of developing the Rule Change Proposal or providing the support or assistance requested by the other party;

$d$ whether and when the Coordinator should develop the Rule Change Proposal or if the Coordinator should provide the support or assistance requested by the other party; and

$e$ whether and how the Market Advisory Committee will be consulted during the development of the Rule Change Proposal,

and take into account any advice, comments or objections provided by any member or observer of the Market Advisory Committee in deciding whether, when and how to develop the Rule Change Proposal or provide material support or assistance to another party to develop the Rule Change Proposal.

Explanatory Note

Clause 2.5.1D sets out new requirements for consultation where AEMO or a Network Operator wish to make a Rule Change Proposal that affects a WEM Technical Standard. See also new clause 2.8.14.

2.5.1D. Where AEMO or a Network Operator wishes to make a Rule Change

Proposal that may directly or indirectly affect a WEM Technical Standard, then, without limiting any other requirements applying to a Rule Change Proposal in these WEM Rules or a WEM Procedure, AEMO or the Network Operator must, before making the Rule Change Proposal:

$a$ where AEMO wishes to make a Rule Change Proposal, AEMO must consult in good faith with each Network Operator that may be directly or indirectly affected by the relevant proposed Amending Rules; and

$b$ where a Network Operator wishes to make a Rule Change Proposal, the Network Operator must consult in good faith with AEMO and each other Network Operator that may be directly or indirectly affected by the relevant proposed Amending Rules.

2.5.2. The Minister may issue a statement of policy principles to the

Coordinator with respect to the development of the market. The statement of policy principles must not be inconsistent with the Wholesale Market Objectives. Before giving a statement of policy principles, the Minister may provide a draft of the proposed statement to the Market Advisory Committee and seek the Market Advisory Committee’s views on it.

2.5.3. The Coordinator must have regard to any statement of policy

principles given by the Minister in making Amending Rules in accordance with this Chapter.

2.5.3A. The Coordinator must have regard to any advice received from the

Market Advisory Committee regarding the evolution or the development of the Wholesale Electricity Market or these WEM Rules.

2.5.3B. The independent Chair of the Market Advisory Committee may

develop and submit Rule Change Proposals based on advice received from the Market Advisory Committee regarding the development of the Wholesale Electricity Market or these WEM Rules.

2.5.4. Where the Coordinator considers that a change to the WEM Rules is

required, the Coordinator may develop a Rule Change Proposal and must publish it in accordance with clause 2.5.7.

2.5.5. Where necessary, the Coordinator may contact the person

submitting a Rule Change Proposal and request clarification of any aspect of the Rule Change Proposal. Any clarification received is to be deemed to be part of the Rule Change Proposal.

2.5.6. Within five Business Days of the later of:

$a$ receiving the Rule Change Proposal; and

$b$ any clarification under clause 2.5.5,

the Coordinator must:

$c$ decide whether to progress the Rule Change Proposal any further; and

$d$ notify the person who submitted the Rule Change Proposal whether the Coordinator will progress the Rule Change Proposal any further.

2.5.7. When it has developed a Rule Change Proposal, or within seven

Business Days of receiving a Rule Change Proposal under clause 2.5.1, the Coordinator must publish notice of the Rule Change Proposal on the Coordinator's Website. The notice must include:

$a$ the date that the Rule Change Proposal was submitted, if applicable;

$b$ the name, and where relevant, the organisation, of the person who made the Rule Change Proposal;

$c$ details of the Rule Change Proposal, including relevant references to clauses of the WEM Rules and any proposed specific changes to those clauses;

$d$ the description of how the rule change would allow the WEM Rules to better address the Wholesale Market Objectives given by the person submitting the proposed rule change;

$e$ whether the Rule Change Proposal will be progressed and the reason why the Rule Change Proposal will or will not be progressed; and

$f$ if the Rule Change Proposal will be progressed further:

i. whether the Rule Change Proposal is to be subject to the Fast Track Rule Change Process in accordance with clause 2.5.9 and the reasons for this decision;

ii. if the Rule Change Proposal is subject to the Fast Track Rule Change process, and the Rule Change Proposal did not include proposed specific changes to clauses, the Coordinator’s proposed Amending Rules to implement the Rule Change Proposal; and

iii. if the Rule Change is not subject to the Fast Track Rule Change process, a call for submissions in relation to the Rule Change Proposal. The due date for submissions must be:

1. 30 Business Days after the notification; or

2. if a longer timeframe is determined in accordance with clause

2.5.10, at a time that is consistent with that timeframe.

2.5.8. Where a Rule Change Proposal that will be progressed relates to a

Protected Provision the Coordinator must notify the Minister at the same time as it gives the notice described in clause 2.5.7.

2.5.8A. A decision by the Coordinator to accept a Rule Change Proposal

(in proposed or modified form), which was initiated by the Coordinator, does not take effect until it receives the Minister’s approval.

2.5.9. The Coordinator may subject a Rule Change Proposal to the Fast

Track Rule Change Process if, in her or his opinion, the Rule Change Proposal:

$a$ is of a minor or procedural nature; or

$b$ is required to correct a manifest error; or

$c$ is urgently required and is essential for either:

i. the safe operation; or

ii. the effective operation; or

iii. the reliable operation,

of the market or the SWIS.

2.5.10. Subject to clause 2.5.12, the Coordinator may at any time after

deciding to progress a Rule Change Proposal decide to extend the normal timeframe for processing Rule Change Proposals. If the Coordinator decides to do so, then she or he may modify the times and time periods under sections 2.6, 2.7 or 2.8 in respect of the Rule Change Proposal and publish details of the modified times and time periods.

2.5.11. If a Rule Change Proposal was subject to the Fast Track Rule

Change Process, and the Coordinator decides to extend the timeframe, she or he must either:

$a$ extend the timeframe by no more than 15 Business Days; or

$b$ reclassify the Rule Change Proposal as not being subject to the Fast Track Rule Change Process, and must progress it in accordance with section 2.7.

2.5.12. The Coordinator must publish a notice of an extension determined

in accordance with clause 2.5.10, and must update any information already published in accordance with clause 2.5.7(f).

2.5.13. A notice of extension must include:

$a$ the reasons for the proposed extension;

$b$ the views of any Rule Participants consulted on the extension;

$c$ the proposed length of any extension; and

$d$ the proposed work program.

2.5.14. A Rule Change Proposal that the Coordinator decides is subject

to the Fast Track Rule Change Process is to be progressed in accordance with section 2.6, and section 2.7 does not apply.

2.5.15. A Rule Change Proposal that the Coordinator decides is not

subject to the Fast Track Rule Change Process is to be progressed in accordance with section 2.7, and section 2.6 does not apply.

2.6. Fast Track Rule Change Process

2.6.1. Within five Business Days of publishing the notice referred to in

clause 2.5.7, the Coordinator must notify those Rule Participants or members of the Market Advisory Committee that she or he considers have an interest in the Rule Change Proposal of her or his intention to consult with them concerning the Rule Change Proposal.

2.6.2. Within five Business Days of publishing the notice referred to in

clause 2.5.7, a Rule Participant may notify the Coordinator that they wish to be consulted concerning the Rule Change Proposal.

2.6.3. Within 15 Business Days of publishing the notice referred to in

clause 2.5.7, the Coordinator must have completed such consultation as the Coordinator considers appropriate in the circumstances with the Rule Participants described in clauses 2.6.1 and 2.6.2.

2.6.3A. Within 20 Business Days of publishing the notice referred to in

clause 2.5.7, the Coordinator must:

$a$ decide whether to:

i. accept the Rule Change Proposal in the proposed form; or

ii. accept the Rule Change Proposal in a modified form; or

iii. reject the Rule Change Proposal; and

$b$ prepare and publish a Final Rule Change Report on the Rule Change Proposal.

2.6.4. The Final Rule Change Report must contain:

$a$ the information in the notice of the Rule Change Proposal under clause 2.5.7;

$b$ any analysis of the Rule Change Proposal that the Coordinator has carried out;

$c$ the identities of Rule Participants that were consulted;

$d$ information on any objections expressed by the Rule Participants consulted, and the Coordinator’s response to the objections;

$e$ the Coordinator’s assessment of the Rule Change Proposal in light of clauses 2.4.2 and 2.4.3;

$f$ the decision made by the Coordinator under clause 2.6.3A(a) on the Rule Change Proposal;

$g$ the Coordinator’s reasons for the decision; and

$h$ if the Coordinator decides to make Amending Rules arising from the Rule Change Proposal:

i. the wording of the Amending Rules; and

ii. the proposed date and time that the Amending Rules will commence.

2.7. Standard Rule Change Process

2.7.1. Any person may make a submission to the Coordinator relating to a

Rule Change Proposal within the time frame specified under clause

2.5.7(f)(iii).

2.7.2. Subject to its obligations of confidentiality under these WEM

Rules and otherwise, the Coordinator must release to the public all information submitted under clause 2.7.1.

2.7.3. The Coordinator may hold public forums or workshops concerning a

Rule Change Proposal.

2.7.4. Within one Business Day after the publication of a notice of a

Rule Change Proposal in accordance with clause 2.5.7, the Coordinator must notify the members and observers of the Market Advisory Committee as to whether the Coordinator considers the Rule Change Proposal requires convening a meeting of the Market Advisory Committee and the reasons why.

2.7.5. The independent Chair of the Market Advisory Committee must

convene a meeting of the Market Advisory Committee concerning a Rule Change Proposal before the due date for submissions in relation to the Rule Change Proposal if:

$a$ the independent Chair or the Coordinator considers that advice on the Rule Change Proposal is required from the Market Advisory Committee; or

$b$ two or more members of the Market Advisory Committee have informed the independent Chair in writing that they consider that advice on the Rule Change Proposal is required from the Market Advisory Committee.

2.7.6. Within 20 Business Days following the close of submissions, the

Coordinator must:

$a$ prepare and publish a Draft Rule Change Report on the Rule Change Proposal; and

$b$ publish a deadline for further submissions in relation to the Rule Change Proposal, where that deadline must be at least 20 Business Days after the date the deadline is published.

2.7.7. The Draft Rule Change Report must contain:

$a$ the information in the notice of the Rule Change Proposal under clause 2.5.7;

$b$ all submissions received before the due date for submissions, a summary of those submissions, and the Coordinator’s response to issues raised in those submissions (and the report may in the Coordinator’s discretion contain any or all of this material in respect of a submission received after the due date);

$c$ a summary of any public forums or workshops held;

(cA) a summary of any advice provided by AEMO or a Network Operator under clause 2.4.3C, and reasons if the Coordinator does not propose to follow partially or fully the advice;

$d$ a summary of the views expressed by the members of the Market Advisory Committee where the Market Advisory Committee met to consider the Rule Change Proposal and, if the Market Advisory Committee has delegated its role to consider the Rule Change Proposal to a Working Group under clause 2.3.17(a), a summary of the views expressed by that Working Group;

(dA) reasons if the Coordinator does not propose to follow partially or fully the advice received from the Market Advisory Committee;

$e$ the Coordinator’s assessment of the Rule Change Proposal in light of clauses 2.4.2 and 2.4.3;

$f$ a proposal as to whether the Rule Change Proposal should be accepted in the form proposed. The proposal may be that:

i. the Rule Change Proposal be accepted in the proposed form; or

ii. the Rule Change Proposal be accepted in a modified form; or

iii. the Rule Change Proposal be rejected; and

$g$ if the Coordinator proposes to make Amending Rules arising from the Rule Change Proposal:

i. the wording of the proposed Amending Rules; and

ii. a proposed date and time the proposed Amending Rules will commence.

2.7.7A. Within 20 Business Days of the deadline specified under clause

2.7.6(b), the Coordinator must:

$a$ decide whether to:

i. accept the Rule Change Proposal in the proposed form; or

ii. accept the Rule Change Proposal in a modified form; or

iii. reject the Rule Change Proposal; and

$b$ prepare and publish a Final Rule Change Report on the Rule Change Proposal.

2.7.8. The Final Rule Change Report must contain:

$a$ the information in the Draft Rule Change Report;

$b$ all submissions received before the deadline for submissions specified in relation to the relevant Draft Rule Change Report under clause 2.7.6(b), a summary of those submissions, and the Coordinator’s response to the issues raised in those submissions (and the report may in the Coordinator’s discretion contain any or all of this material in respect of a submission received after the deadline);

(bA) reasons if the Coordinator has decided not to follow partially or fully the advice received from the Market Advisory Committee;

(bB) reasons if the Coordinator has decided not to follow partially or fully any advice provided by AEMO or a Network Operator under clause

2.4.3C;

$c$ any further analysis or modification to the Rule Change Proposal;

$d$ the Coordinator’s assessment of the Rule Change Proposal in light of clauses 2.4.2 and 2.4.3;

$e$ the decision made by the Coordinator under clause 2.7.7A(a) on the Rule Change Proposal;

$f$ the Coordinator’s reasons for the decision; and

$g$ if the Coordinator decides to make Amending Rules arising from the Rule Change Proposal:

i. the wording of the Amending Rules; and

ii. the proposed date and time that the Amending Rules will commence.

2.8. Review of Coordinator Rule Amendment Decisions, Ministerial

Approval and Coming into Force of Rule Amendments

2.8.1. A Rule Participant may apply to the Electricity Review Board for

a Procedural Review of a decision by the Coordinator contemplated by clause 2.5.6(c), 2.5.9, 2.6.3A(a) or 2.7.7A(a) within the time specified in regulation 44 of the WEM Regulations, on the grounds that the Coordinator has not followed the rule change process set out in sections

2.5, 2.6 and 2.7.

2.8.2. Following an application for a Procedural Review under clause

2.8.1, if the Electricity Review Board finds that the Coordinator has

not followed the rule change process set out in sections 2.5, 2.6 and

2.7 the Electricity Review Board may set aside the Coordinator’s

decision and direct the Coordinator to reconsider the relevant Rule Change Proposal in accordance with the process set out in sections 2.5,

2.6 and 2.7.

2.8.3. The Coordinator must submit a Rule Change Proposal, together with

the Final Rule Change Report, to the Minister for approval where Amending Rules in the Final Rule Change Report:

$a$ amend or replace a Protected Provision, or, in the Coordinator’s opinion, would have the effect of changing the meaning or effect of one or more Protected Provisions; or

$b$ are subject to the requirements in clause 2.5.8A.

2.8.4. Subject to clause 2.8.6, the Minister must consider the Rule

Change Proposal within 20 Business Days and decide whether the WEM Rules, as amended or replaced by the proposed Amending Rules, are consistent with the Wholesale Market Objectives.

2.8.5. Where a Rule Change Proposal is submitted under clause 2.8.3, the

Minister may:

$a$ approve the proposed Amending Rules;

$b$ not approve the proposed Amending Rules; or

$c$ send back to the Coordinator the proposed Amending Rules with any revisions the Minister considers are required to ensure the WEM Rules, as amended or replaced by the proposed Amending Rules, are consistent with the Wholesale Market Objectives.

2.8.6. The Minister may extend the time for a decision on a Rule Change

Proposal under clause 2.8.4 by a further period of up to 20 Business Days by notice to the Coordinator. The Minister may extend the time for a decision in respect of a Rule Change Proposal more than once.

2.8.7. The Coordinator must publish notice of any extension under clause

2.8.6 on the Coordinator’s Website.

2.8.8. Where the Minister does not make a decision by the original date

determined in accordance with clause 2.8.4, or by an extended date determined in accordance with clause 2.8.6, as applicable, then the proposed Amending Rules will be taken to have been approved by the Minister.

2.8.9. Where the Minister does not approve the proposed Amending Rules

or sends proposed Amending Rules back to the Coordinator under clause

2.8.5(c), the Minister must give reasons, and the Coordinator must

publish a notice of the Minister’s decision and the reasons given by the Minister.

2.8.10. Where the Minister sends proposed Amending Rules back to the

Coordinator in accordance with clause 2.8.5(c), the Coordinator must:

$a$ publish the revised Amending Rules and call for submissions on the revised Amending Rules within 15 Business Days of publication; and

$b$ provide a revised Final Rule Change Report, including any submissions received on the Minister’s revised Amending Rules to the Minister within 25 Business Days of the close of the consultation period and clauses 2.8.4 to this clause 2.8.10 apply to the revised Final Rule Change Report.

2.8.11. Amending Rules are made:

$a$ for Rule Change Proposals to which clause 2.8.3 applies, when the Minister has either approved, or is taken by clause 2.8.8 to have approved, the Amending Rules; and

$b$ for Rule Change Proposals to which clause 2.8.3 does not apply, when the Coordinator has decided to make the Amending Rules as notified under clause 2.6.3A(b) or clause 2.7.7A(b).

2.8.12. Subject to clause 2.8.2, Amending Rules commence at the time and

date determined by the Coordinator. The Coordinator must publish notice of the time and date Amending Rules commence.

Explanatory Note

The list of Protected Provisions has been updated to only include clauses that contain responsibilities for, or functions of, the Coordinator or Minister for Energy.

This ensures that the purpose of the Protected Provisions remain consistent with their original intent – to ensure that where there is a potential conflict of interest there is Ministerial oversight of the decision being made – in the context of the current WEM governance arrangements.

2.8.13. The following clauses are Protected Provisions:

$a$ clauses 1.1.1, 1.1.2, 1.2.1, 1.4.1, 1.4.2, 1.6.2, 1.7.3A, 1.8.1, 1.8.3, 1.8.4, 1.28.1 to 1.28.3, 1.28.5, 1.28.6, 1.42.2, 1.42.3, 1.42.5 to 1.42.7, 1.42.9, 1.42.10, 1.42.28, 1.43A.2, 1.43A.4 to 1.43A.6;

$b$ clauses 2.2D.1, 2.3.1, 2.3.2 to 2.3.5A, 2.3.6, 2.3.7A to 2.3.11,

2.3.13, 2.3.16, 2.4.1 to 2.4.4, 2.5.1C, 2.5.2 to 2.5.3A, 2.5.4 to

2.5.15, 2.6.1, 2.6.3, 2.6.4, 2.7.2 to 2.7.4, 2.7.6 to 2.7.8, 2.8.1 to

2.8.14, 2.9.2CB, 2.9.2F, 2.9.4, 2.9.5, 2.9.7C, 2.10.1, 2.10.2A, 2.10.3,

2.10.5E, 2.10.7, 2.10.10, 2.10.12E, 2.10.13, 2.10.17 to 2.10.20, 2.11.1

to 2.11.4, 2.16.2A, 2.16.2D, 2.16.2E, 2.16.6, 2.16.7, 2.16.13A,

2.16.13B, 2.16.13D to 2.16.14, 2.16.15A, 2.21.11, 2.21.12, 2.24.5B to

2.24.5E, 2.24.6A, 2.25.1C, 2.44.1;

$c$ clauses 3.11A.1 to 3.11A.10, 3.15.1 to 3.15.5, 3.18GA.1 to 3.18GA.3;

$d$ clauses 4.5A1 to 4.5A16, 4.13B.1 to 4.13B.6, 4.24.19;

$e$ clauses 10.1.1, 10.2.1, 10.2.1B, 10.2.3, 10.2.6, 10.2.8 to 10.2.12, 10.3.1 to 10.3.4, 10.4.1, 10.4.2, 10.4.5, 10.4.7 to 10.4.11, 10.4.14 to 10.4.26, 10.5.1 to 10.5.14 ; and

$f$ any other clauses of these WEM Rules that must not be amended, repealed or replaced without the approval of the Minister in accordance with the WEM Regulations.

Explanatory Note

Clause 2.8.14 sets out the WEM Technical Standards that are to be 'protected' provisions 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. Some of these clauses do not commence until new market start – see the transitional provisions in new section 1.52.

2.8.14. The following clauses are WEM Technical Standards:

$a$ section 3.1;

$b$ clause 3.2.5;

$c$ clauses 3.3.3 and 3.4.3;

$d$ section 3.6;

$e$ section 3.7;

$f$ chapter 3A and appendix 12; and

$g$ chapter 3B.

2.9. WEM Procedures

2.9.1. [Blank]

2.9.2. [Blank]

2.9.2A. AEMO must manage the development of, amendment of, and

replacement for WEM Procedures which these WEM Rules require be developed by AEMO.

2.9.2B. The Economic Regulation Authority must manage the development

of, amendment of, and replacement for WEM Procedures which these WEM Rules require to be developed by the Economic Regulation Authority.

2.9.2C. [Blank]

2.9.2CA. Each Network Operator must manage the development of, amendment

of, and replacement for WEM Procedures which these WEM Rules require be developed by a Network Operator.

2.9.2CB. The Coordinator must manage the development, amendment and

replacement of any WEM Procedures which these WEM Rules require be developed and maintained by the Coordinator.

2.9.2D. AEMO must develop and maintain on the WEM Website a list of all

WEM Procedures that AEMO is required to develop or maintain under the WEM Rules. For each WEM Procedure the list must:

$a$ state the name of the WEM Procedure;

$b$ give a brief description of the WEM Procedure; and

$c$ specify:

i. each head of power clause in the WEM Rules pursuant to which the WEM Procedure has been developed; and

ii. if not already covered under clause 2.9.2D(c)(i), each clause in the WEM Rules which requires that an obligation, process or requirement be documented in a WEM Procedure, that has been documented in that WEM Procedure.

2.9.2E. AEMO must maintain and keep up to date the list referred to in

clause 2.9.2D.

2.9.2F. The Economic Regulation Authority, the Coordinator and each

Network Operator must publish any WEM Procedures they are required to document or develop under these WEM Rules on their respective websites.

2.9.3. WEM Procedures:

$a$ must:

i. be developed, amended or replaced in accordance with the process in these WEM Rules;

ii. be consistent with the Wholesale Market Objectives; and

iii. be consistent with these WEM Rules, the Electricity Industry Act and Regulations; and

$b$ may be amended or replaced in accordance with section 2.10 and must be amended or replaced in accordance with section 2.10 where a change is required to maintain consistency with Amending Rules.

2.9.4. The Coordinator must maintain on the Coordinator's Website a

Procedure Change Submission form.

2.9.5. The Coordinator must develop a WEM Procedure setting out the

procedure for developing and amending WEM Procedures.

2.9.6. [Blank]

2.9.7. [Blank]

2.9.7A. AEMO must comply with WEM Procedures applicable to it.

2.9.7B. The Economic Regulation Authority must comply with WEM

Procedures applicable to it.

2.9.7C. The Coordinator must comply with WEM Procedures applicable to

it.

Explanatory Note

Clause 2.9.7D requires each Network Operator to comply with the WEM Procedures applicable to it. It is noted that the Network Operator is already covered by clause 2.9.8, however, Network Operators have been included as part of this clause to avoid doubt and for consistency with how AEMO is separately identified.

2.9.7D. A Network Operator must comply with WEM Procedures applicable to

it.

2.9.8. A Rule Participant, other than AEMO or a Network Operator, must

comply with WEM Procedures applicable to it.

2.10. Procedure Change Process

2.10.1. AEMO, the Economic Regulation Authority, the Coordinator or a

Network Operator, as applicable, may initiate the Procedure Change Process by developing a Procedure Change Proposal.

2.10.2. Rule Participants may notify AEMO, the Economic Regulation

Authority, the Coordinator or the relevant Network Operator, as applicable, where they consider an amendment to or replacement of a WEM Procedure would be appropriate.

2.10.2A. Within 20 Business Days of receipt of a notification under

clause 2.10.2, AEMO, the Economic Regulation Authority, the Coordinator or the Network Operator, as applicable, must:

$a$ determine whether the suggested amendment to or replacement of a WEM Procedure is appropriate; and

$b$ publish details of whether a Procedure Change Proposal will be progressed with respect to the suggested amendment to or replacement of a WEM Procedure and the reasons for that decision on AEMO's, the Economic Regulation Authority's, the Coordinator's or the Network Operator's website, as applicable.

2.10.3. If an Amending Rule requires AEMO, the Economic Regulation

Authority, the Coordinator or a Network Operator to develop new WEM Procedures or to amend or replace existing WEM Procedures, then AEMO, the Economic Regulation Authority, the Coordinator or the Network Operator, as applicable, is responsible for the development of, amendment of or replacement for, WEM Procedures so as to comply with the Amending Rule.

2.10.4. [Blank]

2.10.5. [Blank]

2.10.5A. AEMO must publish Procedure Change Proposals that AEMO

develops.

2.10.5B. The Economic Regulation Authority must publish Procedure Change

Proposals that the Economic Regulation Authority develops.

2.10.5C. [Blank]

2.10.5D. A Network Operator must publish Procedure Change Proposals that

the Network Operator develops.

2.10.5E. The Coordinator must publish Procedure Change Proposals that

the Coordinator develops.

2.10.6. A Procedure Change Proposal must include:

$a$ a proposed WEM Procedure or an amendment to or replacement for a WEM Procedure , indicating the proposed amended words, or a proposed WEM Procedure; and

$b$ the reason for the proposed WEM Procedure or an amendment to or replacement for a WEM Procedure or proposed WEM Procedure.

2.10.7. At the same time as it publishes a Procedure Change Proposal

notice, AEMO, the Economic Regulation Authority, the Coordinator or the Network Operator, as applicable, must publish a call for submissions on that proposal. The due date for submissions must be 20 Business Days from the date the call for submissions is published. Any person may make a submission to AEMO, the Economic Regulation Authority, the Coordinator or the Network Operator, as applicable, relating to a Procedure Change Proposal. A Procedure Change Submission may be made using the Procedure Change Submission form maintained on the Coordinator’s Website in accordance with clause 2.9.4.

2.10.8. [Blank]

2.10.9. The independent Chair of the Market Advisory Committee must

convene a meeting of the Market Advisory Committee concerning any Procedure Change Proposal before the due date for submissions in relation to the Procedure Change Proposal if:

$a$ the independent Chair, the Coordinator, AEMO or the Economic Regulation Authority considers that advice on the Procedure Change Proposal is required from the Market Advisory Committee;

(aA) a Network Operator considers that advice on the Procedure Change Proposal prepared by a Network Operator is required from the Market Advisory Committee; or

$b$ two or more members of the Market Advisory Committee have informed the independent Chair in writing that they consider that advice on the Procedure Change Proposal is required from the Market Advisory Committee.

2.10.10. Following the closing date for submissions, the Coordinator,

AEMO, the Economic Regulation Authority or the Network Operator, as applicable, must prepare a Procedure Change Report on the Procedure Change Proposal.

2.10.11. [Blank]

2.10.12. [Blank]

2.10.12A. AEMO must publish Procedure Change Reports that AEMO prepares.

2.10.12B.The Economic Regulation Authority must publish Procedure Change

Reports that the Economic Regulation Authority prepares.

2.10.12C. [Blank]

2.10.12D. A Network Operator must publish Procedure Change Reports that

the Network Operator prepares.

2.10.12E. The Coordinator must publish Procedure Change Reports that the

Coordinator prepares.

2.10.13. The Procedure Change Report must contain:

$a$ the wording of the proposed WEM Procedure or amendment to or replacement for the WEM Procedure;

$b$ the reason for the proposed WEM Procedure or amendment to or replacement for the WEM Procedure;

$c$ all submissions received before the due date for submissions, a summary of those submissions, and the response of the Coordinator, AEMO, the Economic Regulation Authority or the Network Operator, as applicable, to the issues raised in those submissions;

$d$ a summary of the views expressed by the Market Advisory Committee and, if the Market Advisory Committee has delegated its role to consider the Procedure Change Proposal to a Working Group under clause 2.3.17(a), a summary of the views expressed by that Working Group;

(dA) whether any advice from the Market Advisory Committee regarding the Procedure Change Proposal reflects a consensus view or a majority view, and, if the latter, any dissenting views included in or accompanying the advice and how these views have been taken into account by the Coordinator;

$e$ [Blank]

$f$ [Blank]

$g$ in the case of a Procedure Change Proposal developed by AEMO, a proposed date and time for the WEM Procedure or amendment or replacement to commence, which must, in AEMO’s opinion, allow sufficient time after the date of publication of the Procedure Change Report for Rule Participants to implement changes required by it;

$h$ in the case of a Procedure Change Proposal developed by the Economic Regulation Authority, a proposed date and time for the WEM Procedure or amendment or replacement to commence, which must, in the Economic Regulation Authority's opinion, allow sufficient time after the date of publication of the Procedure Change Report for Rule Participants to implement changes required by it;

$i$ in the case of a Procedure Change Proposal developed by a Network Operator, a proposed date and time for the WEM Procedure or amendment or replacement to commence, which must, in the Network Operator's opinion, allow sufficient time after the date of publication of the Procedure Change Report for Rule Participants to implement changes required by it; and

$j$ in the case of a Procedure Change Proposal developed by the Coordinator, a proposed date and time for the WEM Procedure or amendment or replacement to commence, which must, in the Coordinator's opinion, allow sufficient time after the date of publication of the Procedure Change Report for Rule Participants to implement changes required by it.

2.10.14. [Blank]

2.10.15. [Blank]

2.10.16. [Blank]

2.10.17. If AEMO, the Economic Regulation Authority, the Coordinator or

a Network Operator, as applicable, considers, at any time after publishing a Procedure Change Proposal, that it is necessary to extend the normal timeframes for processing the Procedure Change Proposal because:

$a$ issues of sufficient complexity or difficulty have been identified relating to the Procedure Change Proposal;

$b$ further public consultation on an issue associated with the Procedure Change Proposal is required; or

$c$ the Procedure Change Proposal cannot be dealt with adequately without an extension because of any other special circumstance,

then AEMO, the Economic Regulation Authority, the Coordinator or the Network Operator, as applicable, may modify the times and time periods under clause 2.10.7 in respect of the Procedure Change Proposal and publish details of the modified times and time periods.

2.10.18. AEMO, the Economic Regulation Authority, the Coordinator or a

Network Operator, as applicable, must publish a notice of an extension determined in accordance with clause 2.10.17 and must update any information already published in accordance with clause 2.10.7.

2.10.19. A notice of extension under clause 2.10.18 must include:

$a$ the reasons for the proposed extension;

$b$ the views of any Rule Participant consulted on the extension;

$c$ the proposed length of any extension; and

$d$ the proposed work program.

2.11. Coming into Force of Procedure Amendments

2.11.1. A Rule Participant may apply to the Electricity Review Board for

a Procedural Review of a decision by AEMO, the Economic Regulation Authority, the Coordinator or a Network Operator, as applicable, contemplated by clauses 2.10.2A(a) or 2.10.13 within the time specified in regulation 44 of the WEM Regulations, on the grounds that AEMO, the Economic Regulation Authority, the Coordinator or the Network Operator, as applicable, has not followed the process set out in section 2.10 or the WEM Procedure specified in clause 2.9.5.

2.11.2. Following an application for a Procedural Review under clause

2.11.1, if the Electricity Review Board finds that AEMO, the Economic

Regulation Authority, the Coordinator or a Network Operator has not followed the process set out in section 2.10 or the WEM Procedure specified in clause 2.9.5, the Electricity Review Board may set aside AEMO's decision, the Economic Regulation Authority’s decision, the Coordinator's decision or the Network Operator’s decision and direct AEMO, the Economic Regulation Authority, the Coordinator or the Network Operator to reconsider the relevant Procedure Change Proposal in accordance with section 2.10 and the WEM Procedure specified in clause

2.9.5. 2.11.3. Subject to clauses 2.11.2 and 2.11.4, a WEM Procedure or an

amendment of or replacement for a WEM Procedure commences at the time and date specified under clauses 2.10.13(g), 2.10.13(h), 2.10.13(i) or

2.10.13(j) (as applicable).

2.11.4. If at any time, AEMO, the Economic Regulation Authority, the

Coordinator or a Network Operator considers that Rule Participants will not have sufficient time to implement any necessary changes required by the WEM Procedure that AEMO, the Economic Regulation Authority, the Coordinator or the Network Operator, as applicable, are required to publish, or amendment or replacement of the WEM Procedure, then AEMO, the Economic Regulation Authority, the Coordinator or the Network Operator, as applicable, may extend the time and date when that WEM Procedure, amendment or replacement commences by publishing notice of the revised time and date when the amendment of or replacement for that WEM Procedure commences.

Monitoring, Enforcement and Audit

2.12. [Blank]

Explanatory Note

The compliance and enforcement regime under Chapter 3A is bespoke to Chapter 3A. As such, the existing general monitoring and compliance provisions are amended to recognise the regime under Chapter 3A.

As a result of substantial re-ordering of the clauses in section ### 2.13, the section is to be deleted and replaced.

2.13. Compliance Monitoring and Enforcement

ERA monitoring of compliance

Explanatory Note

Clause 2.13.1 is equivalent to existing clause 2.13.2 and amended to explicitly require the ERA to monitor Network Operators’ behaviour for compliance with the WEM Rules and the WEM Procedures for consistency with the existing approach for AEMO.

It is noted that the Network Operator was already covered by the existing clause.

2.13.1. The Economic Regulation Authority must monitor other Rule

Participants’ behaviour (including AEMO’s and each Network Operator’s behaviour) for compliance with the WEM Rules and WEM Procedures in accordance with the WEM Procedure referred to in clause 2.15.1.

Explanatory Note

Clause 2.13.2 is a new clause that contains ERA's obligation to investigate behaviour which results in the market not functioning effectively. It has been moved from clause 2.16.9 to a stand-alone clause to better clarify that monitoring the market for inefficient market outcomes is the ERA’s responsibility.

Clause 2.13.2 will be further reviewed to account for the decisions made in Energy Sector Governance: Proposed Changes to the Regulatory Framework which are proposed to commence on 1 July 2021.

2.13.2. The Economic Regulation Authority must investigate any market

behaviour of a Rule Participant if it considers that the behaviour has resulted in the market not functioning effectively.

2.13.3. The Economic Regulation Authority must ensure it has processes

and systems in place to allow it to monitor Rule Participants’ behaviour (including AEMO’s and each Network Operator’s behaviour) for compliance with the WEM Rules and WEM Procedures in accordance with the WEM Procedure referred to in clause 2.15.1.

Explanatory Note

Clause 2.13.4 is equivalent to existing clause 2.13.3A and is amended for drafting consistency and to clarify that the assistance provided by AEMO under the clause does not limit the further assistance the ERA may request AEMO undertake in accordance with clause 2.13.8.

2.13.4. Without limiting clause 2.13.8, AEMO must co-operate with the

Economic Regulation Authority and facilitate any processes and systems put in place by the Economic Regulation Authority under clause 2.13.3, including by providing any market related data, information and document produced or exchanged in accordance with the WEM Rules or WEM Procedures in AEMO’s possession or control that the Economic Regulation Authority has reason to believe may assist the Economic Regulation Authority to monitor Rule Participants’ behaviour (including AEMO’s and each Network Operator’s behaviour) for compliance with the WEM Rules and WEM Procedures.

Explanatory Note

Clause 2.13.5 is a new clause that requires each Network Operator to co-operate with the ERA, including to facilitate any processes and systems, and provide information to enable the ERA to perform its monitoring and compliance functions on the Network Operator.

2.13.5. Each Network Operator must co-operate with the Economic

Regulation Authority and facilitate any processes and systems put in place by the Economic Regulation Authority under clause 2.13.3, including by providing any data, information or document in the Network Operator’s possession or control that the Economic Regulation Authority would be entitled to receive under Chapter 10 and has reason to believe may assist the Economic Regulation Authority to monitor the Network Operator's behaviour for compliance with the provisions of the WEM Rules and WEM Procedures.

Explanatory Note

Clause 2.13.6 is amended to remove the requirement for the ERA to disclose the types of market related information provided to it by AEMO, as amendments to clause 2.16.2A require the information that AEMO must routinely provide to the ERA to be included in the Market Surveillance Data Catalogue, which is required to be published on the Coordinator and ERA’s websites in accordance with 2.16.2A(b). This list should contain all data required by the ERA for monitoring and compliance purposes, and will be updated regularly if new information requirements are identified.

The second part of clause 2.13.6, which requires additional publication if the ERA requests additional types of market related data, information or documents in relation to a specific Rule Participant (or group of Rule Participants) has been retained

2.13.6 Where the Economic Regulation Authority requests AEMO to provide

the Economic Regulation Authority with market related data, information or documents in accordance with clause 2.13.4 and the market related data, information or documents:

$a$ is not one of the types disclosed in the combined list referred to in clause 2.16.2A(b); and

$b$ relate to a specific Rule Participant (or group of Rule Participants),

then the Economic Regulation Authority must notify that Rule Participant (or group of Rule Participants).

Explanatory Note

Clause 2.13.7 is equivalent to existing clause 2.13.6, and clause ### 2.13.9 is amended to incorporate the existing clauses 2.13.9A and ### 2.13.9B and to outline AEMO’s obligation to monitor Rule Participants’ behaviour.

The intent is that AEMO will actively monitor Rule Participants’ behaviour for compliance against the specified WEM Rules and WEM procedures. For other rules and procedures, AEMO may become aware of a suspected breach through its usual market and system operation activities.

The amendments to 2.13.7(a) and 2.13.7(b) are consequential to changes to 2.16.2A and 2.16.2AA, requiring AEMO to monitor Rule Participants behaviour for compliance with the WEM Rules that the ERA has asked AEMO to monitor. The intent of this policy change is to allow the ERA more flexibility in the WEM Rules that it requests AEMO to monitor over time.

The amendments to 2.13.7(e) are for clarity.

AEMO monitoring of compliance

2.13.7. AEMO must, in accordance with the WEM Procedure referred to in

clause 2.15.4:

$a$ monitor Rule Participant’s behaviour for compliance with the WEM Rules specified in the list referred to in clause 2.16.2A(aA);

$b$ [Blank]

$c$ ensure it has processes and systems in place to enable it to monitor Rule Participant's behaviour in accordance with clause 2.13.7(a) and in accordance with the list of WEM Rules that AEMO must monitor for compliance provided under clause 2.16.2A(aA) including developing systems for monitoring;

$d$ support the Economic Regulation Authority's monitoring of Rule Participants’ behaviour, including having processes and systems to provide the Economic Regulation Authority with data, information, documents or analysis under clauses 2.13.4, 2.13.7, 2.13.8(a), 2.13.8(b) or 2.13.14, as applicable; and

$e$ subject to clause 2.13.12, record and report to the Economic Regulation Authority any alleged breach of the WEM Rules or WEM Procedures resulting from its monitoring under clause 2.13.7(a).

Explanatory Note

Clause 2.13.8 is a new clause that allows the ERA to request AEMO to provide further information, or undertake specific analysis to assist it to monitor Rule Participants’ behaviour for compliance with the WEM Rules and WEM Procedures.

2.13.8. Where the Economic Regulation Authority has reason to believe

AEMO may be able to assist it to monitor Rule Participants’ behaviour (including each Network Operator’s behaviour) for compliance with the WEM Rules and WEM Procedures, it may request AEMO to:

$a$ undertake analysis of any market related data, information and document produced or exchanged under clause 2.13.4; or

$b$ provide any specific market related data, information and document produced or exchanged in accordance with the WEM Rules or WEM Procedures in AEMO’s possession or control not provided by AEMO to the Economic Regulation Authority under clause 2.13.4,

to assist to monitor a Rule Participant's compliance with a specific obligation or requirement. For the avoidance of doubt, the Economic Regulation Authority is not permitted to delegate the monitoring of Rule Participant behaviour to AEMO.

2.13.9. AEMO must comply with a request by the Economic Regulation

Authority under clause 2.13.8 by the time specified in the request, which must be a reasonable time having regard to the nature of the request, or such alternative time as mutually agreed.

Explanatory Note

Clause 2.13.10 is a new clause that clarifies that AEMO is not required to monitor Network Operators’ compliance with any WEM Procedures developed by the Network Operator. In accordance with clause ### 2.13.23, a Network Operator must self-report its own breaches, or suspected breaches, of any WEM Rules or WEM Procedures developed by it.

2.13.10. Subject to clause 2.13.7(b), AEMO is not required to monitor a

Network Operator’s behaviour for compliance with the WEM Procedures developed by the Network Operator.

Explanatory Note

Clause 2.13.11 is a new clause that reflects the policy intent that any deviations by a Registered Facility within the Tolerance Range or Facility Tolerance Range applicable to the Registered Facility will not be considered to be non-compliant with the relevant Dispatch Instruction.

2.13.11. Where a Registered Facility operates within the Tolerance Range

or Facility Tolerance Range applicable to the Registered Facility during a Dispatch Interval, any deviation is not considered to be a breach of clause 7.10.1 or of a provision of section 3.21 by reason of the deviation only.

2.13.12. AEMO is not required to report to the Economic Regulation

Authority an alleged breach by a Rule Participant of:

$a$ section 3.21 if the alleged breach is limited to occurring within a single Trading Interval and the extent of the alleged breach is either within the Tolerance Range of the Facility Tolerance Range for that Facility; or

$b$ section 7.10 if the alleged breach does not exceed six consecutive Dispatch Intervals unless the alleged breach is considered by AEMO, in its reasonable opinion, to be material or likely to impact Power System Security or Power System Reliability.

Explanatory Note

Clause 2.13.13(a) ensures that even where AEMO is not required to report an alleged breach under clause 2.13.12, AEMO is not relieved of its obligation to monitor Rule Participants’ compliance with the WEM Rules and WEM Procedures specified in clause 2.13.7.

Clause 2.13.13(c) ensures Rule Participants are not relieved from their obligation to comply with WEM Rules and WEM Procedures regardless of whether AEMO is required to report an alleged breach to the ERA.

2.13.13. Subject to clause 2.13.11, nothing in clause 2.13.12 relieves:

$a$ AEMO from its obligation to monitor Rule Participants’ compliance in accordance with clause 2.13.7(a) and clause 2.13.7(b); or

$b$ Rule Participants from the obligation to fully comply with the WEM Rules and the WEM Procedures, regardless of whether AEMO is required under the WEM Rules to report any alleged breach to the Economic Regulation Authority.

Explanatory Note

Clause 2.13.14 is a new clause that sets out when AEMO is not required to notify the ERA of breaches.

Situations where AEMO considers it does not need to notify the ERA will be set out in the AEMO WEM Procedure under 2.15.4.

2.13.14. AEMO may, but is not required to, notify the Economic

Regulation Authority of any alleged breach under clause 2.13.7 or clause

2.13.15 where the Economic Regulation Authority is in possession or

control of any market related data, information or other documents or analysis that allows the Economic Regulation Authority to identify an alleged breach of the WEM Rules or WEM Procedures.

Explanatory Note

Clause 2.13.15 is equivalent to existing clause 2.13.9C and is amended to refer to AEMO’s requirement to report alleged breaches to the ERA being subject to clause 2.13.14, which does not require AEMO to report alleged breaches that the ERA should already be aware of. This is to avoid unnecessary duplication of notifications to the ERA. AEMO will be required to outline in the WEM Procedure the situations where ERA would already be aware of an alleged breach and therefore notification by AEMO will not be required. The clause also incorporates the changes in relation to Generator Performance Standards which will follow 3A processes.

Please note that even though the ERA may have notice of the alleged breach though data collection or other means, AEMO is still required to notify the ERA of all alleged breaches that relate to power system security and reliability.

2.13.15. Except where clause 2.13.14 applies, where AEMO becomes aware

of an alleged breach of the WEM Rules (other than a provision of the WEM Rules referred to in clause 2.13.7) or the WEM Procedures developed by AEMO then it must notify the Economic Regulation Authority in accordance with the WEM Procedure referred to in clause 2.15.4.

2.13.15A. Clauses 2.13.13, 2.13.14 and 2.13.15 do not apply in respect

of alleged breaches of clauses 3A.10.6, 3A.11.21(a), 3A.11.21(b), 3A.11.21(c) and 3A.12.2.

Tolerance Ranges

2.13.16. AEMO may determine the Tolerance Range to apply to all

Facilities for the purpose of AEMO’s reporting of alleged breaches of clause 7.10.1 or a provision of section 3.21 to the Economic Regulation Authority. When determining the appropriate Tolerance Range to apply for all Market Participants, AEMO must:

$a$ consult with Rule Participants prior to setting the Tolerance Range; and

$b$ publish on the WEM Website at least 14 Business Days prior to the date from which change to the Tolerance Range becomes effective, the following:

i. all submissions received from Rule Participants;

ii. the Tolerance Range; and

iii. an effective date for the commencement of the Tolerance Range.

2.13.17. AEMO may determine a Facility Tolerance Range to apply to a

specific Facility. A Facility Tolerance Range will apply for a specific Facility in place of the Tolerance Range determined under clause

2.13.16. When determining the Facility Tolerance Range to apply for the

specific Facility, AEMO must:

$a$ consult with Market Participants prior to setting the Facility Tolerance Range; and

$b$ publish on the WEM Website at least 14 Business Days prior to the date from which any changes to the Facility Tolerance Range become effective the following:

i. the reasons for AEMO’s decision;

ii. any submissions received from Market Participants;

iii. the applicable Facility Tolerance Range; and

iv. an effective date for the commencement of the applicable Facility Tolerance Range.

2.13.18. AEMO must not show bias towards a Market Participant in respect

to a Facility Tolerance Range.

2.13.19. AEMO must document in a WEM Procedure:

$a$ the process for determining, consulting on, and reviewing the Tolerance Range and any Facility Tolerance Ranges under clauses 2.13.16,

2.13.17 and 2.13.21; and

$b$ matters, events or circumstances that may trigger a review of the Tolerance Range or a Facility Tolerance Range.

Explanatory Note

Clause 2.13.20 is equivalent to existing clause 2.13.6H and is amended to allow Market Participants to request the ERA to reassess AEMO’s decision to set or not set a Facility Tolerance Range for the Market Participant’s Registered Facility.

2.13.20. A Market Participant may request in writing that the Economic

Regulation Authority assess a decision by AEMO in relation to the determination of a Facility Tolerance Range, for that Market Participant’s Facility. Following a request:

$a$ the Economic Regulation Authority must consult with AEMO and the Market Participant concerning the Facility Tolerance Range;

$b$ the Economic Regulation Authority may give a direction to AEMO to set or vary a Facility Tolerance Range where it finds that:

i. AEMO has not followed the relevant WEM Rules or any relevant WEM Procedures in relation to determining the Facility Tolerance Range; or

ii. based on the information provided by the Market Participant and AEMO, that the Facility Tolerance Range is not reasonable;

$c$ the Economic Regulation Authority must use best endeavours to complete the assessment within 10 Business Days from receipt of the request; and

$d$ the Economic Regulation Authority must direct AEMO to publish any direction provided to AEMO to set or vary a Facility Tolerance Range on the WEM Website within five Business Days of issuing that direction.

Explanatory Note

Clause 2.13.21 is a new clause that allows the ERA to request AEMO to review a Tolerance Range or Facility Tolerance Range applicable to a Registered Facility where the ERA considers the Registered Facility is able to operate within a tighter range under clause 7.10.2A. For example, if a Registered Facility is consistently operating at the limit of the applicable tolerance range, it may indicate the Registered Facility has more precise controls that may enable it to operate within a tighter tolerance range.

2.13.21. Where the Economic Regulation Authority reasonably considers

that the Tolerance Range or Facility Tolerance Range applicable to a Registered Facility is inappropriate having regard to the historical operation of the Registered Facility and the Market Participant's compliance with clause 7.10.3, the Economic Regulation Authority must request AEMO to review the Tolerance Range or Facility Tolerance Range applicable to the Registered Facility.

Explanatory Note

Clause 2.13.22 is a new clause that clarifies that AEMO must comply with the ERA’s request and provides it with the power to vary, where applicable, the relevant tolerance range following its review.

2.13.22. AEMO must comply with a request by the Economic Regulation

Authority under clause 2.13.21, and may vary the applicable Tolerance Range or any Facility Tolerance Range following its review in accordance with the WEM Procedure referred to in clause 2.13.19.

Explanatory Note

Clause 2.13.23 is a new clause that requires Rule Participants to self-report breaches, or suspected breaches, of the WEM Rules and WEM Procedures to the ERA. This requirement does not include alleged breaches of Chapter 3A, which are to be dealt with in accordance with the processes set out in that chapter.

This clause is under review to whether it will be a civil penalty provision.

Breach reporting

2.13.23 Subject to clause 2.13.26, a Rule Participant (including AEMO

and a Network Operator) who is aware that it has breached, or has reasonable cause to suspect it may have breached, the WEM Rules or a WEM Procedure, must notify the Economic Regulation Authority in writing unless the Economic Regulation Authority has notified the Rule Participant that the breach or suspected breach is already under investigation. A Rule Participant may, at any time after notifying the Economic Regulation Authority, provide updated information to the Economic Regulation Authority in relation to the breach or suspected breach.

Explanatory Note

Clause 2.13.24 is equivalent to existing clause 2.13.4 and is amended to remove the requirement for Rule Participants to provide notification of alleged breaches by other Rule Participants to AEMO, and to explicitly exclude AEMO from the clause as AEMO has mandatory reporting obligations of alleged breaches to the ERA under other clauses.

The clause refers to Network Operators for clarity, and to remove the discretionary requirement for Rule Participants to self-report alleged breaches, which is now mandatory under clause 2.13.23.

The clause also requires the Rule Participant that is reporting another Rule Participant’s suspected breach to provide evidence of the alleged breach to the ERA. The required information a Rule Participant must provide when reporting an alleged breach will be specified in the WEM Procedure referred to in clause 2.15.1.

For the avoidance of doubt, a Rule Participant is not required to report another Rule Participant's suspected breach.

2.13.24. A Rule Participant (other than AEMO, but including each Network

Operator) may inform the Economic Regulation Authority in writing if it considers that another Rule Participant has breached the WEM Rules or a WEM Procedure, and must provide reasonable information in support of that alleged breach.

Explanatory Note

Clause 2.13.25 is a new clause that provides that self-reported alleged breaches of the WEM Rules or WEM Procedures by Rule Participants under clause 2.13.23 may be made using the form to be published by the ERA, or, alternatively, if the form is not used, to require Rule Participants to provide the information described in the ERA’s WEM Procedure under clause 2.15.1.

2.13.25. A notification of an alleged breach by a Rule Participant to

the Economic Regulation Authority under clause 2.13.23 or clause 2.13.24 may be provided in the form described in clause 2.15.3, but must include the information a Rule Participant is required to provide in reporting an alleged breach as specified in the WEM Procedure referred to in clause 2.15.1.

Explanatory Note

Clause 2.13.26 is a new clause that requires Market Participants to follow the self-reporting processes set out in Chapter 3A, where the alleged breach is of a provision in that chapter.

2.13.26. Where a Market Participant considers that it has been

non-compliant, or has reasonable cause to suspect it may have been non-compliant, with a Registered Generator Performance Standard or the Generator Monitoring Plan approved by AEMO for its Transmission Connected Generating System, the Market Participant must follow the relevant process set out in Chapter 3A.

Explanatory Note

Clause 2.13.27 is equivalent to existing clause 2.13.10 and is amended to remove the requirement for the ERA to investigate all alleged breaches it becomes aware of. Instead, the ERA will be required to record all alleged breaches, assign a risk rating to each alleged breach in accordance with the process to be set out in the WEM Procedure referred to in clause 2.15.1 (Monitoring Protocol), and investigate alleged breaches that are required to be investigated as per the risk rating assigned to them. The ERA will also have the discretion to investigate any alleged breaches not required to be investigated in accordance with the risk rating to be applied to them.

Compliance investigation

2.13.27. Subject to section 3A.12, if the Economic Regulation Authority

becomes aware of an alleged breach of the WEM Rules or WEM Procedures, then:

$a$ it must record the alleged breach;

$b$ subject to clause 2.13.32, it must investigate the alleged breach in accordance with the risk rating assigned to the type of alleged breach in the WEM Procedure referred to in clause 2.15.1;

$c$ notwithstanding clause 2.13.27(b), subject to clause 2.13.32, it may investigate the alleged breach where the ERA considers this is reasonably required;

$d$ if the Economic Regulation Authority investigates an alleged breach, and the investigation is not suspended or closed under clause

2.13.33, then it must determine whether a breach of the WEM Rules or WEM

Procedures has occurred; and

$e$ it must record the results of each investigation.

2.13.28. If reasonably required, as part of an investigation into

alleged breaches of the WEM Rules or WEM Procedures, the Economic Regulation Authority may:

$a$ require information and records from Rule Participants; and

$b$ conduct an inspection of a Rule Participant’s equipment.

2.13.29. If the Economic Regulation Authority becomes aware of an

alleged breach of the WEM Rules or the WEM Procedures, then it may meet with the relevant Rule Participant on one or more occasions to discuss the alleged breach and possible actions to rectify the alleged breach.

Explanatory Note

Clause 2.13.30 is equivalent to existing clause 2.13.13 and is amended to explicitly refer to the requirement for AEMO and Network Operators to co-operate with ERA investigations.

As with 2.13.13, clause 2.13.30 remains a civil penalty provision.

2.13.30. Rule Participants (including AEMO and each Network Operator)

must cooperate with an investigation into an alleged breach of the WEM Rules or WEM Procedures, including:

$a$ providing the Economic Regulation Authority with information requested under clause 2.13.28 relating to the alleged breach in a timely manner; and

$b$ allowing reasonable access to equipment for the purpose of an inspection carried out under clause 2.13.28.

Explanatory Note

Clause 2.13.31 is equivalent to existing clause 2.13.13A and is amended to refer to AEMO and each Network Operator.

As with 2.13.13A, clause 2.13.31 remains a civil penalty provision.

2.13.31. A Rule Participant (including AEMO and each Network Operator)

must not engage in conduct under clause 2.13.30 that is false or misleading in a material particular.

2.13.32. Where a Rule Participant does not comply with clause 2.13.30,

the Economic Regulation Authority may appoint a person to investigate the matter and provide a report or such other documentation as the Economic Regulation Authority may require. If the Economic Regulation Authority does so, then:

$a$ the Rule Participant must assist the person to undertake the investigation and prepare the report or other documentation; and

$b$ the cost of the investigation and the preparation of the report or other documentation must be met by the Rule Participant unless the Economic Regulation Authority determines otherwise.

Explanatory Note

Clause 2.13.33 is a new clause that allows the ERA to suspend or close an investigation of an alleged breach where the alleged breach is self-reported and the relevant Rule Participant has rectified the alleged breach, agrees to rectify the alleged breach and, if required by the ERA, take actions that will reduce the risk of the alleged breach reoccurring.

Clause 2.13.33(b) provides a head of power for any other alleged breaches that are to be excluded from the formal investigation process to be specified in the WEM Procedure referred to in clause 2.15.1 (Monitoring Protocol).

2.13.33. The Economic Regulation Authority may suspend or close an

investigation of an alleged breach:

$a$ where the alleged breach is self-reported to the Economic Regulation Authority by a Rule Participant under clause 2.13.23, and the Economic Regulation Authority is reasonably satisfied that:

i. where the breach can be rectified, the Rule Participant:

1. has rectified the alleged breach; or

2. undertakes to rectify the alleged breach by taking actions agreed to by the Economic Regulation Authority; and

ii. where required by the Economic Regulation Authority, the Rule Participant agrees to take actions agreed to by the Economic Regulation Authority that are intended to prevent a recurrence of the alleged breach; or

$b$ in any other circumstances that may be specified in the WEM Procedure referred to in clause 2.15.1.

2.13.34. If the Economic Regulation Authority suspends or closes an

investigation in accordance with clause 2.13.33 it must notify the relevant Rule Participant.

Explanatory Note

Clause 2.13.35 is equivalent to existing clause 2.13.16 and is amended to remove the requirement for the ERA to determine whether a breach has taken place as obligation for the ERA to make a determination is set out in clause 2.13.27(d).

The amended clause requires the ERA to notify Rule Participants where it is determined a breach has not taken place.

2.13.35. Where the Economic Regulation Authority determines a breach has

not taken place, the Economic Regulation Authority must notify its decision to the Rule Participant that reported the alleged breach in accordance with clause 2.13.23.

Explanatory Note

Clause 2.13.36 is a new clause that describes the enforcement actions the ERA may take following its determination that a breach has taken place. The clause is caveated as the WEM Regulations have not been amended to provide for the ERA's ability to make the infringements, orders and penalties referred to in this clause yet.

Enforcement action

2.13.36. Where the Economic Regulation Authority determines that a

breach of the WEM Rules or WEM Procedures has occurred in accordance with clause 2.13.27(d), the Economic Regulation Authority may:

$a$ issue a warning to the Rule Participant to rectify the contravention and record the response of the Rule Participant to any warning issued under this clause. The warning must:

i. identify the clause or clauses of the WEM Rules or the WEM Procedures that the Economic Regulation Authority believes has been, or are being, contravened;

ii. describe the behaviour that comprises the contravention;

iii. where the Economic Regulation Authority considers relevant, request an explanation; and

iv. where the Economic Regulation Authority considers relevant, request that the contravention be rectified and specify a time (which the Economic Regulation Authority considers reasonable) by which the contravention should be rectified;

$b$ [Blank]

$c$ issue a civil penalty notice where the contravention relates to a Category A, Category B or Category C WEM Rule, in accordance with the WEM Regulations; and

$d$ apply to the Electricity Review Board for one or more orders by the Electricity Review Board under regulation 33 of the WEM Regulations.

Explanatory Note

Clause 2.13.37 is a new clause that allows the ERA to seek one or more of the following orders from the Electricity Review Board (regulations 33(1)(e), 33(1)(f) or 33(1)(g)):

an order suspending the Rule Participant’s registration for a specified period or suspending any other specified right of the Rule Participant under the WEM Rules for a specified period;
an order that the Rule Participant’s generating system or transmission or distribution system, or other facilities or loads, be disconnected; or
an order that the Rule Participant’s registration be cancelled.

2.13.37. [Blank]

Explanatory Note

Clause 2.13.38 is a provides that the orders the ERA is able to make under clause 2.13.36(d) are set out in the WEM Regulations. The clause contains a caveat as the WEM Regulations have not yet been amended to provide for the ERA's ability to make the orders referred to in clause ### 2.13.36.

2.13.38. [Blank]

2.13.39. The orders that the Electricity Review Board may make for a

breach of the WEM Rules and the matters the Electricity Review Board must have regard to before making an order are set out in the WEM Regulations.

2.13.40. The Economic Regulation Authority may direct a Rule Participant

to do or to refrain from doing anything that the Economic Regulation Authority thinks necessary or desirable to give effect or to assist in giving effect to any order of the Electricity Review Board.

2.13.41. A Rule Participant must comply with a direction of the Economic

Regulation Authority given under clause 2.13.40.

Explanatory Note

Clause 2.13.42 is a new clause that sets out the matters the ERA must have regard to before the ERA issues an infringement notice, a civil penalty notice or an order (that it is able to issue).

2.13.42. Before the Economic Regulation Authority issues a civil penalty

notice under clause 2.13.36(c), the Economic Regulation Authority must have regard to all relevant matters, including:

$a$ the nature and extent of the breach, including whether the breach is ongoing;

$b$ whether the Rule Participant has self-reported or has taken any mitigating actions;

$c$ the nature and extent of any loss or damage suffered as a result of the breach;

$d$ the impact and potential impact of the breach on the market and the power system;

$e$ the circumstances in which the breach took place;

$f$ whether the relevant Rule Participant has previously been found by the Economic Regulation Authority, or the Electricity Review Board in proceedings under the Electricity Industry Act, to have engaged in any similar conduct; and

$g$ whether a daily amount, as provided for under the WEM Regulations, should be imposed in the circumstances, which must include consideration of:

i. the financial impact of the total civil penalty on the Rule Participant, if a daily amount were to be imposed; and

ii. any benefit gained by the Rule Participant as a result of the breach.

Explanatory Note

Clause 2.13.43 is a new clause that requires the ERA to inform AEMO where the ERA issues a financial penalty. This information is needed to be passed on to AEMO for market settlement purposes.

Financial penalties will be distributed in accordance with Chapter 9.

2.13.43. If the Economic Regulation Authority issues a civil penalty

notice under clause 2.13.36(c), it must inform AEMO of the determination and penalty amount to assist with the settlement processes in Chapter 9.

2.13.43A. If, during the course of an investigation, the Economic

Regulation Authority has identified a person, other than a Rule Participant, that has suffered a material loss as a result of a breach, the Economic Regulation Authority may direct AEMO and/or Rule Participants to distribute a specified portion of the Civil Penalty Amount to that person, in a manner that is not consistent with section 9.21.

Explanatory Note

Clause 2.13.44 equivalent to existing clause 2.13.17 and is amended to extend to decisions by the ERA to issue an infringement notice, civil penalty notice or order (that it is able to issue) are reviewable decisions by the Electricity Review Board.

2.13.44. Where the Economic Regulation Authority issues a civil penalty

notice under clause 2.13.36(c), the Rule Participant to whom the civil penalty notice is issued may seek a review of the Economic Regulation Authority's decision to issue the civil penalty notice by the Electricity Review Board in accordance with the WEM Regulations.

Explanatory Note

Clause 2.13.45 is equivalent to existing clause 2.13.26 and is extended to require the six-monthly compliance report to include investigations completed, notifications of alleged breaches, warning issued, infringement notices issued, and orders made, by the ERA. Clause ### 2.13.46 allows the ERA to give consideration to confidential information in releasing the report. However, the ERA has historically always published the compliance report.

2.13.45. The Economic Regulation Authority must release a report at

least once every six months setting out a summary for the preceding six months of:

$a$ investigations completed by the Economic Regulation Authority;

$b$ breaches or contraventions of the WEM Rules the Economic Regulation Authority concludes have occurred;

$c$ warnings issued by the Economic Regulation Authority under clause

2.13.36(a);

$d$ proceedings that have been brought before the Electricity Review Board;

$e$ findings of the Electricity Review Board on matters referred to them;

$f$ orders made by the Electricity Review Board; and

$g$ unless they have been set aside by the Electricity Review Board, civil penalties imposed by the Economic Regulation Authority under clause 2.13.36(c).

2.13.46. In considering the circulation of the report under clause

2.13.45 and 2.13.47, the Economic Regulation Authority must have regard

to the Wholesale Market Objectives.

Explanatory Note

Clause 2.13.47 is equivalent to existing clause 2.13.28 and is amended to refer to the compliance actions taken by the ERA under clause ### 2.13.36.

Industry feedback suggested new clause 2.13.48 to replace the existing clause 2.13.57.

2.13.47. In addition to the regular publication described in clause

2.13.45, the Economic Regulation Authority may release a report on any

one or more matters where the Economic Regulation Authority has taken one or more actions under clause 2.13.36 or which have been referred to the Electricity Review Board, the findings of the Economic Regulation Authority and the Electricity Review Board, as applicable, on those matters and any sanctions imposed by the Economic Regulation Authority or the Electricity Review Board in relation to those matters.

2.13.48. The Economic Regulation Authority must, and is entitled to,

make available the reports referred to in clauses 2.13.45 or 2.13.47 to all Rule Participants and interested parties. However, the Economic Regulation Authority is not required to include details in a report to such a person if the Economic Regulation Authority considers it is inappropriate in the circumstances, including without limitation, where there may be confidentiality issues.

Explanatory Note

Clauses 2.13.49 to 2.13.51 and clause 2.13.53 set out the new regime with respect to a public register of breaches to be kept by the ERA and published on its website. The intent is that the threat of publication of information related to breaches (such as the identity of the breaching Rule Participant) will encourage Rule Participants’ compliance with the WEM Rules and WEM Procedures.

Public register

2.13.49. The Economic Regulation Authority must keep a public register

of:

$a$ breaches of the WEM Rules where the Economic Regulation Authority issued a civil penalty notice under clause 2.13.36(c), that was not set aside by the Electricity Review Board;

$b$ any other breaches or contraventions of the WEM Rules the Economic Regulation Authority concludes have occurred where the Economic Regulation Authority reasonably considers that:

i. the benefit to the Wholesale Electricity Market in disclosing the breach outweighs any detriment to the Rule Participant that committed the breach; or

ii. whether, having regard to the nature and impact of the breach, in the Economic Regulation Authority's reasonable opinion, it would expect a breach to be disclosed on the public register.

2.13.49A. The Economic Regulation Authority must keep a public register

of:

$a$ investigations commenced by the Economic Regulation Authority of alleged breaches of these WEM Rules by Rule Participants, provided that any information identifying Rule Participants is redacted or otherwise anonymised;

$b$ investigations closed by the Economic Regulation Authority, where it was determined by the Economic Regulation Authority that no breach had occurred, including any reasons for its determination; and

$c$ investigations closed or suspended by the Economic Regulation Authority under clause 2.13.33, including its reasons for closing or suspending the investigation.

2.13.50. Subject to clause 2.13.51, the public register referred to in

clause 2.13.49 must include the following information in relation to each breach recorded on the public register:

$a$ the name of the Rule Participant that committed the breach;

$b$ each provision of the WEM Rules or WEM Procedure that was breached;

$c$ all relevant information relating to the time the breach occurred and duration of the breach, including impacted Trading Days and Dispatch Intervals as relevant;

$d$ a summary of any action taken by the Rule Participant to remedy the breach, or to prevent a recurrence of the breach; and

$e$ the action taken by the Economic Regulation Authority as a result of the breach.

2.13.51. Information must not be included in the public register

referred to in clause 2.13.49 if:

$a$ the relevant Rule Participant has provided evidence to the Economic Regulation Authority that to do so would contravene a court order or law suppressing or prohibiting the publication of the information; or

$b$ the information has been given a class of confidentiality status under Chapter 10 of these WEM Rules other than Public.

Explanatory Note

Clause 2.13.52 is equivalent to existing clause 2.13.30 and is extended to information published in the public register of breaches under clause 2.13.49. Clause 2.13.52 is further amended as a consequential change to reflect the new framework in Chapter 10.

2.13.52. Claims for confidentiality of information which may be

published under clauses 2.13.45, 2.13.47 or 2.13.53 must be dealt with in accordance with sections 10.2, 10.4 and 10.5.

2.13.53. The public register kept by the Economic Regulation Authority

under clause 2.13.49 must be published on its website.

2.13.54. No Rule Participant or former Rule Participant is entitled to

make any claim against the Economic Regulation Authority for any loss or damage incurred by the Rule Participant from the publication of any information pursuant to clauses 2.13.45, 2.13.47 or 2.13.53 if the publication was done in good faith. No action or other proceeding will be maintainable by the person or Rule Participant referred to in the publication on behalf of or against the Economic Regulation Authority or any person publishing or circulating the publication on behalf of the Economic Regulation Authority and this clause operates as a release for any such publication except where the publication is not done in good faith.

2.14. Market Audit and Compliance Reports

2.14.1. AEMO must appoint one or more Market Auditors that may be used

to conduct the audit described in clause 2.14.2.

2.14.2. AEMO must ensure that the Market Auditor carries out the audits

of the matters identified under clause 2.14.3 no less than annually.

2.14.3. AEMO must ensure that the Market Auditor carries out the audits

of such matters as AEMO considers appropriate, which must include:

$a$ the compliance of AEMO’s internal procedures and business processes with the WEM Rules;

$b$ AEMO’s compliance with the WEM Rules and WEM Procedures; and

$c$ AEMO’s market software systems and processes for software management.

2.14.4. The Market Auditor must provide AEMO with a report, and AEMO

must within 30 Business Days of receiving the report either:

$a$ accept the report and any recommendations contained in it; or

$b$ prepare a separate report setting out the matters raised in the Market Auditor’s report which AEMO accepts and those which it does not accept and setting out AEMO’s reasons for that view.

2.14.5. AEMO must publish the Market Auditor’s report on the WEM Website

and any report it prepared under clause 2.14.4(b) within 30 Business Days of receiving the Market Auditor’s report.

2.14.5A. The Economic Regulation Authority must annually provide to the

Minister a report on the Economic Regulation Authority’s compliance with the WEM Rules and WEM Procedures and publish the report on its website.

2.14.5B. The Economic Regulation Authority must annually prepare a

report for the Minister on AEMO's compliance with the WEM Rules and WEM Procedures. The report must contain:

$a$ reports published in clause 2.14.5; and

$b$ the results of any investigations of AEMO's compliance with the WEM Rules and WEM Procedures carried out by the Economic Regulation Authority.

2.14.5C. The Economic Regulation Authority must provide AEMO with the

report prepared in accordance with clause 2.14.5B, and AEMO must within 20 Business Days of receiving the report either:

$a$ accept the report and any recommendations contained in it; or

$b$ prepare a separate report setting out the matters raised in the report which AEMO accepts and those which it does not accept and setting out AEMO's reasons for that view and provide it to the Economic Regulation Authority.

2.14.5D. The Economic Regulation Authority must, within 10 Business Days

following the date specified in clause 2.14.5C:

$a$ provide to the Minister the report prepared in accordance with clause 2.14.5B and any report prepared by AEMO under clause 2.14.5C(b); and

$b$ publish the reports provided to the Minister under clause

2.14.5D(a) on its website.

Explanatory Note

Clause 2.14.6 is a new clause that requires the ERA to report to the Minister annually on Network Operators’ compliance with the WEM Rules and WEM Procedures.

Clauses 2.14.7 to 2.14.10 are new clauses that set out the regime applying to the compliance reports and mirrors the regime that applies to AEMO.

2.14.6. The Economic Regulation Authority must annually prepare a report

for the Minister on each Network Operator’s self-reported compliance with the WEM Rules and WEM Procedures. The report must contain the results of any investigations of each Network Operator’s compliance with the WEM Rules and WEM Procedures carried out by the Economic Regulation Authority.

2.14.7. A Network Operator must cooperate with the Economic Regulation

Authority in respect of the Economic Regulation Authority’s preparation of the report on the Network Operator's compliance with the WEM Rules and the WEM Procedures under clause 2.14.6, including providing any information requested by the Economic Regulation Authority for the purposes of the report.

2.14.8. The Economic Regulation Authority must provide each Network

Operator with that relevant Network Operator’s report prepared by it under clause 2.14.6, and the relevant Network Operator must within 20 Business Days of receiving the report either:

$a$ accept the report and any recommendations contained in it; or

$b$ prepare a separate report setting out the matters raised in the report which the Network Operator accepts and those which it does not accept and setting out the Network Operator’s reasons for that view and provide it to the Economic Regulation Authority.

2.14.9. The Economic Regulation Authority must, within 10 Business Days

following the date specified in clause 2.14.8:

$a$ provide to the Minister the report prepared in accordance with clause 2.14.6 and any report prepared by a Network Operator under clause

2.14.8(b); and

$b$ publish the reports provided to the Minister under clause

2.14.9(a) on its website.

2.14.10. The reports to be prepared by the Economic Regulation Authority

for the Minister under clauses 2.14.5B and 2.14.6 may, at the Economic Regulation Authority’s discretion, be a single report or multiple reports. Where a report provided to AEMO or each relevant Network Operator under clauses 2.14.5C or 2.14.8 contains information in respect to the compliance of a Rule Participant other than AEMO or the relevant Network Operator, as applicable, the Economic Regulation Authority must redact the report to remove the information that does not relate to the compliance of AEMO or the relevant Network Operator, as applicable.

2.15. Monitoring and Reporting WEM Procedures

2.15.1. The Economic Regulation Authority must maintain and implement a

monitoring protocol in a WEM Procedure.

2.15.2. The purpose of the WEM Procedure specified in clause 2.15.1 is

to state how the Economic Regulation Authority will implement its obligations under these WEM Rules to monitor, investigate and enforce Rule Participants’ behaviour for compliance with the WEM Rules and WEM Procedures.

Explanatory Note

Clause 2.15.3 is deleted and replaced with an amended version that is consolidated with existing clause 2.15.4 and requires the ERA to set out the processes with respect to assigning a risk rating to alleged breaches, for suspending or closing investigations, the matters the ERA is to take into account when considering whether to issue an infringement notice, civil penalty notice, or order, the process and information for a Rule Participant to report an alleged or suspected breach, the manner for AEMO to provide information requested and the processes with respect to keeping and publishing a public breach register.

2.15.3. The WEM Procedure specified in clause 2.15.1 must specify:

$a$ the Economic Regulation Authority’s monitoring processes for assessing compliance with the WEM Rules and WEM Procedures by Rule Participants, which must include:

i. a process for notice to be given by the Economic Regulation Authority to a Rule Participant that identifies the alleged breach to be investigated by the Economic Regulation Authority; and

ii. a process through which a Rule Participant may make submissions to the Economic Regulation Authority to explain an alleged breach, prior to the Economic Regulation Authority reaching a decision on whether a Rule Participant has breached the WEM Rules or WEM Procedures;

$b$ a process for Rule Participants to report alleged breaches of the WEM Rules or WEM Procedures under clauses 2.13.15, 2.13.23 and 2.13.24 including the required information a Rule Participant must provide to the Economic Regulation Authority;

$c$ the form that may be used by Rule Participants to report a breach, or suspected breach, of the WEM Rules or WEM Procedures by the Rule Participant to the Economic Regulation Authority in accordance with clause 2.15.3(b);

$d$ the processes for the Economic Regulation Authority to assign a risk rating to each alleged breach, including the matters the Economic Regulation Authority will take into account, that will determine whether the alleged breach is required to be investigated by the Economic Regulation Authority;

$e$ the processes for investigations of alleged breaches of the WEM Rules or WEM Procedures;

$f$ the processes for suspending or closing investigations of alleged breaches of the WEM Rules or WEM Procedures under clause 2.13.33, including the matters the Economic Regulation Authority may take into account in making a decision;

$g$ the processes and timeframes applying to a suspended investigation of an alleged breach of the WEM Rules or WEM Procedures, including the timeframes under which a suspended investigation may be resumed;

$h$ guidelines for the Economic Regulation Authority when issuing warnings about alleged breaches of the WEM Rules or WEM Procedures to Rule Participants under clause 2.13.36(a);

$i$ the process for bringing proceedings before the Electricity Review Board for an order to be made by the Electricity Review Board under the WEM Regulations;

$j$ the processes to be followed by the Economic Regulation Authority, including the matters the Economic Regulation Authority may take into account and the circumstances it may have regard to, when deciding to issue a civil penalty notice under clause 2.13.36(c) and determining the Civil Penalty Amount to be imposed;

$k$ the processes for keeping a public register of breaches under clause 2.13.49 and publishing the public register in accordance with clause 2.13.53;

$l$ the processes it will require AEMO and the Network Operator to implement to assist the Economic Regulation Authority in monitoring and assessing Rule Participants’ compliance with the WEM Rules and WEM Procedures; and

$m$ any other relevant matters under sections 2.13, 2.14 and 2.15.

Explanatory Note

Existing clauses 2.15.6A, 2.15.6B, 2.156C are deleted and replaced with a new clause 2.15.4 outlining the processes and procedures AEMO will undertake in carrying out its monitoring and compliance related obligations under the WEM Rules.

2.15.4. AEMO must develop a WEM Procedure to set out:

$a$ how AEMO will carry out its obligations to monitor Rule Participants' behaviour for compliance under clause 2.13.7;

$b$ how AEMO will monitor dispatch compliance before, during or after a Dispatch Instruction event;

$c$ how AEMO will carry out its obligations to support the Economic Regulation Authority under clauses 2.13.4, 2.13.8 and 2.13.9;

$d$ the notification and reporting processes that AEMO will use to notify the Economic Regulation Authority under clause 2.13.14 and

2.13.15;

$e$ the situations where AEMO considers it does not need to notify the Economic Regulation Authority of an alleged breach under clause 2.13.14; and

$f$ any other matters relevant to AEMO’s obligations in section 2.13.

2.16. Monitoring the Effectiveness of the Market

2.16.1. AEMO is responsible for collection of, and providing access to,

data in accordance with this section 2.16. AEMO must compile the data identified in the Market Surveillance Data Catalogue and provide access to that data to the Coordinator and the Economic Regulation Authority.

2.16.2. AEMO must develop a Market Surveillance Data Catalogue, which

identifies data to be compiled concerning the market.

Explanatory Note

Changes to clause 2.16.2A allow the ERA to provide AEMO a list of WEM Rules that AEMO must monitor for compliance, and new clause 2.16.2AA allows AEMO and the ERA to negotiate on the types of information included (based on practicality and cost) and the time and date this information is provided. The intent of this policy change is to allow the ERA more flexibility in directing AEMO to monitor compliance with Rule changes where AEMO is the party best placed to do so, and for this list of WEM Rules monitoring by AEMO to change over time to remain more relevant as the market evolves. Transparency will be provided to Market Participants on the types of information being provided through the Market Surveillance Data Catalogue (MSDC) and WEM Rules being monitored by AEMO as both of these will be combined and published as one list for transparency.

Changes to 2.16.2E and 2.16.2F are consequential to this policy change.

2.16.2A. The Coordinator and the Economic Regulation Authority, as

relevant, must:

$a$ in the case of the Coordinator and the Economic Regulation Authority, provide to AEMO a combined list of data items to be included by AEMO in the Market Surveillance Data Catalogue, being information required by the Coordinator and the Economic Regulation Authority to perform their functions under these WEM Rules;

(aA) in the case of the Economic Regulation Authority, provide to AEMO a list of the WEM Rules that AEMO must monitor for compliance, and is required to report any alleged breaches of, to the Economic Regulation Authority; and

$b$ publish a combined list of the data items under clause 2.16.2A(a) and WEM Rules under 2.16.2A(aA) on their respective websites.

2.16.2AA. In developing the list of WEM Rules under clause 2.16.2A(aA)

and for any subsequent updates to the list, the Economic Regulation Authority must, in consultation with AEMO:

$a$ reach agreement in respect of the proposed date and time for AEMO to commence monitoring each of the WEM Rules on the list, which must allow a reasonable time for AEMO to implement any required monitoring changes; and

$b$ consider the practicality and cost for AEMO to monitor compliance with each of the WEM Rules on the list.

2.16.2B. AEMO must provide access to all data items in the Market

Surveillance Data Catalogue, including the items in the combined list of data items provided to AEMO under clause 2.16.2A(a), to the Coordinator and the Economic Regulation Authority.

2.16.2C. Where AEMO does not provide access to all of the data items

required to be provided to the Coordinator or the Economic Regulation Authority through the Market Surveillance Data Catalogue under clause

2.16.2B, AEMO must notify the Coordinator and the Economic Regulation

Authority:

$a$ of the reasons why the data items are not available; and

$b$ when AEMO expects that the data items will be available to access in the Market Surveillance Data Catalogue.

2.16.2D. The Coordinator or the Economic Regulation Authority may

request access to historical versions of data items in the Market Surveillance Data Catalogue from AEMO. AEMO must provide access to historical versions of those data items to both the Coordinator and the Economic Regulation Authority (regardless of who made the request), as soon as practicable.

2.16.2E. The Coordinator or the Economic Regulation Authority may, from

time to time, request AEMO to include new data items in the Market Surveillance Data Catalogue, and the Economic Regulation Authority may update the list of WEM Rules referred to in clause 2.16.2A(aA), by:

$a$ updating the combined list of data items under clause 2.16.2A(a) or, in the case of the Economic Regulation Authority, by updating the list of WEM Rules referred to in clause 2.16.2A(aA), and providing the updated combined list to AEMO and the Coordinator or Economic Regulation Authority (as relevant); and

$b$ publishing the updated combined list of data items and WEM Rules on their respective websites.

2.16.2F. On receipt of an updated combined list of data items and WEM

Rules under clause 2.16.2E(a) from the Coordinator or the Economic Regulation Authority, AEMO must update the Market Surveillance Data Catalogue as applicable, and advise both the Coordinator and the Economic Regulation Authority of the date on which access to the new data items will be available.

2.16.3. AEMO must maintain the Market Surveillance Data Catalogue, and

must update it whenever it changes in accordance with clause 2.16.2E. AEMO must:

$a$ develop, maintain and provide access to a data dictionary for the data items in the Market Surveillance Data Catalogue contained in AEMO’s WEM systems. The data dictionary must:

i. contain sufficient information to enable a reasonable person to understand and locate the data items contained in AEMO’s WEM systems;

ii. define all data items, including a cross reference to the relevant WEM Rules under which the data is produced or exchanged;

iii. where applicable, provide details of any preprocessing or analysis applied to data items; and

iv. where applicable, provide a means of identifying any revisions of data items and the timing of any such revisions;

$b$ maintain the accuracy and quality of all data items to which access is provided to the Coordinator and the Economic Regulation Authority in accordance with clause 2.16.2B; and

$c$ where it becomes aware that any of the data items is incorrect or inconsistent, correct or make consistent, as applicable, the data item as soon as practicable.

2.16.4. [Blank]

2.16.5. [Blank]

2.16.6. Where the Coordinator or the Economic Regulation Authority (as

applicable) considers that it is necessary or desirable for the performance of its functions under these WEM Rules, the WEM Regulations or the Electricity Industry Act, or the functions of AEMO under this section 2.16, the Coordinator or the Economic Regulation Authority (as applicable) may collect additional information from Rule Participants as follows:

$a$ the Coordinator or the Economic Regulation Authority (as applicable) may issue a notice to one or more Rule Participants requiring them to provide specified data to the Coordinator or the Economic Regulation Authority (as applicable) by a date (which the Coordinator or the Economic Regulation Authority (as applicable) considers to be reasonable);

$b$ Market Participants must provide any information requested by the Coordinator or the Economic Regulation Authority (as applicable) by the date specified in the notice;

(bA) subject to its obligations of confidentiality under these WEM Rules or otherwise, the Coordinator must use reasonable endeavours to provide any information requested by the Economic Regulation Authority by the date specified in the notice; and

$c$ the Coordinator or the Economic Regulation Authority (as applicable) must provide this information to AEMO where the Coordinator or the Economic Regulation Authority (as applicable) considers that it is necessary or desirable for the performance of AEMO's functions under this section 2.16.

2.16.7. Without limitation, additional information that can be collected

by the Coordinator or the Economic Regulation Authority (as applicable) includes:

$a$ cost data for Synergy, including actual fuel costs by Trading Interval;

$b$ AEMO’s operational records (whether held by AEMO or which AEMO may require from another person under these WEM Rules), including SCADA records, of the level of utilisation and fuel related data for each of Synergy’s Registered Facilities by Trading Interval; and

$c$ the terms of Bilateral Contracts entered into by Synergy.

2.16.8. Rule Participants may notify AEMO or the Economic Regulation

Authority of behaviour that they consider reduces the effectiveness of the market, including behaviour related to market power, and the Economic Regulation Authority, with the assistance of AEMO, must investigate the behaviour identified in each relevant notification.

2.16.8A. AEMO must notify the Economic Regulation Authority of any

behaviour a Rule Participant notifies it about under clause 2.16.8.

2.16.9. The Economic Regulation Authority must investigate any market

behaviour if it considers that the behaviour has resulted in the market not functioning effectively. The Economic Regulation Authority, with the assistance of AEMO, must monitor:

$a$ the criteria and processes used by AEMO for the procurement of Essential System Services through the Real-Time Market, the SESSM, and under any contracts entered into by AEMO; and

$b$ inappropriate and anomalous market behaviour, including behaviour related to market power and the exploitation of shortcomings in the WEM Rules or WEM Procedures by Rule Participants.

2.16.9A. [Blank]

2.16.9B. [Blank]

2.16.9C. [Blank]

2.16.9D. [Blank]

2.16.9E. Where the Economic Regulation Authority conducts an

investigation after receiving a notification from a Rule Participant under clause 2.16.8, or from AEMO under clause 2.16.8A, then, without limitation, the Economic Regulation Authority must examine any information provided in the notification, any information or data in its possession, including any data or information the Economic Regulation Authority requests from the relevant Rule Participant under clause

2.16.6, or from AEMO under clause 2.16.8, to assist in the

investigation.

2.16.9F. Subject to clause 2.16.9FA, the Economic Regulation Authority

must publish the results of its investigations within six months from receiving a notification from a Rule Participant under clause 2.16.8, or from AEMO under clause 2.16.8A. If that day is not a Business Day, then the next Business Day following that six month period will apply.

2.16.9FA. Subject to clause 2.16.9FB, the Economic Regulation Authority

may extend the timeframe for an investigation under clause 2.16.9E for a period of up to six months, to the nearest Business Day following that six month extension period. Where the Economic Regulation Authority makes such an extension it must publish a notice of the extension on its website. The Economic Regulation Authority may extend the timeframe for an investigation more than once.

2.16.9FB. A notice of extension under clause 2.16.9FA must not include

any information identifying the Rule Participant under investigation.

2.16.10. [Blank]

2.16.11. The Economic Regulation Authority must provide to the

Coordinator and the Minister a report on the effectiveness of the market and dealing with the matters identified in clause 2.16.9, if the Economic Regulation Authority considers that any specific events, or systemic behaviour or matters have impacted on the effectiveness of the market.

2.16.12. [Blank]

2.16.13. In carrying out its responsibilities under clause 2.16.9(b),

the Economic Regulation Authority must:

$a$ estimate the prevalence of such behaviour;

$b$ estimate the cost to end users of such behaviour;

$c$ estimate the impact of such behaviour on the effectiveness of the market in meeting the Wholesale Market Objectives;

$d$ consult with Market Participants on the impacts of such behaviour;

$e$ estimate the benefits and costs of any recommended measure to reduce such behaviour. The Economic Regulation Authority:

i. may use market simulation tools to estimate the benefits and costs;

ii. must give consideration to:

1. the probability of success of the measure in reducing the behaviour;

2. the implications on the efficiency of the market of implementing the measure; and

3. the costs of compliance as a result of implementing the measure;

$f$ where the benefits of any change are estimated to exceed the cost, make recommendations to the Coordinator and the Minister for implementing the measures in a report under clause 2.16.11; and

$g$ provide details of its findings in a report to the Coordinator and the Minister under clause 2.16.11.

2.16.13A. The Coordinator is responsible for the development of the

market and, with the assistance of the Economic Regulation Authority and AEMO, must monitor market design problems or inefficiencies.

2.16.13B. In carrying out its responsibilities under clause 2.16.13A,

the Coordinator must also monitor:

$a$ the effectiveness of the compliance monitoring and enforcement measures in the WEM Rules and Regulations, including, but not limited to:

i. the effectiveness of the Economic Regulation Authority’s surveillance activities under sections 2.16A to 2.16D; and

ii. the appropriateness of the parameters for determining a Material Portfolio and Material Constrained Portfolio under clauses 2.16C.1 and

2.16C.2;

$b$ the effectiveness of AEMO in carrying out its functions under the Regulations, the WEM Rules and WEM Procedures;

$c$ the effectiveness of Network Operators in carrying out their functions under the WEM Rules and WEM Procedures; and

$d$ the efficiency and effectiveness of the methodologies for determining the Market Price Limits and the Benchmark Reserve Capacity Price.

2.16.13C. If in the performance of its functions under these WEM Rules

the Economic Regulation Authority identifies a market design problem or inefficiency, the Economic Regulation Authority may provide to the Coordinator and the Minister a report describing the problem or inefficiency and must publish the report on its website.

2.16.13D. The Coordinator must provide to the Minister a report dealing

with the matters identified in clauses 2.16.13A and 2.16.13B at least once in every three years, with the first such report due by 1 July 2025.

2.16.13E. A report referred to in clause 2.16.13D must address, but is

not limited to, the following matters:

$a$ market trends, which may include:

i. a summary of the information and data compiled by AEMO and the Economic Regulation Authority under clause 2.16.1; and

ii. any other matter or information the Coordinator considers relevant and appropriate to include;

$b$ any recommended measures to increase the effectiveness of the market in meeting the Wholesale Market Objectives to be considered by the Minister.

2.16.13F. The Coordinator must ensure that an independent person carries

out an audit of the effectiveness of the WEM Rule change process and Procedure Change Process no less than every three years. The independent person must provide the Coordinator with a report, and the Coordinator must within 30 Business Days of receiving the report either:

$a$ accept the report and any recommendations contained in it; or

$b$ prepare a separate report setting out the matters raised in the independent person’s report which the Coordinator accepts and those which it does not accept and setting out Coordinator’s reasons for that view; and

$c$ publish the independent person’s report and any report it prepared under clause 2.16.13F(b) within 30 Business Days of receiving the independent person’s report.

2.16.14. The Coordinator or the Economic Regulation Authority (as

applicable) may use any information collected under this section 2.16, including information provided to it by AEMO, for the purpose of carrying out any of its functions under the WEM Rules. The Coordinator or the Economic Regulation Authority (as applicable) must treat information collected under this section 2.16 as confidential and must not publish any of that information other than in accordance with this section 2.16 or where required in the performance of the Coordinator's functions or the Economic Regulation Authority’s functions (as applicable) under the WEM Rules. AEMO must use information provided to it by the Coordinator or the Economic Regulation Authority under clause

2.16.6(c) only for the purpose of carrying out its functions under this

section 2.16. AEMO must treat information provided to it by the Coordinator or the Economic Regulation Authority under clause 2.16.6(c) as confidential and must not publish any of that information other than in accordance with this section 2.16.

2.16.15. Where the Economic Regulation Authority provides a report to

the Minister in accordance with clause 2.16.11, it must, after consultation with the Minister, publish a version of the report which has confidential or sensitive data aggregated or removed. An assessment of the results of the Economic Regulation Authority’s monitoring under clause 2.16.9(b) must be included in the published version of the report.

2.16.15A. Where the Coordinator provides a report to the Minister in

accordance with clause 2.16.13D, it must, after consultation with the Minister, publish a version of the report which has confidential or sensitive data aggregated or removed.

2.16.16. In respect of any reports published under this section 2.16,

only aggregate or summary statistics of confidential data may be published. The aggregation must be at a level sufficient to ensure the underlying data cannot be identified. Where aggregated data is derived from confidential data collected from three or less Market Participants, then this data should not be published.

Market Power Mitigation

2.16A. General Trading Obligations

2.16A.1. A Market Participant must offer prices in each of its STEM

Submissions and Real‑Time Market Submissions that reflect only the costs that a Market Participant without market power would include in forming profit-maximising price offers in a STEM Submission or Real-Time Market Submission.

2.16A.2. The Economic Regulation Authority must not determine that a

Market Participant has engaged in conduct prohibited by clause 2.16A.1 unless the Economic Regulation Authority has first determined that the Market Participant had market power at the time of offering the relevant prices in its STEM Submission or Real‑Time Market Submission.

2.16A.3. A Market Participant must not engage in conduct in the STEM or

Real-Time Market that:

$a$ is false, misleading or deceptive, or likely to mislead or deceive;

$b$ is fraudulent, dishonest or in bad faith; or

$c$ has the purpose, or has or is likely to have the effect, of distorting or manipulating prices in the Wholesale Electricity Market.

2.16A.4. In determining whether a Market Participant has engaged in

conduct prohibited by clause 2.16A.3, the Economic Regulation Authority may take into account:

$a$ historical STEM Submissions or Real-Time Market Submissions made by the Market Participant with effect on or after the New WEM Commencement Day, including changes to STEM Submissions and Real-Time Market Submissions in which there is, or there appears to be, a pattern of behaviour that may indicate such conduct was engaged in;

$b$ the timeliness and accuracy of notification of Forced Outages by the Market Participant;

$c$ information regarding whether the Market Participant did not comply with a Dispatch Instruction in respect of its Facility and the reasons for the non-compliance; and

$d$ any other information the Economic Regulation Authority considers relevant to its determination.

2.16A.5. A STEM Submission or a Real-Time Market Submission is not made

in bad faith under clause 2.16A.3(b) if, at the time it is submitted, the Market Participant had a genuine intention to honour the terms of that STEM Submission or Real-Time Market Submission if the material conditions and circumstances upon which the STEM Submission or Real-Time Market Submission was based remained unchanged until the relevant Trading Interval.

2.16A.6. A Market Participant may be taken to have made a STEM

Submission or a Real‑Time Market Submission in bad faith notwithstanding that the intention of the Market Participant is ascertainable only by inference from:

$a$ the conduct of the Market Participant;

$b$ the conduct of any other person; or

$c$ the relevant circumstances.

2.16A.7. If a Market Participant does not have reasonable grounds for a

price, quantity, or Ramp Rate Limit, as applicable, it has included in a Real-Time Market Submission at the time it submits that Real-Time Market Submission, then the Market Participant is, for the purposes of clause

2.16A.3(a), taken to have known that the Real-Time Market Submission was

likely to lead to another Rule Participant being misled or deceived as to the existence or non-existence of a material fact relating to the Real‑Time Market.

2.16A.8. For the purposes of clause 2.16A.7, a Market Participant must

adduce evidence that it had reasonable grounds for including a price, quantity or Ramp Rate Limit, as applicable, in the Real-Time Market Submission. To avoid doubt, the effect of this clause is to place an evidentiary burden on a Market Participant, and this clause does not have the effect that, merely because such evidence is adduced, the Market Participant who submitted the Real-Time Market Submission is taken to have had reasonable grounds for including a price, quantity or Ramp Rate Limit, as applicable.

2.16A.9. Clause 2.16A.7 does not imply that merely because a Market

Participant had reasonable grounds for making the representation or the conduct referred to in Chapter 7, in respect of the Real-Time Market, and in particular putting the price, quantity or Ramp Rate Limit, as applicable, in a Real-Time Market Submission submitted by the Market Participant, that such representation or conduct is not misleading.

2.16B. Portfolio Assessment

2.16B.1. The Economic Regulation Authority must, in accordance with the

WEM Procedure referred to in clause 2.16D.15:

$a$ by 1 April and 1 October each year, identify each Portfolio operating in the Wholesale Electricity Market by applying the following principles:

i. each Scheduled Facility, Semi-Scheduled Facility and Non‑Scheduled Facility must be allocated to one, but not more than one, Portfolio;

ii. Registered Facilities which are owned by or registered to the same Market Participant must be allocated to the same Portfolio;

iii. Registered Facilities which are owned by or registered to Market Participants that are associated entities (as that expression is defined in the Corporations Act) must be allocated to the same Portfolio;

iv. Registered Facilities which are registered to, or owned or controlled by, a Market Participant or other entity, and Registered Facilities that are registered to, or owned or controlled by, an associated entity of that Market Participant or other entity (as those expressions are defined in the Corporations Act) must be allocated to the same Portfolio; and

v. without limiting clause 2.16B.1(a)(i), a Registered Facility must not be allocated to a Portfolio containing another Registered Facility unless it is required by clauses 2.16B.1(a)(ii), 2.16B.1(a)(iii) or

2.16B.1(a)(iv); and

$b$ within 10 Business Days of identifying each Portfolio under clause

2.16B.1(a), publish a list on its website specifying the name of each

Registered Facility within each identified Portfolio.

2.16B.2. Within 10 Business Days of the end of each Rolling Test Window,

the Economic Regulation Authority must, in accordance with the WEM Procedure referred to in clause 2.16D.15, identify:

$a$ each Constraint Equation for a Network Constraint that bound during one or more Dispatch Intervals in the Rolling Test Window; and

$b$ each Constrained Portfolio for each Constraint Equation identified under clause 2.16B.2(a).

2.16B.3. The Economic Regulation Authority may, in carrying out its

obligations under clause 2.16B.2, specify a Registered Facility within more than one Constrained Portfolio.

2.16C. Market Power Test

2.16C.1. The Economic Regulation Authority must, in accordance with the

WEM Procedure referred to in clause 2.16D.15:

$a$ within 10 Business Days of identifying each Portfolio p under clause 2.16B.1(a), calculate Portfolio p’s percentage share of the total maximum sent out capacity of all Registered Facilities assigned to a Portfolio as follows:

\[{\text{MSOC}\text{\\}\text{S}\text{h}\text{are}\text{(p)}}\_{\text{\\}}\text{=\\}\frac{\sum\_{\text{f}\text{∈}\text{p}}^{}{\text{MSOC}\left( \text{f} \right)}}{\sum\_{\text{f}\text{∈}\text{Facilities}}^{}{\text{MSOC}\left( \text{f} \right)}} \times \text{100}\]

where:

i. MSOC(f) is the maximum sent out capacity specified for Registered Facility f in Appendix 1(b)(v), Appendix 1(c)(v) or Appendix 1(d)(v) as applicable;

ii. f∈p denotes all Scheduled Facilities, Semi-Scheduled Facilities and Non-Scheduled Facilities f assigned to Portfolio p; and

iii. f∈Facilities denotes all Scheduled Facilities, Semi-Scheduled Facilities and Non-Scheduled Facilities assigned to a Portfolio identified under clause 2.16B.1(a);

$b$ identify each Portfolio where the value determined under clause

2.16C.1(a) is equal to or greater than 10% ("Material Portfolio");

and

$c$ within 10 Business Days of identifying each Material Portfolio under clause 2.16C.1(b):

i. publish the results of the calculations carried out under clause

2.16C.1(a) on its website; and

ii. notify each Market Participant that has a Registered Facility assigned to a Material Portfolio identified under clause 2.16C.1(b).

2.16C.1A. Each set of Material Portfolios identified by the Economic

Regulation Authority under clause 2.16C.1(b) replaces the previous set of Material Portfolios identified by the Economic Regulation Authority under clause 2.16C.1(b) (if any) with effect from the time that the Economic Regulation Authority publishes the results of the relevant calculations under clause 2.16C.1(c)(i).

2.16C.2. The Economic Regulation Authority must, not more than 20

Business Days following the end of a Rolling Test Window, in accordance with the WEM Procedure referred to in clause 2.16D.15:

$a$ calculate for that Rolling Test Window and for any relevant Fixed Assessment Period, as a percentage, the Constrained Uplift Payment Ratio for each Constrained Portfolio identified under clause 2.16B.2(b) as follows:

\[\text{Constrained}\text{\\}\text{Uplift}\text{\\}\text{Payment}\text{\\}\text{Ratio}\text{\\}\text{=\\}\frac{\text{CP}\text{\\}\text{UP}}{\text{NC}} \times \text{100}\]

where:

i. CP_UP is the number of Dispatch Intervals in the Rolling Test Window or Fixed Assessment Period (as applicable) in which:

1. the Constraint Equation relevant to the identification of the Constrained Portfolio identified under clause 2.16B.2(a) bound; and

2. a Registered Facility in the Constrained Portfolio received an Energy Uplift Payment; and

ii. NC is the total number of Dispatch Intervals in the Rolling Test Window or Fixed Assessment Period (as applicable) in which the Constraint Equation relevant to the identification of the Constrained Portfolio bound;

$b$ identify each Constrained Portfolio with a Constrained Uplift Payment Ratio equal to or greater than 10% as calculated under clause

2.16C.2(a) ("Material Constrained Portfolio");

$c$ publish the results of the calculations carried out under clauses

2.16C.2(a) and 2.16C.2(b) on its website; and

$d$ notify each Market Participant that has a Registered Facility assigned to a Material Constrained Portfolio identified under clause

2.16.2C(b).

2.16C.2A. Each set of Material Constrained Portfolios identified by the

Economic Regulation Authority under clause 2.16C.2(b) replaces the previous set of Material Constrained Portfolios identified by the Economic Regulation Authority under clause 2.16C.2(b) (if any) with effect from the time that the Economic Regulation Authority publishes the results of the relevant calculations under 2.16C.2(c).

2.16C.3. By no later than three months from the date of receipt of a

notice from the Economic Regulation Authority under clause

2.16C.1(c)(ii) or clause 2.16C.2(d), a Market Participant must, in

accordance with the WEM Procedure referred to in clause 2.16D.15:

$a$ maintain adequate records (that are capable of independent verification) of the internal governance arrangements the Market Participant has in place to comply with its obligations under clause

2.16A.1;

$b$ maintain adequate records (that are capable of independent verification) of the methods, assumptions and cost inputs the Market Participant used to develop the prices in the Portfolio Supply Curve offered in its STEM Submissions or Standing STEM Submissions, including, for each relevant Facility; and

$c$ maintain adequate records (that are capable of independent verification) of the methods and cost inputs the Market Participant used to develop the prices offered, quantities and Ramp Rate Limits in its Real-Time Market Submissions or Standing Real-Time Market Submissions, including, for each relevant Facility.

2.16C.4. The Economic Regulation Authority must monitor the following

price offers for compliance with clause 2.16A.1:

$a$ the prices offered by a Market Participant which has one or more Registered Facilities assigned to a Material Portfolio in its STEM Portfolio Supply Curve; and

$b$ the prices offered by a Market Participant in its Real-Time Market Submissions for each of its Registered Facilities assigned to a Material Portfolio or a Material Constrained Portfolio.

2.16C.5. A Market Participant must not make an Irregular Price Offer

that results in an inefficient market outcome.

2.16C.6. The Economic Regulation Authority must investigate potential

breaches of clause 2.16A.1:

$a$ in accordance with clause 2.13.27 and the WEM Procedure referred to in clause 2.16D.15; and

$b$ having regard to the Offer Construction Guideline,

and if it considers that:

$c$ a price offered by a Market Participant in its Portfolio Supply Curve was inconsistent with the price that a Market Participant without market power would offer in a profit-maximising Portfolio Supply Curve; or

$d$ a price offered by a Market Participant in its Real-Time Market Submissions was inconsistent with the price that a Market Participant without market power would offer in a profit-maximising Real-Time Market,

the Economic Regulation Authority must determine that the price was an Irregular Price Offer.

2.16C.7. The Economic Regulation Authority must investigate and

determine, in accordance with clause 2.13.27 and the WEM Procedure referred to in clause 2.16D.15, whether an Irregular Price Offer determined under clause 2.16C.6 has resulted in an inefficient market outcome.

2.16C.8. Without limiting clauses 2.16C.6 and 2.16C.7, the Economic

Regulation Authority must make a determination under clause 2.16C.6 and, if necessary, under clause 2.16C.7, no later than six months from the day the Economic Regulation Authority commenced its investigation under clause 2.16C.6.

2.16C.9. In conducting an investigation under clause 2.16C.7, the

Economic Regulation Authority:

$a$ must consider any changes to:

i. a STEM Clearing Price or Reference Trading Price;

ii. Energy Uplift Payments; or

iii. the quantities of energy scheduled in respect of Market Participants in the STEM Auction, or the dispatch of Facilities in the Real-Time Market,

that are likely to have occurred as a result of the Irregular Price Offer; and

$b$ may consider any other matters it considers relevant.

2.16C.10. If, following an investigation, the Economic Regulation

Authority has determined pursuant to clause 2.16C.6 and clause 2.16C.7 that a Market Participant has breached the obligation specified in clause 2.16C.5, the Economic Regulation Authority must:

$a$ at least two Business Days prior to publication of its determination under clause 2.16C.10(b), notify the relevant Market Participant of the determination; and

$b$ publish on its website details of its determination, including the name of the relevant Market Participant and the Irregular Price Offer to which the determination relates.

2.16C.11. For the avoidance of doubt, the Economic Regulation Authority

may investigate any alleged breach of clause 2.16A.1, even if the Economic Regulation Authority was not monitoring the Market Participant’s price offers under clause 2.16C.4 at the time the alleged breach occurred.

2.16D. Guidance, WEM Procedures and Consultation Framework

2.16D.1. The Economic Regulation Authority must develop, maintain and

publish on its website, the following guidelines:

$a$ an Offer Construction Guideline that:

i. provides guidance to Market Participants in relation to the price offer obligations under clause 2.16A.1;

ii. details how the Economic Regulation Authority will assess prices offered under clause 2.16C.6;

iii. permits the recovery of all efficient variable costs of producing the relevant electricity, including all costs incurred under long-term take-or-pay fuel contracts;

iv. outlines how the Economic Regulation Authority will consider price offers for different Facility types, including Electric Storage Resources;

v. provides examples illustrating the types of conduct that the Economic Regulation Authority considers would be likely to contravene the price offer obligations under clause 2.16A.1; and

vi. provides guidance to Market Participants on how the Economic Regulation Authority will assess inefficient market outcomes under clause 2.16C.7; and

$b$ a Trading Conduct Guideline that must provide clarity and guidance to Market Participants regarding the prohibited conduct described in clause 2.16A.3. The Trading Conduct Guideline must provide examples illustrating the types of conduct that the Economic Regulation Authority considers would be likely to contravene clause 2.16A.3.

2.16D.2. Subject to the provisions of this section 2.16D, the Economic

Regulation Authority may amend the guidelines to be developed and maintained under clause 2.16D.1 at any time.

2.16D.3. In developing and maintaining the guidelines under clause

2.16D.1, or any amendments to them under clause 2.16D.2, the Economic

Regulation Authority must publish on its website:

$a$ a draft report containing a copy of the proposed guidelines, or the proposed amendments to the guidelines, as applicable, and a request for submissions;

$b$ the closing date for submissions, which must be no earlier than four weeks after the date of publication of the draft report; and

$c$ a copy of all submissions received provided that if a submission contains information that the Economic Regulation Authority reasonably considers to be confidential, the Economic Regulation Authority may redact that information to the extent it considers appropriate.

2.16D.4. Following the closing date for submissions on the draft report

published under clause 2.16D.3, the Economic Regulation Authority must publish a final report on its website containing:

$a$ the final guidelines, or the amendments to the guidelines, as applicable;

$b$ where applicable, the reasons for the amendment to the guidelines;

$c$ a summary of any submissions received by the Economic Regulation Authority on the draft report published under clause 2.16D.3 that were received within the time specified, and any late submissions the Economic Regulation Authority has decided, in its discretion, to take into account;

$d$ the Economic Regulation Authority’s responses to the issues raised in those submissions;

$e$ any other matters the Economic Regulation Authority considers relevant to the guidelines, or the amendment to the guidelines, as applicable; and

$f$ the date that the final guidelines, or the amendment to the guidelines, will commence.

2.16D.5. A Market Participant that has received a notice from the

Economic Regulation Authority under clauses 2.16C.1(c)(ii) or 2.16C.2(d) may, in accordance with clause 2.16D.6, request guidance from the Economic Regulation Authority in relation to the Offer Construction Guideline, including, for the purposes of the Economic Regulation Authority's assessment of prices offered under clause 2.16C.6, how the matters in the Offer Construction Guideline may apply to the Market Participant's Registered Facility.

2.16D.6. A request made by a Market Participant under clause 2.16D.5

must:

$a$ be in writing;

$b$ identify the matters in the Offer Construction Guideline on which the Market Participant is seeking guidance;

$c$ specify the Market Participant's reasons for seeking guidance;

$d$ where relevant, provide supporting materials that illustrate or evidence the matters raised in the request; and

$e$ include any other information specified in the WEM Procedure referred to in clause 2.16D.15.

2.16D.7. Within 20 Business Days of receipt of a request under clause

2.16D.5, the Economic Regulation Authority must:

$a$ consider the request; and

$b$ subject to clause 2.16D.10, use reasonable endeavours to provide guidance on the matters specified in the request.

2.16D.8. The Economic Regulation Authority may request further

information from a Market Participant that has made a request under clause 2.16D.5. If, within 15 Business Days of the date of the Economic Regulation Authority's request for further information, the Market Participant does not provide the information requested, or the Economic Regulation Authority reasonably considers the information provided is not satisfactory, the Market Participant will be deemed to have withdrawn the relevant request.

2.16D.9. If the Economic Regulation Authority issues a request for

further information under clause 2.16D.8, the timeframe specified in clause 2.16D.7 for the Economic Regulation Authority to provide the relevant guidance will recommence from the date the Market Participant has provided all of the further information requested by the Economic Regulation Authority.

2.16D.10. The Economic Regulation Authority is not required to provide

guidance to a Market Participant in relation to a request under clause

2.16D.5 where it considers that:

$a$ the Offer Construction Guideline already provides sufficient guidance on the matters raised in the request;

$b$ the request does not meet the requirements in clause 2.16D.6;

$c$ the cost the Economic Regulation Authority would incur to provide the guidance sought in the request is unreasonable or excessive; or

$d$ the request is substantially similar to a previous request considered by the Economic Regulation Authority from the same Market Participant.

2.16D.11. Subject to clause 2.16D.12, any guidance provided by the

Economic Regulation Authority pursuant to clause 2.16D.7 is not binding on the Economic Regulation Authority, the Market Participant who made the request, or any other person, and the Economic Regulation Authority may, at any time, reconsider, revise or withdraw any guidance provided to a Market Participant.

2.16D.12. In conducting an investigation under clauses 2.16C.6 or

2.16C.7, the Economic Regulation Authority must take into account any

guidance it may have provided to the Market Participant under clause

2.16D.7 that is relevant to the matters being investigated.

2.16D.13. Where the Economic Regulation Authority provides guidance to a

Market Participant under clause 2.16D.7, the Economic Regulation Authority must consider whether the Offer Construction Guideline should be amended to reflect that guidance. Where the Economic Regulation Authority considers the Offer Construction Guideline should be amended, the Economic Regulation Authority must initiate an amendment to the Offer Construction Guideline in accordance with clause 2.16D.3 as soon as practicable.

2.16D.14. The Economic Regulation Authority must publish on its website

a copy of any guidance provided to a Market Participant under clause

2.16D.7 provided that the Economic Regulation Authority must first

redact all information that is confidential or commercially sensitive in the guidance, including the name of the Market Participant to whom the guidance was provided. Where the Economic Regulation Authority considers the guidance cannot be redacted to ensure the identity of the Market Participant to whom the guidance was provided remains confidential, the Economic Regulation Authority is not required to publish the guidance.

2.16D.15. The Economic Regulation Authority must document in a WEM

Procedure:

$a$ the methodologies and processes to be followed by the Economic Regulation Authority in relation to:

i. identifying each Portfolio and Constrained Portfolio operating in the Wholesale Electricity Market pursuant to clauses 2.16B.1(a) and

2.16B.2, respectively;

ii. carrying out the calculations under clauses 2.16C.1(a) and

2.16C.2(a) in relation to identifying each Material Portfolio and

Material Constrained Portfolio, respectively; and

iii. monitoring prices offered by a Market Participant under clause

2.16C.4, and making determinations under clauses 2.16C.6 and 2.16C.7 in

relation to those price offers;

$b$ the types and format of the information, and level of detail required to be maintained or recorded by a Market Participant to enable the Economic Regulation Authority to carry out its monitoring of price offers under clause 2.16C.4; and

$c$ details of the processes the Economic Regulation Authority and Market Participants must follow in respect to a request for guidance under clause 2.16D.5, which may include a template that a Market Participant must use for making a request.

2.16E. Irregular Price Offers – Limited Application of Section 2.13

2.16E.1. Subject to clauses 2.16C.6 and 2.16C.7, the Economic Regulation

Authority must not, in respect of a price offer described in clause

2.16C.4, investigate a Market Participant under clause 2.13.27, or take

enforcement action under clause 2.13.36 for a breach of clause 2.16A.1, where the Economic Regulation Authority has determined under clause

2.16C.7 that an Irregular Price Offer by the Market Participant has not

resulted in an inefficient market outcome.

2.16E.2. Where the Economic Regulation Authority has determined that an

Irregular Price Offer by a Market Participant has not resulted in an inefficient market outcome, the Economic Regulation Authority must notify the Market Participant of the results of the investigation and the reasons for its decision.

Reviewable Decisions and Disputes

2.17. Reviewable Decisions

2.17.1. A Rule Participant whose interests are adversely affected by a

Reviewable Decision or a decision subject to Procedural Review, may apply to the Electricity Review Board for a review of that decision in accordance with the WEM Regulations.

2.17.2. Decisions by AEMO, the Economic Regulation Authority, the

Coordinator or a Network Operator, as applicable, made under the following clauses may be subject to a Procedural Review:

$a$ clauses 2.5.6(c), 2.5.9, 2.6.3A(a) and 2.7.7A(a); and

$b$ clauses 2.10.2A(a) and 2.10.13.

2.17.3. In accordance with the WEM Regulations, a Rule Participant may

apply to the Electricity Review Board for a review of Reviewable Decisions or a decision made under clauses subject to Procedural Review.

Explanatory Note

In order not to unnecessarily delay processes or introduce a decision maker other than AEMO and the relevant Network Operator in respect of generator performance standards, certain parts of Chapter 3A will not be subject to the general ability to raise a dispute under the WEM Rules. These are:

a decision to exempt generating works connected to a transmission system;
a decision to refuse to renegotiate a Registered Generator Performance Standard;
a decision in respect of a Rectification Plan; and
a decision to declare a Potential Relevant Generation Modification to be a Relevant Generator Modification.

Clause 2.18.1 is amended to remove the dispute resolution mechanism in section 1.42 for Existing Transmission Connected Market Generators from the dispute process so that the dispute resolution mechanism in section 1.42 is the only mechanism to resolve such disputes (other than any rights a party has under law). Decisions by AEMO as to extensions to submit a Generator Monitoring Plan under clause 1.41.4 will also be exempt from the disputes regime.

Clause 2.18.1 is further amended to exclude disputes about Market Information, which are dealt with under section 10.5.

2.18. Disputes

2.18.1. The dispute process set out in sections 2.18, 2.19 and 2.20

applies to any dispute concerning:

$a$ the application or interpretation of these WEM Rules;

$b$ the failure of Rule Participants to reach agreement on a matter where these WEM Rules require agreement or require the Rule Participants to negotiate in good faith with a view to reaching agreement; or

$c$ payment of moneys under, or the performance of any obligation under, these WEM Rules,

but does not apply to:

$d$ any matter that is identified as a Reviewable Decision or is subject to Procedural Review;

$e$ a matter that arises under a contract between Rule Participants, unless AEMO is a party to the contract and the contract provides that the dispute process applies;

$f$ a dispute that arises in relation to:

i. a decision to exempt or not to exempt a Transmission Connected Generating System under section 3A.3;

ii. a decision by the Network Operator to refuse to renegotiate a Registered Generator Performance Standard under clause 3A.8.8;

iii. a decision in respect of a Rectification Plan under section 3A.11; or

iv. a decision to declare a Potential Relevant Generation Modification to be a Relevant Generation Modification under section 3A.13;

$g$ a dispute in respect of a decision by a Network Operator to grant or refuse an extension of time for a Market Participant responsible for an Existing Transmission Connected Generating System to have a Registered Generator Performance Standard for each Technical Requirement for the Existing Transmission Connected Generating System;

$h$ a dispute in respect of a decision by AEMO to grant or refuse an extension of time for a Market Participant responsible for an Existing Transmission Connected Generating System to:

i. submit a proposed Generator Monitoring Plan; or

ii. have a Generator Monitoring Plan approved by AEMO;

$i$ a dispute which is being dealt with under the dispute resolution mechanism for Existing Transmission Connected Generating Systems contained in section 1.42; or

$j$ disputes about the classification, release or disclosure of Market Information arising under Chapter 10.

2.18.2. For the purposes of these WEM Rules, the “Dispute Participants”

are the Rule Participants raising the dispute, AEMO and all Rule Participants named in a Notice of Dispute or joined to the dispute in accordance with clause 2.19.5.

2.18.3. At any time during the course of resolving a dispute a Dispute

Participant may refer a question of law to a court of competent jurisdiction.

2.18.4. Dispute Participants must not agree to actions to be taken in

resolution of a dispute that are inconsistent with the WEM Rules.

2.19. First Stage Dispute Resolution

2.19.1. Where a Rule Participant wishes to raise a dispute with another

Rule Participant concerning a matter to which this dispute process applies, it may issue a Notice of Dispute to each other Rule Participant that is a party to the dispute within 12 months of the matter giving rise to the dispute.

2.19.2. The Rule Participant raising the dispute may name any Rule

Participant in a Notice of Dispute that the Rule Participant raising the dispute considers may be affected by the dispute or resolution of the dispute.

2.19.3. The Notice of Dispute must be in writing and must contain:

$a$ the date on which the Notice of Dispute was issued;

$b$ the identity of the Rule Participant issuing the Notice of Dispute;

$c$ the identities of the other Rule Participants party to the dispute;

$d$ the details of the dispute, including a description of the disputed actions, and the time and date when the disputed actions occurred; and

$e$ the contact person for the Rule Participant issuing the dispute, and their mailing address.

2.19.4. A Rule Participant receiving a Notice of Dispute under clause

2.19.1 must supply a confirmation of the receipt of the Notice of

Dispute within two Business Days of receipt of the Notice of Dispute, including details of a contact person and their mailing address.

2.19.5. Where AEMO receives a Notice of Dispute and it considers that a

Rule Participant not named in the Notice of Dispute may be affected by the dispute or resolution of the dispute, it may, within 10 Business Days of receiving the Notice of Dispute, join the Rule Participant to the dispute by notifying the Rule Participant of the dispute and providing a copy of the Notice of Dispute.

2.19.6. The Chief Executive Officers, or their designated

representatives with authority to resolve the dispute, from all Dispute Participants must make reasonable endeavours to meet on one or more occasions, and to attempt in good faith and using their best endeavours at all times to resolve the dispute.

2.19.7. A dispute must be escalated to the second stage dispute

resolution process in section 2.20 if the Dispute Participants have not resolved the dispute (as evidenced by the terms of the settlement being reduced to writing and signed by each Chief Executive Officer) within:

$a$ a time period agreed by all Dispute Participants; or

$b$ if no time period is agreed by all Dispute Participants, within 60 days of the date on which the Notice of Dispute was issued.

2.20. Second Stage Dispute Resolution

2.20.1. Where any Dispute is not resolved as provided for in section

2.19 then the Dispute Participants must give consideration to resolving

the dispute through mediation, conciliation, arbitration or alternative dispute resolution methods, using an independent body agreed between the Dispute Participants.

2.20.2. If any Dispute is not resolved as provided for in section 2.19

and a Dispute Participant has given consideration to resolving the dispute in accordance with clause 2.20.1, then that Dispute Participant may commence proceedings before a court of competent jurisdiction in relation to the dispute.

Market Consultation

2.21. Market Consultation

2.21.1. The Economic Regulation Authority must consult on such matters

with such persons and over such timeframes as are specified in these WEM Rules.

2.21.2. The Economic Regulation Authority must:

$a$ conduct its consultation processes in good faith; and

$b$ ensure that these consultation processes allow a reasonable opportunity for relevant stakeholders to present their views.

2.21.3. [Blank]

2.21.4. [Blank]

2.21.5. AEMO must consult on such matters with such persons and over

such timeframes as are specified in these WEM Rules.

2.21.6. AEMO must—

$a$ conduct its consultation processes in good faith; and

$b$ ensure that these consultation processes allow a reasonable opportunity for relevant stakeholders to present their views.

2.21.7. [Blank]

2.21.8. [Blank]

2.21.9. Each Network Operator must consult on such matters with such

persons and over such timeframes as are specified in these WEM Rules.

2.21.10. Each Network Operator must:

$a$ conduct its consultation processes in good faith; and

$b$ ensure that these consultation processes allow a reasonable opportunity for relevant stakeholders to present their views.

2.21.11. The Coordinator must consult on such matters with such persons

and over such timeframes as are specified in these WEM Rules.

2.21.12. The Coordinator must:

$a$ conduct its consultation processes in good faith; and

$b$ ensure that these consultation processes allow a reasonable opportunity for relevant stakeholders to present their views.

Budgets and Fees

2.22. [Blank]

Explanatory Note

Section 2.22A. is amended to address the shortcomings with the current rules relating to the determination of AEMO’s budget. This includes replacing transitional rules with the specific function to facilitate and prepare for Market Evolution.

The current rules are restrictive for the Regulator (limited discretion in determining if individual projects are prudent, limited review and information gathering time/powers). This has resulted in poorly evidenced submissions with the onus on the ERA to determine efficient funding levels.

The amendments will seek to achieve the following:

enable regulatory scrutiny and enhance transparency by:

identifying projects/functions and related costs up front; and
increasing transparency over funding allocation and actual expenditures;

deal with uncertainty by allowing partial approvals and limited in-period reopening; and
promote greater regulatory certainty through guidelines to be issued and published by the ERA including:

procedure guidelines; and
submission and reporting guidelines.

2.22A. Determination of AEMO's budget

2.22A.1. Subject to the requirements of this section 2.22A, AEMO may

recover its costs for performing its functions under the WEM Regulations and the WEM Rules.

2.22A.2. For the Review Period, AEMO must seek the determination of its

Allowable Revenue and Forecast Capital Expenditure from the Economic Regulation Authority for its functions, in accordance with the proposal guideline referred to in clause 2.22A.9.

2.22A.2A. A submission by AEMO under clause 2.22A.2 must be made and

processed in accordance with the following timelines:

$a$ by 31 October of the year prior to the start of the Review Period, AEMO must submit a proposal for its Allowable Revenue and Forecast Capital Expenditure over the Review Period to the Economic Regulation Authority;

$b$ by 31 March of the year in which the Review Period commences, the Economic Regulation Authority must publish on its website a draft determination of AEMO’s Allowable Revenue and Forecast Capital Expenditure for the Review Period for public consultation;

$c$ by 30 April of the year in which the Review Period commences, the Economic Regulation Authority must prepare and publish on its website its final determination of AEMO’s Allowable Revenue and Forecast Capital Expenditure for the Review Period together with any submission received in response to the draft determination published in accordance with clause 2.22A.2A(b); and

$d$ where the Economic Regulation Authority does not make a determination by the date in clause 2.22A.2A(c) or clause 2.22A.2B(c), the Market Participant Market Fee rate determined in accordance with section 2.24 for the current Financial Year will continue to apply until the Economic Regulation Authority makes a determination.

2.22A.2B. Notwithstanding clause 2.22A.2A, for the Review Period from 1

July 2022 to 1 July 2025 the following applies:

$a$ the Economic Regulation Authority must publish a proposal guideline by 31 October 2021;

$b$ AEMO must submit a proposal for its Allowable Revenue and Forecast Capital Expenditure to the Economic Regulation Authority for the Review Period by 31 December 2021;

$c$ the Economic Regulation Authority must publish on its website a draft determination of AEMO’s Allowable Revenue and Forecast Capital Expenditure for the Review Period for public consultation by 31 March 2022; and

$d$ the Economic Regulation Authority must prepare and publish on its website its final determination of AEMO’s Allowable Revenue and Forecast Capital Expenditure for the Review Period by 31 May 2022.

2.22A.3. AEMO’s proposal under clauses 2.22A.2A(a) or 2.22A.2B(b) or

AEMO’s application for reassessment under clauses 2.22A.12 or 2.22A.13 must, to the extent practicable, identify proposed costs that are associated with a specific project or where that is not practicable, one or more specific functions.

2.22A.4. If AEMO appoints a Delegate, then its proposal for, or

application for reassessment of, its Allowable Revenue and Forecast Capital Expenditure must separately itemise the amount payable to the Delegate.

2.22A.5. The Economic Regulation Authority must take the following into

account when determining AEMO's Allowable Revenue and Forecast Capital Expenditure or an application for reassessment to the Allowable Revenue or Forecast Capital Expenditure:

$a$ the Allowable Revenue must be sufficient to cover the forward looking costs of performing AEMO’s functions in accordance with the following principles:

i. recurring expenditure requirements and payments are recovered in the year of the expenditure; and

ii. capital expenditure is to be recovered through the depreciation and amortisation of the assets acquired by the capital expenditures in a manner that is consistent with generally accepted accounting principles;

$b$ the Allowable Revenue and Forecast Capital Expenditure must include only costs which would be incurred by a prudent provider of the services provided by AEMO in performing its functions, acting efficiently, to achieve the lowest practicably sustainable cost of performing AEMO’s functions, while effectively promoting the Wholesale Market Objectives;

$c$ where possible, the Economic Regulation Authority should benchmark the Allowable Revenue and Forecast Capital Expenditure against the costs of providing similar functions and/or projects in other jurisdictions;

$d$ where costs incurred by AEMO relate to both the performance of functions in connection with the WEM Rules, and the performance of AEMO's other functions, the costs must be allocated on a fair and reasonable basis between:

i. costs recoverable as part of AEMO's Allowable Revenue and Forecast Capital Expenditure; and

ii. other costs not to be recovered under the WEM Rules; and

$e$ any other matters the Economic Regulation Authority considers relevant to its determination.

2.22A.6. The Economic Regulation Authority may do any or all of the

following in respect to AEMO’s proposal under clauses 2.22A.2A(a) or

2.22A.2B(b):

$a$ approve the costs of any project;

$b$ approve the costs of AEMO performing its functions;

$c$ if the Economic Regulation Authority considers that some costs do not meet the requirements of clause 2.22A.5, reject the costs fully or partially, or substitute those costs with costs the Economic Regulation Authority considers meets the requirements of clause 2.22A.5; and

$d$ recommend to AEMO that some of the costs be considered in a subsequent Review Period or in accordance with clause 2.22A.14.

2.22A.7. By 30 June each year, AEMO must publish on the WEM Website a

budget for the costs AEMO will incur in performing its functions for the coming Financial Year (including, without limitation, the amount to be paid to a Delegate). AEMO must ensure that its budget is:

$a$ consistent with the Allowable Revenue and Forecast Capital Expenditure determined by the Economic Regulation Authority for the relevant Review Period and any reassessment; and

$b$ reported in accordance with the Regulatory Reporting Guidelines issued by the Economic Regulation Authority from time to time in accordance with clause 2.22A.9.

2.22A.8. By 31 October each year, AEMO must publish on the WEM Website a

financial report showing AEMO's actual financial performance against its budget for the previous Financial Year (including, without limitation, the actual amount paid to a Delegate compared to the budgeted amount). The report must be in accordance with the Regulatory Reporting Guidelines issued by the Economic Regulation Authority from time to time in accordance with clause 2.22A.9.

2.22A.9. The Economic Regulation Authority must issue guidelines,

following public consultation, in relation to this section 2.22A, including:

$a$ proposal guidelines, which must consider how future projects that carry a risk of not proceeding or for which the associated costs are not able to be quantified may be dealt with, and provide clarity and guidance to AEMO and Market Participants regarding the level of detail about projects, functions and costs expected in AEMO’s proposal; and

$b$ regulatory reporting guidelines, which:

i. must contain annual reporting obligations and provide clarity and guidance to AEMO and Market Participants about the scope of reporting and how AEMO should annually report to the Economic Regulation Authority and Market Participants; and

ii. are aimed at providing transparency and accountability in relation to AEMO’s functions and Allowable Revenue and Forecast Capital Expenditure.

2.22A.10. The Economic Regulation Authority may amend guidelines issued

under clause 2.22A.9 at any time, following public consultation which allows a reasonable opportunity for relevant stakeholders to present their views.

2.22A.11. Where the revenue earned for the functions performed by AEMO

via Market Fees in the previous Financial Year, is greater than or less than AEMO's expenditure for that Financial Year, AEMO’s current year’s budget must take into account any difference between AEMO’s Market Fees revenue and AEMO’s expenditure in the previous Financial Year by:

$a$ decreasing the budgeted revenue by the amount of any revenue surplus; or

$b$ increasing the budgeted revenue by the amount of any revenue shortfall.

2.22A.12. Where, taking into account any adjustment under clause

2.22A.11, AEMO’s budget is likely to result in revenue recovery, over

the relevant Review Period, being at least the lower of 10% of the Allowable Revenue or $10 million, greater than the Allowable Revenue determined by the Economic Regulation Authority, AEMO must apply to the Economic Regulation Authority to reassess the Allowable Revenue.

2.22A.13. AEMO must apply to the Economic Regulation Authority to

determine the adjusted Forecast Capital Expenditure for the current Review Period if the capital expenditure, over the relevant Review Period, is likely to be at least the lower of 10% of the Forecast Capital Expenditure or $10 million, greater than the Forecast Capital Expenditure determined by the Economic Regulation Authority.

2.22A.13A.If AEMO underspends on the Allowable Revenue and/or Forecast

Capital Expenditure determined by the Economic Regulation Authority in a Review Period, then, for the next Review Period, the $10 million threshold in clause 2.22A.13 is to be increased to the amount equal to 30 percent of the underspend plus $10 million.

2.22A.14. AEMO may apply to the Economic Regulation Authority, at any

time during a Review Period, for additional costs to be considered by the Economic Regulation Authority as part of the Allowable Revenue and Forecast Capital Expenditure for that Review Period:

$a$ for the Allowable Revenue:

i. costs previously rejected by the Economic Regulation Authority pursuant to clause 2.22A.6;

ii. new costs for new projects or new functions conferred on AEMO since AEMO’s proposal for its Allowable Revenue for the current Review Period was submitted; and

iii. costs which were not able to be estimated with reasonable confidence at the time the Allowable Revenue for the current Review Period was submitted; and

$b$ for the Forecast Capital Expenditure:

i. costs previously rejected by the Economic Regulation Authority pursuant to clause 2.22A.5;

ii. new costs for new projects or new functions conferred on AEMO since AEMO’s proposal for its Forecast Capital Expenditure for the current Review Period was submitted; and

iii. costs which were not able to be estimated with reasonable confidence at the time of the Forecast Capital Expenditure for the current Review Period was submitted.

2.22A.15. The Economic Regulation Authority may request information from

AEMO in relation to the performance of its functions under this section

2.22A. AEMO must provide the information to the Economic Regulation

Authority by the time specified in a request, which must be reasonable.

2.22A.16. AEMO must make an application under clauses 2.22A.12 or

2.22A.14(a) by 31 March for the Economic Regulation Authority to make a

determination before the commencement of the Financial Year to which it relates.

2.22A.17. The Economic Regulation Authority may amend a determination

under clauses 2.22A.2A(c) or 2.22A.2B(d) if AEMO makes a reassessment application under clauses 2.22A.12, 2.22A.13 or 2.22A.14 and the Economic Regulation Authority:

$a$ must take the matters referred to in clause 2.22A.5 into account in determining any reassessment;

$b$ may consider as part of its amended determination any earlier determined costs where the Economic Regulation Authority reasonably considers it necessary to review those earlier determined costs as part of the reassessment;

$c$ is not required to reassess earlier determined costs in making its redetermination of the Allowable Revenue or Forecast Capital Expenditure; and

$d$ must complete such public consultation as the Economic Regulation Authority considers appropriate in the circumstances.

2.23. [Blank]

2.24. Determination of Market Fees

2.24.1. The Market Fees charged by AEMO are:

$a$ Market Participant Market Fees, Market Participant Coordinator Fees and Market Participant Regulator Fees the rates of which are determined in accordance with this section 2.24;

$b$ Application Fees in accordance with section 2.33 and clauses

2.31.2, 4.9.3(c), 4.26.2CC and 4.28.9B; and

$c$ a Reassessment Fee in accordance with clause 4.11.11.

2.24.2. Before 30 June each year, AEMO must determine and publish the

level of:

$a$ the Market Participant Market Fee rate;

$b$ the Market Participant Coordinator Fee rate;

$c$ the Market Participant Regulator Fee rate;

$d$ each Application Fee; and

$e$ the Reassessment Fee,

to apply over the year starting 1 July in accordance with:

$f$ AEMO’s budget published under clause 2.22A.7;

$g$ information provided by the Economic Regulation Authority to AEMO under clause 2.24.6 (if any); and

$h$ information provided by the Coordinator to AEMO under clause

2.24.6A (if any).

Where the Economic Regulation Authority has not provided AEMO with the information under, and by the time specified in clause 2.24.6, AEMO must determine and publish the expected level of Market Participant Regulator Fee rate based on the most recent information provided to AEMO by the Economic Regulation Authority under clause 2.24.6. Where the Coordinator has not provided AEMO with the information under, and by the time specified in, clause 2.24.6A, AEMO must determine and publish the expected level of Market Participant Coordinator Fee rate based on the most recent information provided to AEMO by the Coordinator under clause

2.24.6A.

2.24.2A. AEMO must determine and publish a level of revised Market

Participant Coordinator Fee rate or Market Participant Regulator Fee rate (as applicable), within five Business Days of:

$a$ receiving the information under clause 2.24.6A from the Coordinator after the timeframe specified in that clause; or

$b$ receiving the information under clause 2.24.6 from the Economic Regulation Authority after the timeframe specified in that clause.

2.24.2B. A revised Market Participant Coordinator Fee rate and Market

Participant Regulator Fee rate will supersede any expected Market Participant Coordinator Fee rate and Market Participant Regulator Fee rate and are recoverable from Market Participants in arrears with effect from the start of the Financial Year to which they apply.

2.24.3. At the same time as AEMO publishes a level of revised Market

Participant Market Fee rate, Market Participant Coordinator Fee rate or Market Participant Regulator Fee rate (as applicable), AEMO must also publish an estimate of the total amount of revenue to be earned from:

$a$ Market Participant Market Fees collected for AEMO's:

i. market operation services;

ii. system planning services;

iii. market administration services; and

iv. system management services,

where the amounts to be earned for each service is equal to the relevant costs in AEMO’s budget published in accordance with clause 2.22A.7 or as adjusted under clause 2.24.2A;

$b$ Market Participant Coordinator Fees collected for:

i. the Coordinator's functions under these WEM Rules;

ii. the costs associated with the remuneration and other expenses for the independent Chair of the Market Advisory Committee; and

iii. in the Coordinator’s discretion, costs associated with the remuneration and other expenses of the representatives of small-use consumers on the Market Advisory Committee,

where the amount to be earned for those services is equivalent to the costs identified by the Coordinator as costs incurred in the performance of the Coordinator's functions under these WEM Rules or the WEM Regulations, where the amount must be consistent with the relevant amount notified to AEMO in accordance with clause 2.24.6A; and

$c$ Market Participant Regulator Fees collected for the Economic Regulation Authority’s monitoring, compliance, enforcement and regulation services where the amount must be consistent with the relevant amount notified to AEMO in accordance with clause 2.24.6.

2.24.4. The Market Participant Market Fee rate, Market Participant

Coordinator Fee rate and Market Participant Regulator Fee rate should be set at a level that AEMO estimates will earn revenue equal to the relevant estimate of revenue under clause 2.24.3.

2.24.5. The Economic Regulation Authority may recover a portion of its

budget determined by the Minister responsible for the Economic Regulation Authority which corresponds to the costs of the Economic Regulation Authority in undertaking its Wholesale Electricity Market related functions and other functions under these WEM Rules and the WEM Regulations from the collection of Market Participant Regulator Fees under these WEM Rules. The Economic Regulation Authority must identify in its budget the proportion of its costs that relate to the performance of its Wholesale Electricity Market related functions and its other functions.

2.24.5A. Where the revenue earned via Market Participant Regulator Fees

in the previous Financial Year is greater than or less than the Economic Regulation Authority expenditure related to the functions described in clause 2.24.5 for that Financial Year, the current year’s budget must take this into account by decreasing the budgeted revenue by the amount of the surplus or adding to the budgeted revenue the amount of any shortfall, as the case may be.

2.24.5B. The Coordinator may recover a portion of her or his budget

determined by the Minister responsible for the Coordinator which corresponds to the costs of the Coordinator in undertaking her or his functions under these WEM Rules (including costs referred to in clause

2.24.3(b)) from the collection of Market Participant Coordinator Fees

under these WEM Rules.

2.24.5C. The Coordinator must:

$a$ identify in her or his budget the proportion of her or his costs that relate to the performance of her or his functions under these WEM Rules; and

$b$ subject to clause 2.24.5E, publish on the Coordinator’s Website the proportion of costs corresponding to the functions described in clause 2.2D.1.

2.24.5D. Where the revenue earned via Market Participant Coordinator

Fees in the previous Financial Year is greater than or less than the Coordinator expenditure related to the functions described in clause

2.24.5B for that Financial Year, the current year’s budget must take

this into account by decreasing the budgeted revenue by the amount of the surplus or adding to the budgeted revenue the amount of any shortfall, as the case may be.

Explanatory Note

In practice, it is problematic to separate out the Coordinator's costs relating to its functions under clause 2.2D.1(j) (undertake reviews and consultation as required under these WEM Rules) from its costs relating to the functions listed in clause 2.24.5E(b) (e.g. the functions under clauses 2.2D.1(g) (develop amendments to these WEM Rules and replacements for them) and 2.2D.1(h) (consider and, in consultation with the MAC, progress the evolution and development of the WEM and these WEM Rules)). Clause 2.24.5E is therefore amended to extend the list in clause 2.24.5E(b) to include the functions described in clause ### 2.2D.1(j).

2.24.5E For the purposes of clause 2.24.5C(b), the Coordinator need not

separately publish the proportion of costs corresponding to the function described in clause 2.2D.1(d) and may consolidate the costs corresponding to the following groups of functions:

$a$ the functions described clauses 2.2D.1(a) and 2.2D.1(b); and

$b$ the functions described in clauses 2.2D.1(c), 2.2D.1(f) to

2.2D.1(i) inclusive, and 2.2D.1(j).

2.24.6. By the date which is five Business Days prior to 30 June each

year, the Economic Regulation Authority must notify AEMO of the dollar amount that the Economic Regulation Authority may recover under clause

2.24.5. 2.24.6A. By the date which is five Business Days prior to 30 June each

year, the Coordinator must notify AEMO of the dollar amount that the Coordinator may recover under clause 2.24.5B.

2.24.7. The level of each Application Fee:

$a$ must reflect the estimated average costs to AEMO of processing that type of application;

$b$ must be consistent with the Allowable Revenue approved by the Economic Regulation Authority; and

$c$ may be different for different classes of Rule Participant and different classes of facility.

Explanatory Note

Section 2.25 is amended by the Governance Amendments that commence on 1 July 2021 to introduce "Coordinator Fees". However, as this section is deleted and replaced by the Tranches 2 and 3 Amendments, this companion version of the WEM Rules initially only showed the Tranches 2 and 3 Amendments as those amending rules (made by the Minister at the date this companion version was prepared) will be commenced last. Please refer to the Governance Amendments to see the changes to clauses 2.25.1, ### 2.25.1A, 2.25.2 and 2.25.4 that commenced on 1 July 2021 and the Miscellaneous Amendments No. 2 for the further amendments to clauses ### 2.25.1A and 2.25.4 (i.e. minor grammatical correction and to remove a redundant reference to System Management) that commenced on 1 October 2021.

Since then, further amendments to the relevant provisions amended by the Tranches 2 and 3 Amendments have been made via the Tranche 6 Amendments to retain/reinstate the reference to Coordinator fees (i.e. as "Market Participant Coordinator Fees").

Section 2.25 is amended to:

make consequential changes to reflect weekly settlement;
remove references to System Management fee rate (and make consequential changes) to reflect changed registration taxonomy; and
remove the proportionality factor used to split total Market Fees across ERA and AEMO, to reflect the new calculations in clause 9.12.

2.25. Payment of Market Fees

2.25.1. AEMO must charge a Market Participant the relevant payment

amount for Market Participant Market Fees, Market Participant Coordinator Fees and Market Participant Regulator Fees for a Trading Week in accordance with section 9.12.

2.25.1A. AEMO is an agent for the collection of Market Participant

Coordinator Fees and Market Participant Regulator Fees payable by Market Participants to AEMO.

2.25.1B. The Economic Regulation Authority must, if requested by AEMO,

do all things reasonably necessary (including entering into any agreements) to enable AEMO to give effect to clause 2.25.1A.

2.25.1C. The Coordinator must, if requested by AEMO, use reasonable

endeavours to cooperate with AEMO, as AEMO endeavours to give effect to clause 2.25.1A.

2.25.2. Each Market Participant must pay the relevant payment amount for

Market Participant Market Fees, Market Participant Coordinator Fees and Market Participant Regulator Fees in accordance with Chapter 9.

2.25.3. Following receipt of a payment contemplated by clause 2.25.2,

AEMO must:

$a$ transfer to the fund established under clause 9.18.9 the payment received as calculated in clause 9.13.2;

$b$ pay the Economic Regulation Authority the payment received as calculated in clause 9.13.3; and

$c$ pay the Coordinator the payment received as calculated in clause 9.13.4.

2.25.4. [Blank]

2.25.5. Rule Participants must pay the relevant Application Fee upon

submitting an application form in accordance with clause 2.31.2, or in accordance with clause 4.9.3, as applicable.

Market Price Limits, Reviews and Loss Factors

2.26. Economic Regulation Authority Reviews of Market Price Limits and

the Methodology for Setting the Benchmark Reserve Capacity Price

2.26.1. The Economic Regulation Authority must, in accordance with this

section 2.26, review the value of the Energy Offer Price Ceiling at least once every three years. For the avoidance of doubt, the Economic Regulation Authority must complete a subsequent review under this clause

2.26.1 and publish its final report no later than three years from the

date of publication of the final report from the preceding review.

2.26.2. In conducting a review pursuant to clause 2.26.1, the Economic

Regulation Authority must calculate the Energy Offer Price Ceiling by:

$a$ applying the following formula:

(1 + Risk Margin) × (Variable O&M +(Heat Rate × Fuel Cost))/Loss Factor

where:

i. Risk Margin is a measure of uncertainty in the assessment of the mean short run average cost for the highest cost Facility in the SWIS, expressed as a fraction;

ii. Variable O&M is the mean variable operating and maintenance cost for the highest cost Facility in the SWIS, expressed in $/MWh, and includes, but is not limited to, start-up related costs;

iii. Heat Rate is the mean heat rate at the minimum dispatchable loading level specified in Standing Data for the highest cost Facility in the SWIS, expressed in GJ/MWh;

iv. Fuel Cost is the mean unit fixed and variable fuel cost for the highest cost Facility in the SWIS, expressed in $/GJ; and

v. Loss Factor is the marginal loss factor for the highest cost Facility in the SWIS, relative to the Reference Node, determined in accordance with section 2.27,

where the Economic Regulation Authority must determine the values for each factor described in clauses 2.26.2(a)(i) to 2.26.2(a)(v) consistently with the Offer Construction Guideline as it applies to the highest cost generating Facility in the SWIS;

$b$ rounding up the value in clause 2.26.2(a) to the nearest multiple of $100/MWh; and

$c$ determining whether an indexation process should apply to the Energy Offer Price Ceiling to reflect movements in input costs and, if so, determining the formula for the indexation calculation and the frequency at which indexation will apply.

Review of FCESS Offer Price Ceilings

2.26.2A. The Economic Regulation Authority must, in accordance with this

section 2.26, review the value 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 at least once every three years. For the avoidance of doubt, the Economic Regulation Authority must complete a subsequent review under this clause 2.26.2A of an FCESS Offer Price Ceiling and publish its final report no later than three years from the date of publication of the final report from the preceding review of that FCESS Offer Price Ceiling.

2.26.2B. In conducting a review pursuant to clause 2.26.2A, the Economic

Regulation Authority must determine the value of each FCESS Offer Price Ceiling by:

$a$ estimating, consistently with the Offer Construction Guideline as it applies to the highest cost Facility providing the relevant Frequency Co-optimised Essential System Service in the SWIS, the variable costs of providing the Frequency Co‑optimised Essential System Service that are not compensated through other market mechanisms in the Wholesale Electricity Market;

$b$ rounding up its determination of the value of the FCESS Offer Price Ceiling to the nearest multiple of $50 per MW per hour or $50 per MWs per hour, as applicable; and

$c$ determining whether an indexation process should apply to the FCESS Offer Price Ceiling to reflect movements in input costs and, if so, determining the formula for the indexation calculation and the frequency at which indexation will apply.

Review of Energy Offer Price Floor

2.26.2C. The Economic Regulation Authority must, in accordance with this

section 2.26, review the appropriateness of the value of the Energy Offer Price Floor at least once every three years. For the avoidance of doubt, the Economic Regulation Authority must complete a subsequent review under this clause 2.26.2C and publish its final report no later than three years from the date of publication of the final report from the preceding review.

2.26.2D. In conducting a review required by clause 2.26.2C, the Economic

Regulation Authority must apply the following principles:

$a$ the Economic Regulation Authority must only revise the value of the Energy Offer Price Floor if it determines that the current value of the Energy Offer Price Floor is not appropriate under clause 2.26.2E;

$b$ if the Economic Regulation Authority determines that the current Energy Offer Price Floor is not appropriate under clause 2.26.2E, the revised value for the Energy Offer Price Floor must:

i. allow for the Real-Time Market for energy to clear without the Reference Trading Price being equal to the Energy Offer Price Floor in most circumstances; and

ii. subject to clause 2.26.2D(b)(i), limit the exposure of Market Participants to Reference Trading Prices that are reasonably likely to materially adversely affect the financial viability of a prudent Market Participant.

2.26.2E. In determining whether the current value of the Energy Offer

Price Floor is not appropriate for the purposes of clause 2.26.2D(a), the Economic Regulation Authority must consider, without limitation, if, since the previous review of the value of the Energy Offer Price Floor under this section 2.26:

$a$ the Real-Time Market for energy has cleared at the Energy Offer Price Floor in one or more Dispatch Intervals due to, in the Economic Regulation Authority’s reasonable opinion, the Energy Offer Price Floor being too high; and

$b$ there has been a change in the generation fleet in the SWIS that, in the Economic Regulation Authority’s reasonable opinion, is likely to result in:

i. the current Energy Offer Price Floor being materially lower than necessary to achieve the criterion in clause 2.26.2D(b)(i), including, but not limited to, an upgrade or the retirement of a Facility with high cycling costs; or

ii. the current Energy Offer Price Floor being too high to achieve the criterion in clause 2.26.2D(b)(i), including, but not limited to, the increase of cycling costs due to deterioration or ageing of a Facility.

2.26.2F. When reviewing the Energy Offer Price Floor in accordance with

this section 2.26, if the Economic Regulation Authority determines under clause 2.26.2E that the Energy Offer Price Floor is not appropriate, the Economic Regulation Authority must:

$a$ determine for credible scenarios of low demand, the price at which the operator of the Facility with the highest cycling costs per MW in the SWIS in the scenario would, acting reasonably, decommit the Facility should the Reference Trading Price equal or fall below that price for a single Trading Interval;

$b$ revise the Energy Offer Price Floor to be the highest price determined under the scenarios in clause 2.26.2F(a) that is lower than 95 percent of all of the prices determined under clause 2.26.2F(a); and

$c$ determine whether an indexation process should apply to the Energy Offer Price Floor to reflect movements in input costs and, if so, determine the formula for the indexation calculation and the frequency at which indexation will apply.

2.26.2G. When determining the credible scenarios of low demand for the

purpose of clause 2.26.2F(a), the Economic Regulation Authority may use historic scenarios but must also account for any changes expected in the SWIS that would take effect prior to the time that the Energy Offer Price Floor would apply and that are likely to have an effect on the Reference Trading Price. The changes include, but are not limited to:

$a$ expected changes in system demand;

$b$ any expected entrance of a new Facility that will participate in the Real-Time Market;

$c$ expected changes to an existing Facility; and

$d$ any expected permanent exit of a Facility from the Real-Time Market.

2.26.2H. When determining the cycling costs of a Facility under clause

2.26.2F(a), the Economic Regulation Authority must consider:

$a$ the factors that a Market Participant acting reasonably would consider in making a decommitment decision for the Facility with the highest cycling costs in the SWIS, assuming that all energy sent out by the Facility is settled at the Reference Trading Price, including:

i. the cost to decommit and recommit within the timeframe specified under clause 2.26.2H(a)(iii), including start-related fuel costs and variable operating and maintenance costs of the Facility;

ii. the minimum stable level of operation of the Facility;

iii. the minimum time the Facility must remain out of service once decommitted before recommitment is possible; and

iv. any expected losses or gains, opportunity costs and cost savings that the Market Participant would incur as a result of decommitment for the duration of the minimum time the Facility must remain out of service before recommitment is possible; and

$b$ any other matters that the Economic Regulation Authority considers relevant.

2.26.2I. When determining the cycling costs of a Facility under clause

2.26.2F(a), the Economic Regulation Authority must have regard to the

Wholesale Market Objectives and must, as far as practicable, use information about the costs the relevant Facility would incur as provided by the relevant Market Participant but may use estimates where the Economic Regulation Authority considers it to be reasonable.

2.26.2J. A Market Participant may, by the time specified for the close

of submissions under clause 2.26.2L(b), provide evidence to the Economic Regulation Authority of the costs that a Facility incurs when decommitting for the purpose of the WEM Rules and which the Economic Regulation Authority must consider in determining the appropriateness of the value of the Energy Offer Price Floor under clause 2.26.2C.

2.26.2K. Where a Market Participant provides the Economic Regulation

Authority with satisfactory evidence under clause 2.26.2J, the Economic Regulation Authority must consider the information when determining the appropriateness of the Energy Offer Price Floor as far as the information affects the Economic Regulation Authority’s reasonable estimate of any costs that a prudent Market Participant would incur when decommitting its Facility in the scenarios under clause 2.26.2F(a).

Conducting a Review of a Market Price Limit

2.26.2L. In conducting a review of a Market Price Limit under clauses

2.26.1, 2.26.2A or 2.26.2C, the Economic Regulation Authority must

publish on its website:

$a$ a draft report and a request for submissions;

$b$ the closing date for submissions, which must be no earlier than four weeks after the date of publication of the draft report; and

$c$ a copy of all submissions received provided that if a submission contains information that the Economic Regulation Authority reasonably considers to be confidential, the Economic Regulation Authority may redact that information to the extent it considers appropriate.

2.26.2M. Following the closing date for submissions on the draft report

published under clause 2.26.2L, the Economic Regulation Authority must publish a final report on its website containing:

$a$ the issues identified by the Economic Regulation Authority;

$b$ the assumptions made by the Economic Regulation Authority in undertaking the review;

$c$ the Economic Regulation Authority’s determination of the relevant Market Price Limit, which is to include, where applicable:

i. the revised value of the relevant Market Price Limit;

ii. the Trading Day from which the revised value of the relevant Market Price Limit will take effect, which must be at least five Business Days after the date the final report is published; and

iii. any indexation process in the value of the relevant Market Price Limit and the associated times each indexed value will apply from;

$d$ how the Economic Regulation Authority determined the revised value of the relevant Market Price Limit, including any analysis and calculation parameters used in its determination;

$e$ a summary of any submissions received by the Economic Regulation Authority on the draft report published under clause 2.26.2L that were received within the time specified, and any late submissions the Economic Regulation Authority has decided, in its discretion, to take into account;

$f$ the Economic Regulation Authority’s responses to the issues raised in those submissions; and

$g$ any other matters the Economic Regulation Authority considers relevant to the review.

2.26.2N. Where a Rule Participant considers there has been a material

change in circumstances since the Economic Regulation Authority's most recent review of a Market Price Limit pursuant to clauses 2.26.1,

2.26.2A or 2.26.2C, as applicable, the Rule Participant may, subject to

clause 2.26.2O(a), notify the Economic Regulation Authority that it considers the Market Price Limit is no longer appropriate in accordance with clause 2.26.2O.

2.26.2NA. If a Rule Participant considers there has been a material

change in market circumstances since the Economic Regulation Authority's most recent review of a Market Price Limit pursuant to clauses 2.26.1,

2.26.2A or 2.26.2C, as applicable, the Rule Participant may, subject to

clause 2.26.2O(a), notify the Economic Regulation Authority that it considers that for the Market Price Limit, the determination to apply or not apply indexation to the Market Price Limit is no longer appropriate in accordance with clause 2.26.2O.

2.26.2O. A notice by a Rule Participant under clauses 2.26.2N or

2.26.2NA must:

$a$ be given no earlier than six months after completion of the most recent review of the relevant Market Price Limit by the Economic Regulation Authority under clauses 2.26.1, 2.26.2A or 2.26.2C, as applicable; and

$b$ set out the Rule Participant’s reasoning, with any supporting analysis, as to why it considers there has been:

i. a material change in circumstances such that the relevant Market Price Limit is no longer appropriate, having regard to the relevant matters in this section 2.26; or

ii. a material change in market circumstances such that the determination to apply or not apply indexation to a Market Price Limit is no longer appropriate.

2.26.2P. Following receipt of a notice under clause 2.26.2N, the

Economic Regulation Authority must, as soon as practicable:

$a$ after considering the information in the notice, determine whether it considers it is appropriate to bring forward the next required review of the relevant Market Price Limit under clauses 2.26.1, 2.26.2A or

2.26.2C, as applicable;

$b$ in making its determination under clause 2.26.2P(a), have regard to the Wholesale Market Objectives and any benefits of undertaking an earlier review; and

$c$ publish its response to the notice on its website, which is to include details of whether a review of the relevant Market Price Limit will be progressed, the proposed timing for the review, and the reasons for its decision.

2.26.2Q. If the Economic Regulation Authority decides to bring forward a

review of a Market Price Limit pursuant to clause 2.26.2P(a), the Economic Regulation Authority must use its best endeavours to conduct the review in accordance with the proposed timing published in its response to the relevant notice in accordance with clause 2.26.2P(c).

2.26.2R. In conducting a review of a Market Price Limit under clauses

2.26.1, 2.26.2A or 2.26.2C, the Economic Regulation Authority may

request information from a Market Participant.

2.26.2S. An information request by the Economic Regulation Authority

under clause 2.26.2R must specify the time by which the information specified in the request must be provided by the Market Participant, which must be at least 10 Business Days after the date of the request and be reasonable having regard to the nature of the information requested.

2.26.2T. Following receipt of a request under clause 2.26.2R, the Market

Participant must provide the information specified in the request by the time specified in the request.

2.26.2U. Where the Economic Regulation Authority determines under

clauses 2.26.2(c), 2.26.2B(c) or 2.26.2F(c) that indexation in the value of a Market Price Limit will apply, the Economic Regulation Authority must:

$a$ calculate each indexed value for the Market Price Limit in accordance with the process and schedule determined under clause

2.26.2M(c)(iii); and

$b$ for each indexed value calculated under clause 2.26.2U(a):

i. publish on its website the indexed value and the Trading Day from which the indexed value will take effect; and

ii. notify AEMO of the publication of the indexed value,

at least five Business Days before the Trading Day from which the indexed value will take effect.

2.26.2V. A revised value for a Market Price Limit replaces the previous

value after the Economic Regulation Authority has published its final report in accordance with clause 2.26.2M, with effect from the Trading Day specified in the final report or, in the case of an indexed value, the Trading Day published by the Economic Regulation Authority on its website in accordance with clause 2.26.2U.

2.26.2W. AEMO must publish on the WEM Website each revised value of a

Market Price Limit and the Trading Day from which the revised value will take effect within five Business Days after the Economic Regulation Authority publishes the relevant information under clauses 2.26.2M(c) or

2.26.2U(b).

2.26.3. At least once in every five years, the Economic Regulation

Authority must review the methodology for setting the Benchmark Reserve Capacity Price. A review must examine:

$a$ the appropriateness of the parameters and methodology in section 4.16 and the WEM Procedure referred to in clause 4.16.3 for recalculating the Benchmark Reserve Capacity Price; and

$b$ any other matters which the Economic Regulation Authority considers relevant.

Explanatory Note

The timing for the review of the Benchmark Reserve Capacity Price WEM Procedure stated in clause 4.16.9 is unchanged.

The requirement for a 5 yearly review of the effectiveness of certain factors relating to the Reserve Capacity Price is set out in new clause ### 2.26.3A. Each review is to be undertaken by the ERA at the same time as it reviews the methodology for setting the Benchmark Reserve Capacity Price specified in clause 2.26.3.

However, a new transitional clause 1.31.1 precludes the ERA from undertaking the first review of the effectiveness of certain factors relating to the Reserve Capacity Price before the end of the 2019 Reserve Capacity Cycle (i.e. not before 30 September 2022).

2.26.3A. The Economic Regulation Authority must review the Reserve

Capacity Price Factors at the same time as each review of the Benchmark Reserve Capacity Price under clause 2.26.3. A review must examine:

$a$ whether the Reserve Capacity Price Factors efficiently signal the long-term economic value of incremental or excess Reserve Capacity in the Wholesale Electricity Market;

$b$ whether the Reserve Capacity Price calculated using the Reserve Capacity Price Factors is consistent with the Wholesale Market Objectives; and

$c$ any other matters the Economic Regulation Authority considers to be relevant.

2.26.4. The Economic Regulation Authority must provide a report to the

Minister on the reviews conducted under clauses 2.26.3 and 2.26.3A.

2.26.5. If the Economic Regulation Authority recommends changes as a

result of the report prepared under clause 2.26.4, the Economic Regulation Authority must either submit a Rule Change Proposal or initiate a Procedure Change Process, as the case may be, to implement those changes.

2.27. Determination of Loss Factors

2.27.1. Network Operators must, in accordance with this section 2.27,

calculate and provide to AEMO Loss Factors for:

$a$ each connection point in their Networks at which any of the following is connected:

i. a Scheduled Facility;

iA. a Semi-Scheduled Facility;

ii. a Non-Scheduled Facility; or

iii. [Blank]

iv. [Blank]

v. a Non-Dispatchable Load equipped with an interval meter; and

$b$ in the case of Western Power, the Notional Wholesale Meter.

2.27.2. A Market Participant may request, during the process of

obtaining a relevant Arrangement for Access, that the relevant Network Operator determine and provide to AEMO Loss Factors to apply to a Facility where there are no Loss Factors applying to the connection point at which the Facility will be connected.

2.27.3. Loss Factors must reflect transmission and distribution losses

and each Loss Factor must be expressed as the product of a Transmission Loss Factor and a Distribution Loss Factor.

2.27.4. Subject to clause 2.27.5(d), for each Network Operator AEMO

must, in consultation with that Network Operator, develop a classification system to assign each of the connection points in the Network Operator’s Network identified under clause 2.27.1(a) to a Transmission Loss Factor Class and a Distribution Loss Factor Class, where:

$a$ the assignment of a connection point to a Loss Factor Class is based on characteristics indicative of the expected transmission or distribution system losses (as applicable) for the connection point;

$b$ each connection point in a Loss Factor Class is assigned the same Transmission Loss Factor or Distribution Loss Factor (as applicable); and

$c$ connection points on the transmission system are assigned to a Distribution Loss Factor Class with a Distribution Loss Factor equal to one.

2.27.5. In calculating Loss Factors, Network Operators must apply the

following principles:

$a$ Transmission Loss Factors must notionally represent the marginal transmission system losses for a connection point relative to the Reference Node, averaged over all Trading Intervals in a year, weighted by the absolute value of the net demand at that connection point during the Trading Interval;

$b$ Distribution Loss Factors must notionally represent the average distribution system losses for a connection point over a year;

$c$ Loss Factors must be calculated using:

i. generation and load meter data from the preceding 12 months; or

ii. for a new Facility, any other relevant data provided to the Network Operator by the Market Participant and as agreed with the Network Operator and AEMO; and

iii. for Transmission Loss Factors, an appropriate network load flow software package;

$d$ a specific Loss Factor must be calculated for each:

i. Scheduled Facility;

iA. Semi-Scheduled Facility;

ii. Non-Scheduled Facility; and

iii. [Blank]

iv. [Blank]

v. Non-Dispatchable Load above 7000 kVA peak consumption;

$e$ Western Power must assign the Notional Wholesale Meter to:

i. a Transmission Loss Factor Class that represents system wide average marginal losses over Western Power’s transmission system; and

ii. a Distribution Loss Factor Class that represents the average losses incurred over Western Power’s distribution system by Non-Dispatchable Loads not equipped with an interval meter; and

$f$ the Transmission Loss Factors calculated for each Transmission Loss Factor Class and the Distribution Loss Factors calculated for each Distribution Loss Factor Class are static, and apply to each connection point in the relevant Loss Factor Class until the time published by AEMO under clause 2.27.8 for the application of an updated Transmission Loss Factor or Distribution Loss Factor to that Loss Factor Class.

Explanatory Note

Clause 2.27.5A is amended to remove the reference to Demand Side Programmes, because they are no longer included in the Dispatch Algorithm and so do not require a single Loss Factor.

2.27.5A. For each Interruptible Load, AEMO must use a Loss Factor of 1.

2.27.6. Each year by 1 June each Network Operator must, in accordance

with the WEM Procedure specified in clause 2.27.17, recalculate the Loss Factors for its connection points and provide AEMO with updated Transmission Loss Factors and Distribution Loss Factors (as applicable) for each Loss Factor Class in the Network Operator’s classification system.

2.27.7. AEMO must publish the Transmission Loss Factors and Distribution

Loss Factors provided by a Network Operator in accordance with clause

2.27.6 within two Business Days after receiving them.

2.27.8. When Transmission Loss Factors and Distribution Loss Factors are

published in accordance with clause 2.27.7 or where one or more Transmission Loss Factors or Distribution Loss Factors are changed in accordance with clauses 2.27.15(e) or 2.27.16 AEMO must publish the time from which the new Transmission Loss Factors or Distribution Loss Factors will apply, where this must be from the commencement of a Trading Day.

2.27.9. In setting the time from which a Transmission Loss Factor or

Distribution Loss Factor will apply in accordance with clause 2.27.8 AEMO must allow sufficient time for Rule Participants to identify and update any submission or forecast data that is dependent on Loss Factors.

2.27.10. A Network Operator must develop new Loss Factor Classes if

required to implement the classification system prescribed by AEMO for that Network Operator. If a Network Operator develops a new Loss Factor Class then it must:

$a$ calculate the initial Transmission Loss Factor or Distribution Loss Factor (as applicable) for the new Loss Factor Class in accordance with the WEM Procedure specified in clause 2.27.17; and

$b$ provide to AEMO details of the new Loss Factor Class and its initial Transmission Loss Factor or Distribution Loss Factor as soon as practicable but before a connection point is assigned to the new Loss Factor Class.

2.27.11. AEMO must publish a new Transmission Loss Factor or

Distribution Loss Factor provided by a Network Operator in accordance with clause 2.27.10(b) within two Business Days after receiving it from the Network Operator.

2.27.12. A Network Operator must determine the Transmission Loss Factor

Class and Distribution Loss Factor Class for each new connection point in its Network identified under clause 2.27.1(a), in accordance with the classification system prescribed by AEMO for that Network Operator.

2.27.13. A Network Operator must re-determine the Loss Factor Classes

for a connection point in its Network identified under clause 2.27.1(a) if a change occurs to the connection point that might alter its applicable Loss Factor Classes under the classification system prescribed by AEMO for that Network Operator.

2.27.14. When a Network Operator determines a Loss Factor Class for a

connection point under clause 2.27.12 or changes a Loss Factor Class for a connection point under clause 2.27.13, the Network Operator must provide to both AEMO and the relevant Market Participant the new Loss Factor Class for the connection point and the Trading Day from which it takes effect, as soon as practicable but before the information is required for use in calculations under the WEM Rules.

2.27.15. A Market Participant may apply to AEMO for a reassessment of

any Transmission Loss Factor or Distribution Loss Factor applying to a Scheduled Facility, Semi-Scheduled Facility, Non-Scheduled Facility or Non-Dispatchable Load registered to that Market Participant. The following requirements apply to each application for reassessment:

$a$ The Market Participant must apply for reassessment in accordance with the WEM Procedure specified in clause 2.27.17.

$b$ AEMO must process an application for reassessment and where required conduct an audit of the relevant Loss Factor calculation in accordance with the WEM Procedure specified in clause 2.27.17.

$c$ The relevant Network Operator must cooperate with an audit of the Loss Factor calculation conducted by AEMO under clause 2.27.15(b) by providing reasonable access to the data and calculations used in producing the Loss Factor.

$d$ Where an audit reveals an error in the calculation of a Transmission Loss Factor or Distribution Loss Factor for a Loss Factor Class, AEMO must direct the Network Operator to recalculate the Transmission Loss Factor or Distribution Loss Factor, and may instruct the Network Operator to recalculate other Transmission Loss Factors or Distribution Loss Factors provided by that Network Operator.

$e$ Where AEMO directs the Network Operator to recalculate a Transmission Loss Factor or Distribution Loss Factor for a Loss Factor Class, then the Network Operator must do so, and must provide the recalculated Transmission Loss Factor or Distribution Loss Factor to AEMO. The recalculated Transmission Loss Factor or Distribution Loss Factor is substituted for the value previously applied with effect from the time published by AEMO in accordance with clause 2.27.8.

$f$ Where an audit reveals an error in the assignment of a connection point to a Loss Factor Class, AEMO must direct the relevant Network Operator to correct the error and re-determine the Loss Factor Class for the connection point in accordance with the classification system prescribed by AEMO for that Network Operator.

$g$ Where AEMO directs a Network Operator to re-determine a Loss Factor Class for a connection point, then the Network Operator must do so, and must as soon as reasonably practicable provide to AEMO and the relevant Market Participant the revised Loss Factor Class and the Trading Day from which it should apply.

$h$ The costs of an audit conducted by AEMO in response to an application for reassessment, including any costs incurred by the Network Operator and any costs, not otherwise included in AEMO’s budget, incurred by AEMO, are payable by the Market Participant who made the application for reassessment, unless the audit reveals:

i. an error of more than 0.0025 in the calculation of a Transmission Loss Factor or Distribution Loss Factor; or

ii. an incorrect assignment of a Connection Point to a Loss Factor Class,

in which case all costs are payable by the relevant Network Operator.

2.27.16. Where a Network Operator fails to provide AEMO with a

Transmission Loss Factor or Distribution Loss Factor in accordance with clause 2.27.6 or 2.27.15(d), AEMO must continue to use the equivalent Transmission Loss Factor or Distribution Loss Factor from the previous year until such time as the Network Operator has provided AEMO with the new Transmission Loss Factor or Distribution Loss Factor and that Transmission Loss Factor or Distribution Loss Factor has taken effect. The recalculated Transmission Loss Factor or Distribution Loss Factor is substituted for the value previously applied with effect from the time published by AEMO in accordance with clause 2.27.8.

Explanatory Note

Currently, AEMO is responsible for the Loss Factors WEM Procedure referred to in 2.27.17 with the assistance of Network Operators. However, as the WEM Procedure sets out how Network Operators determine Loss Factors, it is more appropriate for each Network Operator to be responsible for the WEM Procedure. Accordingly, clause 2.27.17 is amended to make Network Operators responsible for documenting and maintaining a WEM Procedure for Loss Factors.

2.27.17. Each Network Operator must document in a WEM Procedure the

standards, methodologies, classification systems and procedures to be used in determining Loss Factors.

2.27.18. AEMO may at any time review the effectiveness of the processes

used by a Network Operator for Loss Factor calculation in meeting the Wholesale Market Objectives.

2.27.19. AEMO may request, and a Network Operator must provide, any

information relating to the methodologies, models, software, data sources and internal procedures used by the Network Operator for Loss Factor calculation that AEMO considers relevant to a review conducted under clause 2.27.18.

Network Congestion and Constraint Equations

Explanatory Note

Section 2.27A sets out the new framework for constraint-related obligations and associated processes, including:

the development, provision and clarification of Limit Advice;
the formulation of Constraint Equations; and
the processes to be documented in WEM Procedures.

Section 2.27A is further amended to avoid duplication of any clauses in new section 4.4B which deals with RCM Limit Advice and RCM Constraint Equations and the inadvertent application of parts of clause ### 2.27A applying to RCM Limit Advice.

2.27A. Limit Advice and Constraint Equations

2.27A.1. A Network Operator must, in accordance with this section 2.27A,

provide Limit Advice in respect to its Network to AEMO.

2.27A.2. Information to be provided to AEMO by a Network Operator in

respect to limitations of, or relating to, its Network that gives rise to a Network Constraint ("Limit Advice") includes:

$a$ Limit Equations in respect of Network Limits provided in accordance with this section 2.27A or section 4.4B, excluding Limit Equations for Frequency Co-optimised Essential System Services or, if, in respect of a particular Network element, a mathematical expression is not appropriate, the Network Limits for that particular Network element;

$b$ Limit Advice Inputs; and

$c$ supporting information and data specified in the WEM Procedure referred to in clause 2.27A.10(a).

2.27A.3. A Network Operator must provide Limit Advice to AEMO in the

form and by the dates and times specified in:

$a$ for RCM Limit Advice, section 4.4B and the WEM Procedure referred to in clause 2.27A.10(a); and

$b$ for all other Limit Advice, the WEM Procedure referred to in clause 2.27A.10(a).

2.27A.4. AEMO may, if it reasonably considers it is required to enable

it to carry out its obligations specified in clause 2.27A.7, request:

$a$ clarification or further information regarding any aspect of information provided under clause 2.27A.2 from the Network Operator who provided it to AEMO; and

$b$ additional Limit Advice from a Network Operator,

and each Network Operator must comply with any such request in accordance with WEM Procedures referred to in clauses 2.27A.10(a) and

2.27A.10(d).

2.27A.5. Any information provided by a Network Operator in response to a

request by AEMO under clause 2.27A.4(a) is Limit Advice for the purpose of clause 2.27A.2.

2.27A.6. A Network Operator must, in respect of:

$a$ RCM Limit Advice:

i. use its reasonable endeavours to ensure that all necessary RCM Limit Advice is complete, current and accurate at the time it is provided to AEMO;

ii. if it forms the view that any RCM Limit Advice is no longer complete, current or accurate prior to the latest date the RCM Limit Advice is required to be provided to AEMO under section 4.4B, promptly provide updated RCM Limit Advice to AEMO; and

iii. update Limit Advice required to be updated under clause

2.27A.6(a)(ii) in accordance with the WEM Procedure referred to in

clause 2.27A.10(a).

$b$ all other Limit Advice:

i. use its reasonable endeavours to ensure that all necessary Limit Advice is complete, current and accurate at the time it is provided to AEMO;

ii. promptly notify AEMO if it forms the view that any Limit Advice is no longer complete, current or accurate, including where Limit Advice is no longer required; and

iii. update Limit Advice in accordance with the WEM Procedure referred to in clause 2.27A.10(a).

2.27A.7. AEMO must:

$a$ formulate Constraint Equations in accordance with the WEM Procedure referred to in clause 2.27A.10(b);

(aA) formulate Preliminary RCM Constraint Equations and RCM Constraint Equations in accordance with clause 4.4B.4;

$b$ develop and maintain the Constraints Library in accordance with the WEM Procedure referred to in clause 2.27A.10(c);

$c$ use its reasonable endeavours to ensure that:

i. RCM Constraint Equations are complete and accurate at the time the RCM Constraint Equation is formulated; and

ii. all necessary other Constraint Equations are complete, current and accurate; and

$d$ update Constraint Equations, publish updates to the Constraints Library and notify Rule Participants of updates to the Constraints Library in accordance with the WEM Procedures referred to in clauses

2.27A.10(b) and 2.27A.10(c).

2.27A.8. A Constraint Equation that is updated by AEMO under clause

2.27A.7(d) is effective from the date and time determined by AEMO.

2.27A.9. The principles that must be taken into account by each Network

Operator in developing Limit Advice, and by AEMO in formulating Constraint Equations, are:

$a$ the Wholesale Market Objectives; and

$b$ good electricity industry practice.

2.27A.10. AEMO must document in a WEM Procedure:

$a$ in respect of the information to be provided by a Network Operator to AEMO under clause 2.27A.2:

i. the information and data to be provided by each Network Operator to AEMO; and

ii. the processes to be followed for the provision of and, where applicable, updates to such information and any other information referred to in clause 2.27A.4, from each Network Operator to AEMO, including:

1. the format, form and manner in which such information must be provided; and

2. where these WEM Rules do not provide a timeframe for the provision of such information to AEMO, the reasonable times by which such information must be provided having regard to the scope and nature of the information to be provided;

$b$ the processes to be followed by AEMO and the matters it must consider in formulating and, where applicable, updating Constraint Equations, (including RCM Constraint Equations), including:

i. the approach to be taken by AEMO in applying:

1. an Operating Margin; and

2. the principles described in clause 2.27A.9; and

ii. the conventions for assigning a unique identifier to Constraint Equations and Constraint Sets;

(bA) the processes it must follow in providing the information to Network Operators under clause 4.4B.2;

$c$ the processes to be followed by AEMO in developing and updating the Constraints Library and notifying Market Participants of updates to the Constraints Library;

(cA) the processes to be followed and the methodology to be used by AEMO in determining Constraint Equation terms and coefficients for Network Constraints, including the methodology for determining whether the exclusion of a variable from a Fully Co-optimised Network Constraint Equation would have a material effect on Power System Security due to the size of its coefficient;

(cB) the processes to be followed and the methodology to be used by AEMO in selecting one or more Constraint Equations to represent a Network Constraint, including in respect of the location of terms on each side of the Constraint Equation;

(cC) the processes and timeframes to be followed by AEMO for creating new Constraint Equations and Constraint Sets in response to a Non-Credible Contingency Event;

(cD) wherever a Network Limit gives rise to a Network Constraint, the supporting information and data a Network Operator must provide AEMO; and

$d$ any other processes or procedures relating to Constraints or Network congestion that AEMO considers are reasonably required to enable it to carry out its functions under the WEM Rules.

2.27A.11. Each Network Operator must document in a WEM Procedure:

$a$ the processes to be followed by the Network Operator and the matters it must consider in developing and updating Limit Advice, including the approach to be taken by the Network Operator in applying:

i. a Limit Margin; and

ii. the principles described in clause 2.27A.9; and

$b$ the processes to be followed by a Network Operator for:

i. estimating the configuration and Thermal Network Limits of its Network in accordance with clause 4.4B.3; and

ii. allocating the value referred to in clause 4.4B.5(a) for each Electrical Location in accordance with clause 4.4B.5(b).

Explanatory Note

Section 2.27B sets out the framework for a new Congestion Information Resource, including that AEMO:

develops and maintains a Congestion Information Resource on the WEM Website, and specifies the information to be published in that resource; and
prepares and publishes an annual congestion report with respect to the matters described in clause 2.27B.6.

2.27B. Congestion Information Resource

2.27B.1. The objective of the Congestion Information Resource is to

provide information in a cost-effective and timely manner to Rule Participants and other interested stakeholders to enable them to understand patterns of Network congestion and the market impact of Network congestion (“Congestion Information Resource Objective”).

2.27B.2. To implement the Congestion Information Resource Objective,

AEMO must:

$a$ develop and maintain a Congestion Information Resource in accordance with this section 2.27B; and

$b$ publish the Congestion Information Resource on the WEM Website.

2.27B.3. The Congestion Information Resource must include:

$a$ the Constraints Library;

$b$ as soon as practicable after a Dispatch Interval, each Constraint Equation that bound during the Dispatch Interval;

$c$ each report described in clauses 2.27B.6 and 7.2.7(b);

$d$ any other information that AEMO, in its reasonable opinion, considers relevant to implement the Congestion Information Resource Objective; and

$e$ any other information specified in the WEM Procedure referred to in clause 2.27B.8.

2.27B.4. AEMO must keep up to date the information in the Congestion

Information Resource (excluding, for the avoidance of doubt, an annual congestion report described in clause 2.27B.6):

$a$ consistently with the Congestion Information Resource Objective; and

$b$ in accordance with the processes and by the dates and times specified in the WEM Procedure referred to in clause 2.27B.8.

2.27B.5. Each Network Operator must do all things reasonably necessary

to support AEMO in carrying out its obligations under this section

2.27B, including providing AEMO with any information or data that AEMO

reasonably requires.

2.27B.6. AEMO must prepare and publish an annual congestion report by 31

March each year. A report must contain:

$a$ information on Network congestion for at least the period of 12 months commencing at the start of the Trading Day which commences on 1 October and ending at the end of the Trading Day ending on 1 October of the following calendar year immediately preceding the due date of the report specified in this clause 2.27B.6, including:

i. analysis of the Constraint Equations that bound during a Dispatch Interval, including the duration and frequency; and

ii. assessment of the market impact of Network congestion;

$b$ information that is known to AEMO at the time of preparing the annual congestion report in accordance with this section 2.27B that is likely to affect, or could result in, Network congestion including:

i. new connections to the SWIS;

ii. augmentations of the SWIS;

iii. decommissioning of a generating system, Load or any Network elements; and

iv. changes to Network elements;

$c$ any other information that AEMO, in its reasonable opinion, considers relevant to implement the Congestion Information Resource Objective; and

$d$ any other information or matters specified in the WEM Procedure referred to in clause 2.27B.8.

2.27B.7. In preparing a report described in clause 2.27B.6, AEMO must

consult with each Network Operator.

2.27B.8. AEMO must document in a WEM Procedure:

$a$ the information to be published in the Congestion Information Resource;

$b$ the processes to be followed by AEMO in maintaining, publishing and updating the information in the Congestion Information Resource;

$c$ the processes to be followed by AEMO in preparing a report described in clause 2.27B.6; and

$d$ the information that AEMO may reasonably require a Network Operator or other Rule Participant to provide to AEMO to assist it with carrying out its obligations under this section 2.27B, and:

i. the format, form and manner in which any such information must be provided; and

ii. the date and time by which any such information must be provided.

Explanatory Note

Section 2.27C requires the ERA to undertake a periodic review of Limit Advice provided by Network Operators and Constraint Equations formulated by AEMO and sets out the processes associated with such reviews.

2.27C. Economic Regulation Authority Review of Limit Advice and

Constraint Equations

2.27C.1. The Economic Regulation Authority must review the effectiveness

of:

$a$ Limit Advice provided by each Network Operator to AEMO; and

$b$ Constraint Equations formulated by AEMO,

in meeting the principles described in clause 2.27A.9.

2.27C.2. A review conducted under clause 2.27C.1 must examine:

$a$ the appropriateness of any Limit Margin applied by each Network Operator;

$b$ the appropriateness of any Operating Margin applied by AEMO;

$c$ the appropriateness of the WEM Procedures described in clauses

2.27A.10(b)(i) and 2.27A.11; and

$d$ any other matters which the Economic Regulation Authority considers relevant.

2.27C.3. Without limiting clause 2.27C.2, the Economic Regulation

Authority may determine the scope of the Limit Advice and Constraint Equations to be reviewed in accordance with clause 2.27C.1.

2.27C.4. In conducting a review under clause 2.27C.1, the Economic

Regulation Authority must publish a draft report and invite submissions, and publish all submissions received, from Rule Participants and any other interested stakeholders.

2.27C.5. In conducting a review under clause 2.27C.1, the Economic

Regulation Authority must publish a final report containing:

$a$ the scope of the review as determined by the Economic Regulation Authority in accordance with clause 2.27C.3;

$b$ the issues identified by the Economic Regulation Authority;

$c$ the assumptions made by the Economic Regulation Authority in undertaking the review;

$d$ the results of any technical and cost-benefit studies;

$e$ a summary of any submissions on the draft report received by the Economic Regulation Authority from Rule Participants and other interested stakeholders in accordance with clause 2.27C.4;

$f$ the Economic Regulation Authority’s responses to the issues raised in those submissions;

$g$ any recommendations of the Economic Regulation Authority; and

$h$ any other matters the Economic Regulation Authority considers relevant to the review.

2.27C.6. The Economic Regulation Authority must complete a review under

clause 2.27C.1:

$a$ for the first review, within two years of the New WEM Commencement Day; and

$b$ for each subsequent review, at least once every three years from the completion of the preceding review under this section 2.27C.

2.27C.7. The Economic Regulation Authority may request, and AEMO and

each Network Operator must provide, any information and documents, including methodologies, models, software, data sources and internal procedures, used by:

$a$ the Network Operator, in respect to Limit Advice provided by the relevant Network Operator to AEMO; and

$b$ AEMO, in respect to the Constraint Equations formulated by it,

that the Economic Regulation Authority considers relevant to a review conducted under clause 2.27C.1.

Participation and Registration

Explanatory Note

Clause 2.28.1 has been amended to reflect the Taskforce's decisions described in the Information Paper: Registration and Participation Framework in the Wholesale Electricity Market.

A new ‘Market Participant’ class will be created to replace the existing Market Generator, Market Customer and Ancillary Service Provider classes. This category will denote a participant who provides or consumes a WEM product or service (i.e. any participant that is part of the financial settlement process). A Market Participant will have obligations in respect of its Facilities, therefore, a Market Participant must register its Facilities, subject to any exemptions permitted under the WEM Rules.

No change is required to the Network Operator class.

2.28. Rule Participants

2.28.1. The classes of Rule Participant are:

$a$ Network Operator;

$b$ Market Participant; and

$c$ AEMO.

2.28.2. Subject to clauses 2.28.3 and 2.28.16, a person who owns,

controls or operates a transmission system or distribution system which forms part of the South West Interconnected System, or is electrically connected to that system, must register as a Rule Participant in the Network Operator class.

2.28.3. A person that owns, controls or operates a transmission system

or distribution system may, but is not required to, register as a Rule Participant in the Network Operator class where both the following are satisfied:

$a$ AEMO has determined that it does not require information about the relevant network to ensure Power System Security and Power System Reliability are maintained; and

$b$ no Registered Facilities owned or operated by a Market Participant are directly connected to the transmission system or distribution system.

2.28.3A. A Network Operator must:

$a$ promptly provide to AEMO all data available to it and reasonably required to model the static and dynamic performance of the SWIS, including (without limitation) computer models of the performance of the Network and Facilities connected, or which may be connected in the future, to the Network;

$b$ promptly forward to AEMO subsequent updates of the data referred to in clause 2.28.3A(a);

$c$ use its reasonable endeavours to ensure that all data referred to in this clause 2.28.3A is complete, current and accurate;

$d$ promptly notify AEMO if there are any reasonable grounds for suspecting that the data provided under this clause 2.28.3A is no longer complete, current and accurate; and

$e$ include as part of the data provided to AEMO under this clause

2.28.3A:

i. all data provided to the Network Operator that is used for the purpose of modelling in relation to the SWIS by Market Participants, other generators, customers and storage providers, other Network Operators and any other source;

ii. all data relating to actual, committed or proposed modifications to the SWIS that the Network Operator reasonably considers are relevant to modelling in relation to the SWIS; and

iii. data relating to any Facility with a System Size which is less than 10 MW and is likely to be subject to constraints that may affect Power System Security and Power System Reliability.

2.28.3B. Where AEMO:

$a$ is satisfied that the performance of a Facility (or equipment within the Facility) is not adequately represented by any applicable data either provided under clause 2.28.3A or as part of a Registered Generator Performance Standard; and

$b$ holds the reasonable opinion that the inadequacy of the applicable data, is or will impede AEMO's ability to carry out its functions in relation to Power System Security and Power System Reliability,

AEMO may:

$c$ where that Facility is not required to comply with the requirements under clause 3A.2.2, request that the Network Operator provide to AEMO, as soon as reasonably practicable, revised or additional data and an associated model validation report demonstrating to AEMO’s reasonable satisfaction that the performance of the Facility (or equipment within the Facility) has been tested and is performing substantially in accordance with the revised modelling data; and

$d$ direct the relevant Market Participant, or Network Operator where relevant, to operate the Facility (or equipment within the Facility) at a particular level of output or in a particular manner, until either the Market Participant is compliant with clause 3A.2.2 or until the Network Operator has submitted revised data and an associated model validation report under clause 2.28.3B(c), and AEMO is satisfied that the performance of the Facility (or equipment within the Facility) is performing substantially in accordance with that data.

2.28.4. A person who intends to own, control or operate a transmission

system or distribution system which will form part of the South West Interconnected System, or will be electrically connected to that system, may register as a Rule Participant in the Network Operator class.

Explanatory Note

Clause 2.28.5 is amended to reverse the change made in the Tranches 2 and 3 Amendments. The original clause is restored because the removal of the ability for a Network Operator to be registered in more than one Rule Participant class may adversely affect current Market Participants.

2.28.5. Subject to clause 2.28.16, a person registered as a Network

Operator may be registered as a Rule Participant in another class or other classes.

2.28.6. Subject to clause 2.28.16, a person who owns, controls or

operates a Facility containing an Energy Producing System with a System Size that equals or exceeds 10 MW and is electrically connected to a transmission system or distribution system which forms part of the South West Interconnected System, or is electrically connected to that system, must register as a Rule Participant in the Market Participant class.

Explanatory Note

Clause 2.28.7 is amended and clause 2.28.7A added to reflect the new registration framework where a person who owns, controls or operates a facility with a System Size of between 5 MW and 10 MW may apply to AEMO for an exemption from the requirement to register. AEMO will process an application for exemption in accordance with exemption criteria that AEMO will be required to specify in a WEM Procedure. AEMO will be required to grant an exemption other than for reasons of Power System Security and Power System Reliability.

2.28.7. A person that owns, controls or operates a Facility containing

an Energy Producing System with a System Size of less than 10 MW, but which equals or exceeds 5 MW, and is electrically connected to a transmission system or distribution system which forms part of the South West Interconnected System, or is electrically connected to that system, must apply to AEMO:

$a$ for registration as a Rule Participant in the Market Participant class; or

$b$ for an exemption from the requirement to register as a Rule Participant in the Market Participant Class.

2.28.7A. AEMO must grant an exemption from the requirement to register

as a Rule Participant in the Market Participant class for an application received under clause 2.28.7 unless AEMO determines, in accordance with the WEM Procedures specified in clauses 2.28.21 and 2.29.4N, that the Facility must be registered for the purposes of Power System Security and Power System Reliability, in which case, the relevant applicant under clause 2.28.7 must register as a Rule Participant in the Market Participant class and register the Facility in accordance with section

2.29.

Explanatory Note

Clause 2.28.8 is amended to reflect the new registration framework where any Facility containing an Energy Producing System with a System Size of less than 5 MW will have a standing exemption from the requirement to be registered. However, AEMO may revoke a standing exemption for reasons of Power System Security and Power System Reliability.

2.28.8. Subject to clauses 2.28.8A and 2.28.8B, a person who intends to

own, control or operate a Facility with a System Size that is less than 5 MW and is or will be electrically connected to a transmission system or distribution system which forms part of the South West Interconnected System, or is electrically connected to that system is exempt from the requirement to register as a Rule Participant in the Market Participant class.

2.28.8A. A person who intends to own, control or operate a Facility with

a System Size that is less than 5 MW and is or will be electrically connected to the South West Interconnected System may register as a Market Participant.

2.28.8B. Clause 2.28.8 does not apply where:

$a$ the Facility is required to be registered in a Facility Class in accordance with section 2.29; or

$b$ AEMO determines, in accordance with the WEM Procedure specified in clause 2.29.4N, that the Facility must be registered for the purposes of Power System Security and Power System Reliability.

Explanatory Note

Clause 2.28.9 is deleted to reflect that there are no separate Market Generator and Market Customer classes in the new registration framework.

Replacement clause 2.28.9 provides that where AEMO does not grant an exemption from the requirement to register in respect to a Facility less than 10 MW, then the person who owns, operates or controls the Facility must register in the Market Participant class.

2.28.9. Where AEMO:

$a$ does not grant an exemption in respect of an application made under clause 2.28.7; or

$b$ determines that a Facility must be registered in accordance with clause 2.28.8B,

the person who owns, controls or operates the Facility must register as a Rule Participant in the Market Participant class.

Explanatory Note

New clause 2.28.9A requires that any person exempted from the requirement to register that intends to make any modifications to its Energy Producing System must notify AEMO. AEMO will then determine whether the exemption from the requirement to register remains in place.

2.28.9A. Where a person who owns, controls or operates a Facility is

exempt, under clause 2.29.4B or clause 2.29.4C, from the requirement to register the Facility and the person intends to make modifications to its Facility, which are likely to increase the System Size of the Facility or do not relate to routine maintenance or replacement of equipment, the person must notify AEMO as soon as practicable and provide details of the proposed modifications.

2.28.9B. Where AEMO receives a notification under clause 2.28.9A, AEMO

must reassess the exemption in accordance with the exemption criteria and timeframes set out in the WEM Procedure referred to in clause

2.29.4N and AEMO must either:

$a$ confirm the exemption remains valid; or

$b$ revoke the exemption,

and notify the person who owns, controls or operates the Facility of the outcome.

2.28.9BA. Where AEMO revokes an exemption under clause 2.28.9B(b), the

person who owns, controls or operates the relevant Facility must:

$a$ register as a Rule Participant in the Market Participant class; and

$b$ register its Facility in the relevant Facility Class in accordance with section 2.29.

2.28.9C. AEMO may, at any time, revoke an exemption granted pursuant to

clause 2.28.7A or clause 2.29.4B, if AEMO considers that the relevant Facility no longer meets the exemption criteria for the relevant exemption set out in the WEM Procedures referred to in clauses 2.28.21 and 2.29.4N.

2.28.10. Subject to clause 2.28.16, a person who sells electricity to

Contestable Customers in respect of Facilities electrically connected to a transmission system or distribution system which forms part of the South West Interconnected System, or is electrically connected to that system, must register as a Rule Participant in the Market Participant class.

2.28.11. A person who intends to sell electricity to Customers in

respect of Facilities electrically connected to a transmission system or distribution system which forms part of the South West Interconnected System, or is electrically connected to that system, may register as a Rule Participant in the Market Participant class.

2.28.12. [Blank]

2.28.13. Subject to clauses 2.28.16 and 4.24.4, a person not covered by

clauses 2.28.2 to 2.28.11 but who sells or purchases electricity or provides another electricity related service under these WEM Rules to or from AEMO, including, without limitation, a person who intends to provide or provides an Essential System Service, must register as a Rule Participant in the Market Participant class.

2.28.14. [Blank]

2.28.15. [Blank]

2.28.15A. AEMO is a Rule Participant, but is not required to register,

and must not be registered in any other Rule Participant class.

2.28.16. AEMO may determine that a person is exempted from the

requirement to register in accordance with clauses 2.28.2, 2.28.6,

2.28.7, 2.28.10 or 2.28.13. An exemption may be given subject to any

conditions AEMO considers appropriate and may, upon prior reasonable notice, be revoked at any time.

Explanatory Note

Clause 2.28.16A is amended to:

reverse the change made to clause 2.28.16A(a) in the Tranches 2 and 3 Amendments, because an Applicant should not always have to nominate an Intermediary when seeking an exemption from the requirement to register as a Rule Participant (e.g. when the reason for the exemption is that the Applicant’s Facility does not need to be registered); and

ensure an Applicant undertakes all necessary steps before submitting a revocation notice under clause 2.28.16A(d), to ensure the revocation of the Intermediary does not occur before the necessary steps to replace it have been completed.

2.28.16A. For the purposes of clause 2.28.16:

$a$ a person (the “Applicant”) who applies to AEMO for an exemption under clause 2.28.16 from the requirement to register may:

i. notify AEMO of the identity of a person (an “Intermediary”) to be registered instead of the Applicant; and

ii. provide AEMO with the written consent of the Intermediary to act as Intermediary in a form reasonably acceptable to AEMO;

$b$ if an application for exemption made in accordance with clause

2.28.16A(a) is granted by AEMO in accordance with clause 2.28.16 then:

i. provided the Intermediary satisfies all relevant registration requirements that the Applicant would have been required to satisfy, AEMO must register the Intermediary as a Rule Participant as if it were the Applicant;

ii. the Intermediary will be considered for the purposes of these WEM Rules to be the Applicant;

iii. all references in these WEM Rules to the Applicant will be deemed to be references to the Intermediary (unless the context requires otherwise);

iv. all acts, omissions, statements, representations and notices of the Intermediary in its capacity as the Rule Participant under these WEM Rules will be deemed to be the acts, omissions, statements, representations and notices of the Applicant;

v. the Intermediary and the Applicant will be jointly and severally liable for the acts, omissions, statements, representations and notices of the Intermediary in its capacity as the Rule Participant under these WEM Rules;

vi. AEMO or any other Rule Participant may fulfil any obligations to the Applicant under these WEM Rules by performing them in favour of the Intermediary;

vii. the Applicant must procure, and where necessary must facilitate, the Intermediary’s compliance with its obligations under these WEM Rules, including any obligations that, but for the exemption, would be placed on the Applicant; and

viii. the Applicant must, where necessary, participate in and abide by the outcome of any dispute process under sections 2.18 to 2.20;

$c$ for the purposes of enforcing clauses 2.28.16A(b)(vii) and (viii), a reference in these WEM Rules to “Rule Participant” includes the Applicant;

$d$ the Applicant may revoke the appointment of the Intermediary by giving notice of the revocation to AEMO and, prior to giving such notice to AEMO:

i. where the Applicant wishes to appoint a replacement Intermediary:

1. providing the notices referred to in clauses 2.28.16A(a)(i) and

2.28.16A(a)(ii) to AEMO;

2. obtaining AEMO's consent to be exempted from registration in accordance with clause 2.28.16;

3. ensuring that all relevant Registered Facilities or Intermittent Loads that were registered to the current Intermediary have been transferred to the replacement Intermediary; and

4. ensuring that the replacement Intermediary has notified AEMO of the change of circumstances for Credit Limit determination purposes in accordance with clause 2.37.8; or

ii. where clause 2.28.16A(d)(i) does not apply:

1. registering as a Rule Participant in the Market Participant class;

2. ensuring that all relevant Registered Facilities or Intermittent Loads that were registered to the current Intermediary have been transferred to the Applicant; and

3. notifying AEMO of the change of circumstances for Credit Limit determination purposes in accordance with clause 2.37.8;

Explanatory Note

Clause 2.28.16A(e) has been modified to refer to 8:00 AM as a notice of revocation and the transfer of any Registered Facilities can only be effected at the start of a Trading Day. AEMO's systems cannot effect a transfer at 4:30 AM as per the previous requirement.

$e$ at 8:00 AM, 2 Business Days after AEMO receives notice of the revocation of the appointment of an Intermediary in accordance with clauses 2.28.16A(d)(i) or 2.28.16A(d)(ii), the Intermediary will cease to be considered the Applicant’s Intermediary for the purposes of these WEM Rules and the Applicant will not be liable under clause

2.28.16A(b)(v) for any acts, omissions, statements, representations or

notices of the Intermediary occurring after that time;

$f$ if the Applicant revokes the appointment of an Intermediary, the exemption granted by AEMO to the Applicant as contemplated by clause

2.28.16A(b) ceases at the time the Intermediary ceases to be the

Applicant’s Intermediary in accordance with clause 2.28.16A(e); and

$g$ AEMO may permit the Applicant to designate the Intermediary as the Applicant’s Intermediary with respect to one or more Facilities which the Applicant owns, operates or controls.

2.28.16B. Without limiting the generality and the operation of clause

2.28.16, AEMO may exempt under clause 2.18.16 a person who owns,

controls or operates a generation system which has a rated capacity that equals or exceeds 10 MW and is electrically connected to a transmission system or distribution system which forms part of the South West Interconnected System, or is electrically connected to that system, from the requirement to register as a Rule Participant in the Market Participant class, in respect of that generation system, where all of the following are satisfied:

$a$ positive MWh quantities measured by the interval meter or meters associated with that generation system are not reasonably expected to exceed 5 MWh in any Trading Interval;

$b$ negative MWh quantities measured by the interval meter or meters associated with that generation system are not reasonably expected to increase by more than 5 MWh in any Trading Interval in the event of an outage of that generating system;

$c$ AEMO has determined that it does not require information about the relevant generation system to ensure Power System Security and Power System Reliability are maintained;

$d$ the meter or meters measuring the generation system remains registered by an existing Market Participant; and

$e$ AEMO determines that with the exemption the cumulative effect of all exemptions given under this clause 2.28.16B is consistent with the Wholesale Market Objectives,

and AEMO may give the exemption subject to any conditions AEMO considers appropriate and may revoke the exemption if AEMO determines that any of these conditions, or any of the conditions in this clause 2.28.16B, ceases to be satisfied.

2.28.16C. Where AEMO is reasonably satisfied the requirements of clause

2.30B.8B have been met, AEMO must exempt a person who owns, controls or

operates a Facility containing an Intermittent Load from the requirement to register as a Rule Participant.

2.28.17. A Rule Participant under these WEM Rules is a participant for

the purposes of section 121(2) of the Electricity Industry Act.

2.28.18. [Blank]

2.28.19. Any person intending to register as a Rule Participant or who

is registered as a Rule Participant must:

$a$ be resident in, or have permanent establishment in, Australia;

$b$ not be a Chapter 5 body corporate (as defined in the Corporations Act), or under a similar form of administration under any laws applicable to it in any jurisdiction;

$c$ not have immunity from suit in respect of the obligations of a Rule Participant under these WEM Rules; and

$d$ be capable of being sued in its own name in a court of Australia.

Explanatory Note

Clause 2.28.20 is a modified version of clause 2.28.3A which is relocated to the end of section 2.29.

AEMO will be required to develop a new WEM Procedure (or amend the existing WEM Procedure) that sets out the exemption criteria for the requirement to register as a Market Participant or a Facility in a Facility Class. This WEM Procedure will also outline the processes that are to be followed by both AEMO and Market Participants in applying for, assessing, granting and revoking an exemption.

2.28.20. AEMO must document the following in a WEM Procedure:

$a$ information that a Network Operator must provide to AEMO, for each of its Networks, including:

i. positive, negative and zero sequence network impedances for the network elements;

ii. information on the network topology;

iii. information on transmission circuit limits;

iv. information on security constraints;

v. overload ratings, including details of how long overload ratings can be maintained; and

vi. the short circuit capability of facility equipment;

$b$ the processes to be followed by a Network Operator to enable AEMO to access the information specified in clause 2.28.20(a);

$c$ technical and communication criteria that a Network Operator must meet with respect to AEMO’s ability to access the information specified in clause 2.28.20(a); and

$d$ the processes to be followed by AEMO when accessing the information specified in clause 2.28.20(a).

Explanatory Note

Clause 2.28.21(b) is amended to replace “Market Participant” with “person”, because an applicant for exemption in respect of Rule Participant registration is not always (and is in practice quite unlikely to be) a Market Participant.

2.28.21. AEMO must document the following in a WEM Procedure:

$a$ the criteria AEMO will use to determine whether or not to exempt persons from Rule Participant registration requirements in sections 2.28 and 2.30B, which must include assessment criteria for AEMO to ensure that granting an exemption from the requirement to register does not adversely affect Power System Security or Power System Reliability;

$b$ the processes to be followed by a person in applying for an exemption in respect of Rule Participant registration under sections

2.28 and 2.30B; and

$c$ the processes to be followed and criteria to be applied by AEMO in assessing, determining or revoking an exemption in respect of Rule Participant registration under sections 2.28 and 2.30B.

2.29. Facility Registration Classes

Explanatory Note

Clause 2.29.1 outlines the types of technology that may exist in the WEM. Clause 2.29.1A outlines the Facility Classes for the purposes of registration in the WEM.

A Facility may contain one or more technology types (however they may be limited by rules related to facility aggregation and requirement to be at a single network connection point). The determination of Facility Class will be made by AEMO in accordance with the registration process.

2.29.1. The Facility Technology Types are:

$a$ a distribution system;

$b$ a transmission system;

$c$ an Intermittent Generating System;

$d$ a Non-Intermittent Generating System;

$e$ an Electric Storage Resource; and

$f$ a Load.

2.29.1A. The Facility Classes are:

$a$ a Network;

$b$ a Scheduled Facility;

$c$ a Semi-Scheduled Facility;

$d$ a Non-Scheduled Facility;

$e$ an Interruptible Load; and

$f$ a Demand Side Programme.

Explanatory Note

Clause 2.29.1B defined the term 'Facility' for the purposes of the WEM Rules. This clause outlines what a Facility may consist of and clarifies the object which is being assessed for the purposes of Reserve Capacity certification, registration application, de-registration or registration exemption. The term 'Facility' may refer to an unregistered Facility or Registered Facility.

Clause 2.29.1B identifies the different types of facilities captured under the WEM Rules. Note these facilities are not necessarily required to be registered (example transmission and distribution system are not separately registered under WEM Rules), they have obligations placed on them in the WEM Rules and certain facilities may register into Facility Classes as defined in clause 2.29.1A

2.29.1B. The following are Facilities for the purposes of these WEM

Rules:

$a$ a transmission system;

$b$ a distribution system;

$c$ all Facility Technology Types that are connected behind a single network connection point or electrically connected behind two or more shared network connection points;

$d$ one or more Facilities described in clause 2.29.1B(c), aggregated under section 2.30 at an Electrical Location;

$e$ a Small Aggregation;

$f$ a Demand Side Programme; or

$g$ an Interruptible Load.

2.29.1C. AEMO's determination of a Facility Class under this section

2.29 is final.

2.29.2. Subject to clause 2.29.2A, no Facilities registered in one

Facility Class can simultaneously be registered in another Facility Class.

Explanatory Note

Clause 2.29.2A provides an explicit exemption in the WEM Rules that may enable Market Participants to register a DSP or Interruptible Load at a common set of network connection points to another Registered Facility.

2.29.2A. Notwithstanding clause 2.29.2, AEMO may allow registration of a

Demand Side Programme and Interruptible Load at a common set of network connection points provided that:

$a$ the Demand Side Programme and the Interruptible Load are registered to the same Market Participant; or

$b$ the Market Participant for the Demand Side Programme and the Interruptible Load each provide evidence that their Facility is capable of meeting the obligations under clause 7.4.10.

2.29.3. Subject to clause 2.29.4M, a Network Operator must register any

transmission system or distribution system owned, operated or controlled by that Network Operator as a Network, where that transmission or distribution system forms part of the South West Interconnected System, or is electrically connected to that system.

2.29.4. Subject to clauses 2.29.4M and 2.30B.8D, a person who owns,

controls or operates a Facility containing an Energy Producing System with a System Size that equals or exceeds 10 MW and is electrically connected to a transmission system or distribution system which forms part of the South West Interconnected System, or is electrically connected to that system, must register the Facility as a Semi-Scheduled Facility or a Scheduled Facility.

2.29.4A. A person that owns, controls or operates a Facility containing

an Energy Producing System with a System Size of less than 10 MW, but which equals or exceeds 5 MW, and is electrically connected to a transmission system or distribution system which forms part of the South West Interconnected System, or is electrically connected to that system, must apply to AEMO for an exemption from the requirement to register the Facility in a Facility Class where the person is not intending to register the Facility in a Facility Class.

2.29.4B. Where AEMO receives an application under clause 2.29.4A, AEMO

must grant an exemption from the requirement to register the Facility in a Facility Class unless AEMO determines, in accordance with the WEM Procedure specified in clause 2.29.4N, that the Facility must be registered in a Facility Class for the purposes of Power System Security and Power System Reliability.

2.29.4C. Subject to clause 2.29.4E, a person who intends to own, control

or operate a Facility with a System Size that is less than 5 MW and is or will be electrically connected to a transmission system or distribution system which forms part of the South West Interconnected System, or is electrically connected to that system, is exempted from the requirement to register the Facility in a Facility Class.

2.29.4D. Clause 2.29.4C does not apply where AEMO determines, in

accordance with the WEM Procedure specified in clause 2.29.4N, that a Facility, containing an Energy Producing System, must be registered in a Facility Class for the purposes of Power System Security and Power System Reliability.

2.29.4E. A person who intends to own, control or operate a Facility with

a System Size that is less than 5 MW, and is or will be electrically connected to the South West Interconnected System may apply to AEMO to register the Facility in a Facility Class.

2.29.4F. Where AEMO:

$a$ does not grant an exemption in respect to an application made under clause 2.29.4A; or

$b$ determines that the Facility must be registered in accordance with clause 2.29.4D,

the person who owns, controls or operates the Facility must register the Facility in a Facility Class.

2.29.4G. A person that owns, operates or controls a Facility with a

System Size that is less than 10 MW may request the Facility to be registered as a Non-Scheduled Facility, a Scheduled Facility or a Semi-Scheduled Facility.

2.29.4H. AEMO must grant a request by a person that owns, operates or

controls a Facility containing an Energy Producing System with a System Size less than 10 MW to register the Facility as a Non-Scheduled Facility, unless AEMO determines the Facility must be controllable for the purposes of Power System Security and Power System Reliability in accordance with the WEM Procedure referred to in clause 2.29.4N.

2.29.4I. If AEMO determines that a Facility containing an Energy

Producing System must be controllable for the purposes of Power System Security and Power System Reliability, in accordance with the WEM Procedure pursuant to 2.29.4N or if a person requests to register their Facility as a Scheduled Facility or a Semi-Scheduled Facility under clause 2.29.4G, then AEMO must register the relevant Facility as either a Scheduled Facility or a Semi-Scheduled Facility in accordance with clause 2.29.4K and the WEM Procedure referred to in clause 2.29.4N.

2.29.4J. AEMO must not register a Facility with a System Size greater

than or equal to 10 MW as a Non-Scheduled Facility.

2.29.4K. In determining whether a Facility should be registered as a

Scheduled Facility or a Semi-Scheduled Facility, AEMO must take into account the extent to which the relevant Facility is controllable as follows:

$a$ a Scheduled Facility must be able to respond to a Dispatch Target from AEMO such that it can maintain its Injection or Withdrawal within its Tolerance Range for a specified period; and

$b$ a Semi-Scheduled Facility must be able to reduce the value of its Injection or increase the value of its Withdrawal to comply with a Dispatch Cap issued by AEMO.

2.29.4L. Where AEMO reasonably considers that further information is

required to enable it to make a determination under clause 2.29.4K, AEMO may request the information from the relevant Market Participant and the Market Participant must provide the information to AEMO by the time specified in the request, which must not be less than 15 Business Days of receipt of AEMO's request. AEMO may extend the time specified in a request if it considers it is reasonably necessary to do so.

2.29.4M. AEMO may determine that a person is exempted from the

requirement to register a Facility in accordance with this section 2.29. An exemption may be given subject to any conditions that AEMO considers appropriate.

Explanatory Note

Clause 2.29.4N requires AEMO to develop a WEM Procedure on how AEMO determines a Facility’s controllability based on how reliably a Facility can follow AEMO’s Dispatch Instructions.

2.29.4N. AEMO must document in a WEM Procedure:

$a$ the process AEMO will follow to assess a Facility’s controllability where that assessment must take into account:

i. the controllability requirements specified for a Scheduled Facility and a Semi-Scheduled Facility in clause 2.29.4K;

ii. how reliably a Facility can follow Dispatch Instructions within its Tolerance Range; and

iii. any other information provided by a Market Participant, in response to a request by AEMO or otherwise, that supports the assessment of the Facility’s controllability;

$b$ the criteria AEMO will use to determine whether or not to exempt a Facility from Facility registration requirements in this section 2.29, which must include assessment criteria for AEMO to ensure that granting an exemption from the requirement to register does not adversely affect Power System Security or Power System Reliability;

$c$ the processes to be followed by a Market Participant in applying for an exemption from the requirement to register a Facility under this section 2.29; and

$d$ the processes to be followed and criteria to be applied by AEMO in assessing, determining or revoking an exemption in respect of Facility registration under this section 2.29 and section 2.30B; and

$e$ the processes to be followed in relation to applications for Intermittent Loads and the provision of data to AEMO under section

2.30B.

Explanatory Note

A new heading has been added to segregate clauses relating to Non-Dispatchable Loads and the association and disassociation process with Demand Side Programmes.

The relevant clauses have been updated to include Interruptible Loads.

Clause 2.29.5N provides AEMO with the head of power to outline the process to associate and disassociate a Non-Dispatchable Load with Demand Side Programmes and Interruptible Loads in a WEM Procedure.

Non-Dispatchable Loads and the association and disassociation with Demand Side Programmes and Interruptible Loads

Explanatory Note

New clause 2.29.5 is similar to clause 2.29.5A so that a Market Participant, other than the Financially Responsible Market Participant, can aggregate loads to register Interruptible Loads.

2.29.5. A Market Participant that owns, operates or controls a

Non-dispatchable Load or:

$a$ has entered into; or

$b$ intends to enter into,

a contract with a person who owns, controls or operates a Non-Dispatchable Load, for the Load to be interrupted in response to under frequency situations may register an Interruptible Load.

2.29.5A. A Market Participant that owns, operates or controls a

Non-Dispatchable Load or:

$a$ has entered into; or

$b$ intends to enter into,

a contract with a person who owns, controls or operates a Non-Dispatchable Load, for the Load to provide curtailment (on request if relevant) by the Market Participant, may register a Demand Side Programme.

2.29.5AA. A Market Participant that owns, controls or operates a

Facility containing a Load may register the Facility as a Scheduled Facility if AEMO determines that the Facility meets the controllability requirements outlined in the WEM Procedure specified in clause 2.29.4N.

2.29.5B. A Market Participant may apply to AEMO to associate a

Non-Dispatchable Load with a Demand Side Programme or an Interruptible Load. The Market Participant must provide the following information to AEMO in support of the application:

$a$ if applicable, evidence satisfactory to AEMO that the Market Participant owns the Non-Dispatchable Load or has entered into a contract with the person who owns, operates or controls the Non-Dispatchable Load to provide curtailment on request by the Market Participant;

$b$ the network connection point of the Non-Dispatchable Load;

(bA) the Transmission Node Identifier for the Non-Dispatchable Load;

$c$ the expected Minimum Consumption of the Non-Dispatchable Load in units of MW;

$d$ if the Market Participant requesting the association owns, controls or operates the relevant Non-Dispatchable Load, then the start date and end date of the Non-Dispatchable Load association proposed by the Market Participant; and

$e$ if the Market Participant requesting the association has entered into a contract with a person who owns, controls or operates the relevant Non-Dispatchable Load, then the contract start date and contract end date.

2.29.5C. AEMO must within one Business Day notify an applicant of the

receipt of the application submitted under clause 2.29.5B. AEMO may, at its discretion, require that an applicant provide information that is missing from the application or is inadequately specified. The date the requested information is submitted to AEMO will become the date of receipt of the application.

2.29.5CA. Where an applicant receives a request for information from

AEMO under clause 2.29.5C and does not provide the information to AEMO within 20 Business Days from the date of AEMO's request, the applicant will be deemed to have withdrawn the application.

2.29.5D. AEMO must determine, in accordance with clause 2.29.5E, whether

to accept or reject an application submitted under clause 2.29.5B, and must notify the applicant of its decision within 10 Business Days of receipt of the application.

2.29.5E. AEMO must accept an application submitted under clause 2.29.5B

unless:

$a$ AEMO considers that the evidence provided by the Market Participant under clauses 2.29.5B and 2.29.5C is not satisfactory;

$b$ the relevant Non-Dispatchable Load is not equipped with interval metering;

$c$ [Blank]

$d$ for an application relating to a Demand Side Programme, the relevant Non-Dispatchable Load is registered as an Intermittent Load for any part of the proposed Association Period;

$e$ subject to clause 2.29.2A, the relevant Non-Dispatchable Load is already associated with a Demand Side Programme or an Interruptible Load registered to a different Market Participant for any part of the proposed Association Period;

$f$ during the same Capacity Year, the relevant Non-Dispatchable Load was an Associated Load of another Demand Side Programme and, while it was so associated:

i. the other Demand Side Programme passed a Reserve Capacity Test or a Verification Test; or

ii. any part of DSM Reserve Capacity Security associated with the other Demand Side Programme was returned or relinquished under:

1. clause 4.13A.19 by operation of clause 4.13A.18; or

2. clause 4.13A.24; or

$g$ the Transmission Node Identifier for the relevant Non-Dispatchable Load does not match the single Transmission Node Identifier for the Demand Side Programme.

2.29.5F. If AEMO accepts an application in accordance with clause

2.29.5D then AEMO must include in its notification to the applicant:

$a$ the date and time from which the relevant Non-Dispatchable Load will be associated with the Demand Side Programme or Interruptible Load, as applicable, as defined under clause 2.29.5G(a); and

$b$ the date and time from which the relevant Non-Dispatchable Load will cease to be associated with the Demand Side Programme or Interruptible Load, as applicable, as defined under clause 2.29.5G(b).

2.29.5G If AEMO accepts an application submitted under clause 2.29.5B

then AEMO must associate the relevant Non-Dispatchable Load (“Associated Load”) with the Demand Side Programme or Interruptible Load, as applicable, for the period (“Association Period”) between:

$a$ the start date, which is the latest of:

i. if the Market Participant making the application owns, controls or operates the relevant Non-Dispatchable Load, the start of the Trading Day commencing on the start date provided under clause 2.29.5B(d); or

ii. if the Market Participant making the application has entered into contract with the person who owns, controls or operates the relevant Non-Dispatchable Load, the contract start date provided under clause

2.29.5B(e); or

iii. the start of the Trading Day following the day that AEMO notifies the applicant of its decision under clause 2.29.5D to accept the application submitted under clause 2.29.5B; and

$b$ the end date is:

i. if the Market Participant making the application owns, controls or operates the relevant Non-Dispatchable Load, the end of the Trading Day for the end date provided under clause 2.29.5B(d); or

ii. if the Market Participant making the application has entered into a contract with the person who owns, controls or operates the relevant Non-Dispatchable Load, the end of the Trading Day for the contract end date provided under clause 2.29.5B(e).

2.29.5H. If AEMO rejects an application submitted under clause 2.29.5B,

then AEMO must include in its notification to the applicant under clause

2.29.5D the reasons for the rejection of the application. A Market

Participant whose application is rejected may reapply to associate a Non-Dispatchable Load with a Demand Side Programme or Interruptible Load, as applicable, under clause 2.29.5B.

2.29.5I. A Market Participant with an Associated Load may apply to AEMO

to:

$a$ cancel the association of the relevant Non-Dispatchable Load with the Demand Side Programme or Interruptible Load, as applicable; or

$b$ reduce the Association Period of the Associated Load.

2.29.5J. AEMO must within one Business Day notify an applicant of the

receipt of an application submitted under clause 2.29.5I.

2.29.5K. AEMO must determine whether to accept or reject an application

submitted under clause 2.29.5I and notify the applicant of its decision within two Business Days of the receipt of the application. AEMO must accept the application unless the proposed change would affect the association of the relevant Non-Dispatchable Load with the Demand Side Programme or Interruptible Load, as applicable, during any period before the Trading Day commencing on the third Business Day after the receipt of the application.

2.29.5L. If AEMO accepts an application submitted under clause 2.29.5I

then it must either:

$a$ cancel the association of the relevant Non-Dispatchable Load with the Demand Side Programme or Interruptible Load, as applicable; or

$b$ reduce the Association Period of the Associated Load,

as requested in the application.

2.29.5LA. If AEMO becomes aware that information of the type listed in

clause 2.29.5B regarding an Associated Load differs from that provided under clause 2.29.5B or previously the subject of a redetermination under this clause 2.29.5LA (“New Information”), then AEMO must make a fresh determination under clause 2.29.5D taking into account the New Information, as a result of which AEMO must, as appropriate:

$a$ reduce the Associated Load's Association Period; or

$b$ take other measures in respect of the Associated Load including cancelling its association; or

$c$ make no change to its previous determination or redetermination.

2.29.5LB. AEMO may from time to time request a Market Participant with a

Demand Side Programme or Interruptible Load to provide evidence to AEMO's reasonable satisfaction that information provided under clause

2.29.5B or previously the subject of an adjustment under clause

2.29.5LA, remains accurate, and the Market Participant must comply as

soon as reasonably practicable and in any event within 10 Business Days of the request.

2.29.5LC. If AEMO takes action under clause 2.29.5LA(a) or clause

2.29.5LA(b), it must notify the Market Participant of the action and its

reasons within five Business Days after the action.

2.29.5M. If AEMO rejects an application submitted under clause 2.29.5I,

then AEMO must include in its notification to the applicant under clause

2.29.5K the reasons for the rejection of the application.

2.29.5N. AEMO must document in a WEM Procedure:

$a$ the process to be followed by a Market Participant and the information to be provided to AEMO for an application to associate, disassociate or reduce the Association Period of a Non-Dispatchable Load with a Demand Side Programme or an Interruptible Load under clauses

2.29.5B and 2.29.5I; and

$b$ the process to be followed by AEMO in respect to accepting or rejecting an application to associate, disassociate or reduce the Association Period of a Non-Dispatchable Load with a Demand Side Programme or an Interruptible Load under clauses 2.29.5B and 2.29.5I.

Explanatory Note

To support the Taskforce design decision to incorporate a lifecycle approach to registration, Market Participants will be required to notify AEMO whenever the configuration of their Facility changes as this may affect the classification of the Facility.

Under the new arrangements registration will need to be an ongoing process from Facility creation to deregistration. This is to ensure that AEMO has the information required to inform scheduling and dispatch while maintaining system security, and that necessary obligations apply to a Facility through the operation of the WEM Rules.

New provisions have been incorporated to outline the Facility Class reassessment process to be followed by Market Participants and AEMO.

Clause 2.29.6 outlines the process under the WEM Rules by which a Market Participant may trigger a Facility Class reassessment request for a Registered Facility.

The scope of clauses 2.29.6 excludes Demand Side Programmes and Interruptible Loads, as Facilities registered in these Facility Classes are not subject to the reclassification if the configuration of their Facility changes. Instead, for Demand Side Programmes and Interruptible Loads, a Market Participant or AEMO may trigger the Load association and or the disassociation process in accordance with clause 2.29.5 and changes to the configuration of an Interruptible Load will require ESS re-accreditation.

Requirements have also been updated in sections 2.31 and 2.33 to incorporate the Facility Class reassessment process initiated by a Market Participant and the required application form.

2.29.6. A Market Participant must submit an application in accordance

with clause 2.33.8 for a Facility Class reassessment on becoming aware that:

$a$ the System Size of its Non-Scheduled Facility is or will be greater than 10 MW; or

$b$ the Facility Class that the Facility is registered in does not reflect the Facility’s controllability.

2.29.7. AEMO must process a Facility Class reassessment application it

receives in accordance with section 2.31.

2.29.7A. AEMO may from time to time conduct a review to assess whether a

Registered Facility continues to meet the obligations under these WEM Rules and WEM Procedures for the Facility Class in which it is registered.

2.29.8. Where AEMO considers that a Facility no longer meets the

requirements of the Facility Class it is registered in, AEMO may register the Facility in a different Facility Class.

2.29.9. AEMO must document in a WEM Procedure:

$a$ the processes AEMO will use to:

i. determine whether a Facility should be assigned to a different Facility Class; and

ii. assign a Facility to a different Facility Class; and

$b$ the processes a Market Participant must follow where:

i. the Market Participant provides information to AEMO under clause

2.29.6; or

ii. AEMO notifies the Market Participant of its intention to assess whether the Facility continues to meet the requirements of the Facility Class in which it is registered.

Explanatory Note

Clause 2.29.10 has been replaced by a similar clause in section ### 2.30B.

Clause 2.29.11 is deleted, as the requirements for Energy Producing Systems serving Intermittent Loads are now covered in section ### 2.30B.

2.29.10 [Blank]

2.29.11 [Blank]

Explanatory Note

Electric Storage Resources co-located with a Scheduled Facility or Semi-Scheduled Facility must have separate metering installed for the purposes of Reserve Capacity certification and testing.

Subsequent amendments clarify that the requirement extends to Facilities where certification of Reserve Capacity for only one component is sought.

2.29.12. A Market Participant must install Facility Sub-Metering for a

Scheduled Facility or Semi-Scheduled Facility containing:

$a$ multiple Separately Certified Components; or

$b$ a single Separately Certified Component and any Energy Producing Systems that are not that Separately Certified Components.

2.29.13. Facility Sub-Metering is to be used solely for the purpose of:

$a$ certification of Reserve Capacity under section 4.9;

$b$ a Reserve Capacity Test under section 4.25; and

$c$ in accordance with clause 4.13.10B, the determination of whether a Facility is in Commercial Operation.

To avoid doubt, Facility Sub-Metering must not be used for the purposes of settlement under Chapter 9.

2.29.14. Facility Sub-Metering must comply with the requirements

specified in the WEM Procedure referred to in clause 2.29.15.

2.29.15. AEMO must document the following matters in respect of Facility

Sub-Metering in a WEM Procedure:

$a$ the characteristics and requirements of Facility Sub-Metering, including accuracy requirements;

$b$ the procedures to be followed by Market Participants for auditing of Facility Sub-Metering;

$c$ the communication requirements and protocols between a relevant Market Participant and AEMO;

$d$ the processes to be followed by a Market Participant for providing Facility Sub-Metering information to AEMO; and

$e$ any other matters which AEMO considers relevant.

Explanatory Note

Clauses 2.29.1B(c) and (d) define a Facility to be one or more Facility Technology Types behind a network connection point, or an aggregation of the former.

The scope of section 2.30 therefore only covers the aggregation of Facilities contemplated under clause 2.29.1B(c). However, the existing section makes generic reference to the term Facility, which according to amended clause 2.29.1B also includes Demand Side Programmes and Small Aggregations.

See related change above to clause 2.29.1B to include Interruptible Loads so that it is clear that section 2.30 also excludes the aggregation of Interruptible Loads which (like DSPs) undergo a load association process.

Section 2.30 clarifies the aggregation process and timelines. Currently sections 2.31 to 2.33 excludes facility aggregation/disaggregation. While a head of power for an aggregation/disaggregation WEM Procedure exists, amendments to sections ### 2.31 to 2.33 to include aggregation/disaggregation , so thatwill make it clear that the requirements in section 2.30 are effected through the process set out in section 2.31.

Minor change to clause 2.30.1 to indicate that aggregation requests can come in at any time - not just when an unregistered Facility is being registered. A participant may choose to aggregate two or more Registered Facilities.

Clause 2.30.2 has been deleted as a provision to aggregate intermittent generation equipment which inject energy at a common network connection point to become a single Facility is no longer required. This has been superseded by the definition of a Facility in clause 2.29.1B(c) which achieves the same outcome.

2.30. Facility Aggregation

2.30.1. A Rule Participant, or an applicant for rule participation, may

apply to AEMO to allow the registration of an Aggregated Facility.

2.30.1A. For each Capacity Year AEMO may only accept an application

under clause 2.30.1 once with respect to each Facility.

2.30.2. [Blank]

2.30.3. [Blank]

2.30.4. AEMO must consult with the relevant Network Operator when

assessing an application for Facility aggregation and inform the relevant Rule Participant whether the aggregation of the facilities is allowed.

Explanatory Note

Clause 2.30.5(c) is a consequential amendment as a result of the new Essential System Services framework, which does not use the term ‘Ancillary Service Contract’.

Clause 2.30.5(f) precludes AEMO from aggregating, or allowing to continue to be aggregated, Facilities where the price for Reserve Capacity to be provided by those Facilities is not, or is not expected to be, the same.

Section 3.1.1 of the Energy Scheduling and Dispatch Information paper sets out the criteria that AEMO must apply when approving the aggregation of Facilities, so that the locational dispatch and co-optimisation of ESS envisaged by the SCED reforms can be effected.

Paragraph (g) of clause 2.30.5 represents this intent, and is intended to convey the following:

AEMO cannot approve an aggregation that would lead to the over-procurement of Contingency Reserve Raise ESS as a result of reflecting the output of the Aggregated Facility as the contingency (in the relevant ESS constraint) in SCED when the credible contingency is the individual loss of each component Facility. This is not an issue when the aggregation is so small, that the impact on Contingency Reserve Raise ESS procurement is negligible or nil.
AEMO cannot approve an aggregation where the Aggregated Facility would be providing ESS, and the ESS capability (ESS trapezium) cannot be accurately depicted for the Aggregated Facility in its entirety. It should be noted the Facility capable of providing ESS, must offer its ESS quantity at its connection points for the whole Facility, not at the Facility’s sub-component level.
AEMO may only aggregate Facilities if the proposed Aggregated Facility are at the same Electrical Location. Figure 1 and Figure 2 below illustrate configurations in which aggregation is allowed and not allowed.

Figure 1 – Aggregation is allowed as Facilities are located at the same Electrical Location

Figure 2 - Aggregation is not allowed as Facilities are located at Different Electrical Locations.

In addition, clause 2.30.5 (b) has been amended slightly to clarify the fact that:

The aggregation may comprise both registered and unregistered Facilities; and
AEMO may require Standing Data in respect of the aggregation as opposed to just the individual Facilities comprising the aggregation.

2.30.5. AEMO must only allow the aggregation of Facilities pursuant to

an application under clause 2.30.1 if, in its opinion, the proposed Aggregated Facility meets the following criteria:

$a$ the proposed Aggregated Facility will not adversely impact on AEMO's ability to ensure Power System Security and Power System Reliability are maintained;

$b$ the Market Participant for the proposed Aggregated Facility provides Standing Data for:

i. each individual Facility that would be required to be provided if each Facility was registered separately; and

ii. the Aggregated Facility as a whole;

$c$ adequate control and monitoring equipment exists for the proposed Aggregated Facility; and

$d$ the Facilities within the proposed Aggregated Facility are at the same Electrical Location;

$e$ [Blank]

$f$ the Facility Monthly Reserve Capacity Price applicable to each of the Facilities within the proposed Aggregated Facility is the same, and is expected to remain the same, from and including the current Reserve Capacity Cycle;

$g$ either:

i. the System Size of the proposed Aggregated Facility as determined by AEMO will not affect the quantity of Frequency Co-optimised Essential Services required to be dispatched; or

ii. the Facility Contingency associated with the proposed Aggregated Facility affects each individual Facility in the proposed aggregation simultaneously;

$h$ if the proposed Aggregated Facility intends to provide Frequency Co-optimised Essential System Services, the capability to simultaneously provide energy and Frequency Co-optimised Essential Services from the individual Facilities in the proposed aggregation can be adequately derived for the proposed Aggregated Facility; and

$i$ the Aggregated Facility will be registered as a Scheduled Facility, Semi-Scheduled Facility or a Non-Scheduled Facility.

Explanatory Note

As noted in the Explanatory Note at section 2.29, in the new market, AEMO requires a head of power to force aggregation on Facilities where the Credible Contingency is simultaneous loss of multiple Facilities (for example, a CCGT with the gas and steam turbines behind separate connection points). A new clause is required for a Market Participant responsible for the Facilities to apply to AEMO for the Facilities to become an Aggregated Facility.

2.30.5A. If a single Credible Contingency Event other than a Network

Contingency would result in the disconnection of two or more Facilities, then the Market Participant responsible for each of the Facilities must apply to AEMO to aggregate the relevant Facilities into an Aggregated Facility.

Explanatory Note

In the current market, there are Registered Facilities which have auxiliary load that is located in a manner that does not enable a sent-out value for the relevant Facility to be calculated. While this is currently manageable (due to the small amount of auxiliary load not affecting capacity assignment, or AEMO’s ability to create a synthetic sent out value), in future, pursuant to clause 2.30.5C, Facilities which contain auxiliary load at a separate network connection point will be required to aggregate to ensure a sent out value exists for the Facility.

2.30.5B. If two or more Facilities are electrically connected behind

multiple connection points, such that one or more of those Facilities could Inject into or Withdraw from the Network at more than one of the network connection points, and one or more of the Facilities is registered or AEMO has received an application to register one or more of the Facilities, then AEMO must aggregate the relevant Facilities into an Aggregated Facility.

2.30.5C. Subject to clause 2.30.5D, if a Facility containing an Energy

Producing System with a System Size that equals or exceeds 10 MW has a Parasitic Load which is located at a network connection point other than the network connection point at which the Energy Producing System is located, then AEMO may require the Market Participant for the relevant Facilities to apply to aggregate the Facilities into an Aggregated Facility under clause 2.30.1.

2.30.5D. Where AEMO considers that clauses 2.30.5A, 2.30.5B or 2.30.5C

apply to an application for registration of a Facility under section

2.29, AEMO must notify the relevant Market Participant of the

requirement to register the Facilities as an Aggregated Facility.

2.30.6. If the individual Facilities forming part of an Aggregated

Facility have their own meters, and there is no single meter for the entire Aggregated Facility, then the settlement meter data for the Aggregated Facility must be the sum of the meter readings for its component Facilities for the purposes of clause 9.5.1.is taken to be treated as a single Facility for the purpose of these WEM Rules.

2.30.7. If AEMO approves the aggregation of Facilities then, that

Aggregated Facility must be registered as a single Facility for the purpose of these WEM Rules, and the aggregation will take effect from the date of that registration.

2.30.8. Where AEMO considers that a change in one or more of the

criteria in clause 2.30.5 means that an Aggregated Facility should no longer be aggregated, AEMO must notify the relevant Rule Participant of:

$a$ its decision and the reasons for its decision; and

$b$ the date on which the Aggregated Facility will be considered to have been disaggregated.

2.30.8A. Where AEMO has notified a Market Participant under clause

2.30.8 that an Aggregated Facility should no longer be aggregated, AEMO

may reassess the Facility Class in which each individual Facility is registered in accordance with clause 2.29.9.

2.30.9. Where a Rule Participant no longer wishes to operate a Facility

as an Aggregated Facility from a specified date, the Rule Participant may apply to AEMO to disaggregate the Facilities from that specified date in accordance with the WEM Procedure referred to in clause 2.31.25 and section 2.33.

2.30.10. Where an Aggregated Facility is disaggregated in accordance

with clauses 2.30.8 or 2.30.9:

$a$ the relevant Rule Participant must ensure each disaggregated Facility is registered in accordance with the process outlined in section 2.31, as a separate Facility for the purpose of these WEM Rules from the date specified by AEMO or the Rule Participant, as applicable; and

$b$ AEMO may require the Rule Participant to provide Standing Data relevant to each disaggregated Facility.

Explanatory Note

Section 2.30A 'Exemption from Funding Spinning Reserve' is deleted as exemptions are no longer given. Generators <10MW are automatically excluded from the runway calculation as per the method in Appendix 2A.

2.30A. [Blank]

Explanatory Note

Section 2.30B is amended to reflect different treatment for new Intermittent Loads registered after the New WEM Commencement Day.

Prior to 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.

The calculations in clauses 2.30B.2(a)(iii) and 2.30B.4 have been deleted as they are not used elsewhere in the WEM Rules.

2.30B. Intermittent Load

2.30B.1 An Intermittent Load is a Load, or a part of a Load associated

with consumption in excess of a level specified by the Market Participant, that satisfies the requirements of clause 2.30B.2 and is recorded in Standing Data as being an Intermittent Load.

2.30B.2. For a Load or part of a Load to be eligible to be an

Intermittent Load AEMO must be satisfied that the following conditions are met:

$a$ an Energy Producing System must have the following characteristics:

i. it can typically supply the maximum quantity of energy consumed by that Load to be treated as Intermittent Load without requiring energy to be withdrawn from a Network; and

ii. the output of which is netted off consumption of the Load by the meter measuring consumption of the Load, or which is always or at times electrically connected to the Load behind two or more shared network connection points;

$b$ the Intermittent Load shall reasonably be expected to have net consumption of energy (based on Metered Schedules calculated in accordance with the methodology prescribed in clauses 2.30B.10 or

2.30B.11) for not more than 4320 Trading Intervals in any Capacity Year,

excluding Trading Intervals in which the Facility containing the Load is delivering a service under an NCESS Contract;

$c$ the Market Participant for the Facility containing the Load must have an agreement in place with a Network Operator to allow energy to be supplied to the Load from a Network;

$d$ [Blank]

$e$ the Facility containing the Load is not expected (based on applications accepted by AEMO under clause 2.29.5D and any amendments accepted by AEMO under clause 2.29.5K) to be associated with any Demand Side Programme for any period following the registration of the Load or part of the Load as an Intermittent Load; and

$f$ the Facility containing the Load is connected to the transmission network registered by the Network Operator referred to in clause

2.30B.2(c).

Explanatory Note

Clause 2.30B.3 is amended to require Market Participants to provide additional information about Intermittent Loads.

The information provided under clause 2.30B.3(b) is only required for the calculation of Intermittent Load Refunds, which are only applicable to Intermittent Loads that existed before the New WEM Commencement Day.

The measurements provided under clause 2.30B.3(h) are required for AEMO monitoring and for the Contingency Reserve Raise runway calculation in Appendix 2A.

The information provided under clauses 2.30B.3(i) and 2.30B.3(j) are important determinants in the Intermittent Load IRCR calculations. Increasing them has potential to decrease the overall IRCR associated with the Facility containing the Intermittent Load.

2.30B.3. The Market Participant for a Load or part of a Load to be

treated as an Intermittent Load must, in addition to any Standing Data for the Facility containing the Load, provide, and ensure remains accurate, the following data in regard to the Facility:

$a$ the maximum capacity in MW, excluding capacity for which Capacity Credits are held, that the Energy Producing System referred to in clause

2.30B.2(a) can be guaranteed to have available to supply Intermittent

Load, when it is operated normally at an ambient temperature of 41 degrees Celsius;

$b$ where the Load is and continues to be deemed to be an Intermittent Load under clause 1.48.2:

i. the anticipated reduction, measured in MW, in the maximum capacity described in clause 2.30B.3(a) when the ambient temperature is 45 degrees Celsius;

ii. at the option of the Market Participant, the method to be used to measure the ambient temperature at the site of the Energy Producing System referred to in clause 2.30B.2(a) for the purpose of determining Intermittent Load Refunds, where the method specified may be either:

1. a publicly available daily maximum temperature at a location representative of the conditions at the site of the Energy Producing System as reported daily by a meteorological service; or

2. a daily maximum temperature measured at the site of the Energy Producing System by the SCADA system operated by AEMO or the relevant Network Operator (as applicable),

where no method is specified, a temperature of 41 degrees Celsius will be assumed; and

$c$ details of primary and any alternative fuels, including details and evidence of both firm and non-firm fuel supplies and the factors that determine restrictions on fuel availability that could prevent the Energy Producing System referred to in clause 2.30B.2(a) from operating at its full capacity;

$d$ a single line diagram which includes details of the Loads and Energy Producing Systems contained within the Facility and any other information AEMO requires to determine whether the Load meets the conditions specified in clause 2.30B.2;

$e$ the Nominated Excess Capacity;

$f$ the Declared Sent Out Capacity and any other information AEMO requires to determine the System Size of the Facility;

$g$ at the option of the Market Participant, information regarding protection schemes at the Facility, including whether the Facility is configured to automatically adjust load or generation where a Contingency Event, or an event behind the relevant connection point, affects the Energy Producing System, and evidence to support that configuration as required in the WEM Procedure referred to in clause

2.29.4N;

$h$ the instantaneous output or consumption of the Energy Producing System referred to in clause 2.30B.2(a) measured in accordance with the WEM Procedure referred to in clause 2.36A.5, with separate measurements for each separate electricity producing unit in the Energy Producing System;

$i$ the maximum level of Intermittent Load for the Facility referred to in Appendix 1(g)(ii); and

$j$ the Contract Maximum Demand associated with the Facility.

2.30B.4. [Blank]

2.30B.5. A Market Participant may apply for a Load or part of a Load to

be treated as an Intermittent Load where the Market Participant has submitted or changed Standing Data for the Facility in accordance with clause 2.34.2B(b) and:

$a$ the Load is part of a Non-Dispatchable Load; or

$b$ the Load is part of a Registered Facility.

The application must include the information in clause 2.30B.3, except for clause 2.30B.3(h).

2.30B.6. AEMO must accept an application for a Load or part of a Load to

be treated as an Intermittent Load if the requirements of clause 2.30B.2 are satisfied.

Explanatory Note

Clause 2.30B.7 was initially amended to align with the new settlement timetable. However, clause 2.30B.7 is amended in the Tranche 6 Amendments to reverse the Tranche 5 Amendments replacement of “Trading Month” with “Trading Week”, because IRCRs will still be determined on a Trading Month basis and the relevant appendices (4A and 5) assume that the Intermittent Load status of a load does not change mid-month.

2.30B.7. AEMO may cease to treat a Load or part of a Load as an

Intermittent Load and require a Market Participant to modify its Standing Data in accordance with clause 2.34.11 from the commencement of a Trading Month if AEMO considers that the requirements of clause

2.30B.2 are no longer satisfied.

Explanatory Note

The quantities provided under clauses 2.30B.3(j) and 2.30B.3(k) are important determinants in the Intermittent Load IRCR calculations. Increasing them has potential to decrease the overall IRCR associated with the Facility containing the Intermittent Load, to the detriment of other Market Participants. If an Intermittent Load seeks to increase these values, they would then fall under the new arrangements for Intermittent Loads, where IRCR is calculated based on actual net import, rather than separated into Intermittent Load component which is not subject to the markup applied to other loads.

2.30B.8. Subject to clause 2.30B.8A, where a Market Participant seeks to

increase the absolute value of the quantities provided under clauses

2.30B.3(i) or 2.30B.3(j) by more than 10 MW from the quantities in

effect for that Intermittent Load on the New WEM Commencement Day, the Market Participant must make a new application under clause 2.30B.5 for the Load to be treated as an Intermittent Load, and clause 1.48.2 will no longer apply to the Load.

2.30B.8A. Where AEMO determines that an increase in the absolute value

of the quantities provided under clauses 2.30B.3(i) or 2.30B.3(j) is necessary to implement the terms of a NCESS Contract, clause 2.30B.8 does not apply to the Intermittent Load.

Explanatory Note

A person will nominate an expected maximum export value for the Facility containing the Intermittent Load. Where this value is less than 10 MW, the owner/controller and the facility are presumptively exempted from registration requirements, regardless of whether the DSOC exceeds 10 MW, or whether there is more than 10 MW of Energy Producing System behind the fence.

Where the actual export persistently or significantly exceeds the nominated value. the participant must update the value, and where it is now greater than 10 MW, the presumptive exemption no longer applies.

2.30B.8B. A person who owns, controls or operates a Facility containing

an Intermittent Load may apply to AEMO to be exempted from the requirement to register as a Rule Participant in the Market Participant class in accordance with clause 2.28.16C, where:

$a$ the person has submitted an application for another Market Participant to act as their Intermediary in accordance with clause

2.28.16A(a); and

$b$ where the consumption or generation from the metered meter or meters measuring the relevant Facility containing the Intermittent Load is registered to the Intermediary for the purposes of clause 8.3.1.

2.30B.8C. Without limiting AEMO's rights to revoke an exemption under

clause 2.28.16, AEMO may revoke an exemption to register that was based on the conditions specified in clause 2.28.16C where AEMO considers that any of the conditions specified in clause 2.30B.8B are no longer satisfied.

2.30B.8D. Notwithstanding clause 2.29.4, where AEMO has accepted an

application under clause 2.30B.6 for a Facility with a Nominated Excess Capacity of less than 10 MW, AEMO must determine (under clause 2.29.4M) that the person who owns, controls or operates the Facility is exempted from the requirement to register the Facility.

2.30B.8E. Where a Facility containing an Intermittent Load has a

Nominated Excess Capacity greater than or equal to 10 MW, the relevant Market Participant must register the Facility in accordance with section

2.29, or apply to be exempted from the requirement to register.

2.30B.8EA.Where a Market Participant registers a Facility in accordance

with clause 2.30B.8E, AEMO must assess the application in respect of the export capability of the Facility only, regardless of the System Size of the Energy Producing System referred to in clause 2.30B.2(a).

2.30B.8F. Where the Injection of a Facility containing an Intermittent

Load exceeds the Nominated Excess Capacity in more than 120 Dispatch Intervals in any continuous 12-month period, the Market Participant must update the Nominated Excess Capacity provided under clause 2.30B.3(e).

Explanatory Note

Clause 2.30B.9 clarifies the settlement treatment of Facilities containing Intermittent Loads, and reflects the approach already implicit in the current WEM Rules.

The quantity in subclause (c) is the Metered Schedule for the non-registered part of the facility. Although it is called a Non-Dispatchable Load, it includes everything unregistered behind the connection point (other than the Intermittent Load component if present) which may include load, generation and storage.

2.30B.9. For the purpose of defining Metered Schedules, each Facility

containing an Intermittent Load is represented by the following components:

$a$ where the Intermittent Load is part of a Registered Facility, a Registered Facility component;

$b$ where the Load was deemed to be an Intermittent Load under clause 1.48.2, an Intermittent Load component; and

$c$ a remaining Load component, which may be Temperature Dependent or Non-Temperature Dependent.

2.30B.10. Where the Load was deemed to be an Intermittent Load under

clause 1.48.2, for the purpose of defining Metered Schedules associated with the interval meter measuring the Facility containing the Intermittent Load, the following methodology is to apply:

$a$ define for each Trading Interval:

i. NMQ to be the net metered energy measured by the meter where a positive amount indicates supply and a negative amount indicates consumption;

ii. NS to be the net supply (supply as a positive value plus consumption as a negative value) measured by the Intermittent Load meter which corresponds to supply and consumption, excluding consumption by Intermittent Loads, by Market Participants, and by Market Participant Facilities which are separately metered for the purpose of settlement under these WEM Rules. This may have a positive or negative value;

iii. NL to be the maximum possible consumption behind that meter due to consumption which is not Intermittent Load but which is measured only by the meter which also measures the Intermittent Load. This has a negative value;

iv. [Blank]

v. if the Load is part of a Registered Facility, MSG to be the greater of zero and the maximum energy output from the Registered Facility in excess of that required to supply the Intermittent Load based on Standing Data and measured only by the Intermittent Load meter. This has a positive value; and

vi. AMQ to be the adjusted meter quantity which equals NMQ less NS;

$b$ if the Load is not part of a Registered Facility then:

i. if AMQ is less than or equal to NL then:

1. for the purpose of defining its Metered Schedule the metered quantity associated with the Intermittent Load is AMQ minus NL; and

2. for the purpose of defining its Metered Schedule the metered quantity associated with non-Intermittent Loads only measured by the Intermittent Load meter is NL;

ii. if AMQ is greater than NL but less than zero then:

1. for the purpose of defining its Metered Schedule the metered quantity associated with the Intermittent Load is zero; and

2. for the purpose of defining its Metered Schedule the metered quantity associated with non-Intermittent Loads only measured by the Intermittent Load meter is AMQ; and

iii. if AMQ is greater than or equal to zero then:

1. for the purpose of defining its Metered Schedule the metered quantity associated with the Intermittent Load is AMQ; and

2. for the purpose of defining its Metered Schedule the metered quantity associated with non-Intermittent Loads only measured by the Intermittent Load meter is zero; and

$c$ if the Load is part of a Registered Facility then:

i. if AMQ is less than or equal to NL then:

1. for the purpose of defining its Metered Schedule the metered quantity associated with the Intermittent Load is AMQ minus NL;

2. for the purpose of defining its Metered Schedule the metered quantity associated with non-Intermittent Loads measured only by the meter that also measures the Intermittent Load is NL; and

3. for the purpose of defining its Metered Schedule the metered quantity associated with the Registered Facility measured only by the meter that also measures the Intermittent Load is zero;

ii. if AMQ is greater than NL but less than or equal to zero then:

1. for the purpose of defining its Metered Schedule the metered quantity associated with the Intermittent Load is zero;

2. for the purpose of defining its Metered Schedule the metered quantity associated with non-Intermittent Loads measured only by the meter that also measures the Intermittent Load is AMQ; and

3. for the purpose of defining its Metered Schedule the metered quantity associated with the Registered Facility measured only by the meter that also measures the Intermittent Load is zero;

iii. if AMQ is greater than zero but less than or equal to MSG then:

1. for the purpose of defining its Metered Schedule the metered quantity associated with the Intermittent Load is zero;

2. for the purpose of defining its Metered Schedule the metered quantity associated with non-Intermittent Loads measured only by the meter that also measures the Intermittent Load is zero; and

3. for the purpose of defining its Metered Schedule the metered quantity associated with the Registered Facility measured only by the meter that also measures the Intermittent Load is AMQ; and

iv. if AMQ is greater than MSG then:

1. for the purpose of defining its Metered Schedule the metered quantity associated with the Intermittent Load is AMQ minus MSG;

2. for the purpose of defining its Metered Schedule the metered quantity associated with non-Intermittent Loads measured only by the meter that also measures the Intermittent Load is zero; and

3. for the purpose of defining its Metered Schedule the metered quantity associated with the Registered Facility measured only by the meter that also measures the Intermittent Load is MSG.

Explanatory Note

Replacement clause 2.30B.11 allows for different participants to be responsible for the injection and withdrawal of the Facility containing a new Intermittent Load, as is the case for some Intermittent Loads in the current WEM Rules.

2.30B.11 Where an application for a Load or part of a Load to be treated

as an Intermittent Load was accepted by AEMO under clause 2.30B.6 on or after the New WEM Commencement Day, for the purpose of defining Metered Schedules associated with the interval meter measuring the Facility containing the Intermittent Load, the following methodology is to apply:

$a$ define for each Trading Interval:

i. NMQ to be the net metered energy measured by the meter in Meter Data Submissions where a positive amount indicates supply and a negative amount indicates consumption;

ii. NS to be the net supply (supply as a positive value plus consumption as a negative value) measured by the Intermittent Load meter which corresponds to supply and consumption, excluding consumption by Intermittent Loads, by Market Participants, and by Market Participant Facilities which are separately metered in Meter Data Submissions for the purpose of settlement under these WEM Rules. This may have a positive or negative value; and

iii. AMQ to be the adjusted meter quantity which equals NMQ less NS;

$b$ where the Intermittent Load is part of a Registered Facility:

i. where AMQ is positive, indicating supply:

1. the Metered Schedule for the Registered Facility is AMQ; and

2. the Metered Schedule for the Non-Dispatchable Load is zero; or

ii. where AMQ is negative, indicating consumption:

1. the Metered Schedule for the Registered Facility is zero; and

2. the Metered Schedule for the Non-Dispatchable Load is AMQ; or

$c$ where the Intermittent Load is not part of a Registered Facility, the Metered Schedule for the Non-Dispatchable Load is AMQ.

2.30C. Rule Commencement and Registration Data

2.30C.1. Subject to sections 1.47, 1.48, 1.49 and 1.54A, AEMO must not

require that an applicant for Rule Participant registration or Facility registration provide information on any application form, or evidence to support that application form, pertaining to registration if the applicable WEM Rules requiring that information to be provided have not commenced.

Explanatory Note

Amendments to section 2.31 have been made to incorporate applications for Facility aggregation, Facility disaggregation and Facility Class reassessment and to incorporate amendments in alignment with the revised registration taxonomy.

2.31. Registration Process

2.31.1. AEMO must maintain the following forms on the WEM Website:

$a$ Rule Participant registration form;

$b$ Rule Participant de-registration form;

$c$ Facility registration form;

$d$ Facility de-registration form;

$e$ Facility transfer form;

$f$ Facility aggregation form;

$g$ Facility disaggregation form; and

$h$ Facility Class reassessment form.

2.31.2. A person intending to submit an application described in clause

2.31.1 must provide the information specified in section 2.33, as

applicable, and any applicable Application Fees to AEMO.

2.31.3. AEMO must notify an applicant of the receipt of the application

within one Business Day of receipt of an application form described in clause 2.31.1.

2.31.4. Subject to clause 2.30C.1, AEMO may, at its discretion, require

that an applicant provide information that is missing from the relevant application form, or is inadequately specified. The date at which the requested information is submitted to AEMO in full is to become the date of receipt of the application for the purpose of clause 2.31.3.

2.31.4A. If AEMO requests information from an applicant under clause

2.31.4 and the applicant does not provide the information to AEMO within

20 Business Days of the date of AEMO's request, the applicant will be deemed to have withdrawn the application.

2.31.5. AEMO may consult with the relevant Network Operators with

respect to applications for registration, de-registration, transfer or Facility Class reassessment of Facilities containing Energy Producing Systems or Loads.

Explanatory Note

Clauses 2.31.6 and 2.31.10 are amended to account for the commonly occurring scenario in which AEMO does not require any tests to be conducted in order for it to accept or reject an application for Facility registration. In these scenarios, clause 2.31.6 will not apply and AEMO will be required to notify the applicant of its decision to accept or reject the application within 20 Business Days from the date of notification of receipt of the application.

2.31.6. If AEMO determines that a test required by these WEM Rules or a

WEM Procedure must be conducted in order for AEMO to accept or reject an application for Facility registration, AEMO must notify the applicant within 15 Business Days from the date of notification of receipt of the application of:

$a$ the dates on which any required tests may be held;

$b$ the date by when results of any required tests must be made available to AEMO; and

$c$ the date by when AEMO expects to accept or reject the application, being no later than 10 Business Days after the date in clause 2.31.6(b).

2.31.7. When a test is required under the WEM Rules or a WEM Procedure,

prior to the registration of a Facility, AEMO may determine that the test is not necessary and in doing so must take into consideration any previous tests performed in connection with an Arrangement for Access.

2.31.8. AEMO must allow a Facility holding an Arrangement for Access to

operate for the purpose of tests required under the Arrangement for Access, provided that the carrying out of these tests has received approval from AEMO.

2.31.9. The relevant Network Operator must cooperate with any tests

required by these WEM Rules or a WEM Procedure that must be conducted prior to the registration of a Facility.

2.31.10. AEMO must determine whether to accept or reject the application

and notify an applicant accordingly:

$a$ by the date specified in accordance with clause 2.31.6(c) in the case of an application for Facility registration where AEMO has determined that a test must be conducted in order for AEMO to accept or reject the application; and

$b$ within 20 Business Days after the date of notification of receipt for all other applications.

2.31.11. Where AEMO has accepted the application the notification under

clause 2.31.10 must include:

$a$ in the case of an application to register as a Rule Participant the date and time that registration is to take effect where the date is to be the later of the earliest date by which AEMO can facilitate the registration and the date specified in accordance with clause 2.33.1(k);

$b$ in the case of an application to de-register as a Rule Participant:

i. where the Rule Participant is a Market Participant, the date and time on which the Rule Participant must cease trading as a Market Participant, being the start of the Trading Day beginning on the date specified in accordance with clause 2.33.2(d); and

ii. a statement that de-registration as a Rule Participant will not take effect until the requirements of clause 2.31.16 are satisfied;

$c$ in the case of an application to register a Facility, the date and time that registration is to take effect where the date is to be the later of the earliest date by which AEMO can facilitate the registration and the date specified in accordance with clause 2.33.3(c)(xviii);

$d$ in the case of an application to de-register a Facility, the date and time that de-registration is to take effect where the date is to be the later of the earliest date by which AEMO can facilitate the de-registration and the date specified in accordance with clause

2.33.4(d);

$e$ in the case of an application to transfer a Facility, the date and time that transfer is to take effect where the date is to be the later of the earliest date by which AEMO can facilitate the transfer and the date specified in accordance with clause 2.33.5(e)(iii);

$f$ in the case of an application to aggregate two or more Facilities, the date and time the aggregation is to take effect, where the date is to be the later of the earliest date by which AEMO can facilitate the aggregation and the date specified in accordance with clause 2.33.6(d);

$g$ in the case of an application to disaggregate two or more Facilities, the date and time that is to take effect, where the date is to be the later of the earliest date by which AEMO can facilitate the disaggregation and the date specified in accordance with clause

2.33.7(d); and

$h$ in the case of an application for Facility Class reassessment, the date and time that the Facility Class change is to take effect, where the date is to be the later of the earliest day by which AEMO can facilitate the Facility Class change and the date specified in accordance with clause 2.33.8(c).

2.31.12. Where AEMO has rejected the application the notification must

include the reason for its rejection of the application.

2.31.13. AEMO may only reject an application if:

$a$ subject to clause 2.30C.1, the application form, when read together with any information received after a request under clause

2.31.4 is incomplete or provides insufficient detail;

$b$ subject to clause 2.30C.1, required supporting evidence is insufficient or not provided;

$c$ the required Application Fee is not paid;

$d$ AEMO is not satisfied that the applicant can comply with the requirements for participation in the Wholesale Electricity Market or registration;

$e$ in the case of an application to register as a Rule Participant where the person has previously been de-registered as a Rule Participant following an order from the Electricity Review Board or de-registered by AEMO under clause 2.32.7E(b), AEMO is not satisfied that person has remedied the reason for or underlying cause of the prior de-registration;

$f$ in the case of an application to de-register as a Market Participant, the applicant has not arranged to de-register its Registered Facilities or transfer those Registered Facilities to another Rule Participant prior to the proposed date of de-registration as a Market Participant;

$g$ [Blank]

$h$ in the case of an application to de-register as a Network Operator, the applicant has not arranged to de-register its Registered Facilities that are Networks or transfer those Registered Facilities to another Rule Participant prior to the proposed date of de-registration as a Network Operator;

$i$ the applicant fails to conduct tests in accordance with clause

2.31.6, fails the tests, or fails to provide adequate information about

the tests;

$j$ in the case of an application to register a Facility:

i. the relevant Metering Data Agent informs AEMO that the Facility or the interval meter for the Facility is not registered in its Meter Registry or that the Meter Registry information is not consistent with the information in the application to register the Facility;

ii. the controllability assessment undertaken by AEMO in accordance with clause 2.29.4N determines that the Facility is not able to meet the controllability requirements for the requested Facility Class; or

iii. the Facility is not able to meet the requirements for the requested Facility Class;

$k$ in the case of an application to de-register a Facility, the Market Participant holds Capacity Credits for the Facility;

$l$ in the case of an application to transfer a Facility, the transfer of the Facility would result in the number of Capacity Credits allocated for a Trading Day by the Market Participant transferring the Facility exceeding the number of Capacity Credits held for that Trading Day for the Facility by the Market Participant that are able to be traded bilaterally under the WEM Rules;

$m$ in the case of an application for a Facility aggregation, AEMO considers the aggregation will not meet the criteria in clause 2.30.5;

$n$ in the case of an application for a Facility disaggregation, the Facility meets the criteria in clause 2.30.5(g)(ii); or

$o$ in the case of an application for a Facility Class reassessment:

i. if the controllability assessment undertaken by AEMO in accordance with clause 2.29.4N determines that the Facility is not able to meet the controllability requirements for the requested Facility Class; and

ii. if the Facility is not able to meet the requirements applicable for the requested Facility Class.

2.31.14. A person who has an application to become a Rule Participant

approved, is to become a Rule Participant in the approved class from the date and time specified in accordance with clause 2.31.11(a).

2.31.15. A person who has an application to deregister as a Rule

Participant accepted by AEMO must cease trading as a Market Participant by the date and time specified in clause 2.31.11(b)(i).

2.31.16. Where an application for de-registration as a Rule Participant

has been accepted by AEMO, participation in the relevant Rule Participant class ceases from the end of the first Business Day in which the Rule Participant:

$a$ has de-registered all of its Facilities applicable to the class;

$b$ has resolved and settled all outstanding disputes, investigations and enforcement actions;

$c$ has paid all outstanding debts to AEMO; and

$d$ has received final payment of all amounts owed to it by AEMO.

2.31.17. The fact that a person has ceased to be registered as a Rule

Participant does not affect any right, obligation or liability of that person under these WEM Rules which arose prior to the cessation of its registration.

2.31.18. If AEMO accepts a Facility registration then that Facility

becomes a Registered Facility of the applicant from the date and time specified in accordance with clause 2.31.11(c).

2.31.19. If AEMO accepts a Facility deregistration then that Facility

ceases being a Registered Facility of the applicant from the date and time specified in accordance with clause 2.31.11(d).

2.31.20. If AEMO accepts a Facility transfer then from the date and time

specified in accordance with clause 2.31.11(e):

$a$ each Facility covered by the transfer will cease to be a Registered Facility of the Rule Participant to whom it was registered prior to the transfer; and

$b$ each Facility covered by the transfer will become a Registered Facility of the Rule Participant who submitted the application.

2.31.21. If AEMO approves a Facility aggregation application then the

Facility will be aggregated and registered as a single Facility from the date and time specified and in accordance with clause 2.31.11(f).

2.31.22. If AEMO approves a Facility disaggregation application then the

Facility will be disaggregated and registered as the constituent Facilities from the date and time specified in accordance with clause

2.31.11(g).

2.31.23. If AEMO determines that a Facility should be registered in a

different Facility Class, then the Facility Class change will be effective from the date determined by AEMO and notified to the Market Participant in accordance with the WEM Procedure referred to in clause

2.31.25. 2.31.24. AEMO must maintain a register of:

$a$ Rule Participants; and

$b$ Registered Facilities.

2.31.25. AEMO must document the following processes that AEMO and other

Rule Participants, as applicable, must follow in a WEM Procedure:

$a$ Rule Participant registration;

$b$ Facility registration, de-registration, aggregation and disaggregation;

$c$ Facility Class reassessment; and

$d$ Facility transfers.

2.31.26. Applicants must follow the processes in the WEM Procedure

referred to in clause 2.31.25 applicable to the Rule Participant class, Facility Class and type of application.

2.31.27. AEMO must facilitate participation in a Rule Participant class

or Facility Class by an approved applicant as soon as practicable.

2.32. Rule Participant Suspension and Deregistration

2.32.1. Where the Economic Regulation Authority receives notice that the

Electricity Review Board has made a decision in accordance with the Regulations that a Rule Participant be suspended, the Economic Regulation Authority must notify AEMO and AEMO must issue a Suspension Notice to the Rule Participant.

2.32.2. Where AEMO has issued a Suspension Notice pursuant to a

notification by the Economic Regulation Authority in accordance with clause 2.32.1 that a Rule Participant be suspended, AEMO must publish a notice on the WEM Website and issue a Market Advisory specifying that the Rule Participant has been suspended from the Wholesale Electricity Market and provide details of the suspension, including the reason for the suspension and the date the suspension took effect.

2.32.2A. If a Suspension Notice is withdrawn, AEMO must promptly publish

a notice on the WEM Website and issue a Market Advisory specifying that the Suspension Notice has been withdrawn.

2.32.3 AEMO may specify in a Suspension Notice directions that the

relevant Rule Participant must comply with to give effect to the suspension.

2.32.4. From the time AEMO issues a Suspension Notice to a Rule

Participant:

$a$ the Rule Participant must comply with the Suspension Notice, including:

i. trading or ceasing trading in the Wholesale Electricity Market to the extent specified in the notice; and

ii. continuing to meet any existing Reserve Capacity Obligations specified in the notice.

$b$ AEMO may do all or any of the following to give effect to the notice:

i. reject any submissions from, or on behalf of, the Market Participant, and cancel any existing submissions; and

ii. withhold payments owed to a defaulting Rule Participant.

2.32.5. AEMO must withdraw a Suspension Notice where:

$a$ if the notice was issued under section 9.19, the defaulting Rule Participant has remedied the relevant suspension event and is complying with its Prudential Obligations; and

$b$ if the notice was issued under clause 2.32.1, it receives a further notice that the Electricity Review Board has withdrawn the suspension,

and no other circumstances exist that would entitle AEMO to issue a Suspension Notice.

2.32.6. Where a Rule Participant has been suspended for 90 days AEMO

must notify the Economic Regulation Authority and, the Economic Regulation Authority may apply to the Electricity Review Board for a de-registration order in accordance with the Regulations.

2.32.7. Where the Economic Regulation Authority receives notice that the

Electricity Review Board has made a decision in accordance with the Regulations that a Rule Participant be de-registered, the relevant Rule Participant ceases to be a Rule Participant from the time specified in the notice, and the Economic Regulation Authority must notify AEMO. AEMO must de-register all of the Facilities registered by or to the Rule Participant by the time specified in the notice.

2.32.7A. AEMO may at any time review whether a Rule Participant

registered in the classes outlined in clauses 2.28.1(a) or 2.28.1(b) continues to meet all of the criteria specified in clause 2.28.19.

2.32.7AA. A Rule Participant that is registered in a class outlined in

clauses 2.28.1(a) or 2.28.1(b) must notify AEMO as soon as it becomes aware that it no longer meets all of the criteria specified in clause

2.28.19. 2.32.7B. If:

$a$ the Economic Regulation Authority becomes aware that a Rule Participant registered in the classes outlined in clauses 2.28.1(a) or

2.28.1(b) no longer meets all of the criteria specified in clause

2.28.19, it must notify AEMO; or

$b$ AEMO becomes aware that a Rule Participant registered in the classes outlined in clauses 2.28.1(a) or 2.28.1(b) no longer meets all of the criteria specified in clause 2.28.19 (whether as a result of being informed by the Economic Regulation Authority pursuant to clause

2.32.7B(a) or otherwise),

then, subject to clause 2.32.7BB(b), AEMO must issue a Registration Correction Notice to that Rule Participant.

Explanatory Note

Clauses 2.32.7BA and 2.32.7BB provide AEMO with an efficient and practicable process to issue a Suspension Notice or Registration Correction Notice where a Rule Participant no longer legally exists (e.g. liquidated) or is under administration. Currently, section 2.32 only provides AEMO with the head of power to issue a Suspension Notice and/or a Registration Correction Notice to the Rule Participant, but does not clearly address situations where the legal entity no longer exists or is under administration.

Clause 2.32.7BA is further amended to reflect changes made in March 2017 to the Corporations Act, which removed the definition of ‘externally-administered body corporate’.

2.32.7BA. If AEMO becomes aware that a Rule Participant has become a

Chapter 5 body corporate (as defined in the Corporations Act), or is under a similar form of administration under any laws applicable to it in any jurisdiction, then AEMO must, as applicable:

$a$ where AEMO intends to issue a Suspension Notice, issue the Suspension Notice to the Chapter 5 body corporate and the External Administrator, which may include directions that would have given in a notice to the relevant Rule Participant pursuant to clause 2.32.1; or

$b$ where AEMO intends to issue a Registration Correction Notice, issue the Registration Correction Notice to the Chapter 5 body corporate and the External Administrator, specifying details that it would have specified in a notice to the relevant Rule Participant pursuant to clause 2.32.7C; or

$c$ notify the Economic Regulation Authority that the Rule Participant is a Chapter 5 body corporate or has had an External Administrator appointed, and that AEMO is not required to, as applicable:

i. issue a Suspension Notice to the Rule Participant pursuant to clause

2.32.1; or

ii. issue a Registration Correction Notice to the Rule Participant pursuant to clause 2.32.7B(b).

2.32.7BB. If AEMO becomes aware that a Rule Participant has been wound

up or dissolved (as defined in the Corporations Act), AEMO:

$a$ is not required to issue a Suspension Notice to the Rule Participant pursuant to clause 2.32.1;

$b$ is not required to issue a Registration Correction Notice to the Rule Participant pursuant to clause 2.32.7B(b);

$c$ must de-register the Rule Participant and all of the Facilities registered by or to the Rule Participant on a date and time nominated by AEMO;

$d$ must, as soon as practicable, notify the Economic Regulation Authority that the Rule Participant has been wound up or dissolved; and

$e$ must, as soon as practicable, publish a notice on the WEM Website and issue a Market Advisory specifying that the Rule Participant will cease, or has ceased, to be registered from the date and time nominated by AEMO.

2.32.7C. Each Registration Correction Notice must:

$a$ specify which of the criteria specified in clause 2.28.19 AEMO considers the Rule Participant no longer meets;

$b$ require that the Rule Participant:

i. correct the circumstances that have led to it no longer meeting all of the criteria specified in clause 2.28.19 and provide evidence to AEMO that it has done so; or

ii. provide evidence to AEMO that it continues to meet all of the criteria specified in clause 2.28.19;

$c$ specify a date and time for the Rule Participant to respond to the Registration Correction Notice, which must be at least 90 days from the date of the Registration Correction Notice; and

$d$ specify a date and time from which the de-registration of the Rule Participant will become effective, should that Rule Participant not provide evidence in response to the Registration Correction Notice that is satisfactory to AEMO.

2.32.7D. Where AEMO has issued a Registration Correction Notice it may

extend the deadline for:

$a$ correcting the circumstances that are the subject of the notice; or

$b$ responding to the notice

for any period that it considers is appropriate in the circumstances.

2.32.7E. AEMO must consider any evidence or submissions provided by a

Rule Participant in response to a Registration Correction Notice and determine whether:

$a$ it is satisfied that the Rule Participant meets all of the criteria specified in clause 2.28.19. If so, AEMO will notify the Rule Participant that no further action will be taken; or

$b$ it is not satisfied that the Rule Participant meets all of the criteria specified in clause 2.28.19. If so, AEMO will issue a De-registration Notice notifying the Rule Participant that it will cease to be registered from the date and time specified in the De-registration Notice and the Rule Participant will cease to be registered with effect from that date and time.

2.32.7F. Where AEMO de-registers a Rule Participant it must also

de-register all of the Facilities registered by the Rule Participant by the time specified in the De-registration Notice. For the avoidance of doubt, AEMO must not de-register a Rule Participant, if that Rule Participant holds Capacity Credits for any of its Facilities.

2.32.8. The de-registration of a Rule Participant does not affect any

rights, obligations or liabilities arising under or in connection with these WEM Rules prior to the time the Rule Participant ceases to be a Rule Participant.

2.32.9. AEMO may require a Network Operator to disconnect one or more of

the Facilities registered by a suspended or deregistered Rule Participant in order to give effect to a Suspension Notice or deregistration. If AEMO gives a notice under this clause to a Network Operator, then the Network Operator must comply with the notice as soon as practicable. If the disconnection arises because of the suspension of a Market Participant and the Suspension Notice is subsequently withdrawn by AEMO under clause 2.32.5, then AEMO must request the relevant Network Operator to reconnect the Facilities registered by the relevant Rule Participant.

Explanatory Note

Amendments to section 2.33 have been made to incorporate applications for Facility Aggregation, Facility Dis-Aggregation and Facility Class Reassessment.

Clause 2.33.1(h) is amended to remove the reference to information described in Appendix 1(f), because this information is not provided via the Rule Participant registration application form.

Clause 2.33.1(n) is amended to remove any scope for an interpretation that the clause gives rise to cartel conduct between Rule Participants, or gives effect to a contract, arrangement or understanding or concerted practice between Rule Participants that substantially lessens competition.

2.33. The Registration Application Forms

2.33.1. AEMO must prescribe a Rule Participant registration application

form that requires an applicant to provide the following:

$a$ the relevant non-refundable Application Fee;

$b$ whether the applicant is already a Rule Participant;

$c$ contact details for the applicant;

$d$ invoicing details for the applicant;

$e$ tax information from the applicant required by law;

$f$ the class of Rule Participant to which the application relates;

$g$ if the applicant is seeking an exemption from the requirement to register as a Rule Participant;

$h$ if the application relates to the sale of electricity to Contestable Customers by an applicant for the Market Participant class, evidence that the applicant holds an Arrangement for Access for the purpose of taking power from the electricity grid;

$i$ confirmation of the implementation of any processes or systems required by these WEM Rules for the Rule Participant class to which the application relates;

$j$ information on any Facility registration applications that will follow successful Rule Participant registration or are required as a condition of Rule Participant registration;

$k$ a proposed date for becoming a Rule Participant;

$l$ information required for AEMO to determine the applicant’s required Credit Limit;

$m$ such other information AEMO requires to process the application;

$n$ an acknowledgement from the Rule Participant that it is aware of its obligations under these WEM Rules; and

$o$ a statement that the information provided is accurate.

2.33.2. AEMO must prescribe a Rule Participant de-registration

application form that requires an applicant to provide the following:

$a$ the relevant non-refundable Application Fee;

$b$ the identity of the Rule Participant;

$c$ the class of Rule Participant to which the application relates;

$d$ a proposed date for ceasing operation in the Rule Participant class covered by the application, where that date must be not earlier than 10 Business Days after the date of application;

$e$ such other information AEMO requires to process the application; and

$f$ a statement that the information provided is accurate.

2.33.3. AEMO must prescribe a Facility registration application form

that requires an applicant to provide the following:

$a$ the relevant non-refundable Application Fee where this Application Fee may differ for different Facility Classes;

$b$ the identity of the person making the application, where that person must be a Rule Participant or be in the process of applying to be registered as a Rule Participant;

$c$ for each Facility to be registered:

i. the name of the Facility;

ii. the owner of the Facility;

iii. if the applicant is seeking an exemption from the requirement to register a Facility;

iv. the proposed Facility Class and each Facility Technology Type for the Facility;

v. the location of the Facility;

vi. if the Facility is to be aggregated with one or more other Facilities in accordance with section 2.30 and details of any proposed aggregation;

vii. if the Facility is a Small Aggregation;

viii. the type of Facility as defined under clause 2.29.1B;

ix. a single line diagram for the Facility, including the location of transformers, switches, operation and interval meters (which are to be maintained in the Meter Registry);

x. the point on the network at which the Facility can connect;

xi. the network nodes at which the Facility can connect;

xii. contact details for the Facility;

xiii. if the Facility is yet to commence operation:

1. a proposed date for commencing commissioning the Facility; and

2. a commissioning plan for the Facility.

xiv. evidence that an Arrangement for Access is in place, if necessary;

xv. details of operational control over that the Facility;

xvi. applicable Standing Data as required by Appendix 1;

xvii. information on the communication systems that exist for operational control of the Facility; and

xviii. a date for commencement of operation; and

$d$ such other information AEMO requires to process the application; and

$e$ a statement that the information provided is accurate.

2.33.4. AEMO must prescribe a Facility de-registration application form

that requires an applicant to provide the following:

$a$ the relevant non-refundable Application Fee;

$b$ the name of the Registered Facility to which the application relates;

$c$ information as to whether the Registered Facility is being:

i. decommissioned; or

ii. moth-balled or placed in reserve shut-down, in which case information on the time required to return the Registered Facility to service is to be provided;

$d$ a proposed date on which the Registered Facility is to cease to be registered in the name of that Rule Participant where that date must be:

i. not earlier than six months after the date of application if the Facility will cease operation; or

ii. the date the application is accepted in the event that the Facility has been rendered permanently inoperable; or

iii. not earlier than one month after the date of application if the Facility is a Demand Side Programme; and

$e$ such other information AEMO requires to process the application; and

$f$ a statement that the information provided is accurate.

2.33.5. AEMO must prescribe a Facility transfer application form that

requires an applicant to provide the following:

$a$ the relevant non-refundable Application Fee;

$b$ the identity of the person making the application, where that person must be a Rule Participant or be in the process of applying to be registered as a Rule Participant;

$c$ the name of the Rule Participant in respect of which the Facility is currently registered;

$d$ evidence that the Rule Participant identified in clause 2.33.5(c) consents to the transfer;

$e$ for each Facility to be transferred:

i. the name of the Facility;

ii. the owner of the Facility;

iii. a proposed date for the transfer to take effect;

iv. evidence that any required Arrangement for Access is in place; and

v. details of operational control over the Facility; and

$f$ evidence to AEMO’s satisfaction that the person making the application has assumed the Reserve Capacity Obligations associated with the Facility;

$g$ such other information AEMO requires to process the application; and

$h$ a statement that the information provided is accurate.

2.33.6. AEMO must prescribe a Facility aggregation application form that

requires an applicant to provide the following:

$a$ the relevant non-refundable Application Fee;

$b$ the names of the Facilities to which the application relates;

$c$ evidence to AEMO’s satisfaction that the conditions of clause

2.31.10(a) can be met;

$d$ a proposed date on which the aggregation is to take effect;

$e$ such other information AEMO requires to process the application; and

$f$ a statement that the information provided is accurate.

2.33.7. AEMO must prescribe a Facility disaggregation application form

that requires an applicant to provide the following:

$a$ the relevant non-refundable Application Fee;

$b$ the names of the Registered Facilities to which the application relates;

$c$ evidence satisfactory to AEMO that the requirement in clause

2.30.10(a) that each disaggregated Facility is to be registered as a

separate facility can be met;

$d$ a proposed date on which the disaggregation is to take effect;

$e$ such other information AEMO requires to process the application; and

$f$ a statement that the information provided is accurate.

2.33.8. AEMO must prescribe a Facility Class reassessment application

form that requires an applicant to provide the following:

$a$ the relevant non-refundable Application Fee;

$b$ the name of the Registered Facility to which the application relates;

$c$ the proposed Facility Class, which must be either Scheduled Facility, Semi-Scheduled Facility or Non-Scheduled Facility, and a proposed date on which the reassessment is to take effect;

$d$ evidence to AEMO’s satisfaction that the Registered Facility meets the conditions specified in clause 2.29.6;

$e$ information required by AEMO to reassess the Facility Class;

$f$ such other information AEMO requires to process the application; and

$g$ a statement that the information provided is accurate.

Explanatory Note

Section 2.34 sets out the obligations and associated processes with respect to Standing Data.

Clause 2.34.7A is deleted as accreditation of Facilities for providing Frequency Co-optimised Essential System Services (FCESS) is dealt with in new section 2.34A.

Clauses 2.34.7B and 2.34.7C are deleted as a consequence of clause ### 2.34.7A being deleted.

Section 2.34 has been amended to modify the obligations and associated processes with respect to Standing Data to reflect that Standing Data may be used throughout the registration and participation lifecycle.

2.34. Standing Data

2.34.1. AEMO must maintain a record of the Standing Data described in

Appendix 1, including the date from which the data applies.

2.34.2. Each Rule Participant must ensure that Standing Data required by

the WEM Rules to be provided to AEMO for that Rule Participant is and remains accurate.

2.34.2A. A Rule Participant must, as soon as practicable, seek to have

its Standing Data revised, other than Standing Data described in clause

2.34.2B, if it becomes aware that its Standing Data is currently

inaccurate or not in compliance with the requirements of these WEM Rules, or will become inaccurate or will cease to be in compliance with the requirements of these WEM Rules within the next five Business Days.

2.34.2B. A Rule Participant may submit a proposed change to the

following Standing Data at any time:

$a$ [Blank]

$b$ whether a Load not currently treated as an Intermittent Load is to be treated as an Intermittent Load, provided that the Rule Participant is confident that the Load satisfies the requirements of clause 2.30B.2; and

$c$ whether a Load currently treated as an Intermittent Load is to cease to be treated as an Intermittent Load.

Explanatory Note

Clause 2.34.3 is amended to remove the reference to sections 6.2A (Standing Bilateral Submission Timetable and Process) and 6.3C (Standing STEM Submission Timetable and Process), because Standing Bilateral Submissions and Standing STEM Submissions will not be classified as Standing Data.

2.34.3. A Rule Participant that seeks to change its Standing Data must

notify AEMO of:

$a$ the revisions it proposes be made to its Standing Data;

$b$ the reason for the change; and

$c$ the date from which the revision will take effect.

2.34.4. Notwithstanding clauses 2.34.2 and 2.34.3, a Rule Participant is

not required to notify AEMO of changes to Standing Data where the changes reflect a temporary change in the capacity or capability of a Registered Facility resulting from an Outage.

2.34.5. AEMO must confirm receipt of the notification described in

clause 2.34.3 within one Business Day of receipt of notification.

2.34.6. AEMO may, at its discretion, request further information from a

Rule Participant, including requiring that tests be conducted and evidence provided, concerning a notification of a change in Standing Data described in clause 2.34.3. A Rule Participant must comply with a request under this clause.

Explanatory Note

Clause 2.34.7 has been modified, including new subclause (b) which gives AEMO the power to reject a change in Standing Data where Standing Data (parameter) is already required to be provided under another rule requirement (e.g. section 2.34A) to ensure participants do not create or change certain Standing Data where a pre-process or approval is required. For example, if the Facility was accredited for FCESS, the Standing Data value submitted (post-accreditation) does not differ to value the Facility was accredited for.

The clause is further amended to require (not just permit) AEMO to reject such changes.

2.34.7. AEMO:

$a$ may reject a change in any Standing Data if it considers that an inadequate explanation, including test results, was provided to justify the change in Standing Data; and

$b$ must reject a change where the Standing Data, including Standing Data relating to the accreditation of a Facility to provide a Frequency Co-optimised Essential System Service in accordance with section 2.34A, is required to:

i. be modified in accordance with processes in these WEM Rules other than the processes in this section 2.34; or

ii. firstly be approved by AEMO through processes in these WEM Rules other than the processes set out in this section 2.34, and AEMO has not given its approval to the change in Standing Data in accordance with those other processes.

Explanatory Note

Clause 2.34.8 is amended to remove the reference to sections 6.2A (Standing Bilateral Submission Timetable and Process) and 6.3C (Standing STEM Submission Timetable and Process), because Standing Bilateral Submissions and Standing STEM Submissions will not be classified as Standing Data.

2.34.8. AEMO must notify the Rule Participant of its acceptance or

rejection of the change in Standing Data as soon as practicable, and no later than three Business Days after the later of:

$a$ the date of notification described in clause 2.34.3; and

$b$ if AEMO makes a request under clause 2.34.6, the date on which the information requested is received by AEMO.

2.34.9. If AEMO rejects a change in Standing Data it must provide the

Rule Participant that requested the change with its reasons for rejecting the change.

2.34.10. [Blank]

Explanatory Note

Clause 2.34.11 is amended to remove the references to persons that are exempt from the requirement to register as a Rule Participant, because the clause relates to the provision of Standing Data and only Rule Participants provide Standing Data to AEMO.

2.34.11. AEMO may require that a Rule Participant provide updated

Standing Data for any of its Facilities if AEMO considers the information provided by the Rule Participant to be inaccurate or no longer accurate.

Explanatory Note

New clauses 2.34.12, 2.34.12A and 2.34.12B align with EPWA’s policy intent to incorporate a lifecycle approach to registration and participation.

Clause 2.34.12 gives AEMO the power to utilise Standing Data to assess whether a Rule Participant continues to meet the requirements of the WEM Rules. Many sections of the WEM Rules interlink with obligations and requirements of Standing Data.

Clause 2.34.12A interlinks a change in Standing Data with the process outlined under section 2.29 ‘Facility Class reassessments’ which may be triggered by AEMO. This is to provide transparency that Standing Data may be used as part of this process.

Clause 2.34.12B gives AEMO the power to confirm the Standing Data is accurate from a person who is exempt from the requirement to register or has been granted an exemption by AEMO to register to assess if the exemption should be retained or revoked or to ensure that Power System Security and Power System Reliability is maintained. Clause 2.34.12B is further amended to remove the references to clauses 2.29.4B and 2.29.4C to allow AEMO to request information regarding the Facility where any exemption exists.

2.34.12. AEMO may use Standing Data to assess whether a Market

Participant continues to meet its obligations under these WEM Rules and the WEM Procedures.

2.34.12A. AEMO may use Standing Data to assess whether a Registered

Facility continues to meet its obligations under these WEM Rules, including the requirements of the Facility Class it is registered in.

2.34.12B. Where a person is exempted from the requirement to register a

Facility AEMO may request information regarding the Facility from that person to assess whether the exemption should be revoked and the information must be provided to AEMO by the time specified in the request.

2.34.13. If AEMO requires a Rule Participant to provide updated Standing

Data under clause 2.34.11, then:

$a$ The Rule Participant must provide AEMO with updated Standing Data for the specified Registered Facility as soon as practicable; and

$b$ where the Rule Participant fails to provide updated Standing Data in a timely manner, AEMO may temporarily substitute data restricting the capability of the Facility until such time as the Rule Participant updates the Standing Data. AEMO must notify the Rule Participant when it is using such substitute data.

2.34.14. Revised Standing Data that is accepted by AEMO takes effect

from 8:00 AM on the later of:

$a$ the date proposed by the Rule Participant; or

$b$ the second day after the day on which AEMO accepts the revised Standing Data.

Explanatory Note

Section 2.34A sets out the regime for accreditation of facilities for providing FCESS.

Transitional rules and procedures are separately under development to give effect to the Taskforce decision that all Registered Facilities which are participating in Ancillary Services provision in the 2020 Capacity Year must be accredited to provide the equivalent FCESS from the start of the new WEM in October 2022. The transitional arrangements will also provide information to industry on how the Essential System Service accreditation will be implemented, allowing other interested Market Participants to accredit their Registered Facilities in accordance with the relevant rules well-ahead of new market start.

Facilities providing Non-Co-optimised Essential System Services (NCESS) will not be required to be accredited in accordance with the regime set out in section 2.34A. However, it is expected that those Facilities will need to meet certain requirements that will be reflected in the amending rules that are to be developed for NCESS in early 2021.

A Network Operator is not a Market Participant and will therefore be unable to participate in the FCESS markets.

2.34A. Essential System Service Accreditation

Accreditation for Frequency Co-optimised Essential System Services

2.34A.1. AEMO may accredit a Facility to provide one or more of the

following Frequency Co-optimised Essential System Services:

$a$ Regulation Raise;

$b$ Regulation Lower;

$c$ Contingency Reserve Raise;

$d$ Contingency Reserve Lower; and

$e$ RoCoF Control Service.

2.34A.2. A Market Participant may apply to AEMO for accreditation of a

Facility to provide one or more Frequency Co-optimised Essential System Services referred to in clause 2.34A.1 in accordance with the WEM Procedure referred to in clause 2.34A.13.

2.34A.3. Unless the relevant information is included as part of Standing

Data, an application for accreditation of a Facility made pursuant to clause 2.34A.2 to provide one or more Frequency Co-optimised Essential System Services referred to in clause 2.34A.1 must include:

$a$ the identity of the Facility;

$b$ the maximum quantity of each applicable Frequency Co-optimised Essential System Service that the Facility intends to provide and where that value would differ under different Facility operating configurations;

$c$ the Standing Enablement Minimum and Standing Enablement Maximum for the Facility for each applicable Frequency Co-optimised Essential System Service and where those values would differ under different Facility operating configurations;

$d$ the Standing Low Breakpoint and Standing High Breakpoint for the Facility for each applicable Frequency Co-optimised Essential System Service and where those values would differ under different Facility operating configurations;

$e$ for a Facility that is an Interruptible Load, the Restoration Profile of the Interruptible Load if applicable;

$f$ for an application to provide Contingency Reserve Raise, whether the Facility will provide a Contingency Reserve Raise response in a block or continuous manner if applicable; and

$g$ any other information that may be specified in the WEM Procedure referred to in clause 2.34A.13.

2.34A.4. AEMO must approve or reject an application for accreditation of

a Facility made pursuant to clause 2.34A.2, including any subsequent amendments required by AEMO following consultation with the relevant Market Participant, in accordance with the WEM Procedure referred to in clause 2.34A.13, within 20 Business Days of the later of:

$a$ receipt of the application under clause 2.34A.2; and

$b$ receipt of all information required to be provided under clauses

2.34A.3 and as may be specified in the WEM Procedure referred to in

clause 2.34A.13, including the results of any required Facility tests and re-tests.

2.34A.4A. Where AEMO requires tests or re-tests for a Facility, a Market

Participant must conduct the test or re-test and will be responsible for the cost of that test or re-test.

2.34A.4B. AEMO may only require a test or re-test where AEMO considers

it reasonably necessary for AEMO to consider the accreditation of the Facility to provide one or more Frequency Co-optimised Essential System Services referred to in clause 2.34A.1.

2.34A.4C. A Market Participant may withdraw an application for

accreditation of a Facility made pursuant to clause 2.34A.2 at any time prior to the application being approved or rejected by AEMO under clause

2.34A.4.

2.34A.5. If AEMO rejects an application for accreditation of a Facility

made pursuant to clause 2.34A.2, AEMO must provide reasons for the rejection to the Market Participant.

Explanatory Note

Clause 2.34A.6 is amended to include the Restoration Profile of a Interruptible Load as a Frequency Co-optimised Essential System Service Accreditation Parameter. The information is included in an application for FCESS accreditation under clause 2.34A.3(e), and should be maintained through the accreditation process under section 2.34A rather than only through the Standing Data process under section 2.34.

2.34A.6. If AEMO approves an application for accreditation of a Facility

made pursuant to clause 2.34A.2, it must, as soon as possible, inform the Market Participant, together with notification of any required amendments, including revised or additional parameters or settings, and the Market Participant must include the following information in its Standing Data for the Facility, or in such other place as specified in the WEM Procedure referred to in clause 2.34A.13, in respect of each Frequency Co-optimised Essential System Service referred to in clause

2.34A.1 that the Facility is accredited to provide:

$a$ the maximum quantity of each applicable Frequency Co-optimised Essential System Service for each relevant Facility operating configuration;

$b$ the Standing Enablement Minimum and Standing Enablement Maximum for each relevant Facility operating configuration;

$c$ the Standing Low Breakpoint and Standing High Breakpoint for each relevant Facility operating configuration;

$d$ where the Facility is accredited to provide Contingency Reserve:

i. the Facility Speed Factor (which must be based on the Facility’s actual or modelled response to a local frequency excursion determined in accordance with the WEM Procedure referred to in clause 2.34A.13);

ii. whether the Facility is subject to the Maximum Contingency Reserve Block Size; and

iii. where the Facility is an Interruptible Load, the Restoration Profile of the Interruptible Load if applicable;

$e$ where the Facility is accredited to provide Regulation or RoCoF Control Service, a Facility Performance Factor of one for each of these Essential System Services; and

$f$ any other performance parameters that may be specified in the WEM Procedure referred to in clause 2.34A.13.

2.34A.7. If requested by AEMO, a Market Participant must promptly

provide AEMO with any information to clarify or support the information referred to in clause 2.34A.6.

Explanatory Note

Where a Market Participant requests AEMO to amend the Frequency Co-optimised Essential System Service Accreditation Parameters, AEMO may require the Facility to undergo a test that may, potentially, result in a reduction to the Facility’s accredited quantity of relevant FCESS. AEMO would conduct the re-assessment taking into account the effect of any outages.

Clause 2.34A.8 is intended to be a civil penalty provision.

2.34A.8. Where, in the Market Participant's reasonable opinion, the

performance of the Facility is varying significantly, or is likely to vary significantly, from Frequency Co-optimised Essential System Service Accreditation Parameters for the Facility, or any performance requirements specified in the WEM Procedure referred to in clause

2.34A.13, the Market Participant must provide the information in respect

of those matters to AEMO as soon as possible and request AEMO to amend the Frequency Co-optimised Essential System Service Accreditation Parameters for the Facility to reflect the actual or likely varied performance.

Explanatory Note

AEMO is unlikely to decline a request to change the Frequency Co-optimised Essential System Service Accreditation Parameters. However, AEMO may require the Facility to undergo further testing to verify whether the Facility is able to perform in accordance with the reduced Frequency Co-optimised Essential System Service Accreditation Parameters

The intent of clause 2.34A.9 is to recognise that Frequency Co-optimised Essential System Services Accreditation Parameters should not be reviewed if the Facility was on a Planned Outage. However where there is a Forced Outage, AEMO may consider reviewing the parameters based on the impact of the Forced Outage on the Facility’s performance.

2.34A.9. Clause 2.34A.8 does not apply to the extent that the

performance of the Facility is or is likely to be impacted by an Outage.

2.34A.10. Where a request to amend the Frequency Co-optimised Essential

System Service Accreditation Parameters for a Facility pursuant to clause 2.34A.8:

$a$ is made at least 12 months after AEMO's most recent assessment of the Frequency Co-optimised Essential System Service Accreditation Parameters for the Facility, AEMO must consider the information and assess whether the Frequency Co-optimised Essential System Service Accreditation Parameters should be amended; or

$b$ is made less than 12 months after AEMO's most recent assessment of the Frequency Co-optimised Essential System Service Accreditation Parameters for the Facility, AEMO may decline the request or may consider the information and assess whether the Frequency Co-optimised Essential System Service Accreditation Parameters should be amended.

2.34A.11. If AEMO becomes aware, either pursuant to clause 2.34A.10 or

through its own monitoring activities, that the performance of a Facility has varied, is varying, or is likely to vary, significantly from the Frequency Co-optimised Essential System Service Accreditation Parameters for the Facility, or any performance requirements specified in the WEM Procedure referred to in clause 2.34A.13, AEMO may reassess the Frequency Co-optimised Essential System Service Accreditation Parameters, and notify the Market Participant of its decision to either:

$a$ amend the Frequency Co-optimised Essential System Service Accreditation Parameters, the amendments it will make and the date that the amendments will take effect from; or

$b$ not amend the Frequency Co-optimised Essential System Service Accreditation Parameters,

and the reasons for its decision.

2.34A.12. Where AEMO amends the Frequency Co-optimised Essential System

Service Accreditation Parameters pursuant to clause 2.34A.11, the Market Participant must, within 5 Business Days of receiving notification from AEMO in accordance with clause 2.34A.11, update its Standing Data for the Facility or information in such other place as specified in the WEM Procedure referred to in clause 2.34A.13, to reflect the amended Frequency Co-optimised Essential System Service Accreditation Parameters.

Determining RoCoF Ride-Through Capability

2.34A.12A. A Market Participant may apply to AEMO for accreditation of

the RoCoF Ride-Through Capability of each of its Facilities in accordance with the WEM Procedure specified in clause 2.34A.13.

2.34A.12B. A Network Operator must apply to AEMO for accreditation of

the RoCoF Ride-Through Capability of each of its transmission systems or distribution systems in accordance with the WEM Procedure specified in clause 2.34A.13.

2.34A.12C. AEMO must determine, or re-determine, as applicable, in

accordance with the WEM Procedure specified in clause 2.34A.13, the RoCoF Ride-Through Capability for a Facility pursuant to an application made under clauses 2.34A.12A, 2.34A.12B, 2.34A.12E or in accordance with clause 2.34A.12F.

2.34A.12D. As part of determining, or re-determining, as applicable, the

RoCoF Ride-Through Capability for a Facility, transmission system or distribution system pursuant to an application made under clauses

2.34A.12A, 2.34A.12B or 2.34A.12E or in accordance with clause

2.34A.12F, AEMO may request the relevant Market Participant or Network

Operator to provide further information that may be reasonably required, including engineering studies or reports, to demonstrate the RoCoF Ride-Through Capability of the Facility, and the relevant Market Participant or Network Operator must comply with the request within a reasonable timeframe as agreed with AEMO.

2.34A.12E. Where, in the Market Participant's or Network Operator's

reasonable opinion, the RoCoF Ride-Through Capability of its Facility has varied, is varying, or is likely to vary, significantly from the value the Facility was accredited for under clause 2.34A.12C, the Market Participant or Network Operator must apply to AEMO to re-determine the RoCoF Ride-Through Capability accredited to the Facility, transmission system or distribution system, as applicable.

2.34A.12F. Where AEMO becomes aware that the RoCoF Ride-Through

Capability of a Facility has varied, is varying, or is likely to vary, significantly from the value the Facility was accredited for under clause 2.34A.12C, AEMO must:

$a$ notify the relevant Market Participant or Network Operator; and

$b$ re-determine the RoCoF Ride-Through Capability accredited to the relevant Facility in accordance with clause 2.34A.12C.

2.34A.12G. Where AEMO determines the RoCoF Ride-Through Capability

accredited to a Facility pursuant to clause 2.34A.12C, or as a result of a re-determination pursuant to clauses 2.34A.12E or 2.34A.12F, the relevant Market Participant or Network Operator must, within five Business Days of receiving notification of the re-accreditation from AEMO, update its Standing Data for its Facility or information in such other place as specified in the WEM Procedure referred to in clause

2.34A.13, to reflect the amended RoCoF Ride-Through Capability for the

Facility.

2.34A.12H. Notwithstanding clauses 2.34A.12A, 2.34A.12B, 2.34A.12E or

2.34A.12F, AEMO may, in its sole discretion, deem the RoCoF Ride-Through

Capability of any Facility to be equal to the RoCoF Safe Limit.

Cost-recovery for RoCoF Control Service based on a Facility’s RoCoF Ride-Through Capability

2.34A.12I. AEMO must determine a RoCoF Ride-Through Cost Recovery Limit

in accordance with the WEM Procedure specified in clause 2.34A.13. In determining the RoCoF Ride-Through Cost Recovery Limit, AEMO must:

$a$ not set the value higher than the RoCoF Upper Limit;

$b$ set the limit to a precision of 0.1 Hz over 500 milliseconds; and

$c$ subject to clause 2.34A.12I(a), set the limit above the RoCoF Safe Limit by at least 0.25 Hz over 500 milliseconds.

2.34A.12J. Where the RoCoF Ride-Through Capability accredited to a

Facility under clause 2.34A.12C, or deemed to be accredited to a Facility under clause 2.34A.12H, is equal to or lower than the RoCoF Ride-Through Cost Recovery Limit, the Facility is deemed to be a RoCoF Causer for the purposes of Appendix 2B.

WEM Procedure

2.34A.13. AEMO must document in a WEM Procedure the processes to be

followed by AEMO, Market Participants and Network Operators in respect of the accreditation of a Facility under this section 2.34A or section 1.49. The WEM Procedure must include:

$a$ in respect to the provision of a Frequency Co-Optimised Essential System Service:

i. the format of information which Market Participants must submit;

ii. the performance parameters and requirements which must be satisfied in order for a Facility to be accredited to provide a particular Frequency Co-optimised Essential System Service (for example, minimum quantity, maximum response time, control facilities, measurement facilities);

iii. the manner and form of control system or communication arrangements required for the provision, and monitoring, of each Frequency Co-optimised Essential System Service;

iv. the Maximum Contingency Reserve Block Size and the method used to determine the Maximum Contingency Reserve Block Size;

v. the format and nature of data to be provided as evidence of performance after each Contingency Event;

vi. how AEMO will monitor and verify Facility performance against the Frequency Co-optimised Essential System Service Accreditation Parameters for the Facility including modelling and testing requirements;

vii. how AEMO will determine a Facility Speed Factor for the Facility (so that it is possible for a Market Participant to estimate the Facility Speed Factor likely to be applied to its Facility);

viii. the process for a Market Participant to seek to amend the Frequency Co-optimised Essential System Service Accreditation Parameters for a Facility;

ix. the process AEMO will follow in considering whether to amend the Frequency Co-optimised Essential System Service Accreditation Parameters for a Facility, including examples of changes to Facility performance that would lead to an adjustment of the Frequency Co-optimised Essential System Service Accreditation Parameters;

x. the processes to be followed by AEMO and Market Participants for any tests and re-tests of a Facility for the accreditation of a Facility to provide a Frequency Co-optimised Essential System Service;

xi. timeframes for notification requirements and provision of information including updating any Standing Data or information in such other place as determined by AEMO and specified in the WEM Procedure; and

xii. any other processes or requirements relating to the accreditation of a Facility to provide a Frequency Co-optimised Essential System Service that AEMO considers are reasonably required to enable it to perform its functions under this section 2.34A;

$b$ in respect to RoCoF Ride-Through Capability:

i. the type and form of supporting information which AEMO may request from Market Participants and Network Operators;

ii. the processes AEMO must follow and the matters AEMO must take into account in determining whether to deem a Facility’s RoCoF Ride-Through Capability as being equal to the RoCoF Safe Limit under clause

2.34A.12H;

iii. the processes to be followed by Market Participants and Network Operators that wish to apply for the accreditation of RoCoF Ride-Through Capability for its Facility to be determined or re-determined by AEMO;

iv. the processes to be followed by AEMO to determine or re-determine the accredited RoCoF Ride-Through Capability for a Facility;

v. the processes to be followed by AEMO in considering whether to re-determine the RoCoF Ride-Through Capability accredited to a Facility, which may include examples of changes to a Facility's performance that would lead to an adjustment of the RoCoF Ride-Through Capability accredited to the Facility;

vi. the processes to be followed by AEMO, Market Participants and Network Operators for any tests and re-tests of a Facility for the accreditation, or re-accreditation, of RoCoF Ride-Through Capability for a Facility; and

vii. the timeframes, which must be reasonable, for notification requirements and provision of information, including updating any Standing Data or information in such other place as determined by AEMO and specified in the WEM Procedure; and

$c$ the processes to be followed by AEMO, including a consultation process with Market Participants and Network Operators, in determining or re-determining the RoCoF Ride-Through Cost Recovery Limit.

Publication

2.34A.14. AEMO must publish, and keep up to date, the following

information on the WEM Website:

$a$ for each Facility accredited to provide a Frequency Co-optimised Essential System Service:

i. the identity of the Facility;

ii. the maximum quantity of each Frequency Co-optimised Essential System Service intended to be provided by the Facility and how that value would vary under different Facility operating configurations;

iii. where applicable, the Facility Speed Factor for the Facility; and

$b$ for each Facility, including a transmission system or distribution system, for which AEMO has determined a RoCoF Ride-Through Capability value:

i. the identity of the Facility; and

ii. the RoCoF Ride-Through Capability for the Facility.

Explanatory Note

The requirement to publish Rule Participant data is relocated from clause 10.5.1(c) to new clause 2.34B.1 in new section 2.34B as below, with some minor changes:

the requirement for AEMO to publish specific contact details such as a mailing address has been updated to be more generic (clause ### 2.34B.1(b));
the requirement for AEMO to publish details of licences held has been removed as this is on the ERA’s public register; and
the publication requirements for Intermittent Loads and Registered Facilities have been updated to more accurately reflect the information held by AEMO (clauses 2.34B.1(e) and 2.34B.1(f)).

2.34B. Rule Participant Data

2.34B.1. AEMO must publish details of all Rule Participants, including:

$a$ name;

$b$ contact details;

$c$ the name and title of a contact person;

$d$ applicable Rule Participant classes;

$e$ names and System Sizes of Registered Facilities; and

$f$ names of Intermittent Loads and the associated maximum capacity from the Energy Producing Systems which supply them, as described in clause 2.30B.3(a).

Explanatory Note

Consequential and administrative amendments to 2.35.1 to 2.35.3.

Clause 2.35.4 is further amended to require AEMO to document the backup processes to be followed where the primary communication and control system requirements are not available.

Communications and Systems Requirements

2.35. Dispatch Systems Requirements

2.35.1. Market Participants with Scheduled Facilities, Semi-Scheduled

Facilities and Non-Scheduled Facilities that are not under the direct control of AEMO must maintain communication systems that enable communication with AEMO for dispatch of those Registered Facilities.

2.35.2. Market Participants with Registered Facilities to which clause

7.6.28 relates must provide the necessary communication systems for AEMO to activate and control the level of output of the Registered Facility as required for it to comply with Dispatch Instructions.

2.35.3. The Rule Participant in respect of an Interruptible Load must

maintain systems to reduce the energy consumption of the Interruptible Load in response to system frequency changes.

2.35.4. AEMO must document the communications and control system

requirements, including backup communication and control requirements where the primary methods are unavailable, necessary to support the dispatch process described in these WEM Rules in a WEM Procedure, including for issuing Dispatch Instructions.

2.36. AEMO Systems Requirements

Explanatory Note

Clause 2.36.1 is amended to replace the specific list of calculations with more generic wording that will capture all calculations performed by AEMO via software systems.

This will ensure AEMO applies software management processes for all market systems which perform calculations that affect market outcomes.

2.36.1. Where AEMO uses software systems to perform calculations of

quantities, prices or amounts defined under these WEM Rules, AEMO must:

$a$ maintain a record of which version of software was used in producing each set of results, and maintain records of the details of the differences between each version and the reasons for the changes between versions;

$b$ maintain each version of the software in a state where results produced with that version can be reproduced for a period of at least one year from the release date of the last results produced with that version;

$c$ ensure that appropriate testing of new software versions is conducted;

$d$ ensure that any versions of the software used by AEMO have been certified as being in compliance with the WEM Rules by an independent auditor; and

$e$ require vendors of software audited in accordance with clause

2.36.1(d) to make available to Rule Participants explicit documentation

of the functionality of the software adequate for the purpose of audit.

2.36.2. A “version” of the software referred to in clause 2.36.1 means

any initial software used and any changes to the software that could have a material effect on the prices or quantities resulting from the use of the software.

2.36.3. A Rule Participant must ensure that any of its systems which are

linked to AEMO’s systems conform to AEMO’s data and IT security standards at the point of interface.

2.36.4. A Rule Participant must not deliberately use systems in a manner

that will undermine the operability of those or connected software systems.

Explanatory Note

Clause 2.36.5 is amended to give AEMO the flexibility of centralising some, or all, of the system requirements in a single WEM Procedure instead of in the relevant WEM Procedure to which each system pertains.

2.36.5. AEMO must document the data and IT interface requirements,

including security standards in respect of systems required for Market Participants to operate in the Wholesale Electricity Market in a WEM Procedure.

2.36.5A. AEMO must publish documentation of the functionality of:

$a$ the STEM Auction software; and

$b$ the Settlement System Software.

2.36.6. AEMO may require Rule Participants to submit information to AEMO

using software systems that AEMO specifies, and may reject information submitted by another method.

2.36.7. AEMO must document in a WEM Procedure:

$a$ arrangements by which Network Operators and AEMO must provide each other information produced under these WEM Rules;

$b$ the format, form and manner in which that information must be provided; and

$c$ a timeframe for the provision of the information as agreed between Network Operators and AEMO.

Explanatory Note

Section 2.36A is deleted and replaced to include:

an ability for AEMO to require Rule Participants (being Market Participants and Network Operators) to install, upgrade and maintain communication and measuring equipment;
where a Network Operator is required to install or upgrade SCADA or high-speed time synchronised data recording equipment at AEMO’s request, the Network Operator will recover the costs through network tariffs;
where a Market Participant is required to install or upgrade SCADA at their generation sites, the costs will be borne by that Market Participant;
a requirement for AEMO to set out in a WEM Procedure the minimum standards and specifications the communication and measurement information must adhere to; and
a requirement for AEMO to consult in good faith with the Network Operator in the development of the WEM Procedure, giving regard to the reasonableness of the cost-effectiveness of equipment that may need to be installed or upgraded.

2.36A. SCADA, Communication and Monitoring Equipment

2.36A.1. AEMO may direct a Rule Participant, in accordance with the WEM

Procedure referred to in clause 2.36A.5, to:

$a$ install communications or control systems, including interfaces to communications or control systems, that AEMO considers are adequate to enable AEMO to remotely monitor the performance of the SWIS (including its dynamic performance); and

$b$ upgrade, modify, repair or replace any communications or control systems already installed in a Facility providing the existing communications or control systems are, in the reasonable opinion of AEMO, no longer fit for the intended purpose.

2.36A.2 Where a Facility:

$a$ is seeking Essential System Service accreditation; or

$b$ is connected at a location within the Network Operator’s Network that has demonstrated historical or potential instability or high fault activity,

and the Facility does not have measurement equipment installed, AEMO may, acting reasonably, direct a Network Operator to, in accordance with the WEM Procedure referred to in clause 2.36A.5, install or upgrade measurement equipment or systems to enable high resolution time-synchronised measurement data to be recorded and provided to AEMO.

2.36A.3. If AEMO issues a direction under clause 2.36A.1 or clause

2.36A.2, the Rule Participant must comply with the direction within the

timeframe agreed between the relevant Rule Participant and AEMO or, if no time is agreed, then within a reasonable time.

2.36A.4. A Rule Participant must operate and maintain equipment in order

to meet and comply with the requirements specified in the WEM Procedure referred to in clause 2.36A.5.

2.36A.4A. Rule Participants must provide the data or information

specified by AEMO from the equipment in clause 2.36A.1 to AEMO in the manner and form specified in the WEM Procedure referred to in clause

2.36A.5.

2.36A.5. AEMO must develop a WEM Procedure specifying:

$a$ the communications and control system requirements, including backup communication and control requirements where the primary methods are unavailable, necessary to enable AEMO to remotely monitor the performance of the SWIS; and;

$b$ the high-resolution time synchronised data requirements necessary to enable AEMO to:

i. accredit a Facility’s Frequency Co-optimised Essential System Services capability;

ii. monitor a Facility’s Frequency Co-optimised Essential System Services response;

iii. monitor a Facility’s compliance with its Registered Generator Performance Standards;

iv. investigate incidents on the SWIS that impact Power System Security or Power System Reliability or market operation; and

v. any other matter for which high-resolution time stamped data, where available, may assist with monitoring the performance of the SWIS;

$c$ the minimum standards and specifications that the communication and measuring information must adhere to;

$d$ the manner in which communications data and measuring information is to be provided to AEMO; and

$e$ any other relevant matters required for AEMO to perform its obligations in respect of this section 2.36A.

2.36A.6. In developing the WEM Procedure referred to in clause 2.36A.5,

AEMO must:

$a$ consult in good faith with Network Operators; and

$b$ give reasonable consideration to the cost-effectiveness of equipment which the WEM Procedure may require to be installed or upgraded.

Prudential Requirements

Explanatory Note

Section 2.37 is amended to decrease the maximum number of days of prudential exposure from 70 days to 35 days to reflect the new weekly settlement timeline and the decreased lag between trading and settlement.

References to ‘Market Participant’ in clauses 2.37 – 2.43 have been replaced with ‘Rule Participant’ where necessary to reflect that Western Power will be liable for RoCoF costs (unless it meets the exemption criteria – see Appendix 2B) and therefore AEMO must determine the prudential requirements for Western Power.

2.37. Credit Limit

2.37.A1. In this section 2.37, a reference to "Rule Participant" is a

reference to the relevant Market Participant or the relevant Network Operator as the case may be (and is not a reference to any other Rule Participant).

2.37.1. AEMO must determine a Credit Limit for each Rule Participant in

accordance with clause 2.37.4.

2.37.2. Subject to clauses 2.37.3 and 2.42.7, AEMO may review and revise

a Rule Participant’s Credit Limit at any time.

2.37.3. AEMO must review each Rule Participant’s Credit Limit at least

once each year.

2.37.4. Subject to clauses 2.37.5 and 2.37.6, the Credit Limit for a

Rule Participant is the dollar amount determined by AEMO as being equal to the amount that AEMO reasonably expects will not be exceeded over any 35 day period, where this amount is:

$a$ the maximum net amount owed by the Rule Participant to AEMO over the 35 day period;

$b$ determined by applying the factors set out in clause 2.37.5; and

$c$ calculated in accordance with the WEM Procedure referred to in clause 2.43.1.

Explanatory Note

The amendments to clause 2.37.5 are consequential changes resulting from the new framework for Essential System Services. No changes are expected to be made to the calculation of a Market Participant’s Credit Limit.

2.37.5. When determining a Rule Participant’s Credit Limit AEMO must

take into account:

$a$ in relation to a Market Participant:

i. the Market Participant’s historical level of payments based on metered quantity data for the Market Participant, or an estimate of the Market Participant’s future level of payments based on its expected generation and consumption quantities where no metered quantity data is available;

ii. the Market Participant’s historical level of Bilateral Contract sale and purchase quantities as reflected in historical Bilateral Contract submissions, or an estimate of the Market Participant’s expected level of Bilateral Contract sale and purchase quantities where no historical Bilateral Contract submission data is available;

iii. the Market Participant’s historical level of STEM settlement payments under clause 9.7.2, or an estimate of the Market Participant’s future level of STEM settlement payments based on its expected STEM sales and purchases where no historical STEM settlement payment data is available;

iv. the Market Participant’s historical level of Reserve Capacity settlement payments under section 9.8 or an estimate of the Market Participant’s future level of Reserve Capacity settlement payments based on its number of Capacity Credits where no historical Reserve Capacity settlement payment data is available;

v. the Market Participant’s historical level of Real-Time Energy settlement payments under clause 9.9.2, or an estimate of the Market Participant’s future level of Real-Time Energy settlement payments based on its expected transactions in the Real-Time Market where no historical Real-Time Energy settlement payment data is available;

vi. the Market Participant’s historical level of Outage Compensation settlement payments under clause 9.11.2, or an estimate of the Market Participant’s future level of Outage Compensation settlement payments based on its expected level of Outages where no historical Outage Compensation settlement payment data is available;

vii. the Market Participant’s historical level of Market Participant Fee settlement payments under clause 9.12.2, or an estimate of the Market Participant’s future level of Market Participant Fee settlement payments based on its expected generation or consumption quantities where no historical Market Participant Fee settlement payment data is available;

$b$ the Rule Participant’s historical level of Essential System Service settlement payments under clause 9.10.1, or an estimate of the Rule Participant’s future level of Essential System Service settlement payments based on its expected Essential System Service provision where no historical Essential System Service settlement payment data is available;

$c$ the length of the settlement cycle; and

$d$ any other factor that AEMO considers relevant.

2.37.6. In determining a Market Participant’s Credit Limit under clause

2.37.4, AEMO may, to the extent it considers relevant, take into account

a minimum amount that AEMO considers would adequately protect the Wholesale Electricity Market if a Suspension Event were to occur in relation to that Market Participant.

2.37.7. AEMO must notify each Rule Participant of its Credit Limit,

including any revised Credit Limit under clause 2.37.2. AEMO must provide details of the basis for the determination of the Credit Limit (with references to the factors specified in clause 2.37.5 and the WEM Procedure referred to in clause 2.43.1).

2.37.8. Where any of the circumstances specified in the WEM Procedure

specified in clause 2.43.1 for the purposes of this clause (which are circumstances that may result in an increase or decrease in a Rule Participant’s Credit Limit) have occurred or may occur:

$a$ the Rule Participant must notify AEMO as soon as practicable if the circumstance may result in an increase in the Rule Participant’s Credit Limit; and

$b$ the Rule Participant may notify AEMO if the circumstance may result in a decrease in the Rule Participant’s Credit Limit.

2.38. Credit Support

2.38.A1. In this section 2.38, a reference to "Rule Participant" is a

reference to the relevant Market Participant or the relevant Network Operator as the case may be (and is not a reference to any other Rule Participant).

2.38.1. A Rule Participant must ensure that, at all times, AEMO holds

the benefit of Credit Support that is:

$a$ in the form specified in clause 2.38.4; and

$b$ an amount not less than the most recently determined Credit Limit for that Rule Participant.

2.38.2. Where a Rule Participant’s existing Credit Support is due to

expire or cease to have effect for any other reason, then that Rule Participant must ensure that AEMO holds the benefit of replacement Credit Support that is:

$a$ in the form specified in clause 2.38.4;

$b$ an amount not less than the level required under clause 2.38.1(b); and

$c$ effective when the existing Credit Support expires or otherwise ceases to have effect.

Explanatory Note

Clause 2.38.3 is amended to remove the existing ambiguity regarding the circumstances that may require Credit Support to be replaced. Clause ### 2.43.1 is also amended to require those circumstances to be specified in the WEM Procedure documented by AEMO in accordance with that clause.

2.38.3 Where a Rule Participant’s Credit Support is affected by any of

the circumstances specified in the WEM Procedure referred to in clause

2.43.1 that may require replacement Credit Support, then the Rule

Participant must ensure that AEMO holds the benefit of replacement Credit Support that is:

$a$ in the form specified in clause 2.38.4;

$b$ an amount not less than the level required under clause 2.38.1(b); and

$c$ effective before the end of the next Business Day or within any longer period approved in writing by AEMO, after the Rule Participant first becomes aware of the relevant change in circumstance (whether by reason of the Rule Participant’s own knowledge or a notification by AEMO).

2.38.4. The Credit Support for a Rule Participant must be:

$a$ an obligation in writing that:

i. is from a Credit Support provider, who must be an entity which meets the Acceptable Credit Criteria and which itself is not a Rule Participant;

ii. is a guarantee or bank undertaking in a form prescribed by AEMO;

iii. is duly executed by the Credit Support provider and delivered unconditionally to AEMO;

iv. constitutes valid and binding unsubordinated obligations of the Credit Support provider to pay to AEMO amounts in accordance with its terms which relate to the relevant Rule Participant’s obligations under the WEM Rules; and

v. permits drawings or claims by AEMO up to a stated amount; or

$b$ a Security Deposit.

2.38.5. Where Credit Support is provided as a Security Deposit in

accordance with clause 2.38.4(b), it will accrue interest daily at the Bank Bill Rate, and AEMO must pay the Rule Participant the interest accumulated at the end of each calendar month less any liabilities and expenses incurred by AEMO, including bank fees and charges.

2.38.6. An entity meets the Acceptable Credit Criteria if it is:

$a$ either:

i. under the prudential supervision of the Australian Prudential Regulation Authority; or

ii. a central borrowing authority of an Australian State or Territory which has been established by an Act of Parliament of that State or Territory;

$b$ resident in, or has a permanent establishment in, Australia;

$c$ not a Chapter 5 body corporate (within the meaning of the Corporations Act), or under a similar form of administration under any laws applicable to it in any jurisdiction;

$d$ not immune from suit;

$e$ capable of being sued in its own name in a court of Australia; and

$f$ has an acceptable credit rating, being either:

i. a rating of A-1 or higher for short term unsecured counterparty obligations of the entity, as rated by Standard and Poor’s (Australia) Pty. Limited; or

ii. a rating of P-1 or higher for short term unsecured counterparty obligations of the entity, as rated by Moodys Investor Services Pty. Limited.

2.38.7. AEMO must maintain on the WEM Website a list of entities which:

$a$ AEMO is satisfied, based on evidence provided by Rule Participants in the previous 12 months, meet the Acceptable Credit Criteria outlined in clause 2.38.6; or

$b$ AEMO has determined in its absolute discretion meet the Acceptable Credit Criteria outlined in clause 2.38.6.

2.38.8 AEMO must monitor the entities included on the list described in

clause 2.38.7 against the requirements in clause 2.38.6 (f).

2.38.9 AEMO may remove the name of an entity from the list described in

clause 2.38.7 at any time if AEMO considers that the entity no longer meets the Acceptable Credit Criteria defined in clause 2.38.6.

2.39. Trading Limit

2.39.A1. In this section 2.39, a reference to "Rule Participant" is a

reference to the relevant Market Participant or the relevant Network Operator as the case may be (and is not a reference to any other Rule Participant).

2.39.1. The Trading Limit for a Rule Participant is to equal the

prudential factor specified in clause 2.39.2 multiplied by the total amount which can be drawn or claimed under, or applied from, its Credit Support.

2.39.2. The prudential factor is 0.87.

2.40. Outstanding Amount

2.40.A1. In this section 2.40, a reference to "Rule Participant" is a

reference to the relevant Market Participant or the relevant Network Operator as the case may be (and is not a reference to any other Rule Participant).

2.40.1. The Outstanding Amount for a Rule Participant at any time equals

the total amount calculated as follows:

$a$ the aggregate of the amounts payable by the Rule Participant to AEMO under these WEM Rules, including amounts for all past periods for which no Settlement Statement has yet been issued, and whether or not the payment date has yet been reached; less

$b$ the aggregate of the amounts payable by AEMO to the Rule Participant under these WEM Rules, including amounts for all past periods for which no Settlement Statement has yet been issued, and whether or not the payment date has yet been reached; less

$c$ the aggregate of any amounts paid by the Rule Participant to AEMO for the purpose (to be specified by the Rule Participant in accordance with the WEM Procedure referred to in clause 2.43.1) of reducing the Outstanding Amount and increasing the Trading Margin on each day during the period from the Trading Day on which the Outstanding Amount is calculated up to and including either the next Settlement Date.

2.40.2. The amounts to be used for the purposes of making the

calculation under clause 2.40.1(b)(i) and (ii) will be the actual amounts for which Settlement Statements have been issued by AEMO and AEMO’s reasonable estimate of other amounts.

2.41. Trading Margin

2.41.A1. In this section 2.41, a reference to "Rule Participant" is a

reference to the relevant Market Participant or the relevant Network Operator as the case may be (and is not a reference to any other Rule Participant).

2.41.1. The Trading Margin for a Rule Participant at any time equals the

amount by which its Trading Limit exceeds its Outstanding Amount at that time.

2.41.2. A Market Participant must not make any submission to AEMO where

the transaction contemplated by the submission, if valued according to the list of factors referred to in clause 2.41.5, could result in the Market Participant’s Trading Margin being exceeded.

2.41.3. AEMO may reject any submission from a Market Participant where

in AEMO’s opinion the transaction contemplated by the submission, if valued according to the list of factors referred to in clause 2.41.5, could result in the Market Participant’s Trading Margin being exceeded.

2.41.4. AEMO may notify a Rule Participant at any time of the level of

their Trading Margin.

2.41.5. AEMO must publish in the WEM Procedure referred to in clause

2.43.1, a list of factors to be taken into account for determining the

expected value of a transaction. The factors must be consistent with the methodology that AEMO uses to determine Credit Limits for Rule Participants.

2.42. Margin Call

2.42.A1. In this section 2.42, a reference to "Rule Participant" is a

reference to the relevant Market Participant or the relevant Network Operator as the case may be (and is not a reference to any other Rule Participant).

2.42.1. If, at any time, a Rule Participant’s Trading Margin is less

than zero, then AEMO may issue a Margin Call Notice to the Rule Participant, specifying the amount of the Margin Call.

2.42.2. [Blank]

2.42.3. The amount of the Margin Call must be the amount that will

increase the Rule Participant’s Trading Margin to zero.

2.42.4. A Rule Participant must respond to a Margin Call Notice within

the time specified in the WEM Procedure referred to in clause 2.43.1 for the purposes of this clause, by:

$a$ paying to AEMO in cleared funds a Security Deposit as contemplated under clause 2.38.4(b); or

$b$ ensuring AEMO has the benefit of additional Credit Support of the kind contemplated by clause 2.38.4(a),

in the amount of the Margin Call.

2.42.5. AEMO may cancel a Margin Call Notice at any time. The

cancellation of a Margin Call Notice does not affect AEMO’s rights to issue a further Margin Call Notice on the same grounds that gave rise to the original Margin Call Notice.

2.42.6. Where a Market Participant fails to comply with clause 2.42.4

the provisions of clause 9.19 apply.

2.42.7. AEMO must review a Rule Participant’s Credit Limit within 30

Business Days after issuing a Margin Call Notice to that Rule Participant.

2.43. Prudential Requirements

Explanatory Note

Clause 2.43.1 is amended to:

include amendments consequential to the amendments to 2.38.4(b); and
require the WEM Procedure include the circumstances that may require Credit Support to be replaced for the purposes of clause ### 2.38.3.

2.43.A1. In this section 2.43, a reference to "Rule Participant" is a

reference to the relevant Market Participant or the relevant Network Operator as the case may be (and is not a reference to any other Rule Participant).

2.43.1. AEMO must develop a WEM Procedure dealing with:

$a$ determining Credit Limits;

$b$ assessing persons against the Acceptable Credit Criteria;

$c$ Credit Support arrangements, including:

i. the form of acceptable guarantees and bank letters of credit;

ii. where and how it will hold Security Deposits and how the costs and fees of holding Security Deposits will be met;

iiA. the circumstances that may require Credit Support to be replaced for the purposes of clause 2.38.3; and

iii. the application of monies drawn from Credit Support in respect of amounts owed by the relevant Rule Participant to AEMO.

$d$ calculation of Trading Margins;

$e$ the list of factors to be taken into account for assessing the expected value of transactions;

$f$ issuing of Margin Calls; and

$g$ other matters relating to clauses 2.37 to 2.42.

Emergency Powers

2.44. Minister’s Emergency Powers

2.44.1. If the Minister requests the Economic Regulation Authority or

AEMO to suspend the application of all or any of these WEM Rules (other than this section 2.44) or any element of the market in connection with the exercise of emergency powers under the Energy Operators (Powers) Act 1979 or under emergency provisions of other legislation, then the Economic Regulation Authority or AEMO, as applicable, must do so.

2.44.2. The Economic Regulation Authority or AEMO, as applicable, must

lift a suspension as soon as practicable after the Minister requests the Economic Regulation Authority or AEMO to do so.

2.44.3. The Economic Regulation Authority or AEMO, as applicable, must

promptly notify Market Participants of any suspension or lifting of a suspension.

2.44.4. During a suspension, the Economic Regulation Authority or AEMO,

as applicable, may give directions to Market Participants as to the operation of the market, and Market Participants must comply with those directions.