AEMO requests metering compliance rule change

The Australian Energy Market Commission (AEMC) has received a rule change request from the Australian Energy Market Operator (AEMO) to amend the National Electricity Rules (NER) to enhance the current metering compliance framework for high voltage (HV) distribution connection points.

In its summary of the proposal, AEMO laid out the key problem with the current rule, which is that Metering Coordinators (MCs) frequently cannot secure the customer cooperation or site shutdowns required to complete the inspections they are obliged to carry out. MCs are responsible for ensuring that HV metering installations are tested and inspected, and replaced when malfunctioning.

As a result of this issue, a significant number of HV-connected NMIs remain untested and uninspected, AEMO said, creating a risk of inaccuracy that can significantly distort market settlement outcomes given the scale of energy flows at these connection points. (This issue does not arise at transmission connection points, where the alignment of roles ensures compliance obligations can be achieved in practice.)

AEMO has recommended that accountability be shared for metering installation compliance, with the definition of “metering installation” clarified in the NER to explicitly mean a compliant and verified metering installation.

This means that the existing Financially Responsible Market Participant (FRMP) obligation to ensure a metering installation is in place at a connection point will be understood as an obligation to ensure a compliant and verified metering installation is in place. It will also make it clear that the FRMP must support the MC in achieving compliance, including where site access limitations would otherwise prevent the MC from fulfilling its obligations.

When an MC is unable to carry out its obligations under these provisions due to customer or site access limitations, the rule change will ensure the relevant FRMP facilitates access within a specified timeframe (for example, 60 business days from being notified by the MC or becoming aware of the issue).

Additionally, AEMO recommends that FRMPs with non-compliant metering installations at their connection points would bear a proportionally greater share of Unaccounted for Energy (UFE), ensuring that the financial consequences of non-compliance are borne by those responsible.

The organisation has proposed a further supporting measure to require Distribution Network Service Providers (DNSPs) to provide FRMPs and MCs with advance notice of planned outages, allowing compliance work to be scheduled during those shutdowns wherever practical.

AEMO said its proposed reforms aim to directly address the structural access barrier at distribution HV connection points, strengthen incentives for timely compliance, improve the fairness and accuracy of UFE allocation, and provide practical tools to achieve these aims.

When the AEMC initiates the process for this rule change, it will publish a Consultation Paper to facilitate stakeholder consultation on the request.

AEMO’s proposal can be read here.

Image credit: iStock.com/Sarah Richardson