AER completes transparency review of AEMO 2023 Inputs, Assumptions and Scenarios Report

The Australian Energy Regulator (AER) has conducted a transparency review of the Australian Energy Market Operator’s (AEMO) 2023 Inputs, Assumptions and Scenarios Report (IASR), used in their development of the 2024 Integrated System Plan (ISP).

Our transparency review assesses whether AEMO was adequately transparent in explaining how it derived its inputs and assumptions that go towards developing the ISP. Our review is centred on AEMO’s explanations and is not intended to assess the merits of AEMO decisions.

The AER’s report considers that the majority of AEMO's inputs and assumptions have been adequately explained and AEMO has demonstrated that it has considered stakeholder feedback. However, the report identifies some inputs and assumptions that should be explained to further support and strengthen stakeholder understanding of key inputs and assumptions in the 2024 ISP. AEMO must provide further explanation on these issues as an addendum to the IASR and consult on these issues in the draft 2024 ISP.

The National Electricity Rules requires the AER to finalise this review one month after AEMO published its 2023 IASR on 28 July 2023. Transparency in understanding AEMO’s approach is important to promote stakeholder understanding of the inputs and assumptions used in the ISP, and how they have contributed to its outcomes.

The next transparency review is required following the release of the draft 2024 ISP in December 2023.

Issued date: 
28 August 2023
AER reference: 
AC 85/23
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