AER consults on draft amendments to pricing methodology guidelines for system strength pricing

The Australian Energy Regulator (AER) is seeking feedback on draft amendments to our transmission pricing methodology guidelines to include how to price system strength services in the National Electricity Market (NEM).

System strength is a critical service that supports inverter-based resources such as wind and solar generation, and batteries, as they become a key part of the generation mix in the NEM.

Based on a rule change by the Australian Energy Market Commission in October last year, we have modified the guidelines to specify:

  • the permitted methodologies for determining the system strength unit price, and
  • the principles for forecasting system strength revenues.

The draft guidelines adopts a principles-based approach with regard to these new requirements and incorporate stakeholder feedback received through submissions to our consultation paper and through our online forum.

We are aiming to make the amendments to the pricing methodology guidelines by 31 August 2022. 

Invitation for submissions

We welcome submissions on the draft pricing methodology guidelines by Friday 15 July 2022. Written submissions can be sent via email to AERPricing@aer.gov.au or by mail addressed to:

Mr Warwick Anderson
General Manager
Australian Energy Regulator
GPO Box 3131
Canberra, ACT, 2601

We prefer that all submissions be publicly available to facilitate an informed and transparent consultative process. We will treat submissions as public documents unless otherwise requested. All non-confidential submissions will be placed on the AER's website. For further information regarding the AER's use and disclosure of information provided to it, see the ACCC/AER Information Policy.

We request parties wishing to submit confidential information:

  • clearly identify the information that is the subject of the confidentiality claim
  • provide a non-confidential version of the submission in a form suitable for publication.
Segment: 
Issued date: 
2 June 2022
AER reference: 
AC 92/22
Contact: 
General enquiries - Pricing, General enquiries - Pricing AERPricing@aer.gov.au