AER invites submissions on guidance note providing clarity on Market Impact Component performance target setting

The AER invites stakeholders’ submissions on its draft guidance note that clarifies the data period to be used in setting the Market Impact Component (MIC) performance target under version 5 of the transmission service target performance incentive scheme (STPIS).

The STPIS provides a financial incentive to TNSPs to maintain and improve service performance. The MIC is a part of the STPIS, which provides an incentive to TNSPs to minimise the impact of planned transmission outages that can affect electricity wholesale market outcomes. 

While the STPIS is definitive about what the relevant data period for setting the MIC performance target of a Transmission Network Service Provider (TNSP) is, we acknowledge that the scheme instrument could be articulated more clearly.

This issue was brought to our attention in the regulatory proposal by Powerlink for the forthcoming 2022-27 regulatory control period. To address this issue, we intend to publish a Guidance Note to provide clarity to the matter.

This guidance note is intended as a supplement the STPIS scheme instrument, rather than a new appendix to the scheme instrument.

The guidance note covers:

  • context to the application of the Scheme to TNSPs and the framework in which it is applied (section 2)
  • the requirements of the Scheme with respect to calculation of the MIC performance target, including our expectations in this regard (section 3)
  • a worked example (section 4).

Invitation for submissions

We invite energy consumers, TNSPs and other interested parties to make submissions on this draft guidance note by close of business 24 December 2021.

Submissions should be emailed Attention: Warwick Anderson, General Manager, Network Pricing at AERInquiry@aer.gov.au.

Alternatively, written submissions can be sent 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.
Sector: 
Segment: 
Issued date: 
5 November 2021
AER reference: 
AC 171/21
Contact: 
AER General Inquiries AERInquiry@aer.gov.au