Our role in system planning compliance

Integrated System Plan

View AEMO's compliance reports and our transparency reviews of these reports.

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Regulatory Investment Test

Learn about our compliance role in RIT processes such as when there's a material change in circumstances.

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Integrated System Plan compliance

Every two years, the Australian Energy Market Operator (AEMO) publishes its Integrated System Plan (ISP). 

Throughout the preparation of the ISP, AEMO must ensure that its activities are compliant with the requirements of the National Electricity Rules (NER) as well as any binding requirements set out by our Cost Benefit Analysis (CBA) guidelines and Forecasting Best Practice (FBP) guidelines. 

Together these ensure AEMO develops the ISP appropriately, and reports transparently and consistently on:

  • their regular review of their ISP methodology
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  • where their information and data is sourced for forecasting
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  • how they came to their assumptions and scenarios used in their Inputs Assumptions and Scenarios Report (IASR)
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  • how they developed the ISP, including selection of the optimal development path
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  • consultation activities
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  • compliance with the CBA and FBP guidelines and the NER
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Our ISP transparency reports

We publish two transparency reports at specific milestones of the ISP cycle:

  • a transparency review of the Inputs Assumptions and Scenarios Report (IASR) as per the rule 5.22.9
     
  • a transparency review of the draft Integrated System Plan as per the rule 5.22.13.

Once AEMO has published an IASR and later, a draft ISP, we are required to undertake a transparency review. Our transparency review verifies whether the key inputs and assumptions are well explained, including the adequacy of sources they are based on, and how they have changed since the previous ISP. 

In the case of a draft ISP's release, our transparency report will also assess AEMO's explanation of how key inputs and assumptions contributed to ISP outcomes.

AEMO may release an addendum to better address the topics and sections of their reports that are identified by our transparency review. 

Link to view all transparency reports

AEMO's compliance reports

In accordance with the binding requirements in the FBP and CBA guidelines, AEMO must provide the AER with reports demonstrating their compliance with the FBP guidelines for the Electricity Statement of Opportunities (ESOO), IASR and ISP methodology, and a report demonstrating their compliance with the CBA guidelines for the ISP.

These reports allow AEMO to self-report how it has accounted for and addressed all the requirements of the guidelines, resolved any key issues for ISP processes, and provided an explanation for any breaches with respect to the CBA guidelines.

These reports must be provided within 20 business days of the relevant publication, and must identify where AEMO has:

  • complied with applicable requirements
  • had regard to applicable considerations
  • resolved key issues raised by the AER through the AER’s issues register.

In accordance with the CBA guidelines (section 2.1.2), to promote predictability, transparency and consistency, we may publish the ISP compliance report (or a non-confidential version, if applicable) on our website.

Link to view all ISP Compliance reports

Link to view all ESOO Compliance reports

Regulatory Investment Test compliance

We monitor compliance with the RIT-T to ensure the process has been applied correctly. 

Please note: We do not conduct the test, nor do we review the merits of RIT-Ts or identify needs, preferred options, routes or locations for projects. The responsibility for applying the RIT-T and identifying these choices falls on the RIT-T proponent. 

Our CBA guidelines require RIT-T proponents of actionable ISP projects to provide us with a compliance report within 20 business days of the release of the project’s Project Assessment Conclusions Report. Their compliance report must explain how they:

  • complied with the requirements and considerations of the NER and CBA guidelines
  • have resolved key issues raised by us in our issues register
  • identified and addressed breaches with the NER and CBA guidelines.

We may publish RIT-T compliance reports as per section 2.1.2 of the CBA guidelines.

These are published on the project pages for the actionable projects.

Link to all actionable RIT-T reports

Material change in circumstances

Following the publication of the final report for a RIT, if there has been any material change in circumstances (MCC), the RIT proponent must notify the AER in writing of the MCC. 

The National Electricity Rules sets this out in clause 5.16 for RIT-Ts and 5.17 for RIT-Ds. 

Specifically, the RIT proponent must set out the nature of the MCC, including why the initial preferred option identified by the conclusions report may no longer be the preferred option. 

The RIT proponent must also set out any actions the RIT proponent proposes to take and the timeframes for those actions, which may include reapplying the RIT to the project. 

Based on this information, the AER will make a determination whether to approve or reject the actions (and associated timeframes) notified by the RIT proponent. 

Following its analysis, the AER will specify the actions (if any) it requires the RIT proponent to take, including whether the RIT needs to be reapplied in whole or in part. 

The general process for a MCC is as follows:

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RIT proponent notifies the AER of the MCC

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AER considers proponent's recommended actions

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AER publishes determination and specifies actions (if any)

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Proponent completes actions (if any) within timeframes

Other RIT compliance related processes

The AER also occasionally makes decisions on other matters under the NER in relation to the RIT process. 

We may make decisions on time extensions to complete stages of the RIT, such as report publication deadlines. For example, we may decide to agree to an extension as per clause 5.16A.4 for actionable RIT-T projects, 5.16.4 for other RIT-T projects and 5.17.4 for RIT-D projects. 

We may make decisions on dispute resolution determinations for the application of the RIT.