The AER is responsible for monitoring and enforcing compliance with the National Electricity Rules, including in relation to several guidelines associated with the Integrated System Plan (ISP), and in relation to the Regulatory Investment Test for transmission (RIT-T). The AER maintains and publishes a compliance issues register relating to compliance with these requirements by the Australian Energy Market Operator (AEMO) and by transmission businesses (for actionable ISP projects).
Further information on the ISP can be found on AEMO’s website.
Purpose
The purpose of the ISP and actionable RIT-Ts compliance issues register (the issues register) is to provide greater transparency regarding any compliance related matters and how these matters are resolved with AEMO and/or RIT–T proponents. It encourages regular engagement with AEMO and RIT‒T proponents, and complements a proactive approach to compliance monitoring.
The issues register does not aim to duplicate the economic or factual issues raised in the ISP or RIT-T consultation processes and how AEMO or RIT-T proponents have addressed those issues. Rather, its purpose is to monitor and report on compliance issues identified by stakeholders, RIT–T proponents, AEMO, or the AER, concerning the binding requirements of the ISP guidelines or the RIT-T.
Our approach
Stakeholders are encouraged to actively participate in the ISP and RIT-T consultation processes undertaken by AEMO and the RIT-T proponents. We believe that effective stakeholder engagement enhances the robustness of the consultation processes, thereby increasing confidence in the outcomes.
Nevertheless, stakeholders can raise compliance issues related to the ISP or RIT-T processes for actionable projects with the AER if they consider that AEMO and/or the RIT-T proponent is likely to or may potentially be in non-compliance with the binding requirements of the ISP guidelines, the RIT-T and/or the NER.
Once an issue is lodged with us, we will investigate the matter to identify whether AEMO or the relevant RIT-T proponent is non-compliant with any binding elements of the ISP guidelines, the RIT-T or the NER. It is important that stakeholders raise the matter with AEMO or the RIT-T proponent first, before lodging a compliance related matter with the AER, as the issue may be able to be resolved by doing so. If a compliance issue remains unresolved, we will raise it with AEMO or the RIT-T proponent as part of our investigation, encouraging them to address it as part of their respective consultation processes (where those processes have not yet been completed).
We will publish any compliance issues on the issues register, and may use other compliance or enforcement tools to ensure that AEMO or the RIT-T proponents complies with its obligations. We will also publish compliance issues on the register that we identify through the course of our compliance and monitoring activities for AEMO’s ISP and for the RIT-T conducted by the RIT-T proponent.
We intend to keep the issues register updated over the course of ISP consultation process, including before AEMO publishes its Inputs, Assumptions and Scenarios Reports (IASR), its draft ISP reports, and its final ISP reports. We may also update the issues register on an ad hoc basis as appropriate.
Lodging a compliance issue
Stakeholders can make submissions to the AER by sending an email to aerinquiry@aer.gov.au clearly identifying the following information:
- A brief description of the compliance issue, identifying the relevant consultation process i.e. ISP or the RIT-T for an actionable ISP project.
- Reference to the relevant requirement of the ISP guidelines, or of the RIT-T, which is alleged to have not been complied with by AEMO or the RIT-T proponent.
- Evidence of correspondence with AEMO or the RIT-T proponent demonstrating that the issue was raised with the relevant party and that it remains unresolved.
- Any other supporting information that may assist in AER’s investigation of the concerns raised.
Those wishing to submit confidential information are requested to clearly identify any information that may be part of a confidentiality claim, and to provide a non-confidential version of the submission.