Submission to the AEMC Draft Rule on harmonising the national energy rules with the updated NEO

Publication date:
7 December 2023
Resource type:

PIAC made a submission to the Australian Energy Market Commission’s draft rule change on harmonising the national energy rules with the updated national energy objectives (NEO). The NEO has been updated to include emissions reductions as a class of market benefit, where previously emissions reductions could not be taken into account by energy planners or regulators.

PIAC supports the proposed rule changes, and particularly welcomes the moves to apply the changes to revenue determination processes currently under way.

We propose changes that aim to overcome the biases within the planning and regulatory systems that favour network options, such as poles and wires or gas pipelines, over non-network options, such as storage, demand response, demand side energy generation, or electrification. This is needed to ensure that energy investments, which are ultimately paid for by consumers, are efficient and prudent.

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